Tungsten says Edmund Truell suggestions without merit for shareholders
The Board of Tungsten Corporation Plc ("Tungsten") notes the recent media speculation in relation to Edmund Truell ("Mr. Truell") and his purported offer for Tungsten assets and wishes to provide a clarificatory response.
Mr. Truell ceased to be CEO in July 2015 following a very difficult period for the company and we have today announced his resignation from the board. Since July 2015, Mr. Truell has made a number of suggestions in relation to combining operating businesses owned by Tungsten with other businesses in which he has an interest, including Tantalum, a vehicle telematics business.
The Board received an outline of a new transaction structure from Mr. Truell on Saturday 19th March 2016 which, like its predecessors, did not involve an offer for Tungsten's shares but instead suggested that Tungsten's network business and the cash it expects to receive from the proposed sale of its bank be combined with certain assets in which he has a majority interest in, including Tantalum.
The resulting effect of this conceived combination would be that Tungsten's primary asset would be a minority stake in an enlarged group of disparate, illiquid assets controlled by Mr. Truell and Tungsten itself would be transformed into an investment vehicle. The Board of Tungsten has spent considerable time reviewing these suggestions, including the most recent proposal, and found them to date to be universally without merit for shareholders.
The Board believes it has made significant progress in addressing the challenges facing Tungsten and now believes that the Group strategy as set out at Tungsten's Capital Markets Day on 9 February 2016 remains the best and most certain path to maximise the creation of shareholder value.
The Board's priority is to oversee the effective execution of this strategy under the leadership of Richard M. Hurwitz, Chief Executive Officer, and his executive management team; it believes that distractions from that risk destroying value.
From: LAURENT CHEKROUN (MAKOR SECURITIES LO) At: Mar 21 2016 07:53:44
Subject: *MEDIASET NEAR DEAL WITH VIVENDI ON SHARE SWAP: REPUBBLICA
http://www.repubblica.it/economia/2016/03/21/news/mediaset_vivendi_bollore_berlusconi-135954558/?ref=search
The plan to bring Bolloré-Berlusconi Mediaset under French insignia
Vivendi ready to an exchange of shares, the first step in the acquisition. And 'the great battle for the new TV. The government chooses the neutral line
ROME - The Mediaset TV could soon end up under French insignia. And be incorporated by media giant Vivendi led by financier Vincent Bollore. With the Renzi government to neutral as it has no intention to interfere in the case of agreements between private companies and listed on the Stock Exchange. According to reliable sources the talks in recent weeks between the family members of Berlusconi and the leaders of transalpine society would have already led to a agreement in principle. An exchange of shares between Vivendi and Mediaset will ratify the agreement between the two media groups at a lower level it will be developed through the management of Canal Plus of Mediaset Premium channels, and a higher level provides for the co-production of content quality that will go to arricchiere the schedules of the nascent platform Over the top (television via Internet) alternative to Netflix in Southern Europe. in short, a wide-ranging plan that was developed by Bolloré, his entourage and Silvio Berlusconi , which the threshold of 80 years is now convinced that the future of Mediaset can not be managed at home (at first had thought of starting negotiations with his "friend" but Murdoch has done to him to know he wants to focus of Time Warner). Just the resistance of children to a Mediaset dry sales have made sure that the handover takes place in a gradual and progressive. But from the beginning should also be put on paper the next steps that will bring in a few years Vivendi to control the Alfa Group and the family Berlusconi to hold