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It was a long time coming.
Just seven days before the deadline at the end of last year – and some 4 ½ years after the original membership referendum – the UK finally struck a ‘no tariffs, no quotas’ trade deal with the EU.
Brexit is a process not an event. It’s early days, of course, and there are many aspects of the deal’s implementation that have yet to be finalised but, in this episode of Trust TV, we’re discussing the impact on UK and European economies, and their stock markets, of this landmark event.
Janus Henderson Investment Trusts is delighted to welcome Job Curtis, portfolio manager of the UK-focused City of London Investment Trust, and Jamie Ross, portfolio manager of Henderson Eurotrust, to the Trust TV studio.
Watch Job and Jamie as they discuss the early market reactions, the ‘on the ground’ challenges being faced by businesses, the differing effects on large and small cap stocks, the sector winners and losers, the outlook for 2021, and other themes relevant to investors focused on UK and EU markets.
The allocation of a portfolio according to an asset class, sector, geographical region, or type of security.
CapEx ExpandCapital expenditure or capital expense is the money an organisation or corporate entity spends to buy, maintain, or improve its fixed assets, such as buildings, vehicles, equipment, or land.
Commodity ExpandA physical good such as oil, gold or wheat. The sale and purchase of commodities in financial markets is usually carried out through futures contracts.
Compounding Expand The process in which an asset’s earnings, from either capital gains or interest, are reinvested to generate additional earnings over time. This growth, calculated using exponential functions, occurs because the investment will generate earnings from both its initial principal and the accumulated earnings from preceding periods. Compounding, therefore, differs from linear growth,A payment made by a company to its shareholders. The amount is variable, and is paid as a portion of the company’s profits.
Fiscal Stimulus Expand Action by the government to encourage the private sector economic activity by engaging in targeted, expansionary monetaryLarger companies as defined by market capitalisation total market value of a company (calculated by multiplying the number of shares in issue by the current price of the shares) tend to be easily bought or sold in the market (highly liquid).
Market capitalisation ExpandThe total market value of a company’s issued shares. It is calculated by multiplying the number of shares in issue by the current price of the shares. The figure is used to determine a company’s size, and is often abbreviated to ‘market cap’.
Monetary policy ExpandThe policies of a central bank, aimed at influencing the level of inflation and growth in an economy. It includes controlling interest rates and the supply of money. Monetary stimulus refers to a central bank increasing the supply of money and lowering borrowing costs. Monetary tightening refers to central bank activity aimed at curbing inflation and slowing down growth in the economy by raising interest rates and reducing the supply of money.
Yield ExpandThe level of income on a security, typically expressed as a percentage rate. For equities, a common measure is the dividend yield, which divides recent dividend payments for each share by the share price. For a bond, this is calculated as the coupon payment divided by the current bond price.