Daily Brief - 28 June 2024

How London can stop losing listings to New York

In a recent episode of Merryn Talks Money, Liad Meidar of Gatemore Capital Management discusses why British companies are moving their stock listings from London to New York. The main reason is the valuation gap, with FTSE 100 companies trading at much lower valuations compared to those on the S&P 500.

Meidar highlights the cost of capital, the UK takeover code, and board member incentives as key issues. He suggests addressing these factors to prevent the migration. Meidar also mentions that the trend of American firms buying British companies could invigorate the UK market.

Oil stuck in tight trading range ahead of US data

 Oil prices are stuck in the narrowest trading range since 2021 as markets await US economic data. West Texas Intermediate (WTI) rose above $82 a barrel, while Brent neared $87. Traders are focusing on personal consumption data for insights on US monetary policy.

Despite earlier dips, oil is set for a monthly gain following OPEC+'s supply announcements. The market remains cautious due to concerns about China's economic outlook, though seasonal demand could boost prices. WTI and Brent futures have seen modest gains, signaling some market strength.

Why making computer chips has become such a big deal

 Computer chips are crucial for the digital economy, powering everything from AI to everyday gadgets. The pandemic highlighted their importance when disruptions in Asia caused global supply chain chaos. The US, despite being a leader in chip technology, relies heavily on manufacturing in Taiwan and South Korea.

This reliance has led to a competitive battle, with the US investing heavily to bring chip production back home and reduce dependence on East Asia. Other countries, like Germany and India, are also ramping up their chip production efforts. The global chip industry is now a focal point of economic and national security strategies.