Link to article : {http://bit.ly/1nS0UeT}
During the 12-month period ending in March, Chinese buyers spent a combined US$22 billion on housing in the United States, up by 72%, compared with the same period a year ago, and taking up 24% of the total housing purchases made by foreigners in the United States, according to a report released by the US-based National Association of Realtors.
Lu Heren, president of Meritros Investment Group, said the return rate for investing in the housing market in the United States could touch 8% after fees such as property tax are deducted. The relatively higher price of rent will also allow housing owners to recover the cost in six to seven years, according to the report.
In comparison, it may take a homeowner a century to recover from buying a residential property in Beijing, Lu added.
In addition to the wealthy, more Chinese belonging to the middle class are choosing to invest in the housing market abroad rather than in their home country. The real estate market in the United States is more mature and even with the sector suffering a significant decline after the 2008 financial crisis, it has gradually revived and become stable, Lu said.
Zhang Dawei, chief analyst at Centaline Property Agency, said that since the overall economy abroad has been recovering, many Chinese nationals have sold their property in China and bought homes abroad. However, several risks have emerged from such overseas investment, such as the uncertainty in foreign government policies and the constantly changing housing sector overseas.
Not everyone can profit from their investment abroad, Lu said.
Some Chinese buyers bought housing in Detroit after the US city went bankrupt. But poor public security made it difficult to lease the houses.
Yan Yuejin, a researcher at the Shanghai Yiju Real Estate Research Institute, also said that some real estate agencies hide the possible dangers involved and exaggerate the high returns on such investments in order to boost their sales performance.
BSkyB ITV Stake Sale Increases Sky Europe Deal Likelihood: HSBC
2014-07-18 07:23:20.373 GMT
By Blanche Gatt
July 18 (Bloomberg) -- BSkyB’s sale of 6.4% of its 7.5% ITV
stake to Liberty Global effectively removes ITV potential share
overhang, HSBC says in note.
* HSBC says stake sale increases probability of BSkyB moving
ahead with a potential Sky Europe deal
* Sale not a surprise, due to overhang issue
* Liberty Global as buyer is a surprise, given its recent
statements about seeking to expand in content
* BSkyB shares down as much as 0.6% today; ITV little changed
* NOTE yday: Liberty Global Acquires 6.4% Stake in ITV;
Doesn’t Plan Offer
* Yday: BSkyB’s Sale of ITV Stake Not Surprising, Espirito
Santo Says
* Yday: Time Warner Deal Could Mean Fox Sells BSkyB Stake:
Credit Suisse
For Related News and Information:
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To contact the reporter on this story:
Blanche Gatt in London at +44-20-7392-0351 or
bgatt@bloomberg.net
To contact the editor responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net
2014-07-18 07:23:20.373 GMT
By Blanche Gatt
July 18 (Bloomberg) -- BSkyB’s sale of 6.4% of its 7.5% ITV
stake to Liberty Global effectively removes ITV potential share
overhang, HSBC says in note.
* HSBC says stake sale increases probability of BSkyB moving
ahead with a potential Sky Europe deal
* Sale not a surprise, due to overhang issue
* Liberty Global as buyer is a surprise, given its recent
statements about seeking to expand in content
* BSkyB shares down as much as 0.6% today; ITV little changed
* NOTE yday: Liberty Global Acquires 6.4% Stake in ITV;
Doesn’t Plan Offer
* Yday: BSkyB’s Sale of ITV Stake Not Surprising, Espirito
Santo Says
* Yday: Time Warner Deal Could Mean Fox Sells BSkyB Stake:
Credit Suisse
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Blanche Gatt in London at +44-20-7392-0351 or
bgatt@bloomberg.net
To contact the editor responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net
Agnelli Family Seek Interest in Fiat Holdings, Handelsblatt Says
2014-07-18 07:12:36.983 GMT
By Dorothee Tschampa
July 18 (Bloomberg) -- Investment banks on behalf of Fiat’s
controlling family are looking for interested buyers for shares
in Fiat, Handelsblatt newspaper reports citing unidentified
industry sources.
