uropean equities rallied this morning as investors look to front run a U.S debt deal
and German ZEW confidence shrugs off U.S politics to beat expectations.
Either markets have absolute faith that politicians in the US will ultimately do the right thing, or have simply become numb to big macro shocks in the last few years, but to see the US Russell small cap index posting fresh all time high’s as a deadline dubbed “financial apocalypse” sits so close seems dangerous to say the least.
“Major progress” in the Senate has predictably led markets higher, but cautious investors will recollect having heard such positive rhetoric before,
only for our hopes to be squashed as negotiations move to a different house.
The fact that markets have failed to hit panic mode may well have trumped the President somewhat, as increased pressure from the world of finance may well have forced the Republican hand sooner. As it stands, investor resilience has meant that ship may well have sailed, or if politicians are still waiting for it, it may well come too late for comfort.
Burberry CEO Angela Ahrendts has announced plans to step down from her post next year to join Apple
as senior VP for retail and online stores. After 7 years at the helm, the new opportunity seems too good to pass up on, but early trade indicates concern from investors. This is the biggest of a number of recent high profile departures, and the decision to place Christopher Bailey in sole custody of both CEO and Chief creative officer has led to concerns over the burden placed on one pair of shoulders, especially given his lack of experience for at that level.
Record Q3 Iron Ore and Coal output from mining giant Rio Tinto
saw the stock up 3% in early trading. The firm is also on course to hit targets in cutting exploration spending by $750 million this year. If that’s not enough, output at the US Kenncott mine are ahead of expectations following an avalanche in April, Rio expect the mine to yield up to 185k tonnes of copper up from the 150k forecast in July.
stock rose over 4% after confirmation that it will exit from UK solid waste business
, signing a binding agreement to sell the majority of the business to Biffa.
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