Weekly Newsletters

16 July 2021 | William Buckhurst

That was The Week That Was

MACRO

  • In the UK, inflation (CPI) came in at 2.5% in June from a year earlier, much higher than expected
  • In the US, CPI rose 5.4%, meaning inflation remains at its highest annual rate in 13 years. Economists surveyed by the Wall Street Journal had been forecasting a 5% rise
  • The NY Fed’s Empire State Manufacturing Survey rose sharply to 43 from 17.4
  • Bond markets remained unfazed with the UK 10 year at 0.63% and US 10 year at 1.31%, the lowest in over four months

STATISTIC OF THE WEEK

The Resolution Foundation – which focuses on improving living standards in the UK for those on low and middle incomes – issued a report this week highlighting the extraordinary extent to which personal finances improved during the pandemic. The average household has enjoyed a windfall of £7,800 per adult during the crisis – the first-time wealth has increased during a recession since the mid-1940s.

COMPANY NEWS

  • JP Morgan reported headline numbers way ahead of expectations as reserves (money set aside for forecast loan losses) fell – particularly when compared to this quarter last year; but the market reacted slightly negatively to the fall in trading revenue
  • Pepsi closed up on the week after reporting better than expected second quarter results with net revenue rising 21% y/y to $19.22bn. The company increased its full year guidance, forecasting 6% organic revenue growth
  • Experian highlighted the quality and resilience of its business model as it raised its annual guidance with total revenue growth of 31% and all regions and segments delivering growth during its first quarter

FUNDS

HydrogenOne Capital Growth PLC is being launched on the London Stock Exchange to raise up to £300m to invest in both quoted and unquoted blue and green hydrogen opportunities. Ineos are the cornerstone investors with £25m.  Clean hydrogen can help overcome the intermittency of renewables by converting power to a storable, usable gas to replace hydrocarbons, reduce greenhouse gas emissions and improve air quality. All of this enables the world to deliver on its climate change mitigation ambitions.

THIS WEEK IN HISTORY

1836: The US government curbs land speculation by forcing federal land agents to only accept gold and silver as payment. The order, now known as the “Specie Circular” was done via an executive order issued by Andrew Jackson

1985: Coca-Cola announces that it will revert back to its old recipe after introducing new coke 79 days before.  The move is widely considered one of the largest marketing blunders of all time

RE-OPENING TIMES

Much of America’s inflation in June came from a surprisingly small part of the economy: the market for used cars. Second-hand cars have risen by 45% over the last twelve months. In the UK, Robert Forrester, CEO of Britain’s fifth biggest dealership, Vertu Motors, remarked that the Ford Fiesta he had bought for his 17-year old daughter has risen by £1,200 over the last two months alone

MARKET DATA

% returns

1 Week

1 Month

1 Year

5 Years

UK Equities (% return GBP)

-1.44

-1.99

15.89

24.51

World Equities (% return GBP)

-0.53

2.99

22.59

86.85

10 Year US Treasury Yield (%)

1.31

1.64

0.66

1.60

GBP / USD (fx rate)

1.38

1.40

1.31

1.33

 As at 16th July 2021. Source: Financial Express

 Download the PDF here

 

 

 

This publication has been produced by Vermeer Investment Management Limited (VIM) trading as Vermeer Partners. It is provided for information purposes only. VIM makes no express or implied warranties and expressly disclaims all warranties of merchantability or fitness for a particular purpose or use with respect to any data included in this publication. VIM will not treat unauthorised recipients of this publication as its clients. Prices shown are indicative and VIM is not offering to buy or sell or soliciting offers to buy or sell any financial instrument. Without limiting any of the foregoing and to the extent permitted by law, in no event shall VIM, nor any of its officers, directors, partners, or employees, have any liability for (a) any special, punitive, indirect, or consequential damages; or (b) any lost profits, lost revenue, loss of anticipated savings or loss of opportunity or other financial loss, even if notified of the possibility of such damages, arising from any use of this publication or its contents. Other than disclosures relating to VIM, the information contained in this publication has been obtained from sources that VIM believes to be reliable, but VIM does not represent or warrant that it is accurate or complete. VIM is not responsible for, and makes no warranties whatsoever as to, the content of any third-party website referred to herein or accessed via a hyperlink in this publication and such information is not incorporated by reference. The views in this publication are those of the author(s) and are subject to change. VIM has no obligation to update its opinions or the information in this publication. This publication does not constitute personal investment advice or take into account the individual financial circumstances or objectives of the client who receives it. Any securities discussed herein may not be suitable for all investors. VIM recommends that investors independently evaluate each issuer, security or instrument discussed herein and consult any independent advisors they believe necessary. The value of and income from any investment may fluctuate from day to day as a result of changes in relevant economic markets (including changes in market liquidity). The information herein is not intended to predict actual results, which may differ substantially from those reflected. Past performance is not necessarily indicative of future results. This material has been issued and approved for distribution in the UK by VIM.

