News & Insight • Weekly Newsletters

27 May 2022 | William Buckhurst

That Was The Week That Was

MACRO

• Some relief to markets as the US PCE inflation index rose at a pace of 4.9% YoY in April, in line with expectations
• UK Chancellor, Rishi Sunak, finally announces the windfall tax on oil and gas companies
• US stocks snap a seven-week losing streak this week, as investors bet that softening economic data will be enough to slow the Federal Reserve’s tightening of monetary policy

COMPANY NEWS

• Nvidia reports another record quarter of sales notching a 46% year-over-year growth rate to haul in $8.29bn in its first quarter but lowers revenue forecasts including an estimated reduction of about $500m relating to Russia and the COVID lockdowns in China
• Vistry announces a £35m share buyback
• The chip manufacturer Broadcom announced a US$61bn takeover of data centre provider VMware. The deal is the second largest announced so far this year and one of the largest this decade in the sector

SMALL CAP NEWS

The £482m takeover of Randall & Quilter imploded amid a backlash from the insurer’s shareholders and a U-turn by the US investment group, Brickell, that had wanted to buy the company.  Brickell was also pledging to provide $100m of equity funding to plug a capital shortfall in R&Q’s finances. The insurer will now attempt an alternative fundraising to fill the hole

VERMEER PODCAST – The Art of Investment

In this next episode, Paul talks to Laura Foll who is widely regarded as one of the best stock pickers in the UK. She manages the Henderson Opportunities Trust, the Lowland Investment Company, the Law Debenture Trust and the Janus Henderson UK Equity Income and Growth Fund. They talk about her route into the industry, what she enjoys most about her job, the key attributes she looks for when making new investments, the oil majors' role in the energy transition and the one investment rule we should never forget

THIS WEEK IN HISTORY

1940: Nazi Germany’s army advances rapidly towards Paris after allied forces fail to repel attacks by the Germans. The news causes a strong sell-off on Wall Street as stocks fall more than 6.5% on the day

1991: Salomon Brothers trader Paul Mozer attempts to corner the US Treasury market, illegally placing orders and buying 90% of the bills in the auction. The result would lead to a massive crisis at Salomon, turning Warren Buffett into its temporary chairman and nearly bringing down the bank

IN OTHER NEWS

Following a growing trend, Justin Timberlake has sold his song catalogue to a Blackstone backed fund for a sum rumoured to be around US$100m

MARKET DATA

 As at 27^th May 2022. Source: Financial Express

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