News & Insight • Weekly Newsletters

30 September 2022 | William Buckhurst

That Was The Week That Was

MACRO

• A very volatile week for sterling and UK gilts as the Bank of England intervenes to keep yields down
• Rumours circulating around financial distress at Credit Suisse and Deutsche Bank
• The US Core CPE (the Federal Reserve’s preferred measure of inflation) continued to come in higher than anticipated

COMPANY NEWS

• Nike had results that were in line with expectations but showed that as supply chain issues have eased inventories have risen
• Eli Lilly shares rose as rival drug maker Biogen announced positive trial results on their experimental Alzheimer’s drug
• Micron Technology, the large US memory-chip maker, predicted sales would fall by around 40% this quarter
• H&M outlined a cost-cutting plan as the world's second-largest clothes retailer responded to pressures such as surging materials prices and the need to charge customers for online returns

SMALL CAP NEWS

The state of the listed market was highlighted this week with results from the UK broker, NUMIS plc, with revenue coming in at £144m – down 33% on last year. They did, however, state that they were working on nine separate takeover bids with an average value of £1.5bn. Overseas things aren’t much better with the Porsche stock offering (with the ticker P911) raising double the entirety of proceeds raised by IPOs in Europe so far this year

THIS WEEK IN HISTORY

• 1981: The 10-year US Treasury yield hits an all-time high of 15.84%. The Federal Funds Rate sat at 17% and CPI inflation was around 11%
• 2008: Wachovia, once the fourth largest bank by assets in the US, fails and is eventually acquired by Wells Fargo

IN OTHER NEWS

The Spanish region of Jaén, an area which produces half of the world’s olive oil, is struggling with a crippling drought and estimates are that this year's harvest will be down 50% on last year.

Hurricane Ian has potentially devasted Florida’s orange crop “All the areas are going to have impact. It could be the final straw for some Florida growers.” Raymond Royce of the Highlands County Citrus Growers associations.

In contrast, vineyards in Bordeaux are expecting 2022 to be a “very promising vintage.” 

MARKET DATA

 As at 30^th September 2022. Source: Financial Express

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