On Friday, the much-anticipated IPO of the year happened. Uber raised more than $8.1 billion in an OPO that valued the company at more than $72 billion. As the shares started trading, things changed and the stock tanked by 5% making it the worst-performing IPO of the past few years. This is despite it being the biggest IPO since Facebook and Alibaba. The decline was attributed to two main factors. First, investors are concerned about the company’s growing losses. In this, they are unsure whether the company will ever become profitable. Third, the previous IPO of Lyft dampened the market. The underperformance of Uber could halt the IPO momentum that was already building. Already, companies like WeWork have submitted their IPO materials.
On Friday, the UK released mixed economic data. In March, the country’s industrial production rose by 1.3%, which was higher than the expected 0.5%. The manufacturing production rose by an annualized rate of 2.6%. In addition, the country’s trade deficit narrowed to $13.65 billion. In the first quarter, the country’s GDP rose by an annualized rate of 1.8%, which was in line with the expectations. On a QoQ basis, the economy expanded by 0.5%. In the quarter, the business investment declined by an annualized rate of -1.4%, which was better than the expected -2.7%.
On the same day, Canada released its jobs numbers. The data showed that the unemployment rate declined to 5.7%, which was better than the expected 5.8%. The participation rate increased to 65.9%, which was better than the expected 65.7% while the economy added more than 106.7K jobs. In the US, the headline CPI declined to 2.0% while the core CPI increased by 2.1%.
Over the weekend, investors continued to focus on the trade issues between the US and China. On Friday, the US president said that he still hoped that a deal with China will happen. Yesterday, Larry Kudlow said that the president will likely have a conversation with China’s Xi at the upcoming G20 meeting, which will happen in Japan. The administration is expected to release a list of additional Chinese goods worth $300 billion to place a tariff on.
In the United Kingdom, Theresa May was under pressure to quit. Over the weekend, Theresa May’s senior officials expressed their worries that the party will not win the upcoming European elections. Nigel Farage’s Brexit party is expected to win most of the seats. Opinion polls indicate that her support within the party has weakened ahead of the crucial elections. An opinion poll by Observer found that 34% of the respondents intend to vote for Farage’s party with Labour at 21%. Another one by ComRes placed the Brexit party at 27%.