M&A activity sets growth against value
Equities have moved higher again this past week, with gains made across global markets. Even China put in another week of positive returns, following the largest ever cut to the five-year housing loan prime rate (admittedly only 0.25%). Government bonds have not done so well, with yields rising slightly after a small rebound in general economic growth optimism. Corporate bonds fared better as yields remained broadly unchanged, on the back of that optimism leading investors to judge that credit risks are likely to recede even further.
Uranium goes nuclear
There are huge adverts on hoardings across the UK for ‘Destination Nuclear’. Meanwhile, Uranium is in a bull market. Are these things a coincidence?
Spot prices for Triuranium octoxide – the partially-processed radioactive compound traded between miners and nuclear energy providers, also known as ‘yellowcake’ uranium – have shot up over the last few months. Yellowcake cost $87 per pound at the start of this year, rising to $103 at the time of writing. The metal compound really started heating up from August last year, but prices have been trending upward over the long term.