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Contents Click on the links below to get to the stuff you really really want. USA – Lawmakers nearing stimulus deal; Stocks up, but virus deaths exceed 300,000 (#USA) UK – Brexit optimism and US vaccine and political news lift stocks; Record redundancies recorded in October (#UK) Continental Europe – Vaccine hopes lifted stocks with autos leading rises (#Europe) Elsewhere – MSCI ditches Chinese stocks from global indices; Japan up following US rises (#Elsewhere) WTF – A royal knock out (#WTF) Links (#Useful) Numbers (#Numbers) Ts & Cs (#Ts+Cs)
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USA
Lawmakers appeared to be closing in on a financial stimulus package that would give folk something to think about that is, (a) positive and (b) neither blonde nor contagious. Yay. Up went stock prices with the S&P 500 adding 1.3% on the day.
Meanwhile, the death toll from the virus in the US has exceeded 300,000. As a result, the likes of New York city could be set for more stringent lockdown measures which would put another dampener on economic recovery.
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UK
Some of the big issues that were holding investor optimism down appeared to be easing yesterday. Brexit optimism pushed the pound up, emergency approval in the US of Moderna’s vaccine and the increasing likelihood of a smooth transition of power in the US nudged confidence up a tad.
The FTSE 100 was held back by the rising pound to leave it 0.3% lower, while the more domestically focused FTSE 250 added 0.4% on the day. Basic materials, financials and oil & gas were up on hopes that trade and the world in general might get back to some sort of normal. Healthcare stocks led declines thanks to AstraZeneca’s $39 billion takeover of Alexion which raised some pretty serious metaphorical eyebrows across the brows of credulity on the scalp of concern over the head of consideration under the hat of what-the-hell-is-going-on-down-there.
Most sectors were up in the domestically focused FTSE 250 despite a small fall in the large financial sector and a large fall in the small telecoms sector (led by Airtel Africa’s 20% slump after an investor dumped a chunky stake in the company).
That backdrop of economic damage continues to reveal itself. There were 370,000 redundancies in October, a record high, while unemployment rose to 4.9% from 4.8%. Unsurprisingly, the hospitality sector appears to be worst-hit. The point to note is that the negatives are likely to continue for some months, especially while more lockdown measures are needed to discipline folk into not mixing.
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Continental Europe
Vaccine hopes were to the fore across the continent yesterday, even as Germany entered a fairly severe lockdown to combat rapidly rising virus case numbers. The Euro Stoxx 50 and German DAX added 0.5% and 1.1% on the day. Auto manufacturers led the rises as folk hoped that exports of cars and whatnot might recover soonish.
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Elsewhere
MSCI, the company that provides index data among other things, has ditched Chinese companies from its global indices. This follows US restrictions on owning the Chinese companies. That’s a double whammy for the companies: first the restrictions knocked their prices, then the removal from indices means that index-tracking funds also ditch the companies. China will come up with something to express its ire.
In this morning’s stock moves, Japanese companies rose and were accompanied by those that supply Apple, following US stock rises the day before.
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WTF (What’s The Fact?)
A royal knock out
The Duke and Duchess of nowhere in particular, aka Harry and Megan, have signed a deal to provide a blog on Spotify.
Where do I begin? First off, I suspect that the queen is worried that they’ll, well, do the blog. While Prince Philip will be looking for a guest spot to harangue mixed-race Americans who come over here and steal our menfolk.
Apparently, they’re going to do a Christmas special. This could be fun. The “Only Dukes and Horses” special with guest appearances from the remaining Chuckle Brother (the line, “to you” being met with silence).
They have to earn a crust somewhere, but I’d have preferred them to start a window cleaning businesses rather than sit around asking impressive people inane questions.
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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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