The world is reeling after the dramatic collapse of the Crypto exchange FTX
The fall of the FTX ‘King of Crypto’ Sam Bankman-Fried – BBC News
However, we should not be surprised. Warren Buffett made this statement:-
“Warren Buffett: Bitcoin Is An Asset That Creates Nothing”
You can see the graph of the S&P 500 from 2018 to now. The dramatic March 2020 Covid dip that shows the slump and then the rapid ascent and then the sell off since the start of 2022.
Today, Tesco PLC pays out its November dividend.
The dividend is 3.85p a share.
https://www.londonstockexchange.com/news-article/TSCO/total-voting-rights/15696906
The Company’s share capital as at 31 October 2022 consisted of 7,423,647,355 ordinary shares
Thus:-
7,423,647,355 x £0.0385 = £285,810,423.1675
That is £285m.
https://www.londonstockexchange.com/stock/TSCO/tesco-plc/analysis
A picture paints a thousand words.
John Laing Environment Asset PLC (JLEN) is a London investment trust, that invests in Green Technology such as renewables and other assets that are doing good for the environment.
JLEN – JLEN Environmental Assets Group
The current Portfolio includes onshore wind, PV solar, waste and wastewater processing plants, hydro and anaerobic digestion plants, low carbon transport, battery storage and controlled environment aquaculture in the UK, Norway, Spain and Sweden. Wind, solar and hydro projects are supported by the UK’s commitment to support low‑carbon electricity targets and the waste and wastewater processing projects benefit from long‑term contracts backed by the UK government. The anaerobic digestion projects generate a valuable renewable biogas that earns UK government subsidy support.
JLEN ENVIRONMENTAL ASSETS GROUP LIMITED JLEN Stock | London Stock Exchange
BioPharma Credit plc provides investors with an opportunity to gain exposure to the fast growing life sciences industry, through a diversified portfolio of loans and other instruments backed by royalties or other cash flows derived from sales of approved life sciences products. BioPharma Credit’s primary objective is to generate predictable income for shareholders over the long term
BPCR currently has ~$1.4bn invested across 10 transactions
Bristol Myers BMY $122.9m
Optinose OPTN $130.0m
Akebia AKBA $100.0m
Global Blood GBT $250.0m
Collegium COLL $625.0m
Sarepta SRPT $550.0m
LumiraDx LMDX $300.0m
Evolus EOLS $75.0m
Coherus CHRS $200.0m
UroGen URGN $75.0m
https://www.londonstockexchange.com/stock/BPCR/biopharma-credit-plc/company-page
The Invesco Select Trust Global Equity Income is a London listed investment trust.
https://www.invesco.com/uk/en/investment-trusts/invesco-select-trust-plc-global-equity-income.html
The investment objective of the Global Equity Income Share Portfolio is to provide an attractive and growing level of income return and capital appreciation over the long term, predominantly through investment in a diversified portfolio of equities worldwide.
Top 10 holdings % portfolio
Shell 6.2% of the fund
BP 4.8
The Invesco Select Trust Global Equity Income is a London listed investment trust.
https://www.invesco.com/uk/en/investment-trusts/invesco-select-trust-plc-global-equity-income.html
The investment objective of the Global Equity Income Share Portfolio is to provide an attractive and growing level of income return and capital appreciation over the long term, predominantly through investment in a diversified portfolio of equities worldwide.
Top 10 holdings % portfolio
Shell 6.2% of the fund
BP 4.8% of the fund
RELX 4.6% of the fund
SSE 4.6% of the fund
National Grid 4.4% of the fund
Barrick Gold 3.7% of the fund
Barclays 3.6% of the fund
Next 3.4% of the fund
PRS REIT 3.4% of the fund
AstraZeneca 3.3% of the fund
Total 42.0% of the fund
https://www.londonstockexchange.com/stock/IVPG/invesco-select-trust-plc/company-page
Top 10 holdings & the % portfolio
Shell 6.2% of the fund
BP 4.8% of the fund
RELX 4.6% of the fund
SSE 4.6% of the fund
National Grid 4.4% of the fund
Barrick Gold 3.7% of the fund
Barclays 3.6% of the fund
Next 3.4% of the fund
PRS REIT 3.4% of the fund
AstraZeneca 3.3% of the fund
Top 10 holdings make up 42.0% of the fund
https://www.londonstockexchange.com/stock/IVPG/invesco-select-trust-plc/company-page
The End of Quantative Easing.
The 2008 Banking crisis, resulted in Central Banks globally bought assets of clearing banks, and crediting them with New money created by the Central Banks.
https://www.bbc.co.uk/news/business-63474176
Now the charts below show the US Federal Reserve, and you can see over a few months, it has shrunk the balance sheet from $8,945,898 Million ($8.945 Trillion) to $8,723,090 ($8.723 Trillion).
It is selling the US Treasury Bonds (T-Bonds = Treasuries) back to private investors, such as pension funds etc).
BP plc has enjoyed share price growth due soaring energy prices.
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 post Covid 19 world. UK’s HM Government needs to fund many new demands. [www.dmo.gov.uk]
https://www.dmo.gov.uk/data/pdfdatareport?reportCode=D2.1PROF7
Another deficit month, thus to bridge the gap, needs to borrow on the bond market In October 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” 8 auctions of Gilts (UK Government Bonds) by the UK Debt Management Office to raise cash for HM Treasury:-
26-Oct-2022 0½% Treasury Gilt 2029 £3,500.0000 Million
25-Oct-2022 0 1/8% Index-linked Treasury Gilt 2039 3 months £898.8500 Million
19-Oct-2022 1% Treasury Gilt 2032 £4,062.5000 Million
18-Oct-2022 1¼% Treasury Gilt 2051 £3,125.0000 Million
12-Oct-2022 4 1/8% Treasury Gilt 2027 £4,365.2500 Million
11-Oct-2022 0 1/8% Index-linked Treasury Gilt 2051 3 months £1,106.2990 Million
05-Oct-2022 1% Treasury Gilt 2032 £3,749.9990 Million
04-Oct-2022 0½% Treasury Gilt 2061 £2,500.0000 Million
£3,500.0000 Million + £898.8500 Million + £4,062.5000 Million + £3,125.0000 Million + £4,365.2500 Million + £1,106.2990 Million + £3,749.9990 Million + £2,500.0000 Million = £23,307.898 Million
£23,307.898 Million = £23.307898 Billion
On another way of looking at it, is in the 31 days in October 2022, HM Government borrowed:- £751.86767741935483870967741935484 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 bonds maturing from 2027 to 2061. All long-term borrowings, we are mortgaging our futures, but at least “We Are In It Together……”
The graph below show’s Shell PLC’s performance….
One can see the energy giant’s share price performance, enjoying the fruits of surging energy costs
