Defiant under pressure

Published on 08-06-2020 13:42:39

Pressure is building – ‘America is out of control, say Americans’, although you wouldn’t know it from the markets. America’s jobs report turnaround on Friday has kept hopes up, though the US Bureau of Labour Statistics’ data has many scratching their heads.

Companies are certainly getting into gear. Total monthly proceeds across US equity markets reached $65.5bn in May, the highest monthly total on record. And our own calculations show a similar trend in the UK, reaching $15.7bn in May, the highest since March 2019.

The pressure to beat Covid-19 might lead to the world’s biggest ever healthcare tie-up, if reports are true. Retail landlord Intu, meanwhile, buckles under the strain and has put administrators on standby.

But plenty are shaking off any concerns. Plus500 is seeing record levels of customer activity due to market volatility (although revenues are down), warehousing landlord Segro opens the chequebook for a £202.5m estate in west London, and these six charts show how Amazon’s finances have been boosted by the pandemic.

Politicians are feeling the heat too. Is Boris Johnson cracking? A rift with Sunak emerges as Boris takes three-hour ‘power naps’, among other things. In any case, the UK Prime Minister continues to raise China-UK tensions as he cracks down on foreign takeovers. The Spanish Prime Minister, meanwhile, is dividing the country, while Bolsonaro is getting desperate – he’s sweeping pandemic data under the rug.

Meanwhile, the pressure eases a little on Bollywood, though no kissing or dancing is allowed.

Finally, in our latest executive interview, find out how Andy Brough, head of the Pan-European Small and Mid-Cap team at Schroders, thinks the pandemic is affecting equity markets and the economy.

Until tomorrow,
The Stream Team

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