News & Insight • Weekly Newsletters

16 September 2022 | William Buckhurst

That Was The Week That Was

MACRO

• UK retail sales start to plummet with a 1.6% contraction from July to August, far more than the 0.5% fall that was forecast
• Sterling briefly dropped below $1.14 vs the US dollar
• US mortgage rates topped 6% this week
• China issued tens of billions in “emergency loans” to debt-ridden nations, becoming a funding alternative to the IMF

COMPANY NEWS

• Fevertree reassured investors with in-line results as strong demand in Europe and America helped offset higher costs
• Ocado saw a steep fall in its share price after warning of customers trading down and higher input costs such as energy and dry ice
• A large profit warning from FedEx sent the shares 21% lower as it withdrew its full-year guidance and announced a significant cost-cutting programme following what it called “a softness in global volume of shipments”. The company will be reducing flights, temporarily parking aircraft, closing office locations, and deferring hiring plans
• On the back of solid results Renishaw warned that it has recently seen a weakening in order intake and that general market sentiment is becoming more cautious. As one broker (Numis) put it, “it has been a canary in the coal mine in the past”
• The EU upheld a multi-billion dollar antitrust fine against Google owner, Alphabet, for its tactics involving its Android operating system
• JPMorgan Chase warned of a significant drop in investment banking fees - predicting a possible 50% drop in 3Q22 revenue

SMALL CAP NEWS

News from ITM Power this week where the CEO, Dr Graham Cooley, decided to step aside. After 13 years at the top, he has built a fantastic business in Sheffield and we look forward to seeing the new appointment as the company expands overseas. The shares were also hit as the order growth was underwhelming – they blamed political and therefore subsidy uncertainty – and decided to mothball the expansion into a second factory in Yorkshire

THIS WEEK IN HISTORY

• 1974: concerns over inflation send global stock markets to a 12-year low
• 2008: Bank of America confirmed it would pay $29 a share to acquire Merrill Lynch, which was a 70% premium on its closing price, but half what the broker was worth earlier in the year and a third of its peak at the beginning of 2007

IN OTHER NEWS

Kim Kardashian announces she is launching a new private-equity firm, SKKYPartners, focused on investing in and building consumer and media businesses.  The reality star has a long list of entrepreneurial ventures including launching her shapewear label Skims in 2019, as well as a skincare brand called SKKN and many more

MARKET DATA

As at 16^th September 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).