The Kraft /Unilever 48 hour excitement following the Reckitt/Mead Johnson deal illustrates mega deals, especially in the consumer sector, remain on the cards. Debt remains cheap and the leveraged market is open if commitment fees are high.   

Access to emerging markets via recognised brands, cash on the balance sheet and funding availability lie behind these possible deals. 

One should expect mega deals to result in a flow down to the mid-market and if the competition authorities get involved more opportunities could be created.

Private equity remains with money to burn but with cheap debt and cash on balance sheets strategic buyers have a competitive advantage. 

Financial sponsors with operational expertise can bridge the gap between trade and general private equity. There is some evidence that management buy-in teams are also in the market and are bringing deals to financial sponsors.   

Trump's America First policy means the mid-market in the US is likely to be domestically focused, and there is some evidence to support the idea that US monies will not be deployed as aggressively as they have been in recent years. The Kraft approach is an exception to disprove this assumption.

In Europe there is more mid-market activity than there has been for a while but it is too early to see if this converts into closings.

In the UK, leaving aside public deals which are partially fuelled by sterling devaluation, there seems to be a "wait and see" approach as no one is quite sure what the outlook is post Brexit. 

Two areas to watch closely are retail and financial. In retail, under performing stores and challenger internet-only brands are creating confusion. Internet brands are also having problems with sale and returns so consolidation of the supply chain seems inevitable.

In the financial sector, again, consolidation seems inevitable as regulatory and compliance reforms continue apace. 

Bear or bull? After 6 weeks i would say "a healthy calf".