As reported by The Wall Street Journal’s Dan Fitzpatrick and David Benoit, Bank of America Corp. bought itself some breathing room as it agreed to sell more than $8 billion of China Construction Bank Corp. stock, its second multibillion-dollar deal in a week, while recognizing a $3.3 billion gain on the sale of CCB shares. How American companies like Bank of America can profitably do business with China is the title of the kick off panel at Golden Networking‘s China Leaders Forum 2011, “How American Companies Can Plug into the Chinese Rocket-Propelled Economy?”, http://www.ChinaLeadersForum.com, October 7, New York City, forum that will examine the challenges facing American companies that want to grow and expand their business in China, the opportunities to find Chinese investment partners that can provide a much-needed capital injection while opening the Chinese market, as well as important considerations to look at so that the high-powered Chinese rocket doesn’t crash anytime soon.
CCB confirmed that Bank of America agreed to sell about 13.1 billion of its Hong Kong-listed H shares to institutional investors. The Beijing-based lender didn’t give any details about the deal but said it expects the share sale to be completed in third quarter. The buyers of the stake include Singapore state investment company Temasek Holdings Pte. Ltd. and its wholly owned hedge fund, Seatown, according to people familiar with matter. The two funds were part of a group of buyers that included a Chinese investment fund, the people said. It was unclear how the stake was divided up. This sale represents about half of the company’s stake in the Chinese lender. Under the deal, which was long anticipated by analysts and investors, Bank of America will continue to hold a 5% stake in China Construction Bank.
China Leaders Forum 2011 is produced by Golden Networking (http://www.goldennetworking.net), the premier networking community for business executives, entrepreneurs and investors.
Posted in China, Economy, Financial Crisis, Investment Banking
Tagged Advanced Market Timing Experts Workshop 2011, Bank of America, Capitalism, China, China Business, China Conference, China Construction Bank Corp. CCB, China Leaders Forum 2011, China Networking, Commodities, debt crisis, downgrade, Global Economy, Golden Networking, investment, Stocks, U.S. Federal Reserve, US Dollar
As reported by Shira Ovide from WSJ–One of Warren Buffett’s favored playthings/investments, Chinese car-and-battery maker BYD, is getting crushed this morning after a disappointing earnings report.
Li Lu, the man once seen as possible successor to Buffett, helped introduce the Oracle of Omaha to BYD. Buffett invested in BYD in 2008, and it looked at first like a winner, climbing more than six-fold.
Lately, though, earnings disappointments seem to have become commonplace for BYD. Earlier this summer, BYD shares plunged after a disappointing earnings report.
Read more here.
Posted in China, Economy, emerging market, Equity Markets, Financial Crisis
Tagged BYD, BYD plunge, China, Economy, Energy stock, financial markets, investment, Li Lu, Renminbi, Stocks, U.S., US Dollar, Warren Buffett, Yuan
As reported by Owen Fletcher from the WSJ in BEIJING—China for the first time has passed the U.S. to become the world’s biggest personal-computer market, highlighting the growing importance of a country where big U.S. PC makers have struggled to compete against China’s Lenovo Group Ltd.
The shift underlines rapid industry changes in the PC industry world-wide. Consumer demand for PCs has soared in emerging markets, while it has faltered in developed markets. Meanwhile, the rise of smartphones and tablet computers, most notably Apple Inc.‘s iPhone and iPad, has raised concerns that purchases of such products could eat into demand for traditional desktop and laptop PCs. Reflecting those challenges, Hewlett-Packard Co., which is the world’s biggest PC maker but has lost popularity with Chinese consumers, last week said it is considering a sale or spinoff of its personal-computer business.
Posted in China, Economy, emerging market
Tagged Apple, biggest PC market, China, Economy, Global Economy, Lenovo, U.S., Wall Street Journal, WSJ, Yuan
As reported by Steven Russolillo from New York—U.S. stocks registered sharp gains despite another bleak dose of economic data—and an earthquake—as investors grew increasingly optimistic that Federal Reserve Chairman Ben Bernanke will act later this week to spur economic growth.
The Dow Jones Industrial Average jumped 301 points, or 2.8%, to 11155, led by Exxon Mobil, which rose 3%, and DuPont’s 2.6% advance. The rally builds on the blue-chip index’s 37-point gain in Monday’s rocky session.
Stocks earlier had pared some gains after an earthquake of magnitude 5.9 hit Virginia. Tremors were felt up the East coast, through Washington, D.C. , and up to New York City.
Read more here.
Posted in Equity Markets
Tagged Ben Bernanke, Dow Jones, earthquake, earthquake in D.C., earthquake in virginia, Economy, Federal Reserve, financial markets, investors, Optimistic, stock unchanged after the earthquake, Stocks
As reported by Brett Arends from Boston MarketWatch–
I’ve just spent the last six weeks on book leave, and I’ve realized I’ve been writing about the wrong topic.
My new book is about money and the Bible. Instead I should have saved myself the effort and just banged out a cheap, superficial pamphlet with a title that would have sold a million copies: “Gold $36,000.”
After all, look at all the money Jim Glassman and Kevin Hassett made from publishing “Dow 36,000” near the peak of the 1990s boom! The reading public loves extrapolation. You can always sell a mania book.
Posted in Commodities, Economy
Tagged Commodities, downgrade, Economy, effect of downgrade of U.S., equity market down, Financial Crisis, financial markets, Gold, gold $3000, gold like nasdaq UP 60%, gold price soars up
As reported from The Wall Street Journal, the municipal bond market weakened Tuesday after Standard and Poor’s downgraded more than 11,000 public finance issues to keep them in line with its newly lowered rating on federal government debt.
As reported by Susanne Walker and Cordell Eddings from Bloomberg, the extra yield Treasury investors get to hold 30-year bonds instead of two-year notes shrank to the narrowest in a week on speculation the U.S. economic recovery is stalling.
The long bonds rose as much as two points as stocks pared gains. Federal Reserve Bank of Philadelphia President Charles Plosser told Bloomberg Radio today that policy makers should have waited to see how the economy performed before pledging on Aug. 9 to hold interest rates at record lows for two years.