Juventus and Manchester United shares slide on super league disaster

After the sudden u-turn announced by the so called big 6 English clubs to withdraw from the European Super League, we have seen investors move fast to show their disappointment. Juventus shares dropped sharply by more than 12% in trading today, whilst Manchester United shares slipped more than 6% last night and even more so in premarket trading this morning.

The investor concern now moves from the short term disappointment to the medium term damage inflicted from the short lived Super League project. These clubs needed a large cash injection fast to help curtail spiralling losses from the Covid pandemic and this will now not arrive. Investors are also fearful these clubs could see retribution from football's governing bodies which could include points deductions or fines, whilst its also hard to ascertain the damage to brand value from this disaster which could certainly affect commercial income in the future.

Inflation rises in line with expectation as markets await Bank of England

While the pace of the economic recovery seems to be accelerating in most parts of the world, a key measure that remains in focus is inflation as most central banks have made it a priority to try and control it in a way that would facilitate the post pandemic recovery. Today’s UK inflation data showed prices rising in line with expectations but the rise seems in part due to the increasing costs of fuel which have been impacting the markets. OPEC remains confident in their approach and have decided to not hold this week’s meeting stating the increase in supply will be offset by the expected demand recovery while we have recently seen oil prices rise to the highest levels in over a year. Today, Bank of England governor Bailey will discuss his outlook, and after this morning's macro data it remains to be seen if the central bank will maintain its current approach or if it will suggest a potential adjustment to the monetary policy moving forward.