 

©2021 Vermeer Investment Management Limited. All rights reserved. No part of this publication may be reproduced or redistributed in any manner without the prior written permission of VIM. VIM is authorised and regulated by the Financial Conduct Authority (FRN: 710280) and is incorporated in England and Wales (company number: 09081916).

Other Recent Weekly Newsletters
That Was The Week That Was

26 November 2021

That Was The Week That Was

19 November 2021

That Was the Week That Was

12 November 2021

That Was The Week That Was

05 November 2021

That Was The Week That Was

29 October 2021

That Was The Week That Was

22 October 2021

That Was The Week That Was

15 October 2021

That Was The Week That Was

08 October 2021

That Was The Week That Was

01 October 2021

That Was The Week That Was

24 September 2021

That Was The Week That Was

17 September 2021

That Was The Week That Was

10 September 2021

That Was The Week That Was

03 September 2021

That Was The Week That Was

27 August 2021

That Was The Week That Was

20 August 2021

That Was The Week That Was

06 August 2021

That Was The Week That Was

30 July 2021

That Was The Week That Was

23 July 2021

That was The Week That Was

16 July 2021

That Was The Week That Was

09 July 2021

That Was The Week That Was

02 July 2021

That Was The Week That Was

25 June 2021

That Was The Week That Was

18 June 2021

That Was The Week That Was

11 June 2021

That Was The Week That Was

04 June 2021

That Was The Week That Was

28 May 2021

That Was The Week That Was

21 May 2021

That Was The Week That Was

14 May 2021

That Was The Week That Was

07 May 2021

That Was The Week That Was

30 April 2021

That Was The Week That Was

23 April 2021

That Was The Week That Was

16 April 2021

That Was The Week That Was

09 April 2021

That Was The Week That Was

02 April 2021

That Was The Week That Was

26 March 2021

That Was The Week That Was

19 March 2021

That Was The Week That Was

12 March 2021

That Was The Week That Was

05 March 2021

That Was The Week That Was

26 February 2021

That Was The Week That Was

19 February 2021

That Was The Week That Was

12 February 2021

That Was The Week That Was

05 February 2021

That Was The Week That Was

29 January 2021

That Was The Week That Was

22 January 2021

That Was The Week That Was

15 January 2021

That Was The Week That Was

08 January 2021

That Was The Week That Was

18 December 2020

That Was The Week That Was

11 December 2020

That Was The Week That Was

04 December 2020

That Was The Week That Was

27 November 2020

That Was The Week That Was

20 November 2020

That Was The Week That Was

13 November 2020

That Was The Week That Was

06 November 2020

That Was The Week That Was

30 October 2020

That Was The Week That Was

23 October 2020

That Was The Week That Was

16 October 2020

That Was The Week That Was

09 October 2020

That Was The Week That Was

02 October 2020

That Was The Week That Was

25 September 2020

That Was The Week That Was

18 September 2020

That Was The Week That Was

11 September 2020

That Was The Week That Was

04 September 2020

That Was The Week That Was

28 August 2020

That Was The Week That Was

21 August 2020

That Was The Week That Was

14 August 2020

That Was The Week That Was

07 August 2020

That Was The Week That Was

31 July 2020

That Was The Week That Was

24 July 2020

That Was The Week That Was

17 July 2020

That Was The Week That Was

10 July 2020

That Was The Week That Was

03 July 2020

That Was The Week That Was

26 June 2020

That Was The Week That Was

19 June 2020

That Was The Week That Was

12 June 2020

That Was The Week That Was

05 June 2020

That Was The Week That Was

29 May 2020

That Was The Week That Was

22 May 2020

That Was The Week That Was

15 May 2020

That Was The Week That Was

08 May 2020

That Was The Week That Was

01 May 2020

Back to News & Insights

Terms & Conditions

The information and services described on this website are not intended to be used by, or to be available to, persons accessing the website from outside the United Kingdom.

The value of investments and the income derived from them may go down as well as up and you may not receive back all the money which you invest.

The investments and investment services described or recommended on this website may not be suitable for all people.

Any information relating to past performance of an investment or investment service is not a reliable indicator of future performance.

No tax advice is provided and clients will need to seek advice from their independent tax advisor.

Fluctuations in the rate of exchange may have an adverse effect on the value, price or income of non-sterling denominated investments.

Vermeer Investment Management Limited, its associates, employees and/or clients may own or have a position in securities referred to on this website or may have provided advice or investment services in relation to any such security.

The Website is for information purposes only. Information contained on it is not intended to be an offer to buy or sell securities and this website should not be regarded as an offer or solicitation to conduct investment business as defined in section 21 of the UK Financial Services and Markets Act 2000 (FSMA).

Nothing on this website is intended to exclude or restrict any duty or liability which Vermeer Investment Management Limited may have under the FSMA (or any subsequent amending or replacement legislation) or the rules and regulations for the conduct of business made thereunder.

For the purposes of FSMA this website has been approved by Vermeer Investment Management Limited, which is authorized & regulated by the Financial Conduct Authority.

Please read our Privacy Policy. By clicking ‘accept’ you agree to be bound by the terms of this notice.

Accept