Weekly Market Insight

Latest Economic & Market Update 1st December 2020

01st December 2020

Good afternoon, it is December 1st 2020 and here is your economic and market update from BlackBee. 

Today’s focus:

  • AIB Ireland Manufacturing PMI rises for November
  • S&P Global merge with IHS Markit, increasing consolidation of capital market data industry

There were encouraging signs for Ireland’s manufacturing sector as AIB’s manufacturing PMI for November rose to 52.2, up from 50.3 in October. A reading above 50 is considered positive growth and it is the third highest reading since April 2019. November’s positive reading is driven by renewed growth in the “Output” and “New Order” metrics. Ireland’s manufacturing workforce saw a month-on-month improvement for the first time in over a year. The rate of job creation accelerated from October and was the joint highest since June 2019. Recruitment for November was linked to companies’ improving demand, new products and compliance needs. The services PMI for November is yet to be released. It will be interesting to see how services compare to the strong manufacturing numbers posted for November under the level 5 lockdown restrictions. However, the reopening of the sections of the country today, including gyms and hairdressers, will ideally allow for a productive December.

S&P Global (NYSE: SPGI) and IHS Markit (NYSE: INFO) yesterday announced that a definitive merger had been agreed with an all-stock transaction valuing IHS Markit at an enterprise value of $44 billion. The press release described the deal as the coming together of “two world-class organizations, a unique portfolio of highly complementary assets in attractive markets and cutting-edge innovation and technology capability to accelerate growth and enhance value creation”. Both companies share prices rose following the announcement. IHS Markit gained 7.43% while the supposed “acquirer” S&P Global’s shares were up 2.99%. Bloomberg reports that the deal is the second largest acquisition of 2020, second only to a new Chinese national oil and gas carrier acquiring pipeline from some of the country’s largest companies.

Best & Worst Performers of Large Cap US Stocks on Monday
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Global Market Update
(as at close of markets 30/11/2020)