News & Insight • Weekly Newsletters
07 January 2022 | William Buckhurst
That Was The Week That Was
MACRO
- Bond yields steepened and growth stocks sold-off as the Fed warns faster rate rises may be needed to tame inflation
- In the US, the payrolls number showed fewer jobs created in December than expected, although October and November’s were revised higher
- German inflation figures showed an annual rise of 5.7% in December and energy prices 18.3% higher
- In the UK, new data showed that household borrowing in November rose for the first time since the start of the pandemic
THE POLITICAL WEEK
On the 1-year anniversary of the Capitol insurrection, President Biden denounced former President Trump and his allies in forceful terms, saying they held a “dagger at the throat of democracy.” Congress hosted a number of remembrance events throughout the day
COMPANY NEWS
- Shares in Alibaba finished higher this week following news that the Daily Journal, a newspaper and software business that is chaired by Berkshire Hathaway’s Charlie Munger, had nearly doubled its holding in the company
- Kantar data showed that Tesco outperformed its major rivals during the key Christmas period, achieving its highest grocery market share since January 2018
- Royal Dutch Shell said that it would continue to distribute the remaining $5.5bn proceeds from its Permian asset divestment through share buybacks “at pace"
IN OTHER NEWS
Bitcoin processing activity plunged after Kazakhstan’s largest telecommunications company shut off internet access. Violent protests against the government in Kazakhstan this week led to intermittent internet shutdowns. The lack of connectivity disrupted huge cryptocurrency mining operations in the country, which has become one of the world’s largest hubs for this activity. The disruption comes as crypto prices start the year under pressure, with Bitcoin down more than 10% since the start of the year
SMALL-CAP NEWS
Vin Murria, a CEO with an enviable track record, finally showed her hand this week with her cash shell, AdvancedAdvT Limited (ADVT) approaching M&C Saatchi (SAA) regarding a possible offer and/or a merger. ADVT raised £130m in March 2021 with a strategy to seek mid cap acquisition opportunities in the software sector and market was informed it took a 9.82% stake in SAA
THIS WEEK IN HISTORY
1974: The UK embarks on a three-day working week to conserve electricity in response to miners’ strikes
2000: Yahoo shares reach an all-time high of $500 at a point where they had sales of just $61m for a £121bn market cap
RE-OPENING TIMES
As Omicron continues to hamper air travel demand, Lufthansa said it would fly an extra 18,000 “unnecessary” flights (flights that are nearly empty) this winter in order to hold onto airport slots under EU regulations. Both airlines and environmental campaigners are urging the EU to stop these polluting and financially draining phantom flights
MARKET DATA
|
% returns |
1 Week |
1 Month |
1 Year |
5 Years |
|
UK Equities (% return GBP) |
1.11 |
1.84 |
13.97 |
23.46 |
|
World Equities (% return GBP) |
-1.32 |
-2.05 |
18.73 |
82.19 |
|
10 Year US Treasury Yield (%) |
1.77 |
1.48 |
1.08 |
2.42 |
|
GBP / USD (fx rate) |
1.36 |
1.33 |
1.36 |
1.23 |
As at 7th January 2022. Source: Financial Express
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