Reality27 Mar 2026 09:05
Unfortunately, the current international situation will have a significant impact on stock market valuations. We face a looming wave of inflation and a virtually unpredictable end to the conflict in Iran, as well as a virtually unpredictable resolution. USA and Israel's failure to defeat the conflict and Trump's typical attempt to sell it as a victory could result in high oil prices for the next five years, political fragmentation in the region, a rise in anti-American sentiment, and the strengthening of Islamic fundamentalism and Iranian influence. In the background, we have the impact of this conflict on Putin and Russia's finances, which will delay the end of the war in Ukraine and weaken the EU and the UK. Furthermore, the visible political and military weakening of NATO itself lays the foundation for Russia's continued aggressive policy. The seizure of parts of Lithuania, Latvia, Estonia or Poland is therefore becoming a realistic scenario. After all, what can NATO offer? There will be no military retaliation, we would probably see only at most political declarations or an ineffective trade blockade. So this is a long-term risk that should be taken into account, and one that the Ost European region's financial markets are slowly pricing in. Iran must suffer a financial and political defeat, or we will all face many times greater costs in the near future. This means supporting Trump, regardless of one's assessment of his actions and personality, or the rationale behind the outbreak of this conflict. Furthermore, we must shift to a war economy as quickly as possible, because time is working in favor of Iran, Russia, and China. Such are the realities of today's world.
In any case, for ITV, we should expect another decline in advertising revenue, although the FIFA World Cup should improving its third-quarter results. I think we'll also see a slower pace of growth for STUDIO. The development of the gambling business within ITVX remains an open question. This could be an opportunity to partially offset the declines in other activities. For now, I see no threats to its dividend policy, although a sharp rise in inflation and political turmoil could quickly change ITV's financial capabilities. Currently, all dividend-paying company, in the face of inflationary threats, should attract significant investment capital. Regarding the talks with Comcast, I am cautiously optimistic. Price is the key issue regarding the acquisition of ITVX or the entire ITV business. In my opinion, any offer encompassing not only ITVX but also STUDIO should generate external counteroffers. There are at least a few potential buyers for STUDIO in the market, waiting for it to shed the burden of linear television. I believe that if Comcast were to offer buy all of ITV, at least some of them (perhaps reluctantly) would be willing to compete and make own offer for ITV. The issue here is the price, which depends on the market situation with the risk assessment for the ne