* Consultancy Roland Berger arranged a meeting with Ferdinand
Piech, Volkswagen’s chairman and a member of the family that
controls the majority of the German carmaker
* NOTE: VW Says Acquisitions Not on Agenda as Fiat Denies
Talks Report
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To contact the reporter on this story:
Dorothee Tschampa in Frankfurt at +49-69-9204-1214 or
dtschampa@bloomberg.net
To contact the editor responsible for this story:
Chris Reiter at +49-30-70010-6226 or
creiter2@bloomberg.net
2014-07-18 07:12:36.983 GMT
By Dorothee Tschampa
July 18 (Bloomberg) -- Investment banks on behalf of Fiat’s
controlling family are looking for interested buyers for shares
in Fiat, Handelsblatt newspaper reports citing unidentified
industry sources.
* Consultancy Roland Berger arranged a meeting with Ferdinand
Piech, Volkswagen’s chairman and a member of the family that
controls the majority of the German carmaker
* NOTE: VW Says Acquisitions Not on Agenda as Fiat Denies
Talks Report
For Related News and Information:
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First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Dorothee Tschampa in Frankfurt at +49-69-9204-1214 or
dtschampa@bloomberg.net
To contact the editor responsible for this story:
Chris Reiter at +49-30-70010-6226 or
creiter2@bloomberg.net
Schlumberger Profit Fell Sharply Despite Revenue Increase
Company Says Overall Global Economic Outlook Remains Mixed
The company's profit, however, declined from the year-earlier period when Schlumberger booked a $1 billion gain tied to OneSubsea, its joint venture with Cameron International Inc.
The Houston company said the overall global economic outlook remains mixed, although "the fundamentals for a slow and steady recovery...remain intact."
"On the other hand, the gap between oil supply and demand is tightening on stronger demand and lower non-OPEC supply leading to narrower spare capacity and consequent support for oil prices that modulate customer spend," the company said. Natural gas markets, on the other hand, appear comfortably supplied, with little upward pressure on prices, it said.
Schlumberger has reported strong revenue growth in recent years as ramped-up activity in Canada and the deep-water U.S. Gulf of Mexico helped offset weakness in onshore North America revenue.
For the most recent period, Schlumberger posted a profit of $1.6 billion, or $1.21 a share, down from $2.1 billion, or $1.57 a share, a year earlier. Earnings from continuing operations, excluding charges and credits, rose to $1.37 a share from $1.15 a year earlier.
Revenue rose nearly 8% to $12.05 billion.
Analysts surveyed by Thomson Reuters had forecast a profit of $1.36 a share on $11.9 billion in revenue.
Revenue in North America rose 15% to $3.89 billion, while the Middle East and Asia saw an 11.7% growth to $2.97 billion and Europe, Africa and the Commonwealth of Independent States rose 4% to $3.23 billion. Revenue in its Latin American segment, however, fell about 3% to $1.85 billion.
The company's stock, up 27% since the beginning of the year, closed at $114.64 on Thursday. Shares fell about 1% to $113.35 in recent after-hours trading.
Schlumberger majority sold to Sastre Holding for an undisclosed fee
Schlumberger, the Austrian sparkling wine and spirits group, has seen 51% of its shareholding sold to Switzerland-based Sastre Holding, Wirtschaftsblatt reported, citing an official statement. The article pointed out that the vendor is German spirits group Underberg. As previously reported, Underberg said that it wants to sell its 51% stake in Schlumberger earlier this year. No deal value was disclosed.
Wirtschaftsblatt noted that Sastre Holding is controlled by German/Swedish businessman Frederik Paulsen jun., who is looking to gain a foothold in the international sparkling wine and spirits market.
Schlumberger has a market cap of EUR 41.4m.
Source Wirtschaftsblatt
Shire and AbbVie still negotiating on break fee
Shire, an FTSE-100, pharmaceuticals company and listed Chicago, Illinois-based, rival AbbVie are still negotiating over a break fee with regards to Abbvie’s GBP 31bn (EUR 39.18bn) takeover bid, Financial Times reported.
The newspaper cited people close to the matter for the claim, which appeared in a longer report about the prospects of the deal being announced today, 18 July.
AbbVie is poised to announce a deal as early as this morning, the item said. However, people close to the talks cautioned that there is still a chance that the deal could collapse. The people added that an agreement is at hand following talks regarding terms.
Shire this week indicated that it was prepared to recommend AbbVie’s revised offer of GBP 53.20.
