Market Recap 26-09-2015

BSIC Weekly Market Brief United States Last week decision by the FED to keep the cost of money unchanged was still affecting the stock market, pushing the S&P500 down during the first part of this week. On the other hand, the yield on the 10-year Treasury Notes has floated quite a bit, closing the negotiations […]

China: a hot summer

In our May article (http://www.bsic.it/chinese-divergence-real-vs-financial/), we underlined how many difficulties China faced. We also analysed the development of a stock market bubble in the Shanghai Composite equity index (SHCOMP) and in the Shenzhen CSI 300 (SHSZ300) equity index. This summer saw that bubble bursting. The SHCOMP was trading at 3,185 as of September 22nd, a […]

The Volkswagen Scandal: A New Beginning for the Automotive Industry?

Volkswagen AG; market cap (as of 25/09/15): €55.0bn   Small Software, Big Turmoil Volkswagen, the second largest carmaker in the world, headquartered in Wolfsburg, Germany, is in the middle of one of the largest automotive scandals to date. The company was discovered cheating on the emission tests by installing software that limits the harmful fumes […]

The new behemoth in the semiconductor industry: Avago to buy Broadcom

Avago Technologies Limited (AVGO): market cap (as of 25/09/2015): $34.2bn. Broadcom Corp. (BRCM): market cap (as of 25/09/2015): $31.4bn. Introduction Following a wave of consolidation in the semiconductor industry, which culminated last March with the NPX/Freescale $11.8bn deal, on May 27, Avago Technologies Limited and Broadcom Corporation announced that they have entered into a definitive agreement under […]

“Wanna Play Big: Scale Up!” – Starwood Waypoint Residential Trust to Acquire Colony American Homes

Starwood Waypoint Residential Trust; market cap (as of 26/09/2015): $953.73m Colony American Homes; market cap (as of 26/09/2015): N.A. Introduction On September 21 Starwood Waypoint Residential Trust (NYSE: SWAY) and Colony American Homes (CAH), two of the largest U.S. single-family home landlords, agreed on the merger in an all-stock deal that would create a real […]

Daimler – Shifting into the next gear

Driven by strong growth in China, the announcement of QE in the Eurozone and a solid recovery in the US, the automotive sector experienced a remarkable rally since the beginning of the year to the end of June. The SXAP (STOXX Europe 600 Automobiles & Parts Index) expanded more than 29% during the five months […]