Weekly Newsletters
03 September 2021 | William Buckhurst
That Was The Week That Was
MACRO
- In the US, a weak payrolls report showing just 235,000 jobs created last month compared to 1.1m in July
- The US consumer confidence reading came in at a six-month low and follows the poor University of Michigan readings from several weeks ago, which came in at its lowest level since 2011
- ECB hawks sprang into action as Holzmann (Austria), Knot (Netherlands) and Weidmann (Germany) all highlighted upside risks to inflation and called for an end to the ECB’s Pandemic Emergency Purchase Programme (PEPP) and a halt to further monetary easing
THE POLITICAL WEEK
This week saw the abrupt resignation of Japan’s prime minister, Yoshihide Suga. Taro Kono and Fumio Kishida, two former foreign ministers, have emerged as the leading contenders, with the former expected to usher in a new group of younger political leaders who have been shut out of senior cabinet posts and the latter seen as the continuity candidate
COMPANY NEWS
- Melrose released H1 results well ahead of expectations with the GKN UK pension commitment ahead of plan and a further capital return planned for March next year
FUNDS
A substantial £236m property portfolio deal was announced on Tuesday morning with Regional REIT buying more offices outside the M25. With this particular portfolio 22% vacant, combined with the asset management track record of Stephen Inglis and Simon Marriott, we would expect some near-term upside. Financed with a combination of debt, cash on their balance sheet, and new shares this looks to be an attractive deal for all parties
SMALL-CAP NEWS
An AIM oil and gas producer buying wind turbines? In a positive update on drilling for oil in the Dutch North Sea (3,200 barrels of oil per day - more than they thought they would) Andrew Austin, CEO, also announced Kistos had signed an agreement with Infinergy and Windcollectief Noord-Holland to enter into exclusive negotiations to acquire Windpark Ferrum - three wind turbines on the TATA-owned site in IJmuiden
THIS WEEK IN HISTORY
- 1976: Vanguard introduces the first retail index mutual fund, the “Vanguard First Index Investment Trust” which tracked the S&P 500. The fund was started with $11.3m in assets. Today the fund manages $770bn!
1998: The Dow Jones Industrial Average falls 512 points, or 6.4%, in one day due to worries of economic weakness in Russia, Latin America and Asia. US markets are down 19% in just the past month and a half
RE-OPENING TIMES
In Europe, infections and hospitalisations seem to have hit a plateau, with the EU commission announcing 70% of the adult population now vaccinated. However, there remains fragmentation among member states, with France, Spain and Germany having comfortably vaccinated most of their adult populations, while eastern countries such as Bulgaria and Romania linger on only 20% and 32%, respectively
MARKET DATA
|
% returns |
1 Week |
1 Month |
1 Year |
5 Years |
|
UK Equities (% return GBP) |
0.38 |
1.52 |
26.96 |
23.32 |
|
World Equities (% return GBP) |
0.28 |
2.89 |
27.40 |
96.85 |
|
10 Year US Treasury Yield (%) |
1.33 |
1.19 |
0.63 |
1.60 |
|
GBP / USD (fx rate) |
1.39 |
1.39 |
1.33 |
1.33 |
As at 3rd September 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