Electric Vehicles - Extinction level event
EVs could trigger a huge decline in vehicle demand
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Finsbury Growth & Income Trust announces new holding in Manchester United
First new purchase since 2015
Finsbury Growth & Income Trust (FGT) has announced that manager Nick Train has initiated a holding in Manchester United. He is well renowned for his low-turnover investment approach and this is the first new position in FGT’s portfolio since the purchase of Rémy Cointreau in 2015. Manchester United listed on the New York Stock Exchange in August 2012 at a price of $14 per share. Its share price subsequently rose above $19 and is currently trading at c $17. The football club has a market cap of $2.7bn and currently offers a dividend yield of 1.07%. Train believes that the value of Manchester United’s global franchise is not reflected in its current share price. He cites the recent announcement of the sale of NBA basketball team Houston Rockets for $2.2bn, suggesting that Manchester United could be worth in excess of $5bn.
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Drombeg adds to Druid disappointment
The Druid/Drombeg frontier exploration well, 53/6-1, is currently being plugged and abandoned after encountering porous water bearing reservoir across both target intervals. Operator Providence Resources announced the results from the deeper Drombeg target this week, following on from similarly disappointing results from Druid in August.
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Interesting times for central bankers
If growth is picking up, why are bond yields still so low?
It appears the low volatility/high valuation regime in equity and credit markets is continuing into the autumn. This is despite an important and imminent US Fed balance sheet reduction announcement. Furthermore, October brings details of the ECB’s plans to reduce the net purchases of its own QE program. While central bankers are quick to claim credit for any improvement in economic conditions, the decline in long-term bond yields over the summer questions the durability of the expansion as the yield curve flattens. It also remains to be seen if investors will re-appraise the low level of risk premia in global markets as QE is withdrawn.
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