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]
Another deficit month, thus to bridge the gap, needs to borrow on the bond market In December 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” 6 auctions of Gilts (UK Government Bonds) by the UK Debt Management Office to raise cash for HM Treasury:-
20-Dec-2022 0¼% Treasury Gilt 2025 £3,619.2500 Million
13-Dec-2022 1% Treasury Gilt 2032 £3,749.9990 Million
07-Dec-2022 0 1/8% Index-linked Treasury Gilt 2031 3 months £744.6500 Million
06-Dec-2022 4 1/8% Treasury Gilt 2027 £4,062.4980 Million
06-Dec-2022 1 1/8% Treasury Gilt 2039 £2,812.5000 Million
01-Dec-2022 1¼% Treasury Gilt 2051 £2,812.4990 Million
£3,619.2500 Million + £3,749.9990 Million + £744.6500 Million + £4,062.4980 Million + £2,812.5000 Million + £2,812.4990 Million = £17,801.396 Million.
£17,801.396 Million = £17.801396 Billion
On another way of looking at it, is in the 31 days in December 2022, HM Government borrowed:- £574.23858064516129032258064516129 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 2025 to 2051. All long-term borrowings, we are mortgaging our futures, but at least “We Are In It Together……“
The abrdn Equity Income Trust is a London listed investment trust.
Twenty largest equity holdings (%)
BP 5.5% of the fund
Shell 4.6% of the fund
Thungela 4.0% of the fund
Glencore 3.8% of the fund
Imperial Brands 3.2% of the fund
Diversified 3.1% of the fund
SSE 3.0% of the fund
Natwest 2.9% of the fund
National Grid 2.8% of the fund
Barclays 2.8% of the fund
British American Tobacco 2.7% of the fund
Close Brothers 2.6% of the fund
CMC 2.5% of the fund
Anglo American 2.2% of the fund
BHP 2.1% of the fund
OSB 2.1% of the fund
Chesnara 2.0% of the fund
Mondi 1.9% of the fund
Legal & General 1.9% of the fund
Playtech 1.8% of the fund
Total 57.5% of the fund
Total number of investments 64
On the 11th Jan, a few weeks ago, Severn Trent PLC paid out its Jan 2023 dividend.
42.73p a share
The total number of voting rights in Severn Trent Plc is 251,554,009
251,554,009 x £0.4273 = £107,489,028.0457
That is £107m paid out to shareholders.
Very interesting interview, especially on his views on a Windfall tax.
The US Central Bank (The Fed) is shrinking its balance sheet, it is reversing the QE programme.
The Peak: $8.965487 Trillion
The Current Size: $8.507429 Trillion
Yesterday, the FTSE-250 infrastructure giant, 3i Infrastructure paid out its Jan dividend.
5.575p a share.
The Company’s issued share capital as at 8.00 a.m. on 15 March 2018 consisted of 810,434,010 ordinary shares with voting rights.
810,434,010 x £0.05575 = £45,181,696.0575
That is £45million paid to shareholders.
Today, the UK electricity infrastructure giant, pays out its Jan 2023 dividend
17.84p a share.
National Grid’s registered capital as of 31 December 2022 consisted of 3,914,359,015 ordinary shares, of which, 254,041,798 were held as treasury shares; leaving a balance of 3,660,317,217 shares with voting rights
3,660,317,217 x £0.1784 = 653,000,591.5128
That is £653 million paid to shareholders
The Alliance Trust an investment trust giant.
03Last week, on Friday 30th December, John Laing Environmental Assets Group, paid out its December quarterly dividend.
1.79p a share.
the total voting rights figure of 661,531,229.
661,531,229 x £0.0179 = £11,841,408.9991
That is £11 million paid to shareholders
The wisedom of Charlie Munger
A few days ago, on Friday 30th December, Renewables Infrastructure Group, paid out its December quarterly dividend.
TRIG plc is now a FTSE-250 company
1.71p a share.
The total issued share capital with voting rights is 2,482,824,562.
2,482,824,562 x £0.0171 = £42,456,300.0102
That is £42million paid to shareholders