News & Insight • Weekly Newsletters

21 October 2022 | William Buckhurst

That Was The Week That Was

MACRO

• Jeremy Hunt, the UK’s new Chancellor of the Exchequer, effectively tore up every piece of Kwasi Kwarteng’s mini budget
• The UK Prime Minister, Liz Truss, resigned. At 44 days she becomes the shortest ever term of office
• Japanese authorities spent more than $30bn last week in their second intervention in a month to prop up the yen after it fell to a fresh 32-year-low against the dollar

COMPANY NEWS

• ASML reported better-than-expected third-quarter sales and profit along with record new bookings, boosting its shares. It is currently unable to keep up with demand
• Nestlé reported its strongest sales growth in 14 years, with products including KitKat bars, bottles of Perrier and pet food flying off the shelves, after it passed on a hefty 7.5% price increase to consumers
• ABB reported record margins in Q3 as demand stayed strong
• US activist investor Third Point took a stake in Colgate-Palmolive to push it to sell off its pet care business

THIS WEEK IN HISTORY

• 1907: The panic of 1907 begins as the scheme to corner the market in United Copper Company shares by Frederick Augustus Heinze collapses. Shares of United Copper fall 80%, instantly destroying the financial empire of Heinze and his partner Charles Morse
• 1998: The Federal Reserve cut interest rates for the second time in an attempt to help the financial system weather the Russian debt crisis. After the rate cut, the Dow Jones Industrial Average Index rallies 4%

IN OTHER NEWS

Despite the times, this week saw a record price being paid for a Lowry. Described as an iconic masterpiece" ‘Going to the Match’ was bought in 1999 by the Professional Footballers Association for £1.9mn. It was sold to the Lowry Gallery for £7.8m thanks to a donation from The Law Family Charitable Foundation

STAT OF THE WEEK

Liz Truss lays claim to being Britain's shortest-serving prime minister. George Canning, who is usually thought to hold the record, served for 119 days in 1827 until his death from tuberculosis. While Canning is generally considered the shortest-serving prime minister, others have had even briefer stints linked to the top job. William Pulteney was prime minister for only two days in February 1746, while James Waldegrave lasted only five days in 1757. However, because neither man ever actually formed a government to serve with him, these are not usually considered true prime ministries

MARKET DATA

 As at 21^st October 2022. Source: Financial Express

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