a major package of French media company. All this has been warned the government of Matteo Renzi, probably by Bolloré himself in a meeting with Italian Prime Minister took place about a month ago while the opposite is the Mediaset chairman Fedele Confalonieri has said that the operation to palazzo Chigi to the study. the acceleration is occurred due to the poor performance of Mediaset Premium accounts, the pay TV to compete with Sky has secured the rights to UEFA Champions League football for the astronomical sum of 710 million over three years. The expected growth of subscribers is not occurring in the expected terms and Cologno Monzese has raised the red alert. Then the possibility that in the near future may catch on the tv on demand thanks to the tv series that Netflix but also the large digital aggregators can offer users, has made the situation even more delicate. This situation is obviously known to Bolloré as well as to its Board of Directors, averse to a deal that covers only the assumption of premium and its losses by Canal Plus. While on the other hand there is more interest by Vivendi in enter the field of Italian tv "in the clear" where Mediaset maintains a solid market share in advertising revenues (57% of the total). Pier Silvio progressively pass the levers of operational management to a team of managers who have the confidence of the French. He is in fact charged the expensive choice for Mediaset to enter the pay TV market as the second largest operator, thinking that there was room for both. But the reality has proved different, and now also weighs the choice to get out of Endemol, the producer of international content that was purchased by Mediaset in the mid-twenty-first century but with a leverage too exasperated. The great Vivendi-Mediaset design also provides a second step of not secondary importance and that regards infrastructure, that is, the television signal transmission towers. Here the government will hear his voice pushing for the TV towers owned by Ei Towers (Mediaset) are combined with those of Rai Way into a pole but should be a public majority, and then with the intervention of a type Operator Case Depositi e Prestiti or a fund linked to it. But at this point the risiko becomes even more complicated and also calls into question Telecom Italy , of which Vivendi controls the amount of relative majority, 24.9%. Telecom a year ago spun off its transmission antennas in a company called inwit, he has been listed on the stock exchange and then is selling 45% of his 60%. The final decision on the sale had to be taken last Thursday, but the board of directors has decided to take more time to better evaluate the two offers arrived, to Cellnex-F2i and that of Ei Towers (Mediaset). It 'possible that the income rationem between the CEO of Telecom Marco Patuano (which now should formalize his resignation ) and Vivendi shareholders is taken right now because the French plan to better address the sale of Inwit, perhaps even into the arms Berlusconi's company. and so the circle may close, thanks to the presence of several fronts of the French Vivendi that on one hand they buy Mediaset removing the chestnuts from the fire to the family of the founder of Forza Italy and on the other ensure the monitoring of the tlc infrastructure, which as known are comparable to a bond, produce safe and income constant in time. Leaving the public sector infrastructure related to television but which are also those with the fewest prospects of future developments. A perfect design, that Bolloré and Berlusconi, although we must see if it goes through in all its parts.
