InterChange

This week’s price action has made it clear that the Dow does not like the 11,700 level.

The bears did indeed push this index lower and also below a pivot level which means that we could potentially be on the verge of a larger degree decline. With seven failed attempts at the 11,700 level it is evident that a stronger force on the bearish side is more likely and that unless we can rectify the start of this weeks fall, the picture does not look too good.

We seem to have a choppy ABCD type correction into the resistance area and with the RSI now changing direction to the downside we can assume that there is more to follow through if we break below 11,434.

Short term traders will notice that the index is also below its 20 day Moving Average and will be focusing on trading the short side which could also bring momentum traders to drive the market lower.

The decline in Oil prices has still not helped the index to rally higher and with all of these factors, we should be careful not to get on the wrong side of the fence as things can get nasty very quickly here.

For the week ahead, I would be looking at the Dow to get back above 11,535 at the very least to target 12,000 and if we start to head lower then a breach of 11,225 could set the stage for the Dow to head back down towards the 10,700 target.

Momentum indicators are not clear to the next move and it is obvious with the chart pattern that the market is trying to find its feet for a firm footing before taking off again. Either way we can expect volatility to be around for a while. The struggle between the bulls and bears is still on and one side is soon to hold the flag up to give in.

Sandy Jadeja is Chief Market Strategist for ODL Markets and founder of www.Spreadbettingtowin.com where he teaches low risk trading strategies and money management.

Its stadium and facilities for the athletes had already received rave reviews as sports men and women the world over waited patiently to have their turn in the spotlight. So naturally it would follow that economists wanted a piece of the action too. No, not content enough in forecasting anaemic growth rates and crippling inflation, it seems some have been busy predicting which of the participating countries would come away with the highest medal count.

Cooking up an economic model, adding a dash of statistics, and probably a sprinkling of magic fairy dust, they are out to disprove the theory that economists were put on this earth to make astrologers look good. So before you go to your local betting shop and gamble away willy nilly, you might want to look up a chap by the name of Daniel Johnson. This Colorado College professor, along with his trusted undergraduate, has come up with a five piece computer model to calculate not just how many times the stars and stripes would be hoisted, but how many gold medals their countrymen will take home.

And just what are these five crucial factors? Mr Johnson puts it down to GDP per capita, total population, political structure (this is one instance where not a having a vote really wins out), climate, and home-nation bias. One can imagine that population weighs heavily on medal totals – after all the higher the population the deeper pool of talented athletes and hence a greater chance of producing winners. For instance, the heavily populated China is projected to take an incredible haul of 89 medals, up from the 63 they took at Athens.

But population alone is not enough to explain the ability to win medals. Or else India should be walking away with a lion’s share now. Instead countries like the United States, Russia and Germany with a high per capita income are near the top of the medal winning table. In other words these countries have the added advantage of being rich too. The US is expected to take 103 medals in Beijing, with 33 of them being gold and the incredible Mr. Phelps is obviously seeing to that. This half man, half fish, has so many gold medals already that if he was a country he would be ranked sixth on the list!

The next factor favours communist and authoritarian countries in the medal stakes. The fact that India prides itself on being the biggest democracy in the world is seriously working against its fortunes in Beijing right now. That and the country’s obsession with cricket! Will its first ever individual gold medallist - Abhinav Bindra – boost the sport of shooting as much as he has his marriage prospects? His dear mother has already claimed that she has “lots of work ahead as he is the country's most eligible bachelor”.

The last two factors of climate, meaning the number of frost free days, and the added benefit of hosting the Olympics apparently add to the medal tally. Something to do with the government mobilising resources into the sport and the psychological impact of the home crowds cheering on should mean that our athletes should expect to do well at the London Olympics in 2012. But of course we all know different, don’t we? How else does one explain the ‘Henmania’ phenomenon failing to produce a Wimbledon tennis champion?

Another study by PricewaterhouseCoopers (who have also been forecasting Olympic success since 2000) factors in previous performance. This bodes well for US, China, Russia and Japan who all exceeded expectations in the Athens Games. At this point, I would just like to say to you kids – Don’t try this at home! Past performance is not an indication of future performance when it comes to your stock portfolio.

Daniel Johnson does have an astonishing 95% rate of accuracy and so his study perhaps should not be poo-pooed. In that vein, here are some things we should do to ensure this country has a good chance of winning further Olympic medals. Have more kids, make more money, turn communist, and drive more cars (more cars, more global warming, more frost free days – you get the picture!). Your country needs you.

