News & Insight • Weekly Newsletters

15 July 2022 | William Buckhurst

That Was The Week That Was

MACRO

• The US inflation print came in higher than expected again, at 9.1%
• Official GDP data from China showed that the world’s second largest economy only expanded by 0.4% year on year in the second quarter, down from 4.8% in the first quarter
• Canada surprised markets with a 100bps interest rate rise
• The Euro briefly went through parity with the US dollar

COMPANY NEWS

• JP Morgan Chase reported second quarter earnings and missed estimates for both revenue and profits
• Aston Martin reminded us of the dangers of a weak balance sheet as it launched a new equity raise of £653m
• Pepsi beat estimates but said that the 12% rise in prices would not meet the inflation rate it was experiencing and that it may need to raise prices further

SMALL CAP NEWS

You don’t want to be in focus at the moment and sadly Fever-tree were front stage on Friday as the share fell around 25% on margin weakness. Unfortunately, a number of elements were out of their control with higher commodity costs (glass manufacture), delays to the US bottling plant (labour market issues) and then shipping costs as they move product by boat from the UK to the US to cover the demand. The shares still look expensive following the fall, but we look forward to seeing the company live up to the underlying growth in the business

THIS WEEK IN HISTORY

1932: The market bottom of the Great Depression with the Dow Jones closing at 41.22, erasing 36 years of stock market gains

1998: The IMF bails out Russia with $22.6bn in new loans

IN OTHER NEWS

Bernie Ecclestone, the former Formula 1 tycoon, has been charged with fraud following an investigation by the UK tax authorities. Ecclestone, 91, faces charges over an alleged failure to declare to HM Revenue & Customs overseas assets worth more than £400m. He is due before Westminster magistrates’ court on August 22 for his first appearance in the case. Life in the fast lane?

MARKET DATA

 As at 15^th July 2022. Source: Financial Express

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