Market Recap 25-09-2016

United States This week the S&P500 gained 1%, DJIA is up 0.60% and NASDAQ100 remained somewhat unchanged. The VIX volatility index registered a sharp decrease of more than 20%, signaling that market participants expect a brief calm period following the Brexit turmoil. In addition, VIX ETFs were the most shorted funds during last week. Following […]

Looking for Yield: The Flight to Alternative and Distressed Investments

Today we are living in a period of ultra-low and in many cases negative interest rates. This has been caused by strong expansionary policies by most central banks, especially in developed countries. In fact, in Japan and Eurozone central bank deposit rates are negative, in the UK and other European countries they are practically zero […]

EM Currency: Turning Point?

This year has been particularly good for emerging markets and there are several reasons underlying the so-called EM rally. The main one is probably the yield hunt, in which yield-hungry investors move to riskier assets in order to have some decent return in the low interest rates environment, thus boosting risky assets and compressing risk […]

Tesla’s Race to the Sun

Tesla Motors, Inc. (TSLA) – market cap as of 23/09/2016: $30.85bn SolarCity (SCTY) – market cap as of 23/09/2016: $1.93bn Introduction On August 1, 2016 Tesla Motors (“Tesla”), US electric cars developer and manufacturer, agreed to acquire SolarCity, US provider of solar energy services, in a $2.6bn deal. Tesla shareholders will receive 1 share of […]

Bayer – Monsanto: A $56bn Cash Pile Waiting for Regulatory Sign-Off

Bayer AG (BAYN) – market cap as of 24/09/2016: $84.86bn Monsanto Company (MON) – market cap as of 24/09/2016: $45.31bn Introduction On September 14, following months of negotiations, Bayer and Monsanto agreed on a final merger agreement. Bayer will pay $57bn to Monsanto’s shareholders, and will take on $9bn in Monsanto’s debt. The deal represents […]

3 Italia Finally Listening to The WIND of Change: Sparks of Consolidation in the European Telecom Industry

Hutchison Holding (2CK.F) – market cap. as of 23/09/2016: HKD387bn VimpelCom Ltd (VIP) – market cap. as of 23/09/2016: $6.17bn Iliad S.A. (ILD) – market cap. as of 23/09/2016: €10.9bn Introduction On August 6, 2015 CK Hutchison Holdings Ltd. and VimpelCom Ltd. agreed to combine their Italian subsidiaries, 3 Italia and Wind Telecomunicazioni respectively, in […]