Latest news with #StevenFine
Yahoo
5 days ago
- Business
- Yahoo
Investors ‘pulling money out of US' after Trump trade chaos
Investors are shifting their money out of America and into Europe following the outbreak of Donald Trump's trade war, according to the boss of one of the City's leading stockbrokers. Steven Fine, the chief executive of Peel Hunt, said spooked traders had pulled an 'awful lot of money' from US markets in recent months, primarily because of the president's 'liberation day' tariff blitz. This has led to a greater degree of interest in the UK, he added. He said: 'When you're investing all your money domestically and someone can literally turn around unilaterally and say 'Right, we're not doing that any more', it's like 'Oh my God, what does that mean?'' This shift in investor sentiment marks a significant turnaround as almost $24 trillion has been pumped into US assets since 2010, according to Peel Hunt. Mr Fine said the chaos unleashed by Mr Trump had 'predicated a concern that excessive concentration in a single jurisdiction might not necessarily be the best thing'. Kallum Pickering, Peel Hunt's chief economist, also pointed to the weaker dollar as an example of how investor money is shifting away from the US. The dollar has fallen nearly 8pc against the pound since the turn of the year and has slumped by nearly 11pc versus the euro in that time. Mr Fine said: 'You think about the return of the S&P 500 over the last five years and you think, where do you want to put your money for the next five years? Suddenly [liberation day] happens, and it's like 'Ah, maybe it's not quite as [attractive].' However, Peel Hunt warned of the negative impact of tariffs on dealmaking in the City, particularly as the stockbroker is already battling a dearth of listings on the London Stock Exchange. The company said there have been 'historically low' levels of activity in UK stock markets over the last year. This led to Peel Hunt posting pre-tax losses of £3.5m for the year to the end of March, compared to a £3.3m loss the year before. However, revenues rose by 6pc to hit £91.3m. One of its highlights for the year was advising on the deal to list French TV and film giant Canal+ in London in December. Mr Fine said: 'Ongoing uncertainty continued to weigh on equity capital markets activity during the period, driven by geopolitical risks, elections, stagflation fears and US trade tariffs. 'Our diversified offering meant we were able to support clients through these changing market conditions.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Daily Mail
6 days ago
- Business
- Daily Mail
London exodus is hurting economy: Peel Hunt boss sounds alarm amid takeover frenzy
Peel Hunt has warned that the exodus of companies from the London stock market is causing a 'significant challenge' to the economy. The investment bank's boss Steven Fine said more companies could be hoovered up by private equity firms in the months to come despite signs of a pick-up in UK valuations. London has seen 30 of its listed firms subjected to takeover bids so far this year with few signs of any revival in initial public offerings (IPOs) that will be needed to replace them. And in the past couple of weeks, the decision of fintech Wise to abandon London in favour of New York as well as the takeover sagas engulfing the likes of Alphawave and Spectris have added to the impression that the cheap valuations of the London market have left UK-listed firms vulnerable. Metro Bank this weekend became the latest subject of takeover speculation. Shareholders in takeaway platform Deliveroo yesterday voted to accept its £2.9billion takeover by US giant DoorDash. The IPO weakness has weighed on City firms such as Peel Hunt, which yesterday reported that pre-tax losses for the year to the end of March had widened to £3.5million from £3.3million a year ago. A spokesman said: 'The increasing rate at which companies are exiting the London market presents a significant challenge for the UK economy.' Fine added: 'You either believe in public markets – that they do good, in transparency, disclosure, investability, liquidity, they pay more tax, they employ more people, the large companies always start small – or you don't.' Peel Hunt reported that market activity during its past financial year was hit by economic fears and tariff uncertainty but that the new period has 'started more positively' as the Trump administration signed a trade deal with the UK and the Bank of England cut interest rates. Fine, meanwhile, warned there could be more private equity swoops to come. He said: 'I don't think that's going to stop, even though the market is re-rating a little – there is still a strong perception out there that the UK is cheap – relative.' He lamented reports over the weekend that Australian bank Macquarie may swoop for three of Britain's small airports. 'Why are we selling to an Australian infrastructure fund?' he said. 'They're so cheap, they're such good value. Why don't we care here?' Fine believes that there is a 'recognition' now in government that 'this is a bit excessive'. 'London is a global financial centre – it should be a global financial centre,' he said. Companies to have quit London in recent months include building materials firm CRH, gambling giant Flutter, and equipment hire group Ashtead. Barbarians' bid battle A Private equity titan is locked in two bidding wars for London-listed firms. New York giant KKR – which featured in the book and film Barbarians At The Gate – is battling it out for scientific instruments maker Spectris and GP surgery owner Assura. KKR has seen two offers rejected by Spectris, which last week said it was 'minded' to back a £3.7bpillion bid from rival private equity house Advent International, sending its shares soaring. Spectris shares rose another 5.8 per cent yesterday on hopes the bidding war will escalate. As well as battling Advent for Spectris, KKR was in pole position to buy Assura after the NHS landlord's board last week backed a £1.7billion offer.
