Powell comments ease market rates concerns, DS Smith weighs up multiple offers and Google considers bid for HubSpot

“Investors must feel they’re stuck in some kind of Groundhog Day waiting for central bankers to finally let the clock run down and cut rates,” says Danni Hewson, Head of Financial Analysis at AJ Bell.

“Will rate cuts come before the summer? Will we get one, two or even three by the end of the year, or will conflicting economic data throw a spanner in the already gummed up works?

“Today investors are allowing a tinge of optimism to colour their outlook after comments from Jerome Powell helped soothe concerns about that ‘good news is bad news’ warp the US seems to have become stuck in.

“Both London markets and those on the other side of the Atlantic grabbed onto the Fed chair’s words, with news that jobless claims in the States had come in hotter than expected also flipping the narrative in a well-received reversal of recent weeks.”

DS Smith

“Being wooed by two potential suitors has helped give shares in UK packaging group DS Smith a healthy boost and news that the company had given its first beau, Mondi, more time to firm up an offer has helped lift the stock again today.

“At the same time suitor number two, International Paper, has moved swiftly to reassure investors that a tie-up wouldn’t mean the company vanishing from London markets. Promises of a secondary listing, a UK headquarters and a process of consultation with the existing team certainly feels like a charm offensive and suggests the US company means business.

“Whether Mondi will use the extra time to hone its own advances is far from certain, but a deal would certainly make sense and has been mooted before, although the price tag could now exceed what Mondi is willing to pay.”

Google

“Spring seems to have fired the starting pistol on new M&A activity, with companies considering the best ways to position themselves to be ready for when those economic sands shift.

“Google’s parent company Alphabet looks primed for a fight with regulators after it emerged it is considering an offer for CRM specialist HubSpot.

“The tech giant seems to have fallen behind Microsoft in the AI race and will be seeking to remind investors that it’s got its head firmly in the game. But any potential tie-up will inevitably come under intense scrutiny as regulators get serious about the power that these tech giants have amassed.”

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