Weekly Newsletters
01 October 2021 | William Buckhurst
That Was The Week That Was
MACRO
- In the US, we saw higher bond yields, a stronger US dollar and a mini sell-off experienced by growth stocks
- Annual inflation in Germany rose to a 29-year high of 4.1%
- Vietnam loosened its strict lockdown measures in Ho Chi Minh City after a record 6.2% quarterly drop in GDP
STATISTIC OF THE WEEK
For the past decade Q4 has traditionally been the strongest quarter for Chinese stock markets. Within that quarter, October has been the best month, rising a mean 3.6% since 2011. Indeed, Chinese equities have finished October in the black 80% of the time over the ten-year period
COMPANY NEWS
- Terry Leahy and the private equity firm Clayton Dubilier and Rice emerge victorious in the three-month long bidding war for Morrisons
- AO World shares fell as they revealed that driver shortages and supply chain disruptions had hurt revenues
- Diageo said the current year started well with North America performing strongly despite supply chain problems and Europe recovering ahead of expectations after the lifting of Covid restrictions
- At the ASML capital markets day, the company stated that it expected annual revenue of €24-€30bn by 2025, up from its prior expectations of €15-€24bn with gross margins expected to reach 54-56% over the same period. Management commented that they continued to expect to return significant cash to shareholders via growing dividends and share buybacks
SMALL-CAP NEWS
Like the rest of the market the latest results are really under pressure as some Covid beneficiaries no longer have the wind in their sails. This was in clear focus as Boohoo, the online retailer, announced that their revenues had grown by 20%. This was 10% lower than the 30% the analysts were expecting, and the shares dropped heavily during the day. In the same vein, Avacta, the company that become synonymous with Covid testing, has seen its shares halve from their highs but still showed good underlying progress across its businesses. The diagnostics business has validated its fast and accurate AffiDx lateral flow test and product has now been shipped. AffiDx has also been shown to detect several variants with specific advantages. The therapeutics business has progressed AVA6000 into clinical trials and the AffyXell joint venture with Daewoong Pharmaceuticals has raised $7.3m in a Series A venture round.
THIS WEEK IN HISTORY
1960: City commuters’ “favourite” The Drain is completed and starts transporting early risers from Waterloo to Bank
2008: $5bn in assets is withdrawn from Wachovia Bank in one day before it is seized by the US government and sold to Wells Fargo
RE-OPENING TIMES
Prices of peas in Canada have more than doubled as the world’s largest producer suffered sharp declines in production after the worst drought in a century. Alongside Canada, Europe has suffered from low yields and in France, another large pea-producing country, the crop has been severely damaged by wet weather during the harvest leading to rising costs for plant-based meat producers here and across the pond
MARKET DATA
|
% returns |
1 Week |
1 Month |
1 Year |
5 Years |
|
UK Equities (% return GBP) |
0.85 |
-0.36 |
25.48 |
22.22 |
|
World Equities (% return GBP) |
-1.66 |
-2.28 |
22.80 |
88.32 |
|
10 Year US Treasury Yield (%) |
1.46 |
1.31 |
0.68 |
1.63 |
|
GBP / USD (fx rate) |
1.35 |
1.38 |
1.29 |
1.30 |
As at 1st October 2021. Source: Financial Express
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