Inflation jitters, Shein’s London listing under scrutiny and turbulence for IAG

“The mere anticipation of crucial US inflation data heading our way later this week has pulled up that lovely little tech rally that had been lifting investor spirits on Wall Street,” says Danni Hewson, Head of Investment Analysis at AJ Bell.

“AI darling Nvidia has inched its way higher for a second day, soothing market nerves after the sell-off that wiped billions off its market value, but it’s EV dark horse Rivian that’s really captured investor imagination after striking a deal with VW.

“This is a stock that has promised so much for so long but has struggled with delivery.

“The big question for all EV makers is how to reignite consumer excitement and what further market consolidation is needed to make the price motorists want to pay for EVs profitable for automakers.”

Shein

“If you just look at the numbers in stark black and white the potential listing of Shein on London markets would be a major boon.

“The problem is a company like Shein comes with more shades of grey than the sub £5 t-shirts it currently has available on its website.

“A day after Amnesty International warned that a London IPO would be a badge of shame for the City, another human rights group has launched a legal campaign to halt the process in its tracks.

“But whilst investors might eventually have to make a choice about whether to put their money into the Chinese retail giant, UK consumers still seem more than happy to take advantage of its value offer.

“The cost-of-living crisis forced many shoppers to seek out a bargain in order to make their inflation ravaged pay packets stretch to cover a growing families clothing requirements.

“It’s an uncomfortable situation we find ourselves in and one that will continue to chafe. Shein has said it has strengthened supply chain governance, but transparency here will be crucial.”

IAG/Easyjet

“There’s nothing more likely to cause a spot of turbulence for airlines than unhappy holidaymakers complaining on social media that they’d arrived at their destinations, but their luggage hadn’t quite kept up.

“My daughter was one of the lucky ones, her case did make it onto the same flight to Spain as she did - the only issue is many of her college friends are now having to share her limited wardrobe.

“Holidays and educational trips aren’t cheap; they take a whole lot of planning and even more daydreaming.

“Airlines are selling us a chance to live out those dreams, so a spot of travel chaos feels doubly cruel.

“Whilst the issues were temporary and limited to British Airways flights out of Heathrow yesterday, the issues faced at Manchester airport earlier this week are still fresh in the mind.

“With peak holiday season hurtling towards us there’s little wonder shares in IAG took the biggest loser on the FTSE 100 spot, or that EasyJet found itself pulled along in its rival’s wake.”

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