News & Insight • Weekly Newsletters
04 November 2022 | William Buckhurst
That Was The Week That Was
MACRO
- Andrew Bailey at the Bank of England appeared surprisingly dovish. “[The Bank rate] will have to go up by less than currently priced into financial markets,” Bailey said in comments after announcing an expected 75bps hike
- Meanwhile, Federal Reserve Chairman, Jay Powell, warned US interest rates would peak at a higher level than expected even as he held out the possibility of the Federal Reserve slowing the pace of its campaign to tighten monetary policy
COMPANY NEWS
- Novo Nordisk continued to report strong quarterly results with revenues and profits ahead of expectations
- Zimmer Biomet also reported third quarter earnings that beat analysts' forecasts and revenue that topped expectations
- GSK increased its full-year earnings outlook for the second time in four months, buoyed by record sales for its shingles vaccine
- Ocado shares rose after announcing a new partnership with South Korean online shopping firm Lotte Shopping.
THIS WEEK IN HISTORY
1993: The Maastricht Treaty entered into force thereby establishing the European Union
1999: As another sign of the tech bubble inflating, the Dow Jones Industrial Average adds significant technology exposure and drops many industrial companies. Microsoft and Intel come in, while Chevron and Goodyear Tire drop out. Both had been a part of the Dow for 69 consecutive years
SMALL CAP NEWS
Following the leadership uncertainty in the Summer and the subsequent fall in the share price at R&Q Insurance Holdings, the leading non-life global specialty insurance company focusing on Program Management (PM) and Legacy Insurance businesses, it was pleasing to see the progress being made in PM with Gross Written Premium rising by 83% to $1.3bn and fee income doubling from the same stage last year to $60m. William Spiegel, the under pressure executive group chairman, insisted that the “pipeline of new MGA (managing general agent) opportunities remains strong”
IN OTHER NEWS
The strength of the moves in global markets on Friday have been linked to social media posts stating that Zeng Guang, the former head of the Chinese Centre for Disease Control and Prevention, had said at a conference held by Citigroup the country could reopen its border with Hong Kong in early 2023, with more relaxations on international border controls to follow.
Meanwhile, Elliott Management, founded by Paul Singer, was less optimistic this week, saying that "the world is on the path to hyperinflation, which is the direct route to global societal collapse and civil or international strife. It is not baked, but that is the path that we are treading. Investors should not assume that they have 'seen everything' on account of experiencing the 1973 to 1974 bear market and oil embargo, the 1987 crash, the dot-com crash, or the 2007 to 2008 GFC"
MARKET DATA
|
% returns |
1 Week |
1 Month |
1 Year |
5 Years |
|
UK Equities (% return) |
3.79 |
3.98 |
-4.17 |
-3.73 |
|
World Equities (% return) |
-1.98 |
0.32 |
-18.48 |
28.30 |
|
10 Year US Treasury Yield (%) |
4.16 |
3.62 |
1.73 |
2.36 |
|
GBP / USD (fx rate) |
1.14 |
1.14 |
1.35 |
1.31 |
As at 4th November 2022. Source: Financial Express
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