Market Prognosis

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

<< Back to Market PROGnosis archive

May 29, 2024

Royal Mail owner agrees offer from Kretinsky

Macro

Nvidia continued its strong post-results rally. Its shares have risen over 20% in the last week, and its market cap is approaching $3tn not far behind Apple and Microsoft.

The Fed’s Kashkari said he wants to see “many more months” of good inflation data before a rate cut and continued to say hikes cannot be ruled out. His words, contradicting the recent Powell post-FOMC presser, cast a risk-off mood over markets.

UK Companies

EP Group has launched a formal takeover offer for IDS for the 72.4% of shares not already owned by affiliates. The headline consideration is 370p in cash, valuing the company at just over £5.2bn. As City AM headline wittily put it, The Czech’s in the Mail.

Bloomsbury has acquired US publisher Rowman & Littlefield for $83m (£65m), of which $76m (£60m) has been satisfied in cash on completion. The enlarged academic publishing division has c97,000 titles, creating a significant platform for further growth acquisition, which Nigel Newton described as a game-changer for Bloomsbury.

Pets at Home prelims were in line with pre-announced guidance.

React, the specialist cleaner, reported an H1 PBT of £1.1m, which was flagged in its April update. It is confident in delivering full-year expectations.

This communication is provided for information purposes only, and is not a solicitation or inducement to buy, sell, subscribe, or underwrite securities or units. Investors should seek advice from an Independent Financial Adviser or regulated stockbroker before making any investment decisions. Progressive Equity Research Ltd (“PERL”) does not make investment recommendations.

Opinions contained in this communication represent those of PERL and/or our affiliates at the time of publication and PERL does not undertake to provide updates to any opinions or views expressed. PERL does not hold any positions in the securities mentioned in this communication, however, PERL’s directors, officers, employees, contractors and affiliates may hold a position,  and/or may perform services or solicit business from, any of the companies or related securities mentioned.

Any prices quoted in our research are as at the previous day’s close.