The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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Equities in Europe traded higher in the premarket session on Wednesday, as investors started to digest the latest quarterly earnings reports from companies. While Daimler and Novartis reported yearly increases in their quarterly revenues, SAP saw a slight drop when compared to last year.
Meanwhile, the United Kingdom has reportedly cut funding to one of its largest chipmakers, after it was sold to a Chinese-owned firm, and in pandemic news, the European Union has started a rolling review of the GSK-Sanofi coronavirus vaccine.
The FTSE 100 and the CAC 40 increased by 0.15% and 0.41% respectively at 7:49 am CET. The DAX gained 0.19% a minute later. The euro lost 0.07% against the dollar trading for $1.17716 at 7:51 am CET, while the pound concurrently fell 0.10% against the greenback selling for $1.36122.
Breaking the News / OL
Happy hump y’al
Rarely post but value those who do even if contrary to my mantra as to the benefits to the population of the world as a whole.
Point one:- As a long term holder I am showing a 3 times gain on my original investment.
Point 2 Unlike other retail commodities gold is in the ground and not subject to the vagaries of the market. Good luck to those who value and trade bitcoin et al . Not able to access and trade the value on a daily basis
Point 3 and the most important to long term holders such as I . The drop in share value is almost irrelevant and indeed is almost to be welcomed for those other than the get rich quick brigade as the DIVIDEND IS PAID ON EACH SHARE HELD. !!!!! THEREFORE AT EACH DROP IN SHARE PRICE THE PERCENTAGE RETURN ANNUALY GETS HIGHER.
Am I delusional as I will not sell my holding whilst the divi is up held.
I am sure those who trade will regard my thoughts as heresy but there we go.
Try and buy my shares . NO CHANCE
Bob
The market used to make sense, but now there is a fair amount of novice money, which seems to "make the market", at least in Oz. Whether these are the young getting enthralled by making a quick buck, or the bored, all locked up and nothing much to amuse themselves, people trying to support a habit, or people who cannot get to the casino to play the pokies or they want somethig new to amuse themselves with. ... They read a social media post, jump in and by, or sell, whatever way the social media/influencers wants them to jump. There is enough material to keep a city full of psychologists on edge, trying to work out the ups and downs and competing forces in the market place. The crypto space is all this but on steroids. The crypto's have intrincisally no value, and you probably could create a new crypto token, backed by a plantation of banana leaves inside a lost weekend...some do.
I was taught to not invest in things I did not know about, or could get to know about, or had ruly markets (that is market with clear rules of trading), but those days are gone it appears, or never were here for many.
So yes, the market does not make a lot of sense, and there is good reason for this
best
the gnome
Centamin also down? The market makes no sense sometimes.
Let me update you on the news in Australia.-> Melbourne, Sydney Adelaide all locked down and lockedin. West Australia has locked nearly everyone out, and a lady who has covid in southern Queensland has reportedly fled to Northern Queensland so we can expect Queensland to be locked down and the lady locked up? Seven people have been fined after police broke up a Sydney office party where an attendee was found passed out (not from covid, although there are further investigations going on?) on the floor, as NSW recorded 78 new COVID-19 infections. The premier of NSW commented that thank goodness most people were doing the right thing? The Universities (4th largest earner) have lost their earning capacity as all International students are locked out, and 15,000 staff have been locked out permanently from their positions in various Universities, and probably more to come. Our politicians are steadily insulting our largest customer (lets hope the Iron Ore price does not go down!), and blaming them for hacking, when the E Europeans appear to have taken the gold medal, closely followed by Russia?
So never a dull moment in the southern colony.
On the positive side, the weather in Cairns is fine, wind is light, water visibility is at least 10 meters on the barrier reef, and a Pikes Riesling is the best one can get (after the dive?) into your glass, as one sails into the sunset.
P.S. I have been amused even more (compared to the politicians and medical experts-none of whom have worked in private businesses which they insist on locking up) by the events in the crypto space. Talk about a rooting tooting show, and flabbergastery. Michael Saylor has taken evangelism up another level or 5, despite having conflicts of interests in what he preaches to the peasants and what he owns, which would land in him in jail in Australia (without any Rum). Who needs Hollywood?