Asian equity markets are mixed with most pronounced gains on the mainland. Investors are cheering more upbeat commentary from Commerce Minister Gao and Vice premier Zhang while shrugging off the warning from PBoC gov Zhou about rising debt levels. Shanghai Composite has hit a 2-month high above 3,000, even as oil and US equity futures point to a slightly lower open. Markets in Japan were closed for holiday. Over the weekend, one local press report indicated Hon Hai had reached a tentative agreement for a ¥300B credit line from Sharp's banks, though another report suggested that Hon Hai has already lowered its bidding price from initial plan of ¥489B due to potential risks of financial liabilities without disclosing the new amount. A notable Nikkei report commented on distortions in Japan's fixed income markets, with investors more concerned with BOJ appetite for considered bonds rather than their actual credit worthiness.
Nikkei Closed Hang Seng -0.13% Shanghai +1.25%
Eur$ 1.1267 CNH 6.4813 CNY 6.4848 JPY 111.45 GBP 1.4415 CHF 0.9698 RUB$ 64.3530 WTI$ 38.85 (-1.5%)
S&P -0.22% EuroStoxx-0.35% Dax-0.40% SMI +0.21%
Macro :
Greek Bank Shares May Double If Economic Recovery Evident: Citi
Bundesbank Wants Half of Gold Reserves Back by 2020, Funke Says
Ex-BP CEO Hayward Seeks Backers for Energy Fund: Sunday Times
Signs Are Flashing That Dollar Plunge Has Gone Too Far, Too Fast
FT : 86% of active equity funds underperform - http://on.ft.com/1pUp8cP
FT : Woodford not paid by investors in his Patient Capital Trust - http://on.ft.com/1XEnM0t
Keep an eye on :
- ACS SM : Grupo ACS rumoured to be preparing for complete takeover of both Hochtief and CIMIC, but only after renegotiating their loans
- AB1 GY : Air Berlin Held Talks With EasyJet on Cooperation, Bild Reports
- AIR FP : Airbus Group to Sell Defence Electronics to KKR for Eur 1.1b
- AF FP : Amadeus stake could be sold by AirFrance-KLM; Servair sale could yield EUR 500m - De Telegraaf
- AKZA NA : Sherwin-Williams to Buy Valspar for $8.9 Billion
- ALT GY : Altana does not perceive itself as takeover candidate; eyes acquisitions - Frankfurter Allgemeine Zeitung
- AREVA FP : Areva, Gamesa Have Non-Competition Wind-Power Clause: Echos
- ARYN VX : Aryzta’s Killian Won’t Sell More Shares: Sunday Independent
- CS FP : Axa’s De Castries to Retire on Sept. 1, Buberl to be New CEO
- CS FP : Axa CEO Seen as Favorite to Become HSBC Chairman: Sunday Times
- BKIA SM : Bankia owner FROB extends Goldman Sachs mandate to advise on privatisation - report
- BAYN GY : Monsanto Approaches Bayer Over $30b Purchase of Crop Unit: Rtrs http://reut.rs/1LwUC2G
- POP IM : Banco Popolare Is Now Willing to Meet ECB Requirement for Merger
- POP IM : Banco Popolare Doesn’t Rule Out Capital Hike for Merger
- BMW GY : BMW to Overhaul Management Board: Frankfurter Allgemeine
- BMW GY : BMW Brings Self-Driving Vehicles to Factory Floor to Save Costs
- CA FP : Carrefour nominates Diniz to its board; investor plans to raise stake in retailer
- CO FP : Casino Guichard-Perrachon Rtg Cut to Junk by S&P
- CO FP : Casino Confirms Ebitda Guidance of EU900m in 2016
- DBHN GY : Vossloh Said to Pay Damages to Deutsche Bahn: Sueddeutsche
- DWNI GY : Deutsche Wohnen sees no attractive M&A options among listed rivals - Boersen-Zeitung
- EDF FP : EDF’s French nuclear plant faces years of further delay - FT
- ENI IM : Eni looks to close Versalis sale to SK Capital by end of year, according to ENI CEO, Pevious reports talk of 1.2bil recap for Versalis - Il Sole 24 Ore
- ETL FP : *FRENCH STRATEGIC FUND: EUTELSAT INVESTMENT IS LONG TERM
- EVK GY : Evonik studies acquisitions of AkzoNobel's special chemicals division and Air Products' tech division - de Telegraaf
- GAM SM : Areva, Gamesa Have Non-Competition Wind-Power Clause: Echos
- HSBA LN : Axa CEO Seen as Favorite to Become HSBC Chairman: Sunday Times
- INW IM : Inwit bidders Cellnex Telecom and F2i could pay up to EUR 3bn for 100% - El Economista
- LSE LN : LSE Shareholders Said to Seek More Money in Exchange Takeover
- LUPE SS : Lundin Mining CEO Says Copper, Zinc Prices Have Bottomed: DI
- MC FP : TAG Heuer Wants to Sell 80,000 SmartWatches in 2016: NZZ
- MS IM : Mediaset near deal with Vivendi on share swap http://bit.ly/1WBGaXA
- NESN VX : Drought Impact on Colombian Coffee May Last Two Yrs, Group Says
- PC IM : Two Sovereign Funds in Talks W/ Camfin for Pirelli Stake: Sole
- RR/ LN : Rolls-Royce in Talks on U.K. Nuclear-Power Reactors: Telegraph
