In one of today’s more shocking pieces of news, it appears that banks are not doing as well as they like to think they are.
Confirmation of this comes via the Enhanced Disclosure Task Force, a body set up by the Financial Stability Board to tell banks what information they should be reporting and how they should be reporting it. The EDTF made 32 recommendations in 2012 and since then has been monitoring how they have been getting along. Read more
We’ve commented before in Lex (prior to the World Cup) on the notion that any news that hints at Dilma Rousseff’s chances of winning the October presidential election will not play well for traders of Petrobras, the state oil company. The poor showing in the World Cup couldn’t have helped her standing and, no surprise, the rally in Petrobras roared ahead afterwards.
Bill Gross has left Pimco, the firm he co-founded in 1971 to join Janus Capital; statement here. Lex is very interested in what this means for Allianz, Pimco’s owner, and the future of the big bond house itself.
This is a live format in which we’ll share our thoughts on a note we’re writing in real-time, and readers will be able to weigh in too on the right. So don’t be shy! Read more
Well, Janus is the Roman god of beginnings and endings.
Bill Gross has left Pimco, the firm he co-founded in 1971 to join Janus Capital; statement here. Lex is very interested in what this means for Allianz, Pimco’s owner, and the future of the big bond house itself. Read more
As markets look a little skittish we thought we would take a peek at the VIX index, which reflects estimates of future volatility implied by options pricing. As expected – a spike. But still, nothing special compared with recent performance, which has been pretty range-bound.
Silicon Valley start-ups that burn through cash like crazy used to be all the rage. But not anymore.
At least not according to Marc Andreessen. Normally a cheerleader for the tech industry, the venture capitalist changed his tune in a Twitter essay on Thursday. The current heady environment where money is always easy to raise at higher valuations “will not last,” he says. Read more
No Alibabesque pop for Citizens Financial. But at least the 7 per cent rise on its first day of trading made up for the price cut Royal Bank of Scotland had to impose on the flotation of its US lender.
Originally priced in the $23 to $25 range, it made its début at $21.50. Why? Given the drab times for US lenders potential investors weren’t convinced it could double its miserable return on equity to 10 per cent (as promised). That simple. Read more
Siemens is paying a whopping price for oil and gas equipment maker Dresser-Rand (the $7.6bn purchase price implies a 37 per cent premium to Dresser-Rand’s undisturbed stock price and 15x forward EBITDA multiple). And the price could go even higher due to a rare provision in the merger agreement called a “ticking fee”. Starting in March, of $0.55/share per month added to the $83/share cash consideration .
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Is Rocket Internet a conglomerate, a venture capital fund, a private equity group, or something else? We had hoped the prospectus, which appeared on Tuesday, would clear this up for us.
It may, but only after further study. A good way to illustrate a complex company’s structure is with a flow chart where the lines represent ownership stakes. Read more
The UK’s Financial Conduct Authority has hit Barclays with a £38m fine for failing to properly segregate client assets.
We say hit, but perhaps “brush lightly with a feather” would be more accurate. Read more