***

And finally………. as the saying goes ‘War is how Americans learn geography’. Perhaps, then, Birmingham City Council should go to war with Alabama. The council’s shocking grasp of geography was evident in the 720,000 leaflets it produced at a cost of £15,000 and sent to its residents thanking them for doing their bit for recycling. The photograph of the city it used on the leaflet showed not the famous landmarks of the Rotunda and Bullring shopping centre in Birmingham, West Midlands, but the American skyline of downtown Birmingham, Alabama instead. Oops!

Have a good weekend,

Aparna Ram
Research Analyst
Seven Investment Management Limited

Bear markets are much more common than most investors would guess.

The trend was different 100 years ago. The norm in those days was for sporadic and often quite painful bear markets. A quick-running downturn in 1920 knocked prices by more than 40 per cent. Another one, from 1928-32, produced a total decline of 60 per cent.

A major trend change occurred in the second-half of the century. Since1950, there were 14 separate downturns. In other words, one began every four years or so, on average.

Those who began to invest in the rip-roaring 1980s or 1990s are especially likely to be surprised by these figures. Unfortunately, that powerful two-decade long advance probably was probably a once-in-a-century experience.

We seem to have gotten back on track in recent years with separate downturns in 1998, 2000-3 and 2007-8.

History makes a clear point. The road to long-term capital accumulation must either include working and saving or being born into the right family. Stock market gains of the magnitude seen at the end of the last century probably will no longer do the trick.

Another trend change worth noting is the role of financial institutions in triggering bear markets.

Go back to the 1950s, '60s and '70s and you will find that interest rate changes and bank lending restrictions played a role in many bear markets.

But these changes and restrictions were typically forced upon financial institutions by the government of the day. These institutions were frequently buffeted by government policies or broad economic forces, just like the rest of us. They were often victims as well as victimisers.

The world changed in recent years - big time. Indiscriminate lending practices and high leverage provided by leading financial institutions were implicated in each of the last three downturns.

Recall that the collapse of the Long Term Capital Management hedge fund triggered the 1998 downturn. LTCM went belly up after bank loans allowed it to leverage some of its bets by a factor of 100:1.

Speculative lending to investors in start-up tech companies in the late-1990s contributed to the Tech bubble and the bear market of 2000-3

The bear market of 2007-8 was triggered by sub-prime real estate loans, coupled with clever ways of repackaging these loans in a highly leveraged fashion.

To be fair, low interest rates by the Greenspan-led Federal Reserve also contributed to the problem. Even so, there is an old expression that war is too important to leave to the generals. Perhaps the same thought should now be applied to the link between the economy and financial institutions.

We now know that short-term greed and mismanagement by top financial executives can slam the entire economy, not just one errant company. There is an urgent need for more supervision and regulation. Otherwise, we must prepare for future banking-caused stock market drops.  

The slide in oil and other commodity prices has been key here but also the evidence pointing to a weakening economy is accumulating.

The fall in bond yields is not just a UK phenomenon. Much the same thing is happening in other major government bond markets, though to a lesser extent in the US Treasury market.

The evidence now indicates that the developed economies are heading into recession, if they are not in one already. Second quarter GDP growth in Japan and the eurozone has turned negative. In the US, GDP growth is being held up by the contribution from net exports. The growth of US domestic demand has already turned negative. Given that monetary policies are being geared increasingly towards restraint in the emerging economies and that growth has stalled in the major economies, the contribution to US GDP growth from net exports is set to become less supportive so US GDP is also likely to turn negative.

What all this means is that the downward pressure on government bond yields is likely to be sustained. Government bond markets not only reflect the growing conviction that the underlying tendency is disinflationary in the major economies but they also reflect just how deadlocked monetary policy has become.

In its Quarterly Inflation Report, the Bank of England judged the balance of risks to be on the downside for growth and on the upside for inflation, though ultimately it expects inflation to drop convincingly below target. The economy is in need of lower interest rates but inflation, which by the CPI is now more than double the MPC’s target and expected to climb further away from it, is preventing the MPC from bringing them down.