- RR/ LN : Rolls-Royce to Add 350 Jobs at Derby Engine Plant: FT
- SAF FP : Smiths in Talks to Buy Safran’s Morpho Detection Unit: S. Times
- SBRY LN : Sainsbury Has ‘Clear Vision’ for Combined Co., CEO Says: Call
- SCHA GY : Schaeffler CEO Seeks 12%-13% Operating Margin: Euro am Sonntag
- SN/ LN : Smiths in Talks to Buy Safran’s Morpho Detection Unit: S. Times
- HOT US : Paulson Says ‘Happy’ to See Increased Starwood Offer: Reuters
- HOT US : Starwood Signs Cuba Hotel Deal Ahead of Obama’s Visit: Reuters
- SUN SW : Ex-Lanxess CEO Heitmann Nominated for Sulzer Adminstrative Board
- UHR VX : Omega Is Not Shutting Door on Smartwatch Concept, CEO Tells SZ
- TC1 GY : Tele Columbus 2015 Rev.Rises 31%, Normalized Ebitda Up 42%
- TIT IM : Telecom Italia CEO Patuano Expected to Leave Co., Corriere Says (This Week End)
- TIT IM : Telecom Italia: Patuano Has Not Yet Submitted Resignation (This Morning)
- FP FP : Total’s Philippe Boisseau to be Replaced by Nguer, Sauquet
- TUNG LN : Truell in Bid Approach for Invoicer Tungsten: Sky News
- VALE US : Former Vale CEO Agnelli Dies in Sao Paulo Plane Crash: O Globo
- VIV FP : Mediaset near deal with Vivendi on share swap http://bit.ly/1WBGaXA
- VOS GY : Vossloh Said to Pay Damages to Deutsche Bahn: Sueddeutsche
- VOW3 GY : VW’s Weil Says He Has No Reason to Consider New Leadership: FAZ
- VOW3 GY : VW Shareholder Qatar Holdings Backs Restructuring: Handelsblatt
- WTB LN : +3% on Friday on rumors of chinese interest - The Times
- WTB LN : Whitbread Faces Investor Call to Consider Breakup: S. Telegraph
>>> Up
*ENI RAISED TO OUTPERFORM AT RBC CAPITAL
*PORSCHE RAISED TO OUTPERFORM FROM NEUTRAL AT EXANE BNP PARIBAS
*SOCO INTERNATIONAL RAISED TO BUY AT JEFFERIES
*SPORTS DIRECT INTERNATIONAL RAISED TO BUY VS HOLD AT LIBERUM
*TOWER INTERNATIONAL INC RAISED TO OUTPERFORM AT WELLS FARGO
>>> Down
*AVIVA CUT TO MARKET PERFORM AT BERNSTEIN
*BANG & OLUFSEN CUT TO SELL AT NORDEA
*COMMERCIAL METALS CUT TO HOLD VS BUY AT JEFFERIES
*FREENET CUT TO REDUCE VS HOLD AT HSBC
*OLYMPIC STEEL CUT TO HOLD VS BUY AT JEFFERIES
*RATHBONE BROTHERS CUT TO ADD VS BUY AT PEEL HUNT
*RELIANCE STEEL CUT TO HOLD VS BUY AT JEFFERIES
*TATNEFT CUT TO HOLD VS BUY AT HSBC
*TULLOW OIL CUT TO UNDERPERFORM AT JEFFERIES
*UNITED STATES STEEL CUT TO UNDERPERFORM VS HOLD AT JEFFERIES
*WACKER CHEMIE CUT TO NEUTRAL VS OUTPERFORM AT MACQUARIE
>>> PT Change
>>> Initiation
*ASCENTIAL RATED NEW BUY AT GOLDMAN, PT 278P
*SCANDINAVIAN TOBACCO RATED NEW NEUTRAL AT JPMORGAN, PT DKK107
>>> Call
>> Strategy
*EUROZONE EQUITIES CUT TO NEUTRAL VS OVERWEIGHT AT JPMORGAN
*EMERGING MARKET EQUITIES RAISED TO OVERWEIGHT AT JPMORGAN
http://www.repubblica.it/economia/2016/03/21/news/mediaset_vivendi_bollore_berlusconi-135954558/?ref=search
The plan to bring Bolloré-Berlusconi Mediaset under French insignia
Vivendi ready to an exchange of shares, the first step in the acquisition. And 'the great battle for the new TV. The government chooses the neutral line
ROME - The Mediaset TV could soon end up under French insignia. And be incorporated by media giant Vivendi led by financier Vincent Bollore. With the Renzi government to neutral as it has no intention to interfere in the case of agreements between private companies and listed on the Stock Exchange. According to reliable sources the talks in recent weeks between the family members of Berlusconi and the leaders of transalpine society would have already led to a agreement in principle. An exchange of shares between Vivendi and Mediaset will ratify the agreement between the two media groups at a lower level it will be developed through the management of Canal Plus of Mediaset Premium channels, and a higher level provides for the co-production of content quality that will go to arricchiere the schedules of the nascent platform Over the top (television via Internet) alternative to Netflix in Southern Europe. in short, a wide-ranging plan that was developed by Bolloré, his entourage and Silvio Berlusconi , which the threshold of 80 years is now convinced that the future of Mediaset can not be managed at home (at first had thought of starting negotiations with his "friend" but Murdoch has done to him to know he wants to focus of Time Warner). Just the resistance of children to a Mediaset dry sales have made sure that the handover takes place in a gradual and progressive. But from the beginning should also be put on paper the next steps that will bring in a few years Vivendi to control the Alfa Group and the family Berlusconi to hold a major package of French media company. All this has been warned the government of Matteo Renzi, probably by Bolloré himself in a meeting with Italian Prime Minister took place about a month ago while the opposite is the Mediaset chairman Fedele Confalonieri has said that the operation to palazzo Chigi to the study. the acceleration is occurred due to the poor performance of Mediaset Premium accounts, the pay TV to compete with Sky has secured the rights to UEFA Champions League football for the astronomical sum of 710 million over three years. The expected growth of subscribers is not occurring in the expected terms and Cologno Monzese has raised the red alert. Then the possibility that in the near future may catch on the tv on demand thanks to the tv series that Netflix but also the large digital aggregators can offer users, has made the situation even more delicate. This situation is obviously known to Bolloré as well as to its Board of Directors, averse to a deal that covers only the assumption of premium and its losses by Canal Plus. While on the other hand there is more interest by Vivendi in enter the field of Italian tv "in the clear" where Mediaset maintains a solid market share in advertising revenues (57% of the total). Pier Silvio progressively pass the levers of operational management to a team of managers who have the confidence of the French. He is in fact charged the expensive choice for Mediaset to enter the pay TV market as the second largest operator, thinking that there was room for both. But the reality has proved different, and now also weighs the choice to get out of Endemol, the producer of international content that was purchased by Mediaset in the mid-twenty-first century but with a leverage too exasperated. The great Vivendi-Mediaset design also provides a second step of not secondary importance and that regards infrastructure, that is, the television signal transmission towers. Here the government will hear his voice pushing for the TV towers owned by Ei Towers (Mediaset) are combined with those of Rai Way into a pole but should be a public majority, and then with the intervention of a type Operator Case Depositi e Prestiti or a fund linked to it. But at this point the risiko becomes even more complicated and also calls into question Telecom Italy , of which Vivendi controls the amount of relative majority, 24.9%. Telecom a year ago spun off its transmission antennas in a company called inwit, he has been listed on the stock exchange and then is selling 45% of his 60%. The final decision on the sale had to be taken last Thursday, but the board of directors has decided to take more time to better evaluate the two offers arrived, to Cellnex-F2i and that of Ei Towers (Mediaset). It 'possible that the income rationem between the CEO of Telecom Marco Patuano (which now should formalize his resignation ) and Vivendi shareholders is taken right now because the French plan to better address the sale of Inwit, perhaps even into the arms Berlusconi's company. and so the circle may close, thanks to the presence of several fronts of the French Vivendi that on one hand they buy Mediaset removing the chestnuts from the fire to the family of the founder of Forza Italy and on the other ensure the monitoring of the tlc infrastructure, which as known are comparable to a bond, produce safe and income constant in time. Leaving the public sector infrastructure related to television but which are also those with the fewest prospects of future developments. A perfect design, that Bolloré and Berlusconi, although we must see if it goes through in all its parts.
