News & Insight • Weekly Newsletters

17 April 2026 | William Buckhurst

That Was The Week That Was

MACRO NEWS

The week revolved around the Strait of Hormuz with both sides claiming they had a blockade and were lifting it. US Central Command posted that no vessels have been able to make it past US forces, with 9 vessels complying with US direction to turn back to Iran whilst Trump also announced that President Xi had given him a call and that China is “very happy” that he is “permanently opening up” the Strait and have agreed to not send their weapons to Iran.

The US PPI report provided further insights, following the CPI print from last week as it was only up +0.5% in March (vs. +1.1% expected), meaning that the year-on-year measure only rose to +4.0% (vs. +4.6% expected). As inflation fears were slightly quashed, US treasury yields fell, with the 2yr yield falling to 3.74%, whilst the 10yr yield fell to 4.25%.

As we have commentated before, the UK economy was trending around zero, however GDP figures shocked the market by growing 0.5% in February, much higher than the 0.1% expected. This was mainly led by the services sector which includes retail.

Unlike Lenny Kravitz, we do not think many people will be able to Fly Away over the Summer. After comments from EasyJet management on results and a nudge from one of our readers (thank you, DC) it was pointed out that kerosene jet fuel is in shorter supply (6 weeks according to the IAE) than that of WTI or Brent Crude. The latter has increased about 30% since the fighting started in the Middle East on the 28^th February, but jet kerosene is about 100% higher and with supply shortages and demand not letting up, prices will have to react further.

COMPANY NEWS

Netflix’s founder Reed Hastings is leaving (not standing for re-election as Chairman) which sent the shares down 9.6%. Results were good and better than expected on the top line (sales) but slightly under on the bottom (earnings and cash flow). Netflix attributed its revenue outperformance to higher membership growth than forecasted, in addition to the 2% benefit from FX.

ASML guided at the top end of their previous range for 2026, but that was still not enough to get the shares up. First quarter sales came in at €8.77bn, ahead of expectations, which led to a moderate beat in margin. However, guidance was on the conservative side.

Shares in semiconductor bellwether, TSMC, were higher on the week as results were good. Some figures, such as sales at $35.9bn, had already been pre-announced, but gross margin of 66.2% was above the 63-65% range. The operating margin was also better. Guidance was also excellent with sales increasing 10% next quarter with elevated margins as they exert pricing power.  

The turnaround at Saga under the returning founders has been terrific and again the results were excellent across the board, beating outlook sending shares up.

PepsiCo beat consensus and reiterated guidance with volume up 2% and price down -1%.

Intertek confirmed the rejection of 5,150p per share takeover from Swedish firm EQT, sending shares up 9%. This also led rival, Halma, 5% higher.

Covid beneficiary and shoe brand AllBirds surged by +582% after it said that it would become an AI business.

American Airline shares were flying higher due to discussions about possible merger with United Airlines. Spirit airlines are also looking to go into administration.

Fashion bastions, LVMH and Hermes, both reported slightly weaker than expected results. LVMH sales of €19.1bn were €0.2bn below mainly due to the Fashion & Leather division and FX being a 7% headwind. Geographically, strength in US and Asia was offset by further weakness in Europe and Japan. Hermes reported similar figures with FX also a 7% lag. The miss related to less tourism in France and weakness in the Middle East, but in contrast most divisions grew.

SHEFFIELD BUSES

Two announcements in one week from Sheffield based, hydrogen experts, ITM Power, sending the shares up 80%.

First, a £86.5m package from the UK Government to expand the manufacturing capacity, which involved GB Power taking a stake with proceeds also used for strategic expansion for their next iteration of electrolysers – changing water and power into hydrogen and oxygen.

There was then a strategic collaboration with Rheinmetall to explore decentralised synthetic fuel production in support of NATO. No figures were issued but the future could look bright. As Simon Bourne, CTO suggested, “the full potential of this technology is still not fully recognised. But as recent events remind us, energy, fuel and food security are not abstract concepts — they matter.”

BANKING TILL

Still on Pink Floyd and listening to the track Money. Irish bank, Permanent TSB announced they were to be taken over by Austrian bank, Bawag but the main news flow was in the US as reporting season was underway.

Total net income for the big five Wall Street banks – JP Morgan, Goldman Sachs, Citigroup, Morgan Stanley and Bank of America – came in at just above $42bn, as they profited from the volatility in the market due to the war in the Middle East and background M&A action that will come to market in the coming months (SpaceX IPO for example).

JP Morgan chief Jamie Dimon, probably the world’s most influential banker and spokesperson warned: “There is an increasingly complex set of risks – such as geopolitical tensions and wars, energy price volatility, trade uncertainty, large global fiscal deficits and elevated asset prices.”

THE WEEK AHEAD

The latest UK jobs data will be published on Tuesday, with US and UK inflation figures out during the week and UK retail sales on Friday. We might also get insight into the next Fed Chair.

On a company basis the first Mag-7 stock reports on Wednesday in Tesla, with another ‘Trump trade’ beneficiary – Boeing – also report figures. We will also hear from Coca-Cola and IBM. Closer to home there are prints from AB Foods (Primark) and J. Sainsbury.

THE WEEK IN HISTORY

1783: George Washington issues General Orders announcing the end of hostilities with Britain in the American Revolutionary War, giving thanks to the Almighty, offering congratulations, and authorizing an extra ration of alcohol to the troops to celebrate

1877: World's first home telephone is installed in Somerville, Massachusetts at the house of Charles Williams Jr.