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, 2024

US lends currency support to Japan and Korea

Macro

The US has shown unity on global currency issues with a trilateral communique following a meeting between the US Treasury and the finance leaders of Japan and Korea. Janet Yellen has conceded that the strong dollar “is her currency, but their problem.”

This memo is not a Plaza Accord or Bretton Woods II; however, the first step to solving a problem is admitting that you have one, and Korea and Japan’s currency problems, which have critical supply chain implications for the US and the rest of the G20, are ultimately everyone’s problem.

The dollar weakened slightly, and the pound rose, reflecting the higher-than-expected inflation print.

Oil prices declined sharply yesterday, fueled by US inventory data showing a stronger-than-expected stock build.

UK Companies

If consummated, the proposed offers for IDS and Hipgnosis Songs would represent about $4bn of capital.   

AJ Bell updated that inflows across the platform in the run-up to the tax year-end were significantly higher than in the comparative quarter last year. It continues to see growth opportunity for the platform.  

Capital, the drilling and mining services contractor, reported a Q1 update, with its rig count decreasing from 127 to 124. MSALabs’ deployment of Chrysos PhotonAssay™ units remains on track. The value of its investments was $51.7 million, up from $47.2 million last quarter. It sees positive momentum into Q2 2024 from the continued ramp-up of operations, including in Nevada. This positive trajectory should extend from Q2 2024 through to the end of the year. Tendering activity remains robust.  

 

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