Month: February 2016

Report on the Italian Banking System: NPL, Bad Bank and M&A Wave

Introduction Markets all around the world have been characterized by high volatility and unsatisfying returns in recent weeks, primarily because of the dramatic drop in oil prices and the alarming data on China’s growth, which has failed to meet analysts’ expectations for the fourth quarter of 2015 by about one percentage point. The issue of […]

Market Recap 28-02-2016

[edmc id= 3544]Download here the Weekly Market Brief[/edmc] United States S&P 500 began the week trading in the red but rose on rebounding oil prices, ending with a weekly gain of 1.6% to 1,947. Oil also ended the week up, with Brent up 6.3% at $35.10 per barrel, on the back of expected declines in shale […]

Oil crash is not just about prices

On Friday 26th 5.00 PM London time, at the closing bell for European stocks, Brent was trading over $36 per barrel and WTI was over $33.50. Oil registered the biggest weekly gain since August amid signs of strengthening U.S. fuel demand and speculation that some producers will complete an agreement to freeze output. Nonetheless, Crude […]

Same fame, different rules

It is probably fair to say that central banks have become the most powerful actors in today’s financial markets. On the one hand this is due to governments’ reluctance to make use of fiscal policy measures in order to stimulate their economies in the aftermath of the Great Recession. On the other hand their importance […]

Ride-Hailing Wars – The Anti-UBER Alliance Awakens

About Uber Headquartered in San-Francisco Uber Inc., known as everyone’s private driver, is the largest mobile app-based transportation company in the world in terms of both network and valuation. It was founded in 2009 and underwent a period of aggressive growth unlike any other tech company. In less than six years Uber has landed its […]

“Merger Without a Cause” – Starring Sysco and Brakes

Sysco Market Cap: $24.43bn (as of 26/02/2016) The companies Sysco Founded in 1969 and headquartered in Houston, Sysco (Systems and Services Company), together with its subsidiaries and 200 distribution facilities (US, Bahamas, Canada, Ireland), focuses on marketing and distributing a range of food and related non-food items to the foodservice and food-away-from-home industry, serving restaurants, […]

Market Recap 21-02-2016

[edmc id= 3486]Download here the Weekly Market Brief[/edmc] United States S&P 500 started the week off strong and closed 2.8% higher, at 1,917, on the back of an oil price rally. The rally was due to an agreement between major oil producers, including Russia and Saudi Arabia, to set crude output at January levels but the […]

Will the U.S. Government Lift Terex Out of Zoomlion’s Hands?

Zoomlion Heavy Industry Science and Technology Co., Ltd.; Market Cap HK$17.24 bn (as of 19/02/2016) Terex Corporation; Market Cap: US$2.4 bn (as of 19/02/2016)   Introduction Zoomlion has made a US$3.3bn non-binding offer to buy US-based company Terex in hopes of foiling the proposed merger between Terex and Konecranes. Zoomlion’s unsolicited offer is currently under […]

Private equity firm Apollo braving the merger markets with its hunt on a burglar-alarm vendor ADT

Apollo Global Management; market cap as of 19/02/2016: $2.70bn ADT Corporation; market cap as of 19/02/2016: $6.59bn   Introduction US private equity firm Apollo Global Management has agreed to buy ADT, an American home-security company, paying c.$11bn for a total enterprise value in the so far biggest leverage buyout of this year. Apollo aims to […]

Biggest Chinese Acquisition of a U.S Technology Target Yet

Ingram Micro Inc.; market cap as of 19/02/2016: $5.44bn Tianjin Tianhai Investment Co., Ltd.; market cap as of 19/02/2016: $2.58bn    Introduction On February 17, 2016, Tianjin Tianhai Investment Co., Ltd. (Tianjin) (SSE A Share: 600751 and SSE B Share: 900938), a container shipping and freight agency company, entered into a definitive agreement to acquire […]

How Sovereign Wealth Funds Drive the Market Sell-Off

“In the old days you built armies, now you build a sovereign-wealth fund” Jayne Bok In the month of January, there has been significantly more willingness by sellers to sell assets at any price. Volume has been extremely high and markets have been strongly linked to oil prices even though, in theory, low energy prices […]

Will Abe dare to open the Pandora’s Box?

In the last article[1], we explained the three arrows (measures) of Abenomics stimulus. In this article instead we will take a look at the most recent data about the Japanese economy and then focus on the structural reforms. In particular, reforms that are supposed to tackle the labour market and secure the growth of Japanese […]

BSIC Monetary Policy 101: Fed Hiking Path

Fed hiking path explained […]

A system to profit: Banca Sistema!

The recent turmoil enduring since the beginning of the year affected in particular energy and financial sectors. Italian banks were hit by a panic sell off that shrank, and in the worst cases halved, their capitalization even though fundamental factors are strong for most of them and no rationality can be found in current market […]

How High Can A Premium Get? The Mylan – Meda Case

Mylan N.V.; market cap as of 12/02/2016: $20.54bn Meda AB; market cap as of 12/02/2016: kr52.44bn ($6.24bn) Introduction On February 10, Mylan NV (NASDAQ: MYL.O) announced its acquisition of Meda AB (STO: MEDAa.ST) in a deal worth $7.2bn made of cash and stock, while the latter reported an unexpected slowdown in growth in the fourth […]

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