This is the Summer edition of THE TREASURY HUB Banking and Treasury Markets Bulletin.
On the currency front, the biggest mover has been the USD which has weakened considerably over the Summer and broken out of a downward (i.e. strengthening dollar) range that existed for almost two years.
From an investment perspective while all three equity indices that we track (ISEQ, FTSE and DOW) are down in the year, the DOW is close to recovering to where it was at the start of the year. The NASDAQ has continued to power ahead to new highs with Apple now valued at $2 trillion.
On the Brexit front, UK/EU talks have recommenced but no news to report as yet. October is the deadline for any deal as it would have to be approved by all EU governments individually.
It is likely there could be increased corporate activity in the remainder of the year, some negative (examinerships) and some more positive (mergers/acquisitions). Brexit will have a bigger impact than is currently forecast as it could provide opportunities as well as threats. Banking will also become more challenging in Q4 as the banks could struggle to deal with the sheer scale of the intervention required for companies and sectors that will find themselves challenged. Where possible, businesses should continue to avail of the financial planning grants from Enterprise Ireland and LEOs.
Please get in touch with our Corporate Finance team if we can be of any assistance.
The Treasury Hub - Banking and Treasury Report August 2020 can be downloaded here.
For any queries relating to this newsletter, please contact Chris Ball, Partner.