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Contents Click on the links below to get to the stuff you really really want. USA – Virus cases up; Corporate results mixed; Stimulus package likely but not before election; Dollar down; Brainard notes need for more stimulus (#USA) UK – Pound up on Brexit talks resumption; Increase restrictions; FTSE 100 slumped; Oil companies suffer (#UK) Continental Europe – Travel and leisure companies battered; Lagarde notes heightened virus risk (#Europe) Elsewhere – Stocks down (#Elsewhere) WTF – Word on the street (#WTF) Links (#Useful) Numbers (#Numbers) Ts & Cs (#Ts+Cs)
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USA
Well that was a fun day. Stocks slumped all over the place with nary a rise to be found.
It was much the same factors contributing to the overall demise: virus cases up, corporate results mixed and that much vaunted stimulus package. Well now, let’s talk about that for a second. Nancy and Steve (Pelosi and Mnuchin) have, apparently, been making progress on agreeing a stimulus package to support struggling households and businesses. But the chances of it being made law before the election are remote.
Nonetheless, the value of the dollar fell in anticipation of the deal. Nothing to worry about here, the dollar’s down because with all the new cash being pumped into the system the value of each dollar is diluted.
The key point, though, is that the economic recovery remains uncertain. To quote Lael Brainard of the Federal Reserve, “further targeted support will be needed alongside accommodative monetary policy to turn this K-shaped recovery into a broad-based and inclusive recovery”. In other words, lots of stimulus is required to prevent some industrial sectors being crushed while others recover.
That sort of talk put the mockers on folk who had been hoping for a more smooth recovery. But that was largely offset by the progress between Pelosi and Mnuchin leaving the S&P 500 0.2% lower on the day.
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UK
In the UK, the rising value of the pound made things even more nerve-racking for the export-focused FTSE 100 which closed the day 1.9% lower. As well as the dollar’s fall in value, the pound was boosted by news that Brexit talks would resume, yet again. Meanwhile, confidence was also taking a knock from increased restrictions relating to the virus.
Every sector on the blue-chip index was down, with oil companies posting the biggest losses as expected demand for oil fell while folk await some sort of meaningful production cut from OPEC and its mates (less production, less oil, higher price per barrel).
The mid-cap FTSE 250 sank by a more modest 0.8%, but every sector on that index was also down on the day. A few stocks across both indices are worthy of note. Evraz closed 3.5% higher after a few banking analyst types speculated that there was upside potential for the mining company’s prospects.
Not so good for fellow mining company Centamin which slumped by 19.2% after it forecast a cut in production numbers.
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Continental Europe
Every sector on both the Euro Stoxx 50 and German DAX closed lower to leave the respective indices 1.5% and 1.4% lower on the day. Travel and leisure companies were battered yet again after having clawed back some of their losses. It would appear that investors took profits i.e. sold while the price was up, sending it back down again.
Meanwhile, in case we hadn’t noticed, European Central Bank Governor, Christine Lagarde, noted that the rise in virus infections was a risk. That added to the general misery and made sure that stocks had a tough day.
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Elsewhere
Stocks are largely down this morning across the Asia Pacific region. Japan has had the worst of it with the Nikkei 400 falling by 1.1%, but it’s been pretty miserable all over.
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WTF (What’s The Fact?)
Word on the street
But what, I hear you ask, does Cranes Today magazine have to say, and why have I left it so long to update you?
Setting aside the thrilling news that Liebherr has unveiled the successor to the 1,500 LTM 1130-5.1, namely the LTM 1150-5.3 (phwoar), I can reveal that US rental firm, Kitchen’s Crane and Equipment ,has appointed a former operations manager for electrical contractor M C Dean, Chad Tester, to bolster its US and international sales team.
Forgive me if you’ve already heard about this on your TikTok feed, but I felt it important enough to share just in case.
Going back a month or two, you might not have spotted that ALL Erection and Crane Rental’s lead dispatch and logistics manager for Atlanta, Georgia, Jeremy Hunter, has been appointed general manager of ALL’s Wilmington depot. He can now go to the pub and proudly tell everyone that every day, he handles erections.
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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’re unable to recognise the devil’s ear wax when you see it, then you’re on your own.
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