Nicely placated

Published on 16-06-2020 13:45:00

The tide has turned today. The world begins to right itself and the markets start to feel nicely placated, with an underlying tinge of palpable relief.

The FTSE All-Share raced up 2.5% in response. Nothing is more emblematic of normality than the nation’s favourite, and Edison client, Greggs, opening 800 stores this Thursday. Vegan sausage rolls are back once again. The Premier League’s return tomorrow is the moment football fans have all been waiting for; film buffs will cheer Cineworld’s reopening, and fashionistas get H&M back. Summer holidays are even back on the menu as TUI restarts its schedule. Oh, the things we have missed! UK unemployment, meanwhile, remains stable at 3.9%.

The positive turn started late yesterday as the Fed announced more corporate bond buying, Trump ponders a $1tn infrastructure package, while US retail sales are expected to make a record recovery. But even so, has the US President missed the economic equivalent of a ‘Sputnik moment’ with China? Many Chinese officials, meanwhile, are enjoying the chaos surrounding President Trump and may be supportive of ‘four more years’.

In company news, a billing and sales ecosystem of $0.5tn was facilitated by Apple’s App Store last year, and a new Silicon Valley VC report raises eyebrows as deal-making seems unaffected by the pandemic. The IPO market’s summer surge continues, too, with five biotech/pharma IPOs scheduled for the week ahead, including Royalty Pharma, in the second-largest pharmaceutical listing ever. And there are more big numbers to throw around as a Danish fund manager sets up the world’s biggest green infrastructure fund.

But of course, while many are feeling somewhat reassured today, there’s still conflict out there. North Korea appears to be blowing stuff up because South Korea might air drop some leaflets.

Finally, our IR team is as busy as ever with virtual roadshows for, among many others, HSBC. So please book early if now is the right time to take your equity story to more investors. We can cover dozens of investors across many geographies in a single day.

Until tomorrow,
The Stream Team

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