Market Prognosis

A concise summary of the major macro events of the past 24 hours, and selected UK company-specific news.

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April 18, 2023

Apple applies pressure to regional banks

Macro & Overnight

Apple launches bank account, putting further pressure on US regional bank deposits where reporting season highlighting outflows to larger banks and money market funds.

China’s Gross domestic product grew 4.5% in Q1. Retail sales rose 10.6% in March, the biggest gain since June 2021.

It was M&A day in the UK mid-market, with deals advancing for Wood Group and Network International and early-stage discussions between Apollo and THG regarding a cash offer.

Expect this M&A trend to continue, particularly if the US dollar weakens.

UK Company News

Low-cost airline easyJet improved its H1 performance and expects to exceed FY23 market expectations. Easter saw a robust operational performance, with booking momentum continuing into summer. 

Multi-franchise operator Franchise Brands updated that Filta in North America has continued to perform robustly in Q1, with franchise and equipment sales driving growth. Recruitment in the B2C division improved in Q1. The Group has had a good start to 2023. The acquisition of Pirtek Europe will further transform the Group by diversifying the range of emergency response services and geographical reach. Listen to ITCOM episode 11, where founder and CEO Stephen Helmsley discusses the business. 

GSK is to acquire Canadian biotech BELLUS for £1.6bn.

IQGeo‘s OSPInsight fibre network management software has been selected by a tier 1 US telecom operator to replace a competitor’s solution. The deal has a subscription value of US$500k over three years, plus over $2.0 million in professional services to be recognised this year.  

M&C Saatchi has reported  FY results with revenue growth of 8.7%, operating profit margin improving to 13.1% and cash conversion of 99%. It expects profit to align with market expectations but weighted to the second half. 

Moneysupermarket reported Q1 revenue +15% and is confident of delivering market expectations for the year.

Prognosticator 

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