News & Insight • Weekly Newsletters

23 September 2022 | William Buckhurst

That Was The Week That Was

MACRO

• There were rate rises from 20 central banks around the world on one day on Thursday – surely a record?
• The Bank of Japan showed the first sign of monetary tightening as it intervened to buy Yen for the first time since 1998
• In the UK, the new Chancellor, Kwasi Kwarteng, announced a slew of tax cuts including a cut in the top rate of 45% income tax
• Sterling fell to $1.09 vs the dollar

COMPANY NEWS

• Accenture reassured investors with strong results and a record level of bookings but highlighted that the surge in the dollar would hurt 2023 profits
• Ford closed down 12.3% on Tuesday after cutting its quarterly guidance. Although the company reaffirmed its full year guidance, it stated that inflation related supplier costs were running $1bn higher than expected
• Shares in Haleon finished higher after reporting first half profit and revenue growth

SMALL CAP NEWS

Two darlings of the small cap market in the lock down era look to have a difficult future as Made.com (sofas) and Revolution Beauty brought out worrying statements on Friday. Made.com announced it is seeking a buyer or emergency investment as the embattled online furniture business plans to shed more than a third of staff, whereas Revolution Beauty has called in independent investigators to look into ‘serious concerns’ raised by its auditor, BDO

THIS WEEK IN HISTORY

• 1998: Long Term Capital Management is bailed out with a $3.6bn investment by a group of 16 financial institutions
• 2008: Warren Buffett’s Berkshire Hathaway injects $5bn to rescue Goldman Sachs at the height of the financial crisis

MARKET DATA

 As at 23^rd September 2022. Source: Financial Express

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