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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November 30, 2023

Metro Bank restructuring update

Macro & Overnight

US GDP growth in Q3 has been revised upwards to 5.2%, primarily interpreted as a further sign of a soft landing but not jeopardising the market expectation of lower rates in 2024. Bond yields and the US dollar both fell further.

China’s PMI data indicates that its manufacturing sector is still contracting.

Oil prices firmed as US data showed falling inventories ahead of the delayed OPEC+ meeting today, where the producer cartel will try to agree production cuts among some of its smaller members.

UK Company News

Bootmaker Dr Martens said there is an increasingly tricky consumer environment in the US, reporting H1 revenue down 5% and PBT by 55%. It noted widespread macroeconomic caution amongst wholesale customers, which means that FY revenue will decline by more than previously guided, and it is withdrawing previous FY25 revenue guidance. Its debt costs will also be higher.

Struggling high street challenger Metro Bank announced annual cost savings of at least £50m, up from the previous estimate of £30m as it reviews its policies of extended opening hours and seven-day-a-week trading. Its plans involve shedding 20% of its staff. It is also streamlining its Board. 

These moves come days after shareholders approved a capital raise as part of a £925 million rescue deal where Colombian billionaire Jaime Gilinski now takes a controlling stake. Gilinski has a successful track record of rescuing struggling banks in Latin America. He made his name after acquiring the Colombian assets of the failed Bank of Credit and Commerce International in the 1990s. 



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