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 25, 2024

Proposed mining mega merger

Macro

US durable goods orders grew 2.6% in March, well ahead of February, and expectations of 2.2%. Investor attention will be on the GDP data later today. 

The Japanese Yen weakened further to a new 30-year low. 

Meta disappointed investors with its outlook statement and higher-than-expected capex projections. 

UK Companies

Australian mining giant BHP is proposing reshaping the global mining industry with an all paper offer for UK listed Anglo American. 

This mining mega-merger indicates the continued undervaluation of UK listed companies and the rush to real assets in a world that continues to struggle to contain inflation. 

 

Driver Group, the dispute resolution consultancy, performed well across the UK and European regions. APAC and the Middle East have returned to profitability. North America experienced a more challenging H1 and was affected by exceptional staff issues.

Focusrite revenue decreased by 10.9%, driven by ongoing challenges in the Content Creation market Gross margin at 45.8% (HY23: 47.1%)

Ibstock Q1 conditions in the first quarter remained challenging lead indicators, suggesting some future demand improvement. It sees itself as well positioned to support the unmet demand for new housing in the UK.

React Group updated Revenues of £10.6m, up 14% recurring revenues over 85%. The pipeline for the remainder of the year remains robust, providing the Board with high confidence in achieving full-year market expectations.

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