The plan to bring Bolloré-Berlusconi Mediaset under French insignia
Vivendi ready to an exchange of shares, the first step in the acquisition. And 'the great battle for the new TV. The government chooses the neutral line
ROME - The Mediaset TV could soon end up under French insignia. And be incorporated by media giant Vivendi led by financier Vincent Bollore. With the Renzi government to neutral as it has no intention to interfere in the case of agreements between private companies and listed on the Stock Exchange. According to reliable sources the talks in recent weeks between the family members of Berlusconi and the leaders of transalpine society would have already led to a agreement in principle. An exchange of shares between Vivendi and Mediaset will ratify the agreement between the two media groups at a lower level it will be developed through the management of Canal Plus of Mediaset Premium channels, and a higher level provides for the co-production of content quality that will go to arricchiere the schedules of the nascent platform Over the top (television via Internet) alternative to Netflix in Southern Europe. in short, a wide-ranging plan that was developed by Bolloré, his entourage and Silvio Berlusconi , which the threshold of 80 years is now convinced that the future of Mediaset can not be managed at home (at first had thought of starting negotiations with his "friend" but Murdoch has done to him to know he wants to focus of Time Warner). Just the resistance of children to a Mediaset dry sales have made sure that the handover takes place in a gradual and progressive. But from the beginning should also be put on paper the next steps that will bring in a few years Vivendi to control the Alfa Group and the family Berlusconi to hold a major package of French media company. All this has been warned the government of Matteo Renzi, probably by Bolloré himself in a meeting with Italian Prime Minister took place about a month ago while the opposite is the Mediaset chairman Fedele Confalonieri has said that the operation to palazzo Chigi to the study. the acceleration is occurred due to the poor performance of Mediaset Premium accounts, the pay TV to compete with Sky has secured the rights to UEFA Champions League football for the astronomical sum of 710 million over three years. The expected growth of subscribers is not occurring in the expected terms and Cologno Monzese has raised the red alert. Then the possibility that in the near future may catch on the tv on demand thanks to the tv series that Netflix but also the large digital aggregators can offer users, has made the situation even more delicate. This situation is obviously known to Bolloré as well as to its Board of Directors, averse to a deal that covers only the assumption of premium and its losses by Canal Plus. While on the other hand there is more interest by Vivendi in enter the field of Italian tv "in the clear" where Mediaset maintains a solid market share in advertising revenues (57% of the total). Pier Silvio progressively pass the levers of operational management to a team of managers who have the confidence of the French. He is in fact charged the expensive choice for Mediaset to enter the pay TV market as the second largest operator, thinking that there was room for both. But the reality has proved different, and now also weighs the choice to get out of Endemol, the producer of international content that was purchased by Mediaset in the mid-twenty-first century but with a leverage too exasperated. The great Vivendi-Mediaset design also provides a second step of not secondary importance and that regards infrastructure, that is, the television signal transmission towers. Here the government will hear his voice pushing for the TV towers owned by Ei Towers (Mediaset) are combined with those of Rai Way into a pole but should be a public majority, and then with the intervention of a type Operator Case Depositi e Prestiti or a fund linked to it. But at this point the risiko becomes even more complicated and also calls into question Telecom Italy , of which Vivendi controls the amount of relative majority, 24.9%. Telecom a year ago spun off its transmission antennas in a company called inwit, he has been listed on the stock exchange and then is selling 45% of his 60%. The final decision on the sale had to be taken last Thursday, but the board of directors has decided to take more time to better evaluate the two offers arrived, to Cellnex-F2i and that of Ei Towers (Mediaset). It 'possible that the income rationem between the CEO of Telecom Marco Patuano (which now should formalize his resignation ) and Vivendi shareholders is taken right now because the French plan to better address the sale of Inwit, perhaps even into the arms Berlusconi's company. and so the circle may close, thanks to the presence of several fronts of the French Vivendi that on one hand they buy Mediaset removing the chestnuts from the fire to the family of the founder of Forza Italy and on the other ensure the monitoring of the tlc infrastructure, which as known are comparable to a bond, produce safe and income constant in time. Leaving the public sector infrastructure related to television but which are also those with the fewest prospects of future developments. A perfect design, that Bolloré and Berlusconi, although we must see if it goes through in all its parts.
Property investors delay UK commercial deals on Brexit fears
Major international property investors are delaying purchases of UK real estate assets until after the referendum on the country’s membership of the EU.
While opinion polls so far suggest most UK voters want to remain in the EU, support for the Leave campaign is high enough for investors to view a British exit as a real possibility. The fear is that this could push down prices for commercial property, at least while the complex and protracted exit negotiations are taking place.
Pierre Vaquier, chief executive of the Real Assets division of Axa Investment Managers — an arm of the French insurer that manages €65bn in property and infrastructure assets — said his company was in “wait and hold” mode ahead of the vote.
A departure from the EU “will have an impact. The banks will be under pressure,” he said, citing comments by HSBC that it would shift about 1,000 jobs to Paris in the event of a British exit from the EU.
“There are questions over how a departure from the union would be executed,” he added. “Will [the EU] say, ‘fine, you are on your own’? This is unknown, uncharted territory.”
