Weekly Newsletters
17 June 2022 | William Buckhurst
That Was The Week That Was
MACRO
- The Federal Reserve announced the largest interest rate increase since 1994, raising its benchmark policy rate by 0.75% to 1.5-1.75% and signalling further increases into 2023
- The Bank of England hikes rates for the fifth time since December to 1.25%
- The ECB held an emergency meeting in which it pledged to create a new “anti-fragmentation instrument” to prevent a widening in the spread of government bond yields between the likes of Italy and more stable nations such as Germany
COMPANY NEWS
- Ashtead reported better earnings and revenue than expected while upping their revenue forecasts for next year, but the shares fell
- WH Smith said its performance was so strong during the last quarter it now expects its full-year results to be at the upper end of expectations
- Whitbread, the owner of the Premier Inn hotel chain, said hotel occupancy levels were strong during the first quarter in its core UK market, with comparable accommodation sales more than 21% ahead of the same period before the pandemic
SMALL CAP NEWS
With the market having “corrected” (even more so in the small cap space) there are a number of companies on discount valuations. This was proved on Friday afternoon with a bid for EMIS by a subsidiary of UnitedHealth, Optum UK for a premium of 49% from the closing price on Thursday valuing the company at £1.24bn
A WEEK IN TECH
Shares in Tesla finished lower on the week after it was announced that the company had hiked prices across its product range. Reports indicated that Tesla had increased prices across its line-up by as much as $6,000 in what is at least its third price increase this year as it raised the price of its Model 3 by $2,500 to $57,990 and its Model X by $6,000 to $120,990. The news comes after CEO Elon Musk’s email to staff indicated that the company had had a very tough quarter due to supply chain and production challenges in China and that staff needed to rally hard to recover
THIS WEEK IN HISTORY
1815: the start of a great family fortune as Nathan Rothschild trades on the back of advance news of Wellington’s victory at Waterloo
2000: the FBI and SEC conduct the largest securities fraud bust in history, indicting 120 people, including Mafia members, securities dealers and even the treasurer of New York City’s police detectives’ pension fund on charges that involved bribing brokers to sell shares of penny stocks to unsuspecting investors
IN OTHER NEWS
In the week Coty announced sales growth ahead of expectations, Revlon, a mainstay of drugstore beauty counters for 90 years, has filed for chapter 11
In the music world shares of the agency that manages the South Korean pop band BTS blew up as they hit “dynamite” after the band announced they would be pursuing solo projects
MARKET DATA
|
% returns |
1 Week |
1 Month |
1 Year |
5 Years |
|
UK Equities (% return) |
-4.06 |
-5.56 |
-3.00 |
-4.97 |
|
World Equities (% return) |
-5.63 |
-6.22 |
-12.64 |
32.39 |
|
10 Year US Treasury Yield (%) |
3.24 |
2.98 |
1.52 |
2.15 |
|
GBP / USD (fx rate) |
1.22 |
1.23 |
1.39 |
1.28 |
As at 17th June 2022. Source: Financial Express
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