Only economists and politicians could argue that there wont be inflation and bubbles galore with all of the money printing the Central Banks have been doing, not to mention our mates in the "normal" banks...want to buy a plot of land?
Simply breathless, but then this is now recognised as symptom, and hence I could have to go into quarantine, so must catch my breath and keep my head down!
good luck, and good night from the southern colony
REMEMBER A Pikes Riesling a day keeps covid at bay
the gnome
Interesting article halfpenny, thank you!!
I asked Kees Dekker if he had any thoughts on this, see below-
As I read it, the production downgrade is due to encountering an unexpected structure that has offset the mineralisation in a particular area. Without illustrations it is difficult to understand the exact problem. Even with the quoted offsets of 17 m and 37 m one would expect management to quickly cope with this and the mine having flexibility to draw ore from other areas while they develop to accommodate the mineralisation displacement.
The reason why I prefer analysing Canadian listed companies is the obligation for them to publish studies in support of mine plans. The insight gives you also a view what can be expected years in the future. However, when there are unexpected structures, that no longer holds!
Can anyone remember what average POG that Centamin were working on for calculating profits and dividends for this year?
I've a feeling it was around $1750 ish or so? So far we are pretty much holding above that this year.
Any predictions (Hoping not to jinx it) for the next divi?
Bitcoin goes sub $30,000, I'd heard that was a trigger for a market sell off some time back?
European stocks rose in premarket trading on Tuesday after suffering sharp losses in the previous session amid fresh coronavirus fears. Investors focused on corporate earnings as UBS reported a 63% jump in its second-quarter net profit.
The FTSE 100 added 0.15% at 7:40 am CET, the DAX was up 0.16% at the same time and the CAC 40 rose 0.11% at 7:38 am CET.
The euro lost 0.15% against the dollar to sell for 1.17811 at 7:42 am CET and the pound lost 0.10% compared to the greenback to go for 1.36609 at the same time.
Breaking the News / NP
Hi Tornado,
Yes, like many other LTH I can well understand your disappointment and frustration, these miners really need to be more conservative in their forward production estimates because clearly whatever methods they are using to assess future output is as reliable as a chocolate teapot in some instances!
From our Centamin experience it is clear that the majority of analysts have little idea of the physical state of the mines production areas, or how well they are managed, certainly no idea of the reliability or state of the plant involved.
With that in mind their reports on the future likelihood or capability of the mine to deliver are most likely based on increasingly over optimistic statements made by the management with fingers double crossed in the hope of keeping the MM excited.
However, it’s never a good idea to be overly optimistic, especially in mining where as we now realise so much can and does go wrong, and when that happens the market is unforgiving and invariably swift to take its pound of flesh in retribution!
Far better to get back to telling the truth and airing on the side of caution to demonstrate a responsible attitude and also be more inclined to under promise and then over deliver, which will reassure investors and make the market purr like the cat with all the cream!
Please Mr Tibbles do not rub it in. I had a bad day today on Shanta as it experienced a Centamin Parallel like event. Unfortunately it was parked up in a quarterly report that hit us like a Pearl Harbour attack. Thankfully, I managed down the risk somewhat before today but you can not sell when it falls 25% in minutes. Another share where I am roped to the chair as an LTI, but I was on the road in any case.
Has corrected to the upside since 4:30
Crude is off by more than 6%
Turbulent times
The shg sp has however practically tripled since March 2020 low. Not too shabby if you had the nerve to get it n at that time? Maybe another chance in a few days time?
Gold is tough to read of course because of the incredible manipulation - I am, however, eyeing possible triangulation on Silver suggestive of a break to/wards $35 in September if that has anything to it :)
A few FinTwits have noted the bigger goldies holding up vs the bloodbath everywhere else - it would be about bleeding time of course ...
