Before the bell: Trump trade loses steam

With Black Friday over, investors can now assess how strong U.S. consumers remain after the discount frenzy. In Belgium, WDP stands out this morning.

Why are we glad there was only a half-day trading session in the United States on Friday? Because it gave American consumers more time to complete their Black Friday shopping, supporting the economy. According to Adobe Analytics, a record 10.8 billion dollars was spent on online purchases in the United States on Friday. Investors had anticipated this, with the S&P 500 ending the week at a new record high. But what’s notable? The so-called “Trump trade” is gradually losing momentum. The United States ten-year bond yield dropped by 6 basis points, reversing its earlier surge fueled by expectations of higher inflation under Trump’s presidency. In Asia, investors are showing renewed interest in China, with stock markets in Shanghai and Hong Kong gaining ground, partly due to better-than-expected industrial data.

In earnings news, the strong results from Dutch holding Prosus stand out. Revenue rose by 26%, and the group returned to profitability after a loss last year. In Belgium, the spotlight is on WDP, a logistics real estate specialist, which acquired two French sites from Altarea for 315 million euros. These fully leased properties are expected to yield a net return of 5.2%, which WDP projects could rise to 15% in the long term. This acquisition doubles WDP’s presence in France. Meanwhile, fellow logistics real estate company Montea announced the completion of its share buyback program, purchasing 50.000 shares. Today, we’ll be keeping an eye on potential signals about the French government’s collapse, which could pressure European markets.

Investing in the flowers and the bees

The Brussels stock exchange is renowned for its many holdings, but one that often goes unnoticed is Floridienne. This is undeserved, as those who invested in this lesser-known holding a decade ago would have seen their investment grow sixfold. Headquartered in Waterloo, the group operates in various niches, including chemicals, food production, and life sciences. The life sciences division, in particular, is a goldmine, with investments in crop pollination using insects. Additionally, Floridienne is a major producer of sauces and plays a key role in recycling nickel and lithium-ion batteries from cars in its chemical division. Investors can respond today to strong results showing a 25% revenue increase and a doubling of profit. A positive stock opening is expected.

12 billion dollars to manage over 500 billion?

It’s not just banks that lend money to companies; specialized players like hedge funds are also active in this field, referred to as “private credit.” With attractive returns and an industry that continues to grow annually, it has caught the attention of major players. BlackRock, for instance, is reportedly poised to acquire private credit manager HPS Investment Partners. This fund manages half a trillion dollars in assets, and BlackRock is willing to pay 12 billion dollars for the acquisition. This deal would push BlackRock’s total assets under management past 12 trillion dollars. Investors in BlackRock this year have seen a 107% return on shares since January 1 alone.

Did you know…

Floridienne supports farmers by pollinating their tomatoes with its own bred bumblebees? These insects are shipped worldwide, traveling by air to reach customers.

This article was translated from Dutch and was originally published on Spaarvarkens.be.