We have been making the point that lower gilt yields support the case for high yielding UK equities (see High yielders for value investors 16 July 2008 and A boost for high yielders in the UK equity market 6 August 2008). The chart on the preceding page conveys the sense in which high yielding equities have been moving. It shows the FTSE 100 along with the FTSE 100 excluding Resources. The latter is up some 11 percent from this year’s mid-July low. The FTSE 100 is up by half that amount.

The dividend yield on the FTSE 100 ex Resources got to be a full percentage point higher than that on the FTSE 100 in mid-July. It is less now but the index still carries a premium yield to the FTSE 100. It is dominated by the Banks but it has plenty of other high yielders in sectors like the General Retailers, Travel and Leisure, Household Goods, Media as well as few other financials. The FTSE 100 ex Resources has become something of a high yielding equities index.

A good test of whether the rebound from the mid-July low is just another bear market rally could come if and when oil prices (as well as other commodities prices) regain momentum, which could happen if China’s economy picks up steam once the Olympic Games are over.

Inflation in China has come down from a peak of 8.7 percent in February to 6.3 percent last month. In view of this deceleration, the Chinese authorities are now attaching priority to sustaining rapid growth and may choose not to tighten monetary policy further. They may even relax it.

But if bond yields continue to edge lower against this backdrop - on the view that the next move in interest rates is not only down but that there will more cuts thereafter - yields on UK equities should continue to fall. The equity market should be discounting recession already. The prospect of lower interest rates should not only help it to think ahead to the recovery but should also help high yielding equities acquire a re-rating. We think sterling is set to continue weakening and this will be helpful for earnings.

As the chart on the preceding page shows, the tram lines have defined a year long trading range for the FTSE 100 ex Resources. Having rebounded from its mid-July low, the FTSE 100 ex Resources has run up against resistance. At some stage, one or the other of the tram lines will be broken. The chances are it will be the top one - when interest rates are cut. 

* The information contained in this report has been taken from sources disclosed in this presentation and is believed to be reliable and accurate, but without further investigation cannot be warranted as to accuracy or completeness. The opinions expressed in this document are not the views held throughout Brewin Dolphin Ltd. No Director, representative or employee of Brewin Dolphin Ltd. accepts liability for any direct or consequential loss arising from the use of this document or its contents. We or a connected person may have positions in or options on the securities mentioned herein or may buy, sell or offer to make a purchase or sale of such securities from time to time. In addition we reserve the right to act as principal or agent with regard to the sale or purchase of any security mentioned in this document. For further information, please refer to our conflicts policy which is available on request or can be accessed via our website at www.brewin.co.uk. The value of your investment or any income from it may fall and you may get back less than you invested. Past performance is not a guide to future performance. If you are in any doubt concerning the suitability of these investments for your portfolio you should seek the advice of a qualified investment adviser. Brewin Dolphin Ltd, a member of the London Stock Exchange, authorised and regulated by the Financial Services Authority. Registered office: 12 Smithfield Street London EC1A 9BD. Registered in England and Wales no 2135876.

The main question on trader’s minds right now is if the current move is going to be the start of a major move to the upside. And given that we have seen a +9.6% move from the July low, one could believe that this is indeed a significant factor. However, we must really focus on the larger degree trend in that we have already lost -17.5% from the May high of 13,136 and that the current move is really a counter trend rally. In other words we should assume the rallies to be corrections to the main trend.

Therefore we should be focusing on resistance targets which could potentially halt the rallies and keeping the index from seeing new highs. That being said, the bears are going to keep this market under pressure unless we can see a significant turnaround. So what would it take for the market to experience this turnaround?

Initially the Dow will need to clear 11,710 which it seems to have struggled with over the last three weeks. If we can stay above this level then the next main resistance barrier comes in at 12,255. But also the current pattern formation could either be an ABCD correction or a five wave formation which could end up having a choppy price action during its corrective move.

If during this correction we can see a strong momentum build up and see positive closes near the intra day highs then that would indicate the bulls are starting to take control and feel confident going home on the highs. There really is an overall lack of confidence in the markets at the moment and the drop of Crude Oil has had no major impact on the indices as one would expect. Overall the commodities markets have started a decline and if investors feel its time to move back into stocks then much work is required to take this market back up to key levels.

For the moment though, I would keep a close eye on 11,380 as a support this week of which a break below could take the index lower to test lower support levels. 11,225 is still an important level and must remain intact.