If gold can stay level or gain today, then the inverse relationship with risk and stocks may finally be returning - bitcoin starting to break down should drive it home that crypto was speculative bubble as well as pretty much everything else.
Its been bonkers how poorly gold has performed this year given what is happening to the money supply and with impact of covid variants across the world.
Anyone else smelling a "moment" here?
Oh another yet another miner hits unexpected low grades,despite all the expertise these mining companies claim to have they seem more likely to deliver excuses rather than the predicted output!
(Alliance News) - Shanta Gold Ltd on Monday said it has cut 2021 production guidance for its New Luika mine in Tanzania.
Shares in Shanta Gold were down 27% at 11.75 pence each in London on Monday afternoon.
Guernsey-based Shanta Gold is an East Africa-focused gold producer, developer and explorer.
Group-wide gold reserves as at June 30 were 666,000 oz with grading 2.99 grams per tonne.
"Whilst we are looking forward to the future, we are disappointed that we will be reducing this year's production guidance to [between] 60,000 and 65,000 oz. Whilst this is partly due to a deferral of ounces to 2022 onwards, it is not the outcome we hoped for this year. Our softer production for the second quarter has also meant that our revenues have been slightly reduced for the quarter but we are pleased to confirm that we have received USD4.2 million in VAT offsets as we work with the Tanzanian government to clear the outstanding balance," said Chief Executive Eric Zurrin.
https://www.lse.co.uk/news/shanta-gold-shares-sink-following-cut-to-2021-production-guidance-ef8pzvgpf6zawal.html
It's "Freedom Day" in the U.K., which just lifted the majority of its remaining coronavirus restrictions, but investors seem to be more nervous there, as well as across the globe. The rise of the rapidly spreading Delta variant is threatening to derail many efforts towards a full economic reopening as worsening outbreaks continue to cloud the once-promising outlook. U.S. stock index futures are also joining the global selloff after the major averages posted their first negative week in four: Dow -1.1%; S&P 500 -0.8%; Nasdaq -0.4%.
Mixed feelings: "If we don't do it now we've got to ask ourselves, when will we ever do it? This is the right moment, but we've got to do it cautiously," British Prime Minister Boris Johnson said in a statement. It's a continuing argument that's playing out worldwide. Some have warned that hospitalizations could rise substantially over the coming weeks, jeopardizing the progress made in containing the pandemic, while others have put more of a focus on personal responsibility, saying there were worse consequences for the economy, livelihoods and mental health.
Just weeks after they celebrated their "Freedom Days," the Netherlands and Israel reimposed COVID restrictions as Delta variant cases rose throughout the countries. Over in Australia, Sydney and Melbourne are tightening lockdowns, while more athletes are testing positive for COVID-19 upon arrival in Japan, challenging the Tokyo Olympics in a region that just declared a coronavirus state of emergency. In the U.S., more states are also reinstating restrictions that had been lifted since late April, including Arizona, California, Colorado, Florida, Louisiana, Michigan, New Mexico and Texas.
Go deeper: Delta isn't the only thing weighing on investors' minds. Inflation fears resurfaced on Friday after data from the University of Michigan showed that consumers believed prices would jump 4.8% over the next year, marking the steepest climb since August 2008. There's also worries about a peak in economic activity, tapering talk, the Q2 earnings season and whether the bullish sentiment in markets has reached a tipping point.
Thank you to Mr Bond!
https://www.kitco.com/news/2021-07-17/Record-inflation-levels-are-coming-with-no-growth-the-worst-of-all-worlds-Steve-Hanke.html
News Bites
Record inflation levels are coming with no growth, 'the worst of all worlds' - Steve Hanke
David Lin Saturday July 17, 2021 21:32
Kitco News
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Inflation in the U.S. will climb to between 6% and 9% by year-end, said Steve Hanke, professor of Applied Economics.
Speaking to David Lin, anchor for Kitco News, Hanke, who has served on Ronald Reagan’s Council of Economic Advisors, said that the rapid growth of the money supply last year has “worked like a charm” in boosting the economy and in turn, fueling growth in asset prices.
