There was a huge sigh of relief among investors when it became clear that the populist-nationalist wave that ostensibly led to Brexit and Trump’s election was not going to sweep through Europe. The euro gapped higher on April 24, and it has not looked back. We have suggested that with the outcome of the German election, European politics shift from tailwind to headwind. Continue reading
In the Americas, we are seeing strong broker demand for Roku Inc. as the share price fell roughly 20%, reversing the nearly 90% gain over the first two days of trading. This week, shares for Japan Display Inc. group soared a record amount after reports that affiliate, JOLED, is planning to raise funds for mass production of next-generation OLED panels. Meanwhile in Europe, Elis, the rental and cleaning company, will offer Convertible 2023 Bonds for up to EU400M.
Tensions between the US and Turkey are rising. Taken together with poor economic fundamentals, we believe Turkish assets are likely to continue underperforming. Indeed, these developments simply underscore our recommendations made recently in “Weak Fundamentals and Political Tensions To Weigh on Turkish Lira.” Continue reading