Activist investor Cevian Capital, known for shaking up struggling companies, has taken a stake in medical equipment maker Smith & Nephew. The announcement led to an 8% jump in the company’s shares on the FTSE 100. This move comes as Smith & Nephew has seen a 40% decline in share price over the past five years due to the impact of the pandemic on elective surgeries and its supply chain. Cevian may push for changes beyond the company’s current improvement plan and rationalize its portfolio.
In other market news, the FTSE 100 gained 80 points on strong US jobs data and expectations of interest rate cuts by the Federal Reserve. European shares also rose, with France’s CAC climbing ahead of elections. Investors appear optimistic about a potential change in UK government leadership, with the Labour Party’s pledge to manage national debt and boost economic growth seen as positive for housing stocks. The pound may face resistance as the Bank of England remains cautious about cutting rates due to wage pressure in the services sector.
Meanwhile, the EU is set to impose tariffs on Chinese electric vehicles to address concerns about state-subsidized competition. Talks between the EU and China are ongoing with a four-month window for negotiations. German automakers like Volkswagen and Stellantis have expressed opposition to the tariffs, citing potential negative effects on a weak market for electric vehicles in Europe. Chinese electric carmaker Nio has stated its commitment to the European market despite the potential impact of the tariffs.
Source
Photo credit www.theguardian.com