BP will use some of its windfall Ukraine Oil Spike profits to fund a stock buy-back. Stock buy-backs are appropriate is some limited circumstances, but generally they distort the way capitalism is supposed to work, undermining good companies and sound corporate governance.
There are lots of outlooks and scenarios on the inflation threat: what if its longer and turns stagflationary, and just how much more destabilising would the fraxious global economy become?
In bonds there is truth: Apple’s Jumbo $5.5 bln corporate bond deal hints of a firmer market to come. A clear divide between US Recovery and European Slowdown is increasingly apparent – a weaker Euro will further add to European problems.
Not an insightful Porridge this morning, but let me tell you a story about lessons learnt on holiday and what’s likely to dominate the news flow in August ahead of the September market!
Politics matter in markets – and despite a new Premier, the UK will likely remain far from fixed and a long way from political stablity. The problem is finding a pragmatic approach to Brexit.
Despite US inflation hitting a 40 year high, US growth stocks rallied – reflecting the belief inflation and recession will be short and sharp. It’s a fair bet – but go back into growth stocks eyes-wide-open, and don’t be fooled by the most dangerous myth surrounding Tech – Personalities!
Blain’s Morning Porridge – July 13th 2022: How long and [...]
Shock new data unveils the BBC’s plans to destroy the UK economy through Wimbledon and Glastonbury overkill. Maybe we should just cancel June and July?
Inflation will dominate the headlines while the US earnings season kicks off. The prospects for stocks on the back of falling numbers and crashing consumer sentiment bode ill for recovery, and strongly suggest there is further market downside to come in Q3.
The world is watching for signs confirming global recession, so naturally markets have rallied (!). Political instability is resolved to be replaced with some bleak truths and spending choices. So.. steady at the wheel, nothing to worry about then?
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