Market Round Up: Aston Martin floats & India sneaks in behind US-Sino

by 29 Aug, 2018

1. Aston Martin to float its boat – actually, car!

Vroom! Vroom! Here we go. Ferrari went public, now its main rival is doing the same. James Bond would be proud of the fact that the initial public offering (IPO) will be in London and not New York as was previously expected.

Aston Martin is currently valued around $5 billion, having finally gone into profit last year (£87 million) on top sales of £876 million. It’s turnaround as a serious contender to Ferrari can be attributed to CEO Andy Palmer who was poached from Nissan. The IPO will involve the sale of about £1 billion of shares from its existing investors which include Italy’s Investindustrial, Kuwait’s Investment Dar and Daimler, owners of Mercedes Benz.

While petrol-heads will no doubt get excited about owning a part of a historic company (next best thing to owning one of their unaffordable cars!), the City of London will see this as further proof of London’s dominance for raising capital. Latest figures from the London Stock Exchange (LSE) show that listings capital value to July reached £12.4 billion compared to last year’s £16.1 billion. More IPOs due from now to Christmas will push this substantially higher.

Related: Market Round Up: Brexit’s Cabinet Chaos, 3Ds of Deflation, Car Emissions


2. U.S China trade war leaves door wide open for India, and others

While China and the U.S. go at each other with hammers and tongs, India could be sneaking round the back of the kerfuffle to snatch a greater Chinese market share of the U.S. markets.

A recent Indian commerce department report shows that at least 100 products currently shipped from China to the U.S. could be substituted by India. Such products include cotton, almonds, corn, wheat, sorghum and software – almost all soft commodities. But India will have to smooth-talk fast. Other countries have already reaped the benefits of the Sino-American melee. Brazil and Argentina both swooped in to increase exports of soybeans to China. Elsewhere, countries including Germany and Japan have also scrambled to expand their presence in the Chinese market, despite the escalating trade conflict.

Related: Have you thought about buying British equities? Now could be the perfect moment

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