Coronavirus Update

1st APRIL 2021

Weekly Round Up

Ahead of the Easter break European equities headed higher as investors welcomed US President, Joe Biden’s $2tn infrastructure plan. The plan proposes to boost spending on transport, clean energy and technology research.

The pandemic situation has worsened in Europe with French President, Emmanuel Macron forced to announce another lockdown.

It came to light last Friday that a large hedge fund, Archegos Capital Management, was in serious difficulties leading to a fire sale of US securities.  The losses are estimated to hit several banks including JP Morgan Chase, Credit Suisse, and Nomura in particular. The issue has raised serious concerns about excessive risk taking and systemic risk within the investment community.

RISERS

Renishaw +7.25% on the week - Renishaw recently put itself up for sale, attracting interest from Danaher Corp and Swedish rival Hexagon AB. Danaher intend to split up the business once purchased, according to a Bloomberg report. Shares were up 5.4% to 6,323p on Monday.

FALLERS

Deliveroo- 26%

Deliveroo fell precipitously on its first day of trading to become the worst IPO in London History. Short sellers, an unfortunate roadshow and bad timing were blamed as Deliveroo lost more than quarter of its £7.6bn valuation. The company has received criticism over its treatment of workers in the past and some fund managers have avoided the company on this basis. The dual class share structure has also been a point of key contention as it allowed Chief Executive, Will Shu’s outsized voting rights and prevented the firm from debuting in the FTSE100, depriving it of investment from passive tracker funds.