Virgin Galactic: space travels find new ways to launch on the stock market

Virgin Galactic Holdings Inc. [NYSE: SPCE] – Market Cap as of 08/11/2019 $2.126bn Introduction On October 28th, 2019, Virgin Galactic started trading on the NYSE and became the first publicly traded commercial spaceflight company. It did so by merging with Social Capital Hedosophia, a special purpose acquisition company already listed on the NYSE. The SPAC, […]

Market Recap 10/11/2019

US The rally in the U.S. markets continued this week, sustained by the optimistic outlook on the resolution of the US-China trade disputes. The S&P 500 and the Nasdaq Composite were both up 0.85% w-o-w, closing at 3,093.08 and 8,457.31, respectively. The Dow Jones Industrial Average recorded a weekly gain of 1.22%, ending at 27,681.24. […]

Fitness for the Future: Google acquires wearable device company Fitbit in $2.1bn deal

Alphabet Inc. [GOOGL:NASDAQ] – Market Cap as of 09/11/2019 USD 903.46bn Fitbit Inc. [FIT:NYSE] – Market Cap as of 09/11/2019 USD 1.83bn Introduction On the 28th of October 2019 initial reports suggested the interest of the tech giant Alphabet, the parent company behind Google, in acquiring Fitbit, a wearable device company. Finally, on the 1st […]

The Fiscal Trap: Is Germany Ready For Fiscal Expansion?

Introduction Over the past ten years, Germany has always been the leading European country in terms of economic growth. Notwithstanding a series of emergencies arising from Southern Europe, such as the Greek government-debt crisis and the Italian political instability, the federation was able to deliver an impressive economic performance, corroborated by a sky-high current account […]

The king of Logistics Real Estate expands his kingdom: Prologis acquires Liberty Trust for $12.6bn

Prologis Inc [PLD:NYSE] – Mkt cap as of 09/11/19: $55.01bn Liberty Property Trust [LPT:NYSE] – Mkt cap as of 09/11/19: $9.26bn Introduction The boom of e-commerce is rapidly pushing up demand for industrial real estate and thus driving warehouse giants to new pursuits. Accordingly, Prologis – the world’s leader in logistics real estate – has […]

Inflation Derivatives and the Inflation Risk Premium – Part 1

“Inflation is when you pay fifteen dollars for the ten-dollar haircut you used to get for five dollars when you had hair” Sam Ewing Inflation is an elusive phenomenon which is sometimes dubbed a “hidden tax”, eroding purchasing power and returns. This article is the first in a series of two. In this first part, […]

Reaching for the Sky: Cellnex acquires Arqiva’s Telecom Towers for £2bn

Cellnex Telecom SA [CLNX: BME] – Mkt cap as of 19/10/19: €12.24bn Arqiva – not listed Introduction On the 8th of October 2019, Arqiva announced the sale of its Telecoms business (TowerCo) to Cellnex for £2bn, which Arqiva will use to reduce its leverage, currently standing at a debt-to-equity ratio of 1.9. The operation will […]

Central Bank Tools of Intervention: Reverse Repos versus QE

In mid-September, there has been a liquidity crisis in the money market of secured overnight borrowing. We have analyzed this in an article published one month ago, headed “Liquidity Squeeze: What is the Repo-Scarcity Premium?”. Since then, the Federal Reserve proceeded to inject more than 230 billion over the period from the end of September […]

Relationships between commodities and interest rates

The use of Copper and Gold Can commodities help us predict future interest rate movements? In this article, we will analyze the relationship between the spot prices of copper and gold and the ratio between them to predict future interest rates. Copper is used in the majority of industries such as semiconductors and wiring. Gold […]

Paying for Premiums: Tokio Marine purchases Pure Group in $3.1bn deal

Tokio Marine Holdings Inc [TKOMY: TYO] – Market Cap as of 18/10/2019: $36.95bn (¥4.05tn) Introduction Tokio Marine, Japan’s largest non-life insurance company, has agreed to acquire Pure Group: a US-based insurance group majority-owned by private equity players KKR and Stone Point. The deal, valuing Pure Group at $3.1bn, is expected to be funded by a […]

Feet to the Fire: Mapping the current state of shareholder activism

Introduction  Historically, large institutional investors pursued purely financial strategies and kept a low profile in governance. This may no longer be the case. In a manner vaguely reminiscent of the corporate raiders of the 1980s, a new generation of activist shareholders is on the rise. The number of companies targeted by shareholder activists hit an […]

Market Recap 20/10/2019

US U.S. markets were slightly higher last week as Q3 earnings season spurred some optimism, but global growth concerns limited it. The S&P 500 was up 0.4% w-o-w, closing at 2,986 points, while the DJIA fell 1%, ending at 26,770. The Nasdaq Composite decreased 67 points (0.8%) to 8,089. On Tuesday, JP Morgan Chase & […]

Market Recap: 13/10/2019

US The Dow Jones Industrial Average closed at 26,816.59 on Friday recording a weekly gain of 0.91%. The S&P 500 closed at 2,970.27 up 0.61% w-o-w. Both these figures are the result of a particularly bullish market on Friday with gains equal to 1.42% and 1.32% respectively. Indeed, the Federal Reserve announced on Friday that […]

Bank of Japan Reshuffles Bond Purchases

Introduction Quantitative Easing is not a new economic phenomenon for most of the developed economies. Federal Reserve started its first Quantitative Easing program in November 2008 by purchasing $600 billion in mortgage-backed securities, before 2008 the Federal Reserve held between $700 billion and $800 billion of Treasury Notes within its balance sheet. European Central Bank, […]

Polish Elections: An Economic Overview

Introduction On Sunday, October 13, Poles will vote in parliamentary elections for the 10th time since the first partially free elections in 1989. In this article we aim to provide political and economic background of Poland, economic policies of the competing parties, as well as an analysis of investors’ expectations for the post-election period. The […]

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