On the eve of his 100th day in office, Joe Biden declared: “We are working again. Dreaming again. Discovering again. Leading the world again.” The speech followed the announcement of the second stage of his economic plan on Wednesday: $1.8 trillion in new spending and tax cuts over 10 years for workers, families and children, on top of the $2.3 trillion infrastructure plan he released at the end of March.
Boris Johnson has been dragged into a potential scandal as it was announced on Friday that the Electoral Commission is investigating the circumstances surrounding who originally paid for the refurbishments on the Prime Minister's flat above 11 Downing Street. Despite allegation of “sleaze” and corruption, the Conservatives extended their lead over Labour in the polls to 11%.
India has reached the devastating figure of 200,000 coronavirus deaths, with the pressure on many hospitals showing no sign of abating amid a surging second wave. The real number of fatalities is thought to be far greater, as oxygen supplies remain critically low across the country.
Confidence in the US economy has surged this week following a flurry of positive economic data culminating in a report yesterday which showed quarterly growth at a strong 6.4%. This was against a backdrop of further dovishness from Fed Chairman Jerome Powell as he once again reiterated his intention to keep interest rates at near-zero and maintain the flood of monetary injections to continue driving the economy towards recovery and supporting the Treasury’s stimulus plans.
With concerns about economic growth and monetary policy abated for now, investors have shifted their focus to the flood of corporate earnings announcements made this week. On the whole, results have been very encouraging; businesses in our portfolios have demonstrated a continuing ability to drive growth and deliver as per our investment theses. Some of these earnings announcements have been truly exceptional given the circumstances, especially in technology names.
Whilst the market has rewarded these companies and their proven ability to deliver, the upside in some names is relatively limited by already stretched valuations. When prices already reflect significant optimism and confidence in the business, even strong earnings releases absolutely crushing analyst estimates can struggle to push share prices much higher. We continue to monitor corporate news as it is delivered and will conduct the necessary analysis to ensure businesses in our portfolios remain on track for long-term growth.
Quote of the week
"Ed Balls" Ed Balls.
Those of you who would not choose “The Labour Party 2010-2011” as your topic on Mastermind may have missed a very special anniversary, “Ed Balls day” turned ten on Wednesday. A bit of background: On April 28, 2011, Ed Balls was on Twitter and tried typing his name into the social media app to find an article about himself. But rather than searching his name, he tweeted it out instead and the rest of Twitter was quick to pounce on the man who cannot have had an easy time in high school. In any case, “Ed Balls day” should resonate with anyone who has had the ordeal of teaching a parent to use social media; I wouldn’t wish it on my worst enemy. Source: metro.co.uk
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