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Contents Click on the links below to get to the stuff you really really want. USA – Investor sentiment torn between virus resurgence and financial stimulus; Fauci warning of need to act quickly; Travel and leisure companies sank; Oil prices down (#USA) UK – Investors focused on positives; SSE up on wind farm plans; Kingfisher up on DIY sales; Bond investors cautious (#UK) Continental Europe – Similar to UK; Wirecard continues to yo-yo (#Europe) Elsewhere – Mixed day for stocks (#Elsewhere) WTF – Corporate honesty (#WTF) Links (#Useful) Numbers (#Numbers) Ts & Cs (#Ts+Cs)
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USA
Investor sentiment is being pulled one way then the other. Should they focus on financial stimulus and forget the reality of virus cases, or try to remember that Covid-19 receded purely because of the painful economic measures that were taken to curtail it?
Virus worries just about won the day in the US with the S&P 500 nudging down by 0.4%, but tech stocks managed to post gains as they’ve done pretty well during the lockdown.
The much-respected (hence Trump doesn’t like him) Dr. Anthony Fauci, Director of the National Institute of Allergy and Infectious Diseases, warned that the authorities needed to move quickly in a number of states to avoid a second surge in virus cases. There have been increases in cases in Arizona, Florida (which is run by a tragically laughable lackey to Trump), Oklahoma, Oregon and Texas (which executes almost as many people as the virus takes out).
The new wave of worry took its toll on travel and leisure companies with Norwegian Cruise Lines, Royal Caribbean and Carnival making three of the five biggest fallers. But oil-related stocks were also down as stockpiles remained high in the US and demand appeared likely to drop while the Chinese deal with the outbreak of virus cases in Beijing.
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UK
Stocks in the UK were pushed gently upwards overall as investors decided to focus on the positive points that had come out of the US the previous day. The FTSE 100 and FTSE 250 added 0.2% and 0.7% respectively. Utilities and technology stocks led gains while oil and financials were under pressure.
Power company SSE was the big mover on the FTSE 100. It jumped by 9.1% after committing to build a giant £7.5 billion wind park on Shetland Island. Investors saw the long-term benefits of this contributing to the UK’s lower carbon emissions.
Perhaps a more interesting riser was Kingfisher. The retail group that owns B&Q has done reasonably well as folk have turned to DIY to keep themselves (and the emergency services) busy.
Bond investors saw problems ahead though. The demand for and prices of benchmark 10-year Gilts (UK government bonds) rose as folk looked for low-risk places to squirrel money away while a potential second wave of the virus sweeps over.
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Continental Europe
Pretty similar to the UK really.
The Euro Stoxx 50 and German DAX added 0.8% and 0.5% respectively with tech companies leading gains and travel and leisure leading falls.
Those crazy cats at Wirecard were having more fun. The beleaguered financial payments company has been subject to accusations of financial fibbing and folk are having a blast trying to work out what the company is really worth. It dropped 5.1% yesterday, but it’s been bouncing around all over the place (albeit at a much lower level than this time last year when folk didn’t realise that it’s auditing process had all the veracity of Thomas the Tank Engine novel – see WTF).
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Elsewhere
Another mixed day for the Asia Pacific region. Japan, Australia and South Korean stocks are all down this morning while Taiwanese stocks were merrily following US tech giants up as usual. There’s no clear direction at the moment, so folk don’t know whether to panic or celebrate.
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WTF (What’s The Fact?)
Corporate honesty
“Employees are our most valuable asset” – They’re way up there with paperclips “Your responses will be completely confidential” – Hence they never ask which department you’re in or any other such indicative locational data when completing a survey. “We are a meritocracy” – There is a really diverse range of privately educated white males in the most senior positions. “Our core values are…” – definitely not cliche-ridden drivel made up by some vacuous nobody to provide a veneer of warmth. “There’s definitely no horse meat in this lasagne” – Like that would ever happen.
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Links
Investopedia (www.investopedia.com/dictionary/) – Loads of free explanations of financial terms including some helpful videos. Not 100% accurate, but a good starting point Guffipedia (ig.ft.com/sites/guffipedia/) – Lucy Kellaway of the FT has collected some painful examples of corporate people disappearing up their own analogies Guardian (www.theguardian.com) – Free to access website with a couple of decent columnists (e.g. Nils Pratley and Larry Elliott) Times of India (timesofindia.indiatimes.com) – Why use five words when 37 will do? Daily Mail (www.theatlantic.com/magazine/archive/2016/07/the-war-on-stupid-people/485618) – Click it. I dare you.
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———————————————————— IMPORTANT This is my opinion. Yes I read a lot and share what I’ve read with you, but this content remains my opinion. It’s NOT advice. If you take my advice – don’t take my advice. Any decisions you make about investments, your hairstyle or whether or not to eat marzipan are entirely at your own behest. If you are too stupid to recognise the devil’s ear wax when you see it, then you’re on your own.
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