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Jul 19, 2019

The week in investor relations: Brexit to benefit UK equity market

This week’s IR-related stories from around the web

Brexit and fears surrounding world trade are undermining UK business investment, according to analysis from EY, reported The Sunday Times.

Wall Street saw fresh record highs on Monday as investors waited for a range of quarterly earnings reports, revealed the Financial Times. But stocks tumbled from those highs on Tuesday, after US President Donald Trump cast doubt over the progress of trade between China and the US, reported CNBC.

Reuters reported that shares in telecoms company Ericsson fell 7.1 percent after it posted quarterly earnings in line with forecasts.

A Japan fund returned an impressive 37 percent investing in US stocks fighting cyber-crime, according to Bloomberg.

Rothschild bought a minority stake in UK equity research house Redburn, in what amounts to a vote of confidence in European analyst research, which has been hit by the introduction of Mifid II, reported the FT.

Fox Business reported that Anheuser-Bush InBev (AB InBev) is considering selling its business units in Australia, central America and South Korea. This follows the brewing firm’s cancellation of its Asian business IPO. Reuters later reported that AB InBev was in fact selling its Australian operations to Japan’s Asahi for $11 bn, which could possibly revive AB InBev’s Asian business IPO – an interesting development if it proves to be correct.

On Thursday, Netflix had its worst day in three years, with shares dropping more than 10 percent, after the streaming service revealed a dramatic fall in international subscribers, reported CNBC. But other US stocks overturned an early slump and closed higher, breaking a two-day losing streak, after technology and bank shares rallied, reported the Los Angeles Times. And Reuters reported investors taking advantage of rising stock markets, putting $8.8 bn into US-based equity ETFs, according to Refinitiv’s Lipper data.

A G7 working group warned of the ‘serious risks’ posed by crypto-currencies such as Facebook’s Libra, which it warned had the potential to destabilize the global economy, according to the FT.

Multi-Oscar-winning British visual effects company DNEG, which worked on the films First Man and Venom, is preparing a London IPO that will value it at hundreds of millions of pounds, reported Sky News.

Lower fees had an impact on BlackRock’s second-quarter earnings despite investors boosting inflows into the world’s largest fund manager to a whopping $7 tn in assets, reported the FT.

CNBC noted that stocks in major Asia-Pacific markets made big gains on Friday, as comments from the US Federal Reserve led to increased expectations that the central bank could ease monetary policy more than expected.

The UK equity market is a potential winner from the chaos surrounding Brexit, according to Patrik Schöwitz, global multi-asset strategist at JPMorgan Asset Management, in an interview with Bloomberg, offering something of a contrarian analysis.