HSBC Insurance Unit Up For Bid [Morning Update]

Every morning the Street of Walls team puts out an update on market levels, today’s top stories, and active M&A deals.

Today’s Top Stories:

  • Buffett’s Gold View: “this type of investment requires an expanding pool of buyers who are enticed because they believe the buying pool will expand still further”
  • Greece Update: A meeting between Greece’s major political principals broke up Wed w/o a deal on troika demands being reached although negotiations are still continuing and there aren’t many areas of disagreement left
  • Obama Reassures Wall Street: Jim Messina, Obama’s campaign manager, was recently in NYC assuring a group of financial services reps that the industry wasn’t going to be demonized during this upcoming election season
  • Fed Lacker Says No More QE: Fed’s Lacker says the economy is picking up steam and he doesn’t see a rationale for more QE (DJ)
  • HSBC Insurance Up for Bid: both AXA and ACE are bidding for HSBC’s $1B general insurance business
  • Franklin Resources (BEN) Reported: reported preliminary month-end assets under management by the company’s subsidiaries of $704.3 billion at January 31, 2012, compared to $670.3 billion at December 31, 2011, and $681.0 billion at January 31, 2011
  • Foreclosure Probe: Article in today’s WSJ titled “$25 Billion Pact on Foreclosure Probe” saying government officials are on the verge of an agreement worth as much as $25bn with 5 major banks, capping a yearlong push to settle federal and state probes of alleged foreclosure abuses by lenders (WSJ)
  • Nuclear Reators: Southern Co. gets regulator vote on bid for first permission in 30 years to build nuclear reactors in Georgia
  • ECB Rate Update: Bank of England, ECB issue rate decisions; both estimated to keep rates unchanged
  • DMND Collapses: Diamond Foods ouster of CEO, CFO, restatement of financial data, imperil Pringles deal with P&G
  • CS 4Q Results: Credit Suisse, the Swiss Investment Bank, posts unexpected 4Q loss, hurt by “adverse” markets and reorganization costs

Economic Calendar:

Worm Capital July 2020 Performance Update: Up 152% YTD

Worm Capital performance update for the month ended July 31, 2020. Q2 2020 hedge fund letters, conferences and more Long/Short Equity Growth Strategy Net Performance Long-Only Equity Growth Strategy Net Performance

  • 6:30am: OPEC monthly crude output report
  • 7:45am: ECB announces rate decision, est. 1%, unchanged
  • 8:30am: Initial jobless claims, week of Feb. 4, est. 370k (prior 367k)
  • 8:30am: WASDE
  • 9:45am: Bloomberg Consumer Comfort, week of Feb. 5 (prior -44.8)
  • 10am: Freddie Mac 30-yr mortgage
  • 10am: Wholesale Inventories, Dec., est. 0.4% (prior 0.1%)
  • 10:30am: EIA natural gas storage
  • 1pm: U.S. to sell $16b 30-yr bonds

M&A Watch:

  • Weekly M&A Trends: This week saw some big jumps in Debt underwriting and M&A activity. Announcedinvestment banking M&A increased +22% from the prior week to $34bn, M&A volumes are still very low for the start of the year
  • Westfield is expected to gain approval from the Port Authority for a 50% stake in the World Trade Center’s retail space valued at $1.225bn
Disclosure: I do not have a position in any stocks mentioned in this article, do not have a plan to initiate a position within the next 72 hours.
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