News & Insight Weekly Newsletters

05 July 2024 | William Buckhurst | Charlie Todd

That Was The Week That Was


  • A resounding victory for Sir Keir Starmer’s Labour Party in the UK election. Although the Tories suffered one of the biggest losses in their c.190-year history, the outcome (121 seats) wasn’t quite a cataclysmic as many had predicted
  • A shock result in the French elections, as the second round of voting saw the left-wing alliance win the most seats. Tactical voting and collaboration between the right-wing Le Pen’s opponents looks set to throw the country into a period of political turmoil with no single group coming close to winning enough seats for a majority
  • The non-farm payrolls data showed that the US economy added 206,000 jobs in June, but the jobless rate increased to 4.1% and recent jobs growth was revised lower
  • Japan’s Topix index powered past its 1989 bubble-era peak to close at a fresh record high
  • US gasoline demand climbed as a record number of Americans travelled long distances over the July 4th holiday period
  • Turkish Inflation fell to 71.6% in June allowing finance minister, Mehmet Simsek to say, “the disinflation process has begun….


  • The FT reported that Nvidia is set to make $12bn from AI chips from China even with the restrictions
  • Tesla announced its second quarterly decline in deliveries in a row but the figure of 443,956 was better than expected. The shares rallied in response
  • Both Eli Lilly and Novo Nordisk’s shares were under pressure as President Biden complained about the cost of their drugs on the market
  • Boeing are trying to get their house in order and are looking to buy Spirit AeroSystems for $4.7bn
  • Sainsbury’s shares fell after announcing first quarter results which was mainly due to weakness in sales of general merchandise at Argos. Management did suggest they had made market share gains though
  • Sodexo, the food services company, slightly missed expectations but left full year guidance unchanged
  • Keywords Studios, the UK-based gaming company announced they had received a firm and final offer from EQT of 2,450p – c.£2.2bn


More than any other general election in the past, this result highlighted some of the difficulties around “first-past-the-post” as opposed to proportional representation (PR).  Nigel Farage's Reform UK party won 14.3% of the vote yet only 5 seats. Under PR it would have been catapulted into third place with 91 seats. The Liberal Democrats, meanwhile, won 12% of the vote yet ended up with 71 seats

A purely proportional system - where national vote share translated exactly into the number of seats - would have given Labour about 195 seats and no majority. The Tories would have had 156 seats, Reform 91, the Liberal Democrats 78 and the Greens 45


As ex-lawyer Sir Keir Starmer takes up his premiership – for some context there is a listed legal company Knights plc – we doff our helmets and raise our swords to the sporting knights: Sir Andy Murray, who bowed out of Wimbledon having been the shining light of British tennis for the last 15 years; Sir Lewis Hamilton, who won his record-extending 9th British Grand Prix; and Sir Mark Cavendish who secured his 35th stage win on the Tour de France – a record he used to share with Eddy Merckx who won five tours and 34 stages


1881:  At 9:30am, President James A Garfield is shot at Baltimore and Potomac Railroad Station. News hits Wall Street around 9:50 am and shares abruptly fall. Stocks would close the day down about 4.5%. President Garfield died 11 weeks later, on September 19th  

2016: 48 people (including three attackers) are killed and more than 230 injured in the Ataturk Airport terrorist attack in Turkey. Global stocks held their nerve although it knocked 5.7% off the Borsa Istanbul.


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As at 5th July 2024. Source: InFront


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