Shire and AbbVie refused to comment, the article said.
Source Financial Times
Hermès Sales Growth Slows
The French Luxury-Goods Firm Hurt by Asian Markets
Hermès, famous for its Kelly bags and silk scarves, said it sold €963 million ($1.3 billion) worth of goods in the second quarter, up from €910 million last year. Excluding currency fluctuations such as the weakening yen, sales would have increased 9.6%.
Hermès' second-quarter growth marks a slowdown compared with the 10% jump it recorded in the first quarter, and the 12% growth it achieved in the same period last year.
The more subdued growth at Hermès sends a signal that the luxury-goods market is facing curbs on its growth. Hermès, which is seen as the most exclusive of the major luxury brands, often logs the strongest growth in the sector. Rival labels such as Louis Vuitton and Gucci are trying to raise their profile by emphasizing leather products to be on par with Hermès.
But Hermès too is being blustered by headwinds. Its watch sales slumped 15% in the second quarter. Hermès said the wholesale trade of watches is difficult, especially in China. Watches in China became a social marker of wealth, one that has become stigmatized amid an anti-corruption crackdown by the government.
Another problem in Asia is Japan, where sales dropped 6.3% in the second quarter. Luxury goods sales in Japan had been boosted in the first quarter ahead of a sales tax increase. Excluding the effect of the weak yen, sales in the second quarter inched up 1.6% in Japan.
Hermès said weak foreign currencies will hit its bottom line. It forecast that its first-half operating margin, which it will publish next month, will be "slightly lower" than the 33.1% margin it recorded last year in the first half. The company added it will be "close" to the full-year margin last year of 32.4%.
Link to document {http://bit.ly/1jW5j0N}
* Note divergence between relative performance of HY vs IG and S&P 500 ...either HY rallies or stocks soon in a bit of trouble
* Our B&B Index continues to suggest more greed than fear in financial markets (current reading of 7.3 close to 8.0 threshold to trigger a contrarian “sell” signal
* BofAML private client allocation to equities currently 61%, a 9-year high, while bond (24%) and cash (11%) allocations at 9-year lows...also indicates correction risks rising
* Geopolitics a potential catalyst but for decent correction rate volatility needs to rise
* Weekly flows show inflows to equities ($6.2bn) outpace inflows to bonds ($3.5bn). But the reverse is true year-to-date with $81bn into equity funds and $112bn into bond funds
>>> Asset class flows
* Equities: $6.2bn inflows (all inflows via ETF’s – SPY, MDY, FTSE China A50, QQQ)
* Bonds: $3.5bn inflows (4 straight weeks) (Table 1)
* Commodities: $0.4bn inflows (4th straight week)
>>> Equity flows
* EM: $1.1bn inflows (6 straight weeks); 4-week inflows as % of AUM = 0.5% (threshold for contrarian “sell” is 1.5%)
* Europe: outflows in 3 out of past 4 weeks ($0.3bn) following a record 47 straight weeks of inflows from Jul’13 to May’14 = region falling out of favor
* US: $2.5bn inflows (divergence between $4.7bn into ETF’s and $2.2bn outflows from long-only funds)
* Japan: flat
>>> FICC flows
* Largest weekly outflows ($2.7bn) from HY bond funds since Aug’13 (Chart 4)
* 30 straight weeks of inflows to IG bond funds ($4.7bn)
* 16 straight weeks of inflows to EM debt funds ($0.9bn) (largest in 6 weeks)
* 2 straight weeks of inflows go Govt/Tsy funds ($0.9bn)
* Outflows from floating-rate debt funds in 13 out of past 14 weeks ($0.3bn)
US Market closed lower on geopolitical concerns, small cap closed 1,5% lower (Russel 2000), closing below its 200d MA, market almost traded +ve but slide on news of Malaysian Airlines was shot down...all sectors traded lower, while safe-haven assets like gold, Treasuries, and the yen rallied. Gold futures rose 1.5% to $1319.70/ozt, while Treasuries ended on their highs with the 10-yr yield down seven basis points at 2.46%. For its part, the dollar/yen pair fell to 101.25, less than 60 pips away from the lowest level of the year for the risk-sensitive pair...volume were light at 690 mil shares, VIX @ 14,54+32,2%...Israel invasion of Gaza is pushing mkt lower...
