Weekly Newsletters

08 July 2022 | William Buckhurst

That Was The Week That Was

MACRO

  • A much stronger than expected US jobs report dampened fears of recession and fuelled expectations of more aggressive interest rate rises from the Federal Reserve
  • Non-farm payrolls grew by 372,000 in June, leaving the unemployment rate at a historically low level of 3.6%, just short of its pre-pandemic position
  • US Factory Orders in May increased 1.6% vs 0.5% expected with the prior period also revised higher
  • The UK government was left in disarray after an unprecedented number of ministerial resignations left Boris Johnson with no choice but to announce his resignation
  • Our deepest sympathies go the family of former Prime Minister of Japan, Shinzo Abe, following his tragic shooting on Friday

COMPANY NEWS

  • Persimmon’s trading update showed planning delays and labour shortages resulting in slightly lower forward guidance
  • Meanwhile, rival UK housebuilder Vistry showed strong demand across all areas of its business and forecast profits at the top end of market expectations
  • It was reported that Merck was nearing an agreement to purchase cancer focused biotech firm Seagen for around $40bn
  • Legal & General released an upbeat trading statement showing strong solvency and double-digit growth in cash and capital generation over the first half of 2022

SMALL CAP NEWS

Following results from Kingspan there were worries about activity in the construction space, but Michelmersh (the brick specialist) stated that, based on current trading and its forward orderbook, it remains on track to meet full year expectations. Trading has continued to be positive in Q2 with H1 revenue of at least £33m expected (+10% YoY). To protect margins in an inflationary backdrop, the group has maintained appropriate pricing including the introduction of a price increase at the start of July

THIS WEEK IN HISTORY

1889: The first issue of the Wall Street Journal edited by Charles Dow. Edward Davis Jones managed the deskwork

1995: Following the monetary tightening cycle that started in 1994 (which saw the Federal Reserve double interest rates to 6% in seven rapid-fire hikes – including one 75bps and two 50bps moves), Chairman, Alan Greenspan, announces that inflationary pressures have receded enough to warrant a rate cut

IN OTHER NEWS

The Grapevine © let us know that European Fintech darling and leader within the ‘Buy Now, Pay Later’ space, Klarna, is reportedly raising more money at a $6.5bn valuation (about 1/7th of its last valuation in June 2021). It could be worse though: there are rumours that crypto lender BlockFi could be sold for as little as $25m to FTX (a 99% drop in valuation)

MARKET DATA

% returns

1 Week

1 Month

1 Year

5 Years

UK Equities (% return)

0.54

-5.53

-1.45

-1.48

World Equities (% return)

1.92

-5.44

-10.26

40.04

10 Year US Treasury Yield (%)

3.01

2.98

1.30

2.39

GBP / USD (fx rate)

1.20

1.25

1.39

1.29

 As at 8th July 2022. 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. ©2022 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

25 November 2022

That Was The week That Was

18 November 2022

That Was The Week That Was

11 November 2022

That Was The Week That Was

04 November 2022

That Was The Week That Was

28 October 2022

That Was The Week That Was

21 October 2022

That Was The Week That Was

14 October 2022

That Was The Week That Was

07 October 2022

That Was The Week That Was

30 September 2022

That Was The Week That Was

23 September 2022

That Was The Week That Was

16 September 2022

That Was The Week That Was

09 September 2022

That Was The Week That Was

02 September 2022

That Was The Week That Was

26 August 2022

That Was The Week That Was

19 August 2022

That Was The Week That Was

05 August 2022

That Was The Week That Was

29 July 2022

That Was The Week That Was

22 July 2022

That Was The Week That Was

15 July 2022

That Was The Week That Was

08 July 2022

That Was The Week That Was

01 July 2022

That Was The Week That Was

24 June 2022

That Was The Week That Was

17 June 2022

That Was The Week That Was

10 June 2022

That Was The Week That Was

03 June 2022

That Was The Week That Was

27 May 2022

That Was The Week That Was

13 May 2022

That Was The Week That Was

06 May 2022

That Was The Week That Was

29 April 2022

That Was The Week That Was

22 April 2022

That Was The Week That Was

15 April 2022

That Was The Week That Was

08 April 2022

That Was The Week That Was

01 April 2022

That Was The Week That Was

25 March 2022

That Was The Week That Was

18 March 2022

That Was The Week That Was

11 March 2022

That Was The Week That Was

03 March 2022

That Was The Week That Was

25 February 2022

That Was The Week That Was

18 February 2022

That Was The Week That Was

11 February 2022

That Was The week That Was

04 February 2022

That Was The Week That Was

28 January 2022

That Was The Week That Was

21 January 2022

That Was The Week That Was

14 January 2022

That Was The Week That Was

07 January 2022

That Was The Week That Was

17 December 2021

That Was The Week That Was

10 December 2021

That Was The Week That Was

03 December 2021

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

Back to News & Insights

Terms & Conditions

The information and services described on this website are not intended to be used by, or to be available to, persons accessing the website from outside the United Kingdom.

The value of investments and the income derived from them may go down as well as up and you may not receive back all the money which you invest.

The investments and investment services described or recommended on this website may not be suitable for all people.

Any information relating to past performance of an investment or investment service is not a reliable indicator of future performance.

No tax advice is provided and clients will need to seek advice from their independent tax advisor.

Fluctuations in the rate of exchange may have an adverse effect on the value, price or income of non-sterling denominated investments.

Vermeer Investment Management Limited, its associates, employees and/or clients may own or have a position in securities referred to on this website or may have provided advice or investment services in relation to any such security.

The Website is for information purposes only. Information contained on it is not intended to be an offer to buy or sell securities and this website should not be regarded as an offer or solicitation to conduct investment business as defined in section 21 of the UK Financial Services and Markets Act 2000 (FSMA).

Nothing on this website is intended to exclude or restrict any duty or liability which Vermeer Investment Management Limited may have under the FSMA (or any subsequent amending or replacement legislation) or the rules and regulations for the conduct of business made thereunder.

For the purposes of FSMA this website has been approved by Vermeer Investment Management Limited, which is authorized & regulated by the Financial Conduct Authority.

Please read our Privacy Policy. By clicking ‘accept’ you agree to be bound by the terms of this notice.

Accept