Take Five: IPOs - Peak Optimism

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IPOs are back. And how. A market that was enduring its worst slump in eight years has been revived by red-hot equity markets and floods of central bank stimulus, with listings coming thick and fast. Alibaba's fintech arm Ant Group is planning for what could be the largest...

People wearing protective masks, following the coronavirus disease outbreak, are reflected on a screen showing stock prices outside a brokerage in Tokyo, Japan August 31, 2020. REUTERS/Kim Kyung-Hoon/File Photo

Bankers are talking about a swelling pipeline as firms accelerate listing plans. Europe will soon see German defence firm Hensoldt’s IPO; Russia’s Sovcomflot and Poland’s Allegro are also expected. In contrast, pantry staples company General Mills may post a 5% rise in revenue and a 10% jump in adjusted earnings on Wednesday, benefiting from consumers stocking up on essential groceries.

But interventions risk the wrath of the United States, which has Switzerland on a currency manipulation watchlist. And despite all efforts, the franc is not far off five-year highs versus the euro and 5-1/2 year peaks to the dollar.

 

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