Weekly Newsletters
11 March 2022 | William Buckhurst
That Was The Week That Was
MACRO
- The price of Brent crude, which was up 20% the week ending 4th March, actually fell by 4.6% this week having peaked at $139.13 on Monday
- Trading in Nickel, mostly used in electric-vehicle batteries and stainless steel, remained suspended in London as China’s Tsingshan tries to deal with $8bn of futures losses. Nickel prices typically only move a couple of percent a day, but at the start of the week they rose 66%. This was described as a 5-sigma event – something that happens every 10,000 years
- Most consumer-facing brands including McDonalds, Burberry, Pepsi and Coca Cola said they would pull out of Russia, while others such as Reckitt Benckiser and Danone said they would continue trading but cease advertising and stop new investment
A WEEK IN FUNDS
One of the hardest hit Real Estate Investment Trusts during the Covid-19 pandemic, Secure Income REIT, released excellent results this week. Net asset value was boosted by some meaningful upgrades and, with a restructuring of the Merlin debt (of Alton Towers fame), the dividend is due to be increased by 15% in the summer. Things are looking up for holders and the management team of Nick Leslau, Sandy Gumm and Mike Brown alike
COMPANY NEWS
- IWG shares recovered somewhat after announcing it had merged with a digital assets group to create a new workspace platform in a £270m investment, after it more than halved its operating losses last year
- Shell apologised after it bought a cargo of Russian crude oil from Swiss trader Trafigura at a record low of dated Brent minus $28.50 a barrel
- Industrial equipment group Ashtead beat market expectations for its third quarter, with revenue up 23%, and rentals booming 25%
- Amazon shares finished higher this week after announcing its first share split in more than two decades along with a new $10bn share buyback programme
SMALL-CAP NEWS
On the back of announcing a “cyber-attack of Russian origin” at the end of February, the kettle specialists Strix, reported on the significant milestones achieved in recent months. They kept them on track to meet the key objectives set in our five-year plan in October, as well as maintaining their sustainability strategy and target to double the Group's sales over a five-year period. Exciting times ahead!
THIS WEEK IN HISTORY
- 1933: President Roosevelt orders that all banks across the country be closed
- 2003: Stock markets bottomed, with the FTSE hitting 3,283, just before allied troops went into Iraq
IN OTHER NEWS
The possible takeover bid for Pearson by Apollo could spell the end of a long history of failed diversification. Over the last century and a half, the conglomerate founded by Samuel Pearson in 1844 has owned, amongst others, part of Lazard, the Financial Times, the Investors Chronicle, Penguin Books, Madame Tussauds, Chateau Latour, and Royal Doulton Pottery. The 20% spike in the share price this week will have been particularly painful for long-term investors Lindsell Train, who started reducing their position late last year
MARKET DATA
|
% returns |
1 Week |
1 Month |
1 Year |
5 Years |
|
UK Equities (% return GBP) |
2.40 |
-6.94 |
5.58 |
15.34 |
|
World Equities (% return GBP) |
-1.82 |
-3.96 |
4.14 |
55.80 |
|
10 Year US Treasury Yield (%) |
2.00 |
1.99 |
1.62 |
2.47 |
|
GBP / USD (fx rate) |
1.36 |
1.38 |
1.40 |
1.22 |
As at 11th March 2022. Source: Financial Express
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