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Contents Click on the links below to get to the stuff you really really want. USA – Stocks slightly higher on vaccine and stimulus hopes; Oil up on inventory falls; Banks lifted by long-term bond prospects (#USA) UK – Retail sales hit record low; Bailey warns of “very difficult” period (#UK) Continental Europe – Trump’s lingering threats take final bow (#Europe) Elsewhere – Stocks up on vaccine and recovery hopes (#Elsewhere) WTF – Massage “therapy” (#WTF) Links (#Useful) Numbers (#Numbers) Ts & Cs (#Ts+Cs)
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USA
The anticipation of vaccines and financial stimulus led to US stocks having a slightly positive day yesterday, the S&P 500 closed a touch higher. Oil prices were also up after stockpiles were reduced by more than had been expected.
Meanwhile, banks are beginning to get a bit of a lift from the prospects that bonds will eventually come down from their stratospherically high prices (high prices mean low yields and that puts downward pressure on interest rates that banks can charge which reduces their profit margins).
The other factor playing a part while interest rates are super-low, is merger and acquisition activity. With borrowing being so cheap and some companies facing short-term struggles, there are various areas in which companies are seeking to acquire competitors. This has already boosted the gaming and gambling companies.
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UK
Retail sales in the UK hit a record low in 2020 and that set the mood for the day. The FTSE 100 and FTSE 250 fell by 0.7% and 0.3% respectively yesterday. Add to that the Bank of England’s Andrew Bailey warning that things are going to be “very difficult”, and the mood among investors was suitably morose. Bailey, Bank’s governor, foresaw economic stagnation over the coming three months and a nasty rise in unemployment.
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Continental Europe
Stocks on the continent performed somewhere between their US and UK counterparts with the Euro Stoxx 50 and German DAX closing 0.2% and 0.1% lower on the day. The lingering effects of Trump are also being felt across the continent. Reuters is among many reporting that the US State Department has warned European companies helping to build the Russia’s Nord Stream 2 gas pipeline may be at risk of sanctions. I suspect that they are thinking that Trump may be at risk of being ignored by them.
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Elsewhere
Stocks are up across much of the Asia Pacific region this morning as folk concentrate on recovery prospects and vaccine distribution. This also helped to push oil prices higher this morning.
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WTF (What’s The Fact?)
Massage “therapy”
I went for a sports massage yesterday to address various issues with my ailing legs. I don’t like massages and think of them as a hour spent trying not to fart. This one was different. The masseur was a might strong young chap and he took great delight in introducing my to new elements of my anatomy before inflicting pain on them.
At one point I flinched to violently that he asked if I was all right. “It’s F-ing painful” was my response. “Yes, I know”. He replied before merrily carrying on the torture.
All the while, the room was adorned with the sort of massage room “music” that sounds like something is being tortured underwater such as a whale or Kate Bush.
Talking of which, the masseur was attacking my hamstrings and, as a result, his hands were brushing against my Greta Thunberg. This is a first for me in that I’ve not had a complete stranger physically encountering me in such an intimate area. The surprise was that it was the least of my worries.
When the torture was finally over I paid up and he informed me that I should come back again soon because the muscles need to be worked over properly.
I said I’d think about it.
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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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