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The main economic news for Tuesday, March 30:


0:00 Deliveroo launches the biggest UK IPO in decade
1:07 Foxconn’s earnings fall short behind forecasts
2:07 Stocks rally as focus remains on vaccine progress
3:10 Banks prepare for damages on Archegos aftermath

1. Deliveroo launches the biggest UK IPO in decade
Food delivery company Deliveroo hits the London stock market Wednesday, and it will be the biggest UK listing in a decade, though some of the country's top investors – worth more than $1 trillion in total – will be absent. The strong demand for the IPO – it was fully booked within hours of the order book opening – has been overshadowed by complaints about its stock structure, questions about potential legal problems for its gig economy business model and the threat of a strike by some of its employees. During the COVID-19 pandemic, Deliveroo's self-employed drivers experienced a surge in demand for food delivered from other restaurants, closed at will, to housebound customers. Originally seeking up to 8.8 billion pounds ($12.1 billion), the British technology firm on Monday chose a narrower price range, citing a maximum valuation of up to 7.85 billion pounds.

2. Foxconn’s earnings fall short behind forecasts
Foxconn, the world's largest contract electronics maker, posted a lower fourth-quarter profit Tuesday that fell short of expectations despite strong iPhone 12 sales and pandemic demand for telecom devices. The Taiwanese firm, which counts tech giants such as Apple Inc among its major customers, booked October-December net income of T$45.97 billion ($1.61 billion). That's down 4% from a year earlier, according to the company's report, and compared with an average of $50.89 billion from analyst estimates compiled by Refinitiv. Officially named Hon Hai Precision Industry Co Ltd, Foxconn's fourth-quarter revenue was up 15% from a year earlier for consumer electronics, including smartphones, which accounted for 63% of business in the quarter, the company said, without elaborating. Foxconn shares were up 0.78% on Tuesday.

3. Stocks rally as focus remains on vaccine progress
Global stock markets strengthened Tuesday as investors remained focused on the global vaccine program and allayed fears of a hedge fund default that hit international bank stocks overnight. European stocks look higher, with Euro Stoxx futures up 0.35%. The broadest index of Asia-Pacific stocks, the MSCI outside Japan, was up 0.6%, while the CSI300 index of mainland China was up 1%. Japan's Nikkei remained flat, pushed up by weakness in Nomura stock prices. Investor sentiment remains closely tied to the pace of global vaccine adoption. Meanwhile, Nomura and Credit Suisse faced billions in losses and regulatory scrutiny after a U.S. investment firm Archegos Capital defaulted on bets on equity derivatives, putting investors on notice of who else might be at risk. Wall Street made up for early losses caused by the banking sector because of fears that the problems associated with the Archegos debacle could spread to the entire banking sector.

4. Banks prepare for damages on Archegos aftermath
Global banks could lose more than $6 billion in the fall of Archegos Capital, sources familiar with the U.S. investment firm said Monday, and regulators and investors fear the episode could reverse more widely. Japan's Nomura and Credit Suisse of Switzerland warned of big losses from Archegos' lending to equity derivatives trading, triggering a worldwide sell-off in bank stocks. Shares of Morgan Stanley fell 2.6% and Goldman Sachs Group fell 1.7%. Nomura shares closed down 16.3%, a record one-day drop, while Credit Suisse shares fell 14%, the biggest drop of the year. Deutsche Bank was down 5% and UBS was down 3.8%. Losses at Archegos Capital Management, the family office run by former Tiger Asia manager Bill Hwang, triggered a fire sale of stocks including ViacomCBS and Discovery on Friday.