SWKS +8.9%, WAL +2.8%, GOOG +1.2%, RP -26.5%, AMD -17.9%, IBM -1.8% following earnings/guidance...China property sector is in focus with the release of June property price data...Asian markets were cautipus after Ukrain developments..Malaysian Airlines (MAS MK) -11%...- BOJ released the minutes of its June policy meeting, reiterating most members agree on continued easing until 2% inflation is stable. BOJ also agreed to monitor risks and adjust policy if needed, while some members saw the easing effects intensifying. Nikkei225 is the underperformer among the regional indices, tracking firmer JPY receiving the safe-haven bid during the US session when USD/JPY fell below 101.10 - 1-week low...Nikkei -1.2% Hang Seng -0.31% Shanghai +0.25%
Eur$ 1.3522 S&P -0.10% EuroStoxx -0.50% FTSE -0.38% Dax -0.35% SMI -0.58%
Macro
- Iran Seeks to Extend Interim Deal to Nov. 24 as Talks Continue
- Fed Normalization May Need to Begin Sooner, Not Later: Bullard
- FSI May Buy Intesa, UniCredit Stakes in Alitalia: Repubblica
Keep an eye on :
- AC FP : Accor 2Q Total Rev., LFL Sales Growth Beats Ests.
- A2A IM : Italy’s A2A to Cede About 2% of EPCG in Tax Debt Conversion
- BAR BB : Van De Wiele's Stake in Barco Reached 10% Threshold on July 14
- BES PL : Portugal Isn’t Preparing to Recapitalize BES, Albuquerque Says
- BC IM : Brunello Cucinelli 1H Prelim. Rev. Beats Ests.
- CEQ NO : Cermaq 2Q EBIT Pre Fair Value NK123m vs NK137m Year Earlier
- BN FP : Danone Buys 40% of Kenya’s Brookside Dairy, Le Figaro Says
- EDF FP : Cheniere Energy and Electricite de France sign 20-year LNG sale and purchase agreement
- ELUXB SS : Electrolux 2Q Op. Profit Ex-Items Beats Ests.
- ERICB SS : Ericsson 2Q Net Beats, Sees 2H Boost From Contracts
- RF FP : Eurazeo to Invest EU70m for Majority Stake in Colisee f(4th biggest retirement home company) or 64% stake - EV of E175, Annual rev of E152
- FRE GY : Fresenius Kabi Recalls Drugs Over Glass Particles, FDA Says
- RMS FP : Hermes 2Q Sales Miss, Sees 1H Op. Margin Slightly Lower Y/y
- HUH1V FH : Huhtamaeki 2Q Matches Ests.; Sees Stable Trading Conditions, to Evaluate Options for Films Business; May Sell Unit
- MEO GY : Metro Said to Hire Deutsche Bank to Advise on Electronics Unit
- NOVN VX : Novartis CEO Confident Co. Won't Be Part of Big Merger: BAZ
- REC BB : FSMA Asks Bois Sauvage to Cut Its Recticel Stake to Below 30%
- REC NO : REC Silicon Cuts 2014 Production Guidance; Sees Higher Costs
- RCO FP : Remy 1Q Remy Martin Unit Organic Sales Miss Ests.
- SAABB SS : Saab 2Q Op. Profit Beats Est.; Sales Lower
- SCH NO : Schibsted 2Q Oper. Rev. Misses Est.; Online Classifieds Rev. Up
- SEV FP : Suez Environnement to Buy Remaining 24.14% Stake in Agbar
- SEV FP : Caixa to Buy 7% of Suez Environnement, Le Figaro Says
- SDRL NO : Seadrill Partners to Raise Seadrill Operating Stake for $373m
- SHP LN : Shire, AbbVie to announce $53 billion merger by Friday: sources - Reuters
- SKAB SS : Skanska 2Q Construction Orders Rise 5.3%
- TIE1V FH : Tieto 2Q Profit Misses Ests.; Still Sees 2014 Adj. Ebit Growing
- VOLVB SS : Volvo 2Q Net, Rev. Miss Est.; Maintains Truck Mkt Outlook
- WRT1V FH : Waertsilae 2Q Profit Beats Ests.; Revises FY Outlook on China JV