News & Insight • Weekly Newsletters

20 March 2026 | William Buckhurst

That Was The Week That Was

MACRO NEWS

The Middle East conflict continued but focus was on a raft of Central Banks who all had interest rate decisions to be made and decided to sit on their hands as Fed, BoJ, BoE, ECB, SNB and BoC Riksbank all voted to leave interest rates unchanged.

The US Federal Reserve left rates unchanged at 3.50-3.75% as job gains have remained low and unemployment rate little changed in recent months. The vote was 11-1 in favour of a hold, with Stephen Miran dissenting in favour of a rate cut (of course). Before the Fed rate decision, US producer price inflation data came in a lot higher (worse) than expected. 0.7% month on month rise (vs 0.3%) mainly due to due to a 0.5% increase in services costs and a 49% rise in fresh vegetables.

Although the Bank of England kept rates at 3.75% there were some odd moves in the gilt market that required another announcement from Governor Bailey. With the Government resisting calls to unlock the North Sea assets, the reliance on trading partners is stark. Since war started on the 27^th February the 2 year-gilt yields have moved higher in a greater way - 0.86% UK v 0.46% US v 0.56% Germany for example – which is not good for future debt costs that the Chancellor is trying to bring down.

As expected, the Bank of Japan also left interest rates unchanged at 0.75% but noted that there would likely be a rise in consumer inflation it the oil price remains elevated. One board member of the BOJ did dissent and voted for a rate hike.

The RBA (Australia) dissented the inaction by raising interest rates for the second time this year by a further 25bps noting that inflation had risen materially in the second half of 2025.

COMPANY NEWS

Unilever shares fell 3.4% following reports that it was considering spinning off its food division for tens of billions, with McCormick being one suitor, so that it can focus on beauty, personal care and wellbeing brands.

Close Brothers fell sharply after a short report from Viceroy citing the bank’s exposure to the FCA’s Motor Finance Consumer Redress scheme could have to double from £300m to between £572m and £1.07bn.

Shares in Tencent fell 6.6% after reporting profits rising 17% with revenue rising 13% in line with consensus estimates. Shares declined after Tencent announced that it would at least double its AI spending to more than 36bn yuan, ($5.2bn), in 2026 and that it would finance this spending by curtailing share buybacks.

FedEx delivered better-than-expected revenue sending the shares up 9.5% with sales up 8.3% year on year to $24bn. It also raised its full-year outlook.

Prudential showed another set of good results with double-digit growth across key financial metrics – which included the dividend – which management expect to repeat in 2026.

Shares in US discount store Dollar Tree finished 6.4% higher after reporting in line results but gross margins of 39.1% was slightly better than forecast.

German life science company Sartorius closed up 8.2% after providing 8-11% annual sales growth guidance until 2027 at its capital markets day.

Mastercard announced that it had agreed to acquire stablecoin infrastructure startup BVNK for as much as $1.8bn with the purchase price including $300m in contingent payments, while declining to state the structure of the deal between cash and stock. Interestingly this transaction comes around four months after Coinbase tried to buy BVNK for $2bn.

Tokyo Electric Power surged 16% as media reports circulated that the company is seeing a lot of interest from private investment firms including Bain and KKR as part of its plan to turn around the business.

SCANDI ELEVATED VOLUME

Some niche takeover approaches in Scandinavia as hearing aid company Amplifon finished 14.3% lower after announcing that it had agreed to acquire the hearing aid business of GN Store Nord for DKK17bn, ($2.7bn), in a cash and stock transaction stating that the deal created a “transformative” opportunity and adds hearing aid manufacturing to its current operations.

Elsewhere Finnish escalator and elevator company Kone finished 1.9% higher following reports that it was considering acquiring private equity owned TK Elevator for as much as €25bn. Advent and Cinven took TK Elevator private after acquiring it from Thyssenkrupp for €17.2bn in 2020 with recent volatility in markets leading them be more open on a potential sale rather than listing the business. Rival Schindler (Swiss) may have something to say.

BIGGER EUROPEAN BANKS

This decade was supposed to be the years of bank consolidation, but the action has been sparse. However, UniCredit announced this week that it had made an all-stock offer to acquire German bank Commerzbank, giving it an implied price of €30.80 per share, a 4% premium to its price.  UniCredit CEO Andrea Orcel has been trying to acquire Commerzbank for over 18 months with the move facing resistance from the German government, which is Commerzbank’s second largest shareholder after UniCredit. Commerzbank CEO Bettina Orlopp stated that the bid as an “offer at a very low price”, and that it would boost its own earnings to demonstrate that it was better on its own.

Meantime, to the South-East, Austrian newspaper Die Presse reported that Bawag is ready to bid €1.6bn (€2.93ps) for Irish bank, Permanent TSB – Bawag later admitting that it has submitted a non-binding proposal which may or may not lead to a formal cash offer. Roll up, roll up…

THE WEEK AHEAD

After the Central Bank announcements we will have several speeches, giving insight to future thoughts on where rates are heading. The US also announces PMI data.

Reporting season is nearly over but there will be prints from Next, Fevertree, Serica Energy (North Sea rhetoric), Schindler and Hyundai Motor.

THE WEEK IN HISTORY

• 2016: Barack Obama becomes the first US President to visit Cuba since 1928, arriving for a three-day tour with First Lady Michelle.

• 2024: New rule limiting tailpipe pollution aimed at greatly expanding electric vehicles in the US is announced by President Joe Biden.