Hanke’s comments come as headline inflation in June reached 5.4% year-on-year, the highest on record since 2008.
He noted that the rise in inflation in 2021 has been caused “100%” by the growth of the money supply.
“The main thing about inflation is that it is always and everywhere a monetary phenomenon. This is what Milton Friedman taught us long ago and the transmission mechanism goes from growth in the money supply to growth in asset prices to growth in economic activity to ultimately to increased inflation. That’s the transmission mechanism. It always works,” he said. “Right now, the rate of growth of the money supply has been about three times higher than the rate of growth should have been if the Fed would have wanted to reach its inflation target of 2%.”
Hanke added that between 6% and 9% inflation, the economy will experience the highest growth in consumer prices since the 1970s, an era that experienced an economic phenomenon of low growth and high inflation known as stagflation.
“We’d be clawing our way back into those stagflation years in the 1970s,” Hanke said.
Although stagflation is the situation we are likely headed towards, the economy currently is not that bad yet.
“[The 1970s] was terrible,” he said. “It was the worst of all possible worlds. You have a lot of inflation and jobs are scarce. That’s not what we’re seeing now, by the way. We’re seeing inflation in a booming economy. We’re not seeing the stagflation type of thing where the real economy is weak. The real economy is very strong and booming right now as we’re coming out of lockdown and things are getting on track.”
For more information on how the consumer price index (CPI) is calculated, watch the video above. Follow David Lin on Twitter: @davidlin_TV (https://twitter.com/davidlin_TV).
Hi Freedom,
Because central banks are puppets and their master are their governments who use monetary policy manipulate the true effects of their political policy failures so as to stay in power and continue to do very nicely!
The pandemic has provided our present government with an unexpected opportunity to personally make huge amounts of money and also hide their lies to the ordinary people on Brexit etc.
!“The only way to do more was to delink ourselves from unbridled profiteering,” he said.
https://www.bollyinside.com/news/soros-and-gates-back-purchase-of-uk-diagnostic-technology-group
https://uk.finance.yahoo.com/news/bill-gates-reimburse-companies-covid-195622308.html
Major stock exchanges in Europe were lower in premarket trade on Monday as the resurgence of the coronavirus continued to weigh down on investor confidence. Over the weekend, British Housing Secretary Robert Jenrick revealed that the country's government "won't really expect this wave of the virus to peak until late August, maybe even early September," and the French authorities introduced a stricter set of rules for unvaccinated travelers coming from certain EU countries.
The DAX decreased by 0.75%, London's FTSE 100 lost 0.87% and the CAC 40 declined 0.77% at 8:00 am CET.
The euro was flat against the dollar at 7:59 am CET, trading at 1.18020. The British pound was 0.08% down compared to the American currency, going for 1.37530 at the same time.
Breaking the News / MS
Hi Mr Tibbles
I've just returned from a week off in North Devon. Apart from last Sunday, the weather has been fanatastic. So many great walks along the coast - I didn't stop off in Lymington, the place I found the silver spoon all those years ago on the biology field trip.
I visited the Haynes Car Museum today. The two cars I particularly wanted to see were not on show today. That's a 1930s Lagonda and a 1960s Gordon Keeble. But I've got pictures of the Delorean, TR8, Spitfire Mk3, Ferraris, Alfa Romeos, Jensens -so many. Of course an e-type Jag as well. Some of the vintage cars are enormous - I thought some of the tanks on the road today were unnecessarily huge, but some vintage cars are like having a living room on the road (some US cars are just as big!).
The nicest car? An early 1930s Alfa Romeo. Just nice to look at.
The donkey sanctuary - I'll do something about it this week.
Hi Mr Bond,
You reminded me of our conversations regarding the reason for Josephs share dispoasls
https://www.thisismoney.co.uk/money/markets/article-4604538/DIRECTOR-S-DEALS-Josef-El-Raghy-46-Chairman-Centamin.html
All becomes clear now , he took us for mugs!