Sandy Jadeja is Chief Market Strategist for ODL Markets and founder of www.Spreadbettingtowin.com where he teaches low risk trading strategies and money management.

‘Trade talks, what trade talks?’ – you say. Well you’d be very much forgiven for not discerning this piece of news, so much have our newspapers been engrossed in banks and their ever more depressing results.

A little over a week ago, a seven year effort to forge a global trade pact fell spectacularly apart, ending fruitlessly and sounding ominous repercussions for not just the credibility of the World Trade Organisation (WTO), but also for the fight against climate change and global poverty. While it is no wonder to many that these talks have failed every Summer for the past seven years (not unlike Wimbledon Championships in producing a British winner), there are yet several wonders that have come to light in the wake of these annual talks. So here they are, the seven wonders of the Doha Round:

The wonder that the talks came this close to triumph.

In some ways, the astonishing thing about the Doha round is not that they ended in vain but they came as close as they did to success. Just before it broke down, some participating countries (of which there an incredible 153) put the chance of a deal as high as 75%. After years of talks, the major players were at the table and being constructive until the crunch came.

The wonder that the talks crumbled with so much at stake.

Some economists estimate the benefits of trade liberalisation to be around $84bn globally with developing countries enjoying 22% of these gains. At a time when the global economy is slowing and inflation is rising, a successful Doha round would have been a timely boost. Walking away at this point with so much to gain is like folding a Full House in a game of Texas hold ‘em poker. An opportunity wasted!

The wonder it stumbled on agriculture.

After years of picking the low lying fruit and having agreed on several other trading sectors and issues, it is a wonder that the hurdle of agricultural subsidies and tariffs proved too hard to overcome. Agriculture makes up only 8% of world trade and yet the fact that it provides a means of living for around 2.5 billion people makes it a heated topic at Doha. Although there was some headway made on subsidies on the part of the US and Europe, the talks essentially broke down over a relatively obscure but complicated proposal to protect farmers in developing countries by using ‘Special Safeguard Mechanisms’.

The wonder that the fat cat American farmers are not done lining their pockets.

Although the Bush administration offered to cut its allowance of trade-distorting agricultural subsidies from around $50bn seven years ago by 70% to £14.5bn, it must be remembered that US farmers’ incomes have still risen due to surging commodity prices and the falling US Dollar. At one time, this deal would have impressed their trading partners, but in an age of soaring food prices and prospering American farmers, it does strike observers as a tad grudging. And as if to have their cake and eat it too, the Americans made their deal conditional on gaining greater access to politically sensitive agricultural markets in India and China. Ironically the Americans would have gained more by pushing for greater access to their industrial goods and services, but the US farm lobby is very powerful.

The wonder of the huge political clout still possessed by farmers outside the EU.

We all know about the weight that can be thrown around by the French farmers and the American cotton farmer. But now, there is a new kid on the block and he is the small Indian subsistence farmer. The US farm lobby may be strong, with enough political muscle to overthrow presidential vetoes and push for greater corn subsidies, but it is nothing compared to the fear instilled by the Indian farmer on its government. India’s rural population numbers roughly 600 million and suicides amongst the poorest and most debt laden farmers are increasingly common, with huge political consequences, as the last BJP government found out at the last election. The current government is unwilling to make that same mistake again proving yet again that even global politics is local!

The wonder that are the BRICs.

After nearly 15 years of negotiations, China eventually joined the WTO in 2001. When it became a member, not many could have predicted the political and economic spotlight it is enjoying today. Along with India, who was one of the founding members of GATT (General Agreement on Tariffs and Trade) in 1947, China now finds itself a major player internationally and not surprisingly has taken a large part of the blame for Doha’s failure.

The wonder that markets brushed this aside.

The failure of the Doha round was nothing more than a blip on the financial markets’ radar. So busy reporting on the consequences of the sub-prime mess in the here and now, they forgot to look to the future. In the present climate of gloomy economic growth, the failure to realise that a golden opportunity for global growth was missed is depressing indeed.

***

And finally………. Ken Smith, lecturer at Bucks New University says that the most common spelling mistakes should be accepted as ‘variant spellings’ and cites these examples - ‘arguement’, ‘twelth’ and ‘truely’. His academic opinion seems to state that he has been correcting the same mistakes for the last 20 years and we instead should just accept them. Wot an outragus ideya and hav his stuedents neva herd of spel chek?!

