Weekly Newsletters

19 August 2022 | William Buckhurst

That Was The Week That Was

MACRO

  • UK annual inflation hit double figures (10.1%) in July with food costs pushing prices up by their fastest rate for more than 40 years. It is expected to reach 13% by October
  • The UK two-year gilt yield hit its highest level since 2008 and continues to offer a higher yield than the ten-year
  • A slightly more dovish tone from the Federal Reserve’s FOMC minutes for its July meeting as they concede that “it likely would become appropriate at some point to slow the pace of policy rate increases”

 

COMPANY NEWS

  • Walt Disney shares closed the week higher after it was reported that activist investor Dan Loeb’s Third Point had taken a stake in the company
  • Persimmon results were broadly in line as rising house prices offset build cost inflation and lower completions
  • Power products and manufacturing services provider Volex said in a trading update that its first-quarter performance was “strong”, in line with management expectations and re-iterated its new, five-year growth plan

 

SMALL CAP NEWS

One element investors have focused on post-pandemic is the “reopening trade” whether that be consumers heading out or other elements of life heading back to a new-normal. Cinemas were supposed to benefit from the likes of No Time To Die but sadly one firm, Cineworld is heading in exactly that direction. After buying US giant, Regal for $3.6bn and then Canada’s Cineplex two years later in 2020 for $2.1bn things were looking promising but now the equity is valued at £55m and with $5bn of debt a restructuring is in order

 

THIS WEEK IN HISTORY

1945: Global stock markets close to mark the end of the Second World War

1971: In response to annual inflation of nearly 6%, President Nixon announces a 90-day freeze on wages, prices, and rents. But by 1975 inflation is running at over 11%

 

IN OTHER NEWS

Although consumer sentiment surveys (which can be fickle) show extreme pessimism, the results this week from leading US retailers would suggest otherwise. Walmart beat (admittedly lowered) guidance as about three quarters of its market share gain in the grocery segment came from customers with annual household incomes of $100,000 or more. Meanwhile Home Depot enjoyed its best quarterly sales and earnings on record, saying that consumers were spending on home improvements despite high inflation and mortgage rates

 

MARKET DATA

% returns

1 Week

1 Month

1 Year

5 Years

UK Equities (% return)

0.42

3.09

1.56

3.21

World Equities (% return)

0.06

5.96

-4.90

52.17

10 Year US Treasury Yield (%)

2.96

2.93

1.31

2.27

GBP / USD (fx rate)

1.18

1.19

1.39

1.29

 

As at 19th August 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