Mel Jenner
13 September 2017 · 2 min read

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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Elaine Reynolds
12 September 2017

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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12 September 2017 · 7 min read

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 It also remains to be seen if investors will re-appraise the low level of risk premia in global markets as QE is withdrawn.

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Richard Windsor
8 September 2017

Huawei - The AI of others

Huawei needs its own algorithms to succeed in AI

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Richard Windsor
7 September 2017

Xiaomi and Google - Race to the bottom

Android One will only ever benefit Google.

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Richard Windsor
7 September 2017

Google - Yellow brick road pt. II

Another step to fully proprietary Android.

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Richard Windsor
7 September 2017

Apple - SiriKit?

There are very good reasons to launch SiriKit

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Richard Windsor
1 September 2017
Will Forbes
29 August 2017

Factors in US shale balances - Declines vs DUCs

Negatives of declines in Permian vs increases in DUCs

There have been a number of developments in recent months in US shale.
We examine two key factors to see their effect on market data and sentiment - the levels of inventories and the quantity of drilled, uncompleted wells (DUCs).
Increasing decline rates in the Permian could have significant long-term effects on US shale production expectations, while increasing numbers of DUCs in Permian should give bulls pause for thought on meaningful, near-term increases in oil prices.

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Elaine Reynolds
29 August 2017

Korpfjell disappoints in the Barents

One of the most anticipated exploration wells of 2017, Korpfjell, has proven a small non-commercial gas volume in the frontier southeast region of the Barents Sea. The Statoil operated well had been targeting oil in a large structure that was estimated by partner Lundin to be over four times the size of that seen in the giant 1.9 - 3bnbbl Johan Sverdrup field.

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