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US markets make new highs despite rising virus concerns
Thursday 29 Jul 2021US markets continue to make new all-time highs spurred on by loose monetary policy and government stimulus policies, while increasing vaccinations have encouraged more people back to work, reducing unemployment levels. However, investor enthusiasm has been somewhat dented by worries over the delta...
Marlowe bidding for Restore makes perfect sense
Thursday 29 Jul 2021The attempted takeover of Restore ( RST:AIM ) by Marlowe ( MRL:AIM ) represents an interesting development as the two businesses go back a long way. Strategically there is merit in combining the two entities. Marlowe has effectively emulated the success of Restore as a buy and build support service...
Market leadership narrows as investors take to sidelines
Thursday 22 Jul 2021There is a well-worn phrase that ‘a week is a long time in politics’. In market terms, a week can feel even longer and can sometimes signal a shift from one trend to another. A fortnight ago when we introduced the idea of watching the number of stocks making new highs as a barometer of the health...
Airline shares dive as summer earnings expectations decline
Thursday 22 Jul 2021Shares in the main UK-listed airlines have fallen by 14% on average in the past two months as analysts continue to downgrade their earnings forecasts for the sector. Airlines had hoped for a big rebound in activity during the summer as Covid-related restrictions are lifted and more people are...
Stagflation fears trip up global stock markets
Thursday 22 Jul 2021The mood on the markets was hardly celebratory as England lifted its lockdown restrictions on 19 July. Gloomy warnings from the UK Government, rising Covid-19 cases linked to the Delta variant and growing signs of inflationary pressures all helped to drive the FTSE 100 to a two-month low on the day...
ECB makes first tweak to inflation target in two decades
Thursday 15 Jul 2021The European Central Bank has made the first change to its monetary strategy since 2003 after admitting that raising rates in 2011 just before the Eurozone debt crisis was a mistake. Following years of failing to achieve a 2% inflation target the governing body has moved to a symmetrical target of...
The small cap e-commerce play which could follow in THG’s footsteps
Thursday 15 Jul 2021Cash shell Hawkwing’s ( HNG ) proposed takeover of Internet Fusion could create a small cap lookalike of e-commerce play THG ( THG ) . Internet Fusion has developed a digital platform called Reactor and acquired nine specialised, web-based retail brands in areas such as surfing, horse riding and...
Tate & Lyle could see higher share rating but lower dividends
Thursday 15 Jul 2021Investors might be prepared to pay a higher earnings ratio for sweeteners-to-ingredients giant Tate & Lyle ( TATE ) once it completes the sale of a controlling stake in its lower growth Primary Products business to private equity firm KPS Capital Partners for $1.3 billion. By concentrating...
Tobacco companies make push into healthcare space
Thursday 15 Jul 2021Just one day before putting a takeover offer from private equity firm Carlyle to a shareholder vote, inhalation specialist Vectura ( VEC ) received a higher all-cash offer from tobacco company Philip Morris, which the board has recommended shareholders accept. The shares closed higher than the new...
Potential UK-listed takeover targets as the M&A frenzy heats up
Thursday 15 Jul 2021A key theme in the UK market in 2021 has been a spate of takeovers, mergers and strategic deals involving British businesses as buyers, often from overseas, have been attracted by lowly valuations relative to other international equities. By the reckoning of stockbroker Peel Hunt, nearly £25...