Telegraph
7 days ago
- Business
- Telegraph
Traders ‘pulling money out of US' after Trump trade chaos
Investors are shifting their money out of America and into Europe following the outbreak of Donald Trump's trade war, according to the boss of one of the City's leading stockbrokers. Steven Fine, the chief executive of Peel Hunt, said spooked traders had pulled an 'awful lot of money' from US markets in recent months, primarily because of the president's 'liberation day' tariff blitz. This has led to a greater degree of interest in the UK, he added. He said: 'When you're investing all your money domestically and someone can literally turn around unilaterally and say 'Right, we're not doing that any more', it's like 'Oh my God, what does that mean?'' This shift in investor sentiment marks a significant turnaround as almost $24 trillion has been pumped into US assets since 2010, according to Peel Hunt. Mr Fine said the chaos unleashed by Mr Trump had 'predicated a concern that excessive concentration in a single jurisdiction might not necessarily be the best thing'. Kallum Pickering, Peel Hunt's chief economist, also pointed to the weaker dollar as an example of how investor money is shifting away from the US. The dollar has fallen nearly 8pc against the pound since the turn of the year and has slumped by nearly 11pc versus the euro in that time. Mr Fine said: 'You think about the return of the S&P 500 over the last five years and you think, where do you want to put your money for the next five years? Suddenly [liberation day] happens, and it's like 'Ah, maybe it's not quite as [attractive].' However, Peel Hunt warned of the negative impact of tariffs on dealmaking in the City, particularly as the stockbroker is already battling a dearth of listings on the London Stock Exchange. The company said there have been 'historically low' levels of activity in UK stock markets over the last year. This led to Peel Hunt posting pre-tax losses of £3.5m for the year to the end of March, compared to a £3.3m loss the year before. However, revenues rose by 6pc to hit £91.3m. One of its highlights for the year was advising on the deal to list French TV and film giant Canal+ in London in December. Mr Fine said: 'Ongoing uncertainty continued to weigh on equity capital markets activity during the period, driven by geopolitical risks, elections, stagflation fears and US trade tariffs. 'Our diversified offering meant we were able to support clients through these changing market conditions.'
Yahoo
7 days ago
- Business
- Yahoo
Losses widen for City banker Peel Hunt amid dearth of UK stock market listings
A death of companies launching on the London stock market and US trade tariffs fuelling greater uncertainty among investors have created tougher market conditions, investment bank Peel Hunt has cautioned. The company said there were historically low levels of equity capital markets activity in the UK over the past year. This has seen a shortage in the number of companies launching their shares on the London Stock Exchange through an initial public offering (IPO). Coupled with a flurry of listed firms leaving London for the US and other markets, it has resulted in 'subdued' conditions in the UK, Peel Hunt said. Peel Hunt reported a pre-tax loss of £3.5 million for the year to the end of March, slightly bigger than the £3.3 million loss reported the year before. But revenues jumped by 6% year-on-year to £91.3 million. It said it had been restructuring its team, resulting in a bigger cohort of more junior staff within its investment banking division, and taking action to reduce costs because of the pressure. 'Ongoing uncertainty continued to weigh on equity capital markets activity during the period, driven by geopolitical risks, elections, stagflation fears and US trade tariffs,' Peel Hunt's chief executive Steven Fine said. Mr Fine nonetheless said it advised on 'the most successful European IPO of the year and on our largest M&A (mergers and acquisitions) transaction to date'. French TV and film giant Canal+ held an IPO in London in December in the biggest new listing for the City in a number of years. The decision for the Paris-based business to list in London was hailed by Chancellor Rachel Reeves as a 'vote of confidence' in the UK's stock market. Peel Hunt also pointed to its strengthening M&A division amid a raft of takeovers and deals between firms over the year. The investment bank said the new financial year had started more positively, with the US striking a number of key trade deals, including with the UK, which was helping to improve sentiment among investors. Activity in the London stock market remains 'subdued' but could strengthen if wider economic conditions continue to stabilise, according to the firm. Sign in to access your portfolio
The Independent
7 days ago
- Business
- The Independent
Losses widen for City banker Peel Hunt amid dearth of UK stock market listings
A death of companies launching on the London stock market and US trade tariffs fuelling greater uncertainty among investors have created tougher market conditions, investment bank Peel Hunt has cautioned. The company said there were historically low levels of equity capital markets activity in the UK over the past year. This has seen a shortage in the number of companies launching their shares on the London Stock Exchange through an initial public offering (IPO). Coupled with a flurry of listed firms leaving London for the US and other markets, it has resulted in 'subdued' conditions in the UK, Peel Hunt said. Peel Hunt reported a pre-tax loss of £3.5 million for the year to the end of March, slightly bigger than the £3.3 million loss reported the year before. But revenues jumped by 6% year-on-year to £91.3 million. It said it had been restructuring its team, resulting in a bigger cohort of more junior staff within its investment banking division, and taking action to reduce costs because of the pressure. 'Ongoing uncertainty continued to weigh on equity capital markets activity during the period, driven by geopolitical risks, elections, stagflation fears and US trade tariffs,' Peel Hunt's chief executive Steven Fine said. Mr Fine nonetheless said it advised on 'the most successful European IPO of the year and on our largest M&A (mergers and acquisitions) transaction to date'. French TV and film giant Canal+ held an IPO in London in December in the biggest new listing for the City in a number of years. The decision for the Paris-based business to list in London was hailed by Chancellor Rachel Reeves as a 'vote of confidence' in the UK's stock market. Peel Hunt also pointed to its strengthening M&A division amid a raft of takeovers and deals between firms over the year. The investment bank said the new financial year had started more positively, with the US striking a number of key trade deals, including with the UK, which was helping to improve sentiment among investors. Activity in the London stock market remains 'subdued' but could strengthen if wider economic conditions continue to stabilise, according to the firm.
