MARKET REPORT Thursday 13th May 2021 Due to staff holidays the market report will be slightly shorter than normal. Market Headlines US consumer inflation rose 4.2% in April year-on-year, the most since 2008, ahead of the 3.6% rate expected and up from the 2.6% figure in March, further stoking inflation fears. The US Colonial pipeline reopened following the cyberattack, as it warned it would take several days before supplies returned to normal, with twelve states having declared a state of emergency amid consumers panic buying petrol and stations running dry. Japan’s service sector sentiment index fell to 39.1 in April, from 49.0 in March, the first drop in three months. The S&P 500 fell 2.1%, the Nasdaq dropped 2.7%, the Nikkei 225 dipped 2.5%, the Hang Seng lost 1.7%, whilst the Shanghai Composite closed down 1.0%. European markets were lower. Investments on our buy list Hipgnosis Songs Fund (SONG) - announced its latest acquisition, the catalogue of legendary Grammy Award winner Andy Wallace comprising 100% of producer, mixer and performance royalties on 17,242 songs. Collaborations include Aerosmith, Biffy Clyro, Blink-182, Bruce Springsteen, Coldplay, Foo Fighters, Guns N' Roses, Jeff Buckley, Kasabian, Linkin Park, Nirvana, Paul McCartney, Prince, Rage Against the Machine, Run D.M.C., Rush, Slayer, Sonic Youth, Stereophonics, System Of A Down and White Zombie. The growth in streaming continues to support the fund, which trades on a 3.9% premium to NAV with a 4.3% projected yield. We remain positive. Source: Alpha Terminal Redrow (RDW) - Jefferies increased its target price from 751p to 833p to accompany its BUY rating. Last week Barratt Developments announced its results would be ahead of expectations which led to a number of broker upgrades, which augers well for Redrow’s prospects. Buy. Source: Alpha Terminal Recap of yesterday Diageo rose 3.4% as it reported strong trading particularly in North America and now expected organic operating profit growth of 14% for the full year to the end of June. It also restarted its share buyback programme of up to £4.5bn. Redde Northgate added 6.9% as it upgraded forecasts after momentum had built up since December, with fiscal 2021 sales up 43% year-on-year and it now expected full year profits to be moderately above the top end of analysts’ forecasts. Spirax-Sarco gained 2.0% as it said most businesses would see full year sales growth above the 8.5% rise in global industrial production, having previously guided to a 7% increase. It now expected Watson- Marlow’s sales to rise 55% due to exceptional demand by the pharmaceutical industry, up from 35%. UDG Healthcare surged 20.7% as it agreed to a 1023p per share takeover by private equity manager Clayton, Dubilier & Rice. Online portal We would like to remind you that you can now more easily keep up to date with the value of your account using our client portal. Please go to the Client Login section of our website to register now https://blankstonesington.co.uk/ . Telephone: 0151 236 8200 | Fax: 0151 243 3535 Email: [email protected] | www.blankstonesington.co.uk Important information Articles, news and research published by Blankstone Sington are provided solely to enable you to make your own investment decisions. They are not personal investment advice and may not be suitable for all investors. If you are unsure about whether an investment is suitable for your circumstances, you should seek advice. The value of investments will rise and fall, and you may get back less than your initial investment. Past performance is not an indication of future performance. This report is a marketing communication. Any information presented herein which may be construed as ‘investment research’ has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is therefore ‘non-independent research’. Non-independent research is not subject to FCA rules prohibiting dealing by members of staff ahead of its dissemination. Member of The London Stock Exchange. Authorised and Regulated by The Financial Conduct Authority No. 143694. Registered in England No. 2378144 .