Have a good weekend,

Aparna Ram

Research Analyst

Seven Investment Management Limited  

As previously mentioned, the index needs to remain above 11,225 for the near term if we are to see higher prices. At present I would like to see the Dow clear above 11,580 and to also see the RSI indicator rise to provide a Buy signal.

However, with the index breaking below 11,260 this week it appears that we may still not have gained enough strength to help start a rally. If we start seeing the index step below the 11,225 level for more than three days then I expect to see a re-test back down towards the major 10,700 50% retracement level.

On a longer term timeframe maintain a close eye on 10,820 of which a break below could see a sharp sell off to the 10,700 level and for the bulls we will need to see a rally above 11,700 before focusing on upside resistance levels. Remember that these levels are for the “Intermediate term” traders.

The bigger picture still tells us that the market is down over 20% from last years highs and the economic outlook has not really changed much. In fact many traders feel that there is still more bad news to come out of the woodwork. Combine this with the larger pattern on the monthly charts and there is still potential for more downside if we see a breakdown of the mentioned support levels.

In the current climate I would maintain a close eye on the shorter term levels as these are the first to provide us with the much needed clues to future direction. Also we notice that with the decline of Crude Oil this has not led to the anticipated rally which suggests the idea that the indices are weaker than expected.

The current weeks price action could be setting us up for the next big move ahead. In the meantime have a great trading week.

Sandy Jadeja is Chief Market Strategist for ODL Markets and founder of www.Spreadbettingtowin.com where he teaches low risk trading strategies and money management.

 

Aside from rock solid institutional demand for index-linked stocks, these ‘absolute return’ type vehicles have been beneficiaries of that deadly duo restraining the global economy - the credit squeeze and the rise in oil prices.

More recently though, index-linked stocks have lost momentum and, as the chart shows, the conventional side of the gilt market has picked up. This may reflect nothing more than a correction for valuation or a technical adjustment. Breakeven inflation rates reached the highs not seen since the mid 1990s, thus leaving the index-linked market a little overbought.

The loss of relative momentum behind the index-linked market is noteworthy for its timing, having coincided more or less with the start of the sell-off in the oil market back in July.

It is worth keeping an eye on the gilt market. It could be providing a lead on two things. First, aside from any technical adjustment, if the shift in relative momentum towards the conventional side of the market continues, this may be signalling an eventual revision of inflation expectations and a turn in headline inflation itself. That is, it might be discounting recession, disinflation and the prospect of lower interest rates. Yields on short dated conventionals have dropped below Bank rate again.

Second, if the gilt market is beginning to discount the prospect of lower interest rates, the equity market is likely to be doing so too. As discussed in a recent note (High yielders for value investors, 16 July 2008), the UK equity market, ex resources, is discounting plenty of bad news and pockets of value exist. That note focused on high yielding equities - shares with a premium dividend yield to the market average - and drew attention to a number of such shares where the risk of a dividend cut was judged by us to be negligible. The table containing those shares is reproduced on the next page along with performances in both absolute and relative terms from the market’s mid-July low as well as over one, three and twelve months.

There is a lot of blue in the table. Most of the shares have moved well and are outperforming the market. They are not the only shares doing so - there isn’t a bank among them - but if you look at the top ten performing sectors in the UK equity market since the mid July low, six of them offer above average dividend yields. High yielders have made a good start in the right direction and there are plenty more about.

If conventionals continue to outperform ‘linkers’, or indeed, if yields just continue to fall, the message from the gilt market would seem to be that the next move in Bank rate is down, that recession and disinflation lie ahead, even though there are price increases (e.g., the latest utility price rises) which have yet to come through to headline inflation. Lower gilt yields should bring stability to high yielding equities and that could be the first step towards their eventual re-rating.

*The information contained in this report has been taken from sources disclosed in this presentation and is believed to be reliable and accurate, but without further investigation cannot be warranted as to accuracy or completeness. The opinions expressed in this document are not the views held throughout Brewin Dolphin Ltd. No Director, representative or employee of Brewin Dolphin Ltd. accepts liability for any direct or consequential loss arising from the use of this document or its contents. We or a connected person may have positions in or options on the securities mentioned herein or may buy, sell or offer to make a purchase or sale of such securities from time to time. In addition we reserve the right to act as principal or agent with regard to the sale or purchase of any security mentioned in this document. For further information, please refer to our conflicts policy which is available on request or can be accessed via our website at www.brewin.co.uk. The value of your investment or any income from it may fall and you may get back less than you invested. Past performance is not a guide to future performance. If you are in any doubt concerning the suitability of these investments for your portfolio you should seek the advice of a qualified investment adviser. Brewin Dolphin Ltd, a member of the London Stock Exchange, authorised and regulated by the Financial Services Authority. Registered office: 12 Smithfield Street London EC1A 9BD. Registered in England and Wales no 2135876.

