Investor appetite wanes as New Look pulls float
It looks as though investor appetite for new issues is starting to weaken with the New Look IPO the third high-profile flotation to be pulled over the last week. Only a few weeks ago it would appear that demand for new issues was growing and a number of companies were looking towards the UK market to raise additional finance. So what has happened?
The official reason for the postponement of the New Look issue is an "unfavourable market backdrop" which effectively translates into a lack of demand for shares. This is a company which has turned itself around over the last few years and indeed initial demand appeared to be fairly high and there were hopes for a smooth floatation. While the UK economy has yet to prove beyond reasonable doubt that it has pulled away from recession, it is the outlook in Europe which is causing most concern for investors.
The situation regarding the Greek economy appears to be worsening, the German economy has stalled and there are concerns that the EU may not be in a position to offer bailout funding to the likes of Greece, Portugal and Spain. Whether these are short-term issues which can be resolved remains to be seen but they are causing unrest amongst investors.
Share this..
Related stories
Why is the Conservative party set to close down the FSA?
As the battle lines for the next general election continued to be drawn, with the announcement that the Conservative party would close down the FSA (Financial Services Authority) and transfer power back to the Bank of England, this move has been greeted with surprise by many people. However, if you look back 20 years you would see a UK financial regulator which was effectively the Bank of England...
Read MoreUK consumers starting to borrow again
Despite the fact that the UK economy is still struggling to pull away from what has been one of the worst recessions in living history it seems that more and more people are now looking to borrow money to relieve their financial pressures. It has been revealed that for every pound saved in the final quarter of 2009 a total of 62p was borrowed by UK consumers. While there may be concerns that UK co...
Read MoreUK pubs closing at rate of 52 week
The British Beer and Pub Association (BBPA) has issued a report this week which confirms that 52 pubs are going out of business each week at a cost of 24,000 jobs over the past 12 months. Since the onset of the recession nearly 2500 pubs and bars in UK have disappeared and the situation could well continue for some time to come. A mixture of increased taxes, higher business rates and lower beer sa...
Read MoreInvestors 'moving from energy, into financials'
Fund managers are moving into bank shares - and out of oil and other energy stocks, the Guardian reports.According to a new survey from Merrill Lynch, investment professionals overweight in oil and gas fell in July from 52 per cent to 11 per cent, the Guardian reports.This reflected continuing falls in crude oil from this year's peak of $147.Currently, it is trading at around $120, despite the con...
Read MoreUK energy prices show sharpest rise in Europe
It has been revealed that UK energy prices have risen more than double that of any other European country over the last 12 months. This is yet another blow to the UK consumer who has seen prices continue to rise even though the underlying price of oil has fallen sharply over the last few weeks. There are grave concerns that with Christmas approaching many people will be forced to reduce their heat...
Read More