It’s coming home


Wednesday, 4 July: The FTSE eventually closed 0.27% lower as trade tensions continue to diminish investor’s risk appetite. Overall it was a quiet day as US markets remain closed for Independence Day and well let’s face it, everyone has been too busy watching the replays from last nights game. Amongst the news feed today was the fact that supermarket Sainsbury’s had agreed a finance deal for the Asda merger. Included in the quarterly update was a positive note on sales which also rose and this helped their shares top the FTSE by climbing 2.95%.

The World Trade Organisation (WTO) has addressed the underlying trade tensions that have plagued markets for weeks now. The body has labelled the potential harm it could cause to world economic growth if the situation continues to escalate. The tiki-taka tariff war began from Donald Trump imposing tariffs on aluminium imports from the EU and China which was then met with more trade threats from both sides. Donald can try stopping imports flooding America but he can’t stop football from coming home.

The current situation with CO2 is worrying, very worrying, especially as we advanced into the quarter finals of the World Cup. But yesterday one of the UK’s largest plants suffered an unexpected power outage which has significantly worsened the CO2 situation for the firm. Approximately 70% of carbon dioxide used by companies in the UK comes from CF industries two plants and we have already seen a number of firms and products affected by the shortage. As yet this shouldn’t have a material impact on the already struggling situation, which many believe should be over in a week or two as factories resume production of the fertilisers that produce CO2 as a by-product.

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