The possibility of “Brexit” hung over the property industry’s annual Mipim gathering in Cannes last week, where 23,500 European real estate professionals debated the potential impact of an Out vote on a UK market already coming off record highs.
UK economic data
Construction
Wilburn Street Basin apartment blocks under construction, from the Irwell riverside path, Salford, Manchester, UK
Construction accounts for about 6 per cent of the overall economy, but was very hard hit by the recession, contracting by 17 per cent from peak to trough, and still remains below its pre-downturn peak. After a period of growth, mainly driven by housebuilding, the sector has begun falling again.
Rob Wilkinson, chief executive of AEW Europe, which manages €18bn of property assets, said his company would probably make any deals signed between now and June conditional on the UK voting to remain. “Any transactions starting now [across the wider market] will find themselves holding their breath . . . if it’s Out then the deal may stop,” he said.
Another multibillion-euro investor, who declined to be named, said: “No one wants to feel stupid — to be the company that bought an asset and then there was a vote to leave the EU.”
UK trading volumes in the first two months of 2016 were similar to the previous year, said Neil Dovey, senior director at Bilfinger GVA, a firm of real estate advisers. But he added this might be “a little bit of hangover” from 2015.
“Some clients, particularly with overseas mandates, are looking to delay buying. After the Easter holidays we expect to see a decline in stock coming to the market,” he said. “Would you rather bring something to the market now or in the autumn?”
Mr Dovey added: “We are in line for an incredibly busy period after the vote if we stay in. If it goes the other way, there will be a much greater period of stagnation.”
Richard Divall, head of cross-border capital markets at the real estate advisers Colliers, said he was aware of a Chinese investor exchanging contracts on a UK property deal with a clause making its completion conditional on a vote to remain. “Referendum clauses are starting to enter the vocabulary of those cutting deals as a way to keep things moving,” he said.
Germany’s Union Investment said this month it had delayed the purchase of a City of London office building because of the risk of Britain voting to leave the EU. Competition for prime UK property assets has already fallen this year after prices for London offices reached record highs following two years of strong capital growth.
Pricing in core markets would slip in the event of a British exit, affected by the many uncertainties about the UK’s future, according to research by Colliers. It said there would be specific risks to occupier demand for buildings as businesses held off expanding in the aftermath of a vote to leave.
“Another key risk is related to the role that the UK plays in hosting businesses that use London as a platform to trade with the EU,” the report said. “London’s office market is potentially more vulnerable than UK regional markets.”
Casino has had its credit rating cut to junk by Standard & Poor’s, the latest development in a run of bad news for the French supermarket group.
S&P lowered its long-term debt rating one notch to BB+, it announced on Monday.
Casino moved quickly to reassure investors, saying in a statement published shortly after that:
The downgrade of the Group’s credit rating will result in a slight increase in the cost of its bond debt (impact estimated at less than €20m before tax in 2016 excluding future bond buybacks already mentioned by Casino) and has no effect on Casino’s liquidity.
Before taking into account the deleveraging plan, Casino had at end 2015 a gross cash position of €1.7bn and €3.9bn of undrawn confirmed credit lines, which availability is fully independent from the S&P rating.
As well as operating in the fiercely competitive French retail market Casino is exposed to the economic downturn in recession-hit Brazil, with its sales there falling as currency fluctuations bite.
It is also in the midst of scaling back its activities in Thailand and Vietnam.
The group recently came under attack from Muddy Waters, which called the French retailer one of the most “overvalued” companies it had ever come across. Muddy Waters – which was founded by US investor Carson Block and is well known for its detailed attacks – also said Casino’s statements were “literally meaningless” when it came to trying to understand the company, claims which Casino rejected.
Exclusive: A plea for help - How China asked the Fed for its stock crash play book
The request came in a July 27 email from a People's Bank of China official with a subject line: "Your urgent assistance is greatly appreciated!"
In a message to a senior Fed staffer, the PBOC's New York-based chief representative for the Americas, Song Xiangyan, pointed to the day's 8.5 percent drop in Chinese stocks and said "my Governor would like to draw from your good experience."
