A picture paints, 1000 words. The S&P 500 has reacted to tragedy, war and other major world events.
The picture below shows how the S&P 500 Index has responded to world events.
From the Cuban missile of 1962, to the crisis and human tragedy in Ukraine in 2022
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. [www.dmo.gov.uk]
https://dmo.gov.uk/dmo_static_reports/Gilt%20Operations.pdf
Another deficit month, thus to bridge the gap, needs to borrow on the bond market In January 2022, 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” 3 auctions of Gilts (UK Government Bonds) by the UK Debt Management Office to raise cash for HM Treasury:-
26-Jan-2022 0 1/8% Index-linked Treasury Gilt 2051 3 months 600.0000 Million
18-Jan-2022 0½% Treasury Gilt 2029 3,124.9980 Million
11-Jan-2022 0 3/8% Treasury Gilt 2026 3,000.0000 Million
£600.0000 Million + £3,124.9980 Million + £3,000.0000 = £6,724.998 Million
£6,724.998 Million = £6.724998 Billion
On another way of looking at it, is in the 31 days in January 2022, HM Government borrowed:- £ 216.93541935483870967741935483871 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 2026 through to 2051. All long term borrowings, we are mortgaging our futures, but at least “We Are In It Together……
Atlantic Lithium, is creating west Africa’s first Lithium mine.
The graph speaks volumes
The Mercantile Investment Trust plc is a FTSE-250 London listed investment trust.
The Mercantile Investment Trust plc seeks out quality UK medium and smaller sized companies outside the FTSE 100 to build a portfolio of stocks that offer clear and compelling opportunities for future growth.
One of the largest UK equity investment trusts and a history stretching back more than 130 years
Top holdings as of 31/12/2021
Watches of Switzerland Consumer Discretionary 4.4% of the fund
Future Consumer Discretionary 3.7% of the fund
Intermediate Capital Financials 3.3% of the fund
Bellway Consumer Discretionary 3.0% of the fund
IMI Industrials 2.6% of the fund
Softcat Technology 2.6% of the fund
Computacenter Technology 2.5% of the fund
Dunelm Group Consumer Discretionary 2.5% of the fund
Electrocomponents Industrials 2.4% of the fund
Spirax Sarco Industrials 2.3% of the fund
https://www.londonstockexchange.com/stock/MRC/mercantile-investment-trust-the-plc/company-page
Today, British Telecommunications PLC, the UK’s premier telecommunications giant, pays out its Feb dividend.
2.31p a share.
https://www.londonstockexchange.com/news-article/BT.A/total-voting-rights/15271687
The total number of voting rights in BT Group plc on that date was 9,919,692,092.
Thus:-
9,919,692,092 x £0.0231 = £229,144,887.3252
That is £229 million.
https://www.londonstockexchange.com/stock/BT.A/bt-group-plc/company-page
Tomorrow, Vodafone PLC pays out its Feb 2022 dividend.
€0.045 = 3.75826p a share.
https://www.londonstockexchange.com/news-article/VOD/total-voting-rights/15310605
The total number of voting rights in Vodafone is 27,064,398,704
Thus:
27,064,398,704 x £0.0375826 = £1,017,150,470.73295
That is £1,017,150,470 = £1017 Million = £1.017 Billion
https://www.londonstockexchange.com/stock/VOD/vodafone-group-plc/company-page
Today, the UK Water Utility, United Utilities pays out its Feb 2022 dividend.
14.5p a share.
https://www.unitedutilities.com/
The total number of voting rights in the company stood at 681,888,418 and the total
ordinary shares in issue were 681,888,418.
https://www.unitedutilities.com/globalassets/documents/pdf/23-july-2021-agm-poll-result-.pdf
Thus:-
681,888,418 x £0.145 = £98,873,820.61
That is £98million
https://www.londonstockexchange.com/stock/UU./united-utilities-group-plc/company-page
