Holding onto optimism

Published on 17-06-2020 13:15:00

UK and EU investors are holding onto optimism today, despite Asia turning cautious on the back of border clashes between North and South Korea as well as India and China.

EU investors might be optimistic, but EU banks are in the firing line today. The ECB warns of climate change risks as banks are too exposed to carbon-intensive industries. And while EU bank stocks may never have been cheaper, investors are keeping a wide berth. Investors aren’t shy of equity markets in general, however, but 78% of US investors think equities are overvalued. Perhaps this Korean shipbuilder, up 955%, is first in line.

Looking on the bright side today, we discover that an old steroid helps fight a new infection, welcome relief given a global glass shortage could disrupt future vaccine distribution. We also find that transferring pension obligations is good for UK companies’ share prices (although obviously not as impactful as working with Edison).

Of course, plenty are still struggling. Those 35,000 jobs really are being cut at HSBC, and even making pizzas is getting more expensive. Boris gets pounced on for scrapping the foreign aid department but his U-turn on school food vouchers is appreciated – lead campaigner Marcus Rashford is now front runner for British Sports Personality of the Year.

Some big questions are being asked today: Do we need to regulate smart speakers and Apple? Should we report ethnicity pay gaps? Will Hollywood ever recover? As its sales fall, do we care if things are ‘Powered by Kingfisher’? And did eBay execs really send a pig foetus and live cockroaches to bloggers?

Stay tuned. We’re sure all will be revealed, regardless of how optimistic (or not) the market feels tomorrow.

Until tomorrow,
The Stream Team

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