Normally a market retracement can reach 38% or 50% before a continuation ensues in the previous direction. In the current move the Dow Jones had reached the 38% level of 11,709 level with a high at 11,698 before being rejected lower. This is an indication that he index remains on the weak side.

We need to pay very careful attention to the current situation as things can start to deteriorate quickly if the upside momentum is not reversed sooner rather than later. Immediate attention is drawn to 11,014 which could provide support. IF this level does not hold then it is more than likely that the recent low of 10,827 could be taken out and the index can fall sharply lower.

The 11225 is the 127% Fibonacci Extension level and this area needs to be looked upon as a border line. Basically it tells us we are short term bullish above and bearish below. Critical support levels are coming in at 10,700 followed by 10,575 – 10,590 which means that from the current level the Dow can still fall by a further 500 – 600 points.

Of course technical indicators remain oversold but this is to be expected given the fact that we are talking about a weak market with bears outnumbering the bulls at present.

The overall five wave pattern supports the above technical views that further downside targets are still possible and that indicators will not be the key to finding reversals but price itself will reveal to us when the market is going to turn around.

Sandy Jadeja is Chief Market Strategist for ODL Markets and founder of www.Spreadbettingtowin.com where he teaches low risk trading strategies and money management. 

The Doha round of talks has been going on for seven years now and despite the headlines, most seem to have been resigned to their resulting in an impasse and with all the probability of final failure. Well, such failure has now finally occurred in Geneva where the talks have failed on the basis of and can only be summed up as national greed and protectionism.

Actually I suspect the key issue will finally have been found to be the lack of any statesmanlike leadership from the key member nations – as local ‘pork barrel’ issues and the nerves of wavering electorates probably had a greater influence. In the US we now have effectively (or ineffectively in his case) a lame duck president and the forthcoming elections in India will no doubt have been a concern to their representatives. Obviously the Chinese don’t have to suffer any such tiresome inconvenience of having to deal with an opinion from and electorate or its citizens – such is command and control political system.

Given all the other issues around the globe at the moment, people writing about the failure to reach a trade agreement have attracted all the interest for most of watching paint dry: however its relevance and importance cannot and should not be underestimated. My colleague Aparna Ram will be looking at the impact and ramifications of this subject in more detail I believe next week.

The events of the past few months we have described before as a perfect storm with the jet stream confluences of inflation, credit crisis and the end of an economic cycle all converging at the same time. To this torrid maelstrom we can now add the failure of the Doha round, and the impact will be that the intensity of the storm is only likely to be increased.

The effect of not being able to reach an agreement on trade issues at a time of global economic slowdown is extremely concerning. Lower demand will result in excess production and over capacity, and for those countries not willing to face some painful economic adjustment (increased closures and rising unemployment) the result will be to encourage product dumping. Such action in turn will cause an inevitable reaction of populist leaders calling for the raising of protectionist trade barriers. I fear the Chinese economy may be especially exposed as growth levels start to fall and reveal the true amount of overcapacity that has been built up. Already we can hear the background noises in the US from both presidential candidates, and no doubt there will be more extreme comments coming from those local politicians up for the Congressional elections.

Where are the statesmen – and stateswomen?

***

Summer Sojourn

If someone could do me the very kind favour of ensuring some smooth and peaceful markets for the next fortnight, I would be most grateful. I am off on a short break to the Green Mountains of Vermont. As I mentioned earlier, Aparna will be giving you the benefit of her experience and thoughts for this column for next week.

And finally....encouraging news for “sat-nav” users as I hear a Syrian lorry driver pumped in the details of his intended destination Gibraltar into his faithful little electronic scout. And yes true to form he arrived in Gibraltar – Gibraltar Point, Skegness.

Have a good weekend,

Justin A. Urquhart Stewart

Director

Seven Investment Management Limited