Club Lecture • Charles Abel but we should look to increase inflation-resistant stocks, such as those with pricing power, like Coca-Cola and Diageo. There are certain industry sectors that tend to do better with inflation.” The anticipated 0.15% interest rate rise in the UK was a reaction to non-tariff trade barriers and supply difficulties, she said. The USA and EU were likely to follow suit, by June 2022, and at a similar scale. “Governments have significant debt and can’t afford to go higher,” she noted. Adding 1% to interest rates would add £25bn to the UK government’s interest bill, for example. For the past 20 years the engine of global growth has been China. But that is changing. Regulatory clampdowns are making profit projections more uncertain. Alibaba was a case in point. China’s focus seems to be shifting from the economy to regional security. In the UK the market sentiment towards UK assets was at its lowest for 40 years, with a stilllarge discount leaving room for out-performance, and only a 2% exposure to tech stocks, unlike other markets. “A rally is starting, because
the potential is being seen.” She expected the pound to start to recover. Meanwhile, interest in ESG investments, focused on better approaches to environmental, social and governance issues, was growing, especially amongst younger investors. Interest in sustainable food and the health benefits of food were part of that, and were undergoing big changes. On take-overs in the food supply chain, including Asda and Morrisons, she felt Government sentiment was changing. Although it was generally not in favour of capital market intervention, it had already acted in the defence sector, preventing overseas take-overs, and the Cadbury take-over was an example of the UK being too willing to let established companies go.
FARMERS CLUB CUP 2021 ALMOST every year since 1957 the prestigious Farmers Club Cup has been presented to recognise those who have made a significant and long-lasting contribution to the farming industry. Nominated by the Chairman and supported by the General Committee recipients have included politicians, NFU presidents and senior farming figures. This year Club Chairman Keith Redpath presented the cup to Teresa Wickham, commending her considerable achievements in the fresh food supply chain, championing the role of women in food and farming, and enthusiasm for all things farming. “You are a super-woman Teresa!” Accepting the award Teresa, a member since 1980, said the Club was a “second home and very unique.” Club member Teresa Wickham was awarded the Farmers Club Cup for 2021, pictured here receiving it from last year’s Club Chairman Keith Redpath
Innovation in the UK would need better Government support, more akin to what is seen in the USA, with support and funding, pre-IPO finance, and experienced board member nominations. “There is growing understanding of what is needed here, which will take a while to scale up. It will need incentives, but I think it is coming.”
Financial markets were the focus at the latest Monday Evening Lecture.
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