Media Navel Gaze: October 31, 2016
As the US headed into election next (just eight days away!!!), old-school companies went on an acquisition spree while media new and old announced plans to cut staff, led by The Wall Street Journal, which told employees it wanted a “substantial” number to take buyouts and layoffs may be possible. As a result, the paper is expected to consolidate some sections (like Greater New York and Personal Journal?). Gannet said it was cutting 2 percent of staff.
- GE is now in merger talk with oil-an-gas giant Baker Hughes, which is valued as high as some $20 billion and would transform the company as well as the industry;
- CenturyLink is also in talks to merge with Level 4;
- While Qualcomm agreed to buy NXP Semiconductors for $39 billion;
- Clinton’s email drama re-emerged with the FBI opening an investigation but not showing its cards, all prompted by the ongoing Anthony Weiner saga – Carlos Danger becomes best scary costume;
- The US economy grew by a strong 2.9 percent in the third quarter, great news for business and Fed hawks;
- The stock market ended the week essentially flat, with the Dow Friday closing at 18,161; and
- Tesla turns a profit (a first in a while!).
- Lazard this week bought out its partner MBA to become full owner of MBA Lazard, a joint venture between MBA and Lazard formed in 2004 providing investment advisory services in Latin America. The transaction equips Lazard with a physical advisory presence across 15 cities in 8 Latin American countries.
- In Brazil, Steel manufacturer Ternium is in advanced talks to buy a local factory from German firm ThyssenKrupp currently valued at $2.1 billion. It is believed the deal could close before the end of the year.
- Spanish banks BBVA and Santander both reported strong 3Q16 earnings thanks to notable performances from their Mexican divisions following an expansion in financing platforms and the Central Bank raising interest rates.
- In a sign of Peru’s maturing banking sector, Interbank became the country’s first bank to waive all service fees related to online banking transactions.
- End of Week Market Updates
- Merval (Argentina): - 2.13%
- Bovespa (Brazil): + 0.31%
- IPSA (Chile): + 0.73%
- IGBC (Colombia): - 0.26%
- IPC (Mexico): - 0.85%
- BVL (Peru): - 0.94%