The biggest deal of 2020?

By Jonathan Jackson. Published at Dec 1, 2020, in Market Wrap

While Salesforce’s talks to acquire Slack dominated headlines late last week, there could; be an even bigger deal int hew works.

According to eToro analyst Adam Vettese, The WSJ, financial information firm S&P Global is in advanced talks to buy fellow data giant IHS Markit for $44BN. If that price stands, the deal would be the largest in the US this year.

According to Vettese there is plenty going on to round out the year.

“Short-term rentals platform Airbnb and food delivery firm DoorDash are set to reveal higher-than-expected valuation ranges for their initial public offerings in roadshows this week. Bloomberg reported that Airbnb will target a valuation range of $30BN to $33BN, while DoorDash shoots for $25BN to $28BN. A host of companies are currently pushing to complete IPOs before the end of the year, including loan company Affirm, discount retailer Wish and gaming company Roblox."

As for the markets generally, Joshua Mahony, Senior Market Analyst at IG says “Gains throughout much of Europe come as the vaccine-led recovery boosts value names. UK efforts to reopen for the festive period should help alleviate businesses losses, but they also raise questions over a third wave. Meanwhile, OPEC reconvenes as crude heads lower.

“European markets are grinding higher in early trade, marking a distinct change from the largely pessimistic tone struck in Asia overnight.

“With vaccine announcements helping to lift sentiment over the past three Mondays, we look set for the best month on record for the FTSE 100.

“That vaccine hope should drive European outperformance in the months ahead, with November seeing a shift from growth to value that should continue to help drive lagging indices such as the FTSE 100, CAC, Ibex, and FTSE MIB.

“While the reversal of that growth/value dynamic looks likely to continue as the vaccines take hold, the short-term economic pain seen off the back of widespread economic restrictions should ensure a more balanced market view after recent gains.

On the positive side, signs that the UK is managing to bring the trajectory of the virus under control helps lessen fears of a drawn-out period of lockdown coming into play.

“The decision to allow non-essential shops to reopen this week provides a much-needed boost to the high street given the importance of seasonal shopping. However, with while the decision to relax restrictions comes greater risk of a third wave as we bring in the new year.

“Crude prices have been hit in early trade, as weekend OPEC negotiations hint at a somewhat less one-sided debate than many had hoped for.

“Recent vaccine announcements have helped lift hopes of a sharp rebound in demand for crude, yet the question now is how much energy should be priced based on the future prospective demand or current reality.

“From an OPEC perspective, the question is whether foster this recovery or send energy prices lower once again.

“The two-million barrels per day increase that would come in the absence of a deal would deal a serious blow to market sentiment as much as supply/demand levels themselves, indicating that the group are unwilling to support energy prices until demand returns.”

Tickers

Dow: -0.91%

S&P 500: -0.46%

NASDAQ: -0.06%

FTSE 100: - 1.59%

DAX: - 0.33%

CAC 40: - 1.42%

Asia Dow: - 2.17%

Nikkei 225: - 0.79%

Hang Seng: - 2.06%

ASX 200: - 1.26%

AUD: 0.73


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