Monthly Archives: January 2021

HM Government Borrowings: Dec 2020

Another month, guess what, take a lucky guess, it is the same old story, HM Government, spends more money than it receives via taxes and duties.
Now we are in a Covid 19 world. UK’s HM Government needs to fund many new demands. []

Another deficit month, thus to bridge the gap, needs to borrow on the bond market In October 2020 , the HM Government had to borrow money to meet the difference between tax revenues and public sector expenditure. The term for this is The PSNCR: The Public Sector Net Cash Requirement. There were “only” 7 auctions of Gilts (UK Government Bonds) by the UK Debt Management Office to raise cash for HM Treasury:-

09-Dec-2020 0 5/8% Treasury Gilt 2035 £3,011.1020 Million
08-Dec-2020 0 1/8% Treasury Gilt 2024 £4,029.3720 Million
08-Dec-2020 0 5/8% Treasury Gilt 2050 £2,500.0000 Million
02-Dec-2020 0 1/8% Index-linked Treasury Gilt 2028 3 months £1,250.0000 Million
02-Dec-2020 0¼% Treasury Gilt 2031 £2,750.0000 Million
01-Dec-2020 0 1/8% Treasury Gilt 2026 £3,669.3550 Million
01-Dec-2020 1¼ % Treasury Gilt 2041 £2,250.0000 Million

(£3,011.1020 Million) + (£4,029.3720 Million) + (£2,500.0000 Million) + (£1,250.0000 Million) + (£2,750.0000 Million) + (£3,669.3550 Million) + (£2,250.0000 Million) = £19,459.83 Million.

£19,459.83 Million = £19.459 Billion

On another way of looking at it, is in the 31 days in December 2020, HM Government borrowed:- £627.7364194 Million each day for the 31 days.

We are fortunate, while the global banking and financial markets still has the confidence in HM Government to buy the Gilts (Lend money to the UK), the budget deficit keeps rising. What is also alarming, is the dates these bond mature from 2024 through to 2050. All long term borrowings, we are mortgaging our futures, but at least “We Are In It Together….

Aviva PLC dividend

Today, one of the UK largest insurance firms Aviva PLC pays out its Jan 2021 dividend.

The dividend is 7p a share

Thus they payout is:-

Therefore, the total number of voting rights in Aviva plc is 3,928,488,308 * £0.07 = £274,994,181.56

That is £274 Million.

A yield of 5.9%

The 30 Dow Jones Components

The Dow Jones Industrial Average is made up of 30 US companies:-

MSFT Microsoft
AAPL Apple
JNJ Johnson & Johnson
V Visa
WMT Walmart
PG Procter & Gamble
JPM JPMorgan Chase
UNH UnitedHealth
INTC Intel
HD Home Depot
VZ Verizon
MRK Merck & Co
KO Coca-Cola
DIS Walt Disney
CSCO Cisco Systems
CVX Chevron
AMGN Amgen
NKE Nike
MCD McDonalds
HON Honeywell International
BA Boeing
AXP American Express
GS Goldman Sachs
CAT Caterpillar
GE General Electric
DWDP DuPont de Nemours, Inc.
TRV Travelers Companies

3i Infrastructure Jan 2021 Dividend

Today on Monday 11th Jan 2021, 3i Infrastructure pays out its Jan 2021 dividend.

4.9p a share.

3i Infrastructure had 891,434,010 issued ordinary shares with voting rights, thus:

891,434,010 * £0.049 = £43,680,266.49

That is £43m