London markets lose momentum, Anglo American spurn BHP's revised proposal, Shein supplier practices under scrutiny as it homes in on London IPO and GameStop roars back to life

“London markets seem to have lost a little of their fizz as investors wait to find out if the latest UK jobs numbers are just the right temperature to allow Bank of England ratesetters to feel comfortable changing tack,” says AJ Bell Head of Financial Analysis Danni Hewson.

“Investors have become used to weighing bad news as good, and with the unemployment rate expected to tick up once again, there might be just enough cloud to bring out the silver lining.

“The last couple of weeks have heaped a bit of value back on UK listed stocks but after years on the investing bench there’s still a lot of ground to make up in this half of the game.”

Anglo American

“Anglo American isn’t playing games when it comes to the sweetened offer from Australian mining rival BHP. The London company has been unequivocal in its dismissal of this latest bid, which it believes fails to recognise the company’s inherent value.

“The clock is ticking for BHP to put even more skin in the game or simplify its offer. Without either of those moves Anglo might well persuade shareholders that going it alone is the best bet as global demand for copper continues to soar.”

Shein

“With Shein reportedly homing in on a potential London IPO the last thing the Chinese fast fashion retailer needed was further scrutiny of its supply chain.

“Reports of 75-hour days for workers churning out its myriad of products will prove uncomfortable reading for potential investors and consumers alike.

“Such a huge listing would be a boon for London markets which have seen very little incoming activity to offset the companies leaving the field, but it could ultimately prove a poisoned chalice unless the company can overcome key concerns about its working practices.”

Gamestop

“There’s something about FOMO that often turns us into irrational creatures. Why one tweet can suddenly turbo charge the fortunes of meme stocks AMC and GameStop should become an exam question for economics students the world over, but nonetheless that seems to be exactly what has happened.

“A bigger question might be whether the resurfaced meme stock trader and hype man ‘Roaring Kitty’ has spotted any changes to the fundamentals of these companies, which are still trading way down on their Reddit-rally heyday.

“Without the captive audience delivered by pandemic lockdowns it seems unlikely that markets are in for a reply but with no comment from the Kitty beyond that single tantalising image, we’ll have to wait and see if we really are missing out.”

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