It is not known whether the PBOC had contacted the Fed to deal with previous incidents of market turmoil. The Chinese central bank and the Fed had no comment when reached by Reuters.
In a Reuters analysis last year, Fed insiders, former Fed employees and economists said that there was no official hotline between the PBOC and the Fed and that the Chinese were often reluctant to engage at international meetings.
The Chinese market crash triggered steep declines across global financial markets and within a few hours the Fed sent China's central bank a trove of publicly-available documents detailing the U.S. central bank's actions in 1987.
Fed policymakers started a two-day policy meeting the next day and took note of China’s stock sell-off, according the meeting’s minutes. Several said a Chinese economic slowdown could weigh on America.
Financial market contagion from China was one of the reasons cited by the Fed in September when it put off a rate hike that many analysts had expected, a sign of how important China has become both as an industrial powerhouse and as a financial market.
NO SECRETS
The messages, which Reuters obtained through an Freedom of Information Act request, show how alarmed Beijing has become over the deepening financial turmoil and offer a rare insight into one of the least understood major central banks.
The exchanges also show that while the two central banks have a collegial relationship, they might not share secrets even during a crisis.
"Could you please inform us ASAP about the major measures you took at the time," Song asked the director of the Fed's International Finance Division, Steven Kamin in the July 27 email.
The message registered in Kamin's account just after 11 a.m. in Washington. Kamin quickly replied from his Blackberry: "We'll try to get you something soon."
What followed five hours later was a 259-word summary of how the Fed worked to calm markets and prevent a recession after the S&P 500 stock index tumbled 20 percent on Oct. 19, 1987.
Kamin also sent notes to guide PBOC officials through the many dozens of pages of Fed transcripts, statements and reports that were attached to the email.
All of the attached documents had long been available on the Fed's website and it is unclear if they played a role in shaping Beijing's actions.
Kamin's documents detail how the Fed began issuing statements the day after the market crash, known as Black Monday, pledging to supply markets with plenty of cash so they could function.
By the time Song wrote to Kamin, China had spent a month fighting a stock market slide and many of the actions taken by the PBOC and other Chinese authorities shared the contours of the Fed's 1987 game plan.
DESPERATE MEASURES
The July 27 plunge in the Shanghai Composite Index was the biggest one-day fall since 2007 and by then the market had lost nearly a third of its value over six weeks.
China's central bank had already cut interest rates on June 27 in similar fashion to the Fed's swift move to ease short-term rates in 1987.
Song told Kamin the PBOC was particularly interested in the details of the Fed's use of repurchase agreements to temporarily inject cash into the U.S. banking system in 1987.
The PBOC had increased cash injections in June and ramped up repurchase agreements in August as stocks continued to slide. The PBOC also eased policy on Aug. 11 by allowing a 2 percent devaluation in the yuan currency. (Graphic: here)
As Song and Kamin exchanged messages on July 27 and 28, other Chinese authorities were busy trying to contain the crash.
China's securities regulator said on July 27 it was prepared to buy shares to stabilize the stock market and that authorities would deal severely with anyone making "malicious" bets that stocks would fall.
In 1987, the Fed contacted banks directly and encouraged them to meet "legitimate funding needs" of their customers, according to Kamin's email to Song.
In addition to its pledges and cajoling, the U.S. central bank in 1987 eased collateral restrictions on Wall Street and tried to calm markets by intervening in trading earlier than normal. The U.S. economy continued to grow, eventually entering recession in 1990.
The central bank in Beijing does not have as free a hand to conduct policy as does the Fed, which answers to the U.S. Congress but operates independently from the administration.
The PBOC governor Zhou Xiaochuan implements policies ultimately decided by political leaders in Beijing and lacks the authority to lead debate or shed light on decision-making.
China's vice finance minister told Reuters last year Chinese supervisors needed to learn from countries like the United States.
Premier Li Keqiang said last month China's regulators did not respond sufficiently but China had fended off systemic risks.
U.S. central bankers say their relative transparency helps their effectiveness and legitimacy, but open records laws also make Fed officials cautious about their communications, much of which must be made public when requested. Fed Vice Chairman Stanley Fischer has said transparency makes it harder for policymakers to have informal discussions.
Kamin pointed out in his email that everything he was sending was publicly available.
"I hope this is helpful," he said.