Tag Archives: Latin America

China’s M&A mission to reach for the stars

According to Yahoo Finance, in 2010, Metro-Goldwyn-Mayer, the storied Hollywood studio behind classics from The Wizard of Oz and James Bond to The Hobbit, filed for Chapter 11 bankruptcy protection. It was the classic victim of a leveraged buyout from a group including Providence Equity Partners and TPG Capital, alongside Sony and Comcast.

The Hobbit

Now it is rumoured to be the target of another group of investors with a lot of capital in their pockets — this time the Chinese. Mainland companies such as Dalian Wanda and Fosun, a conglomerate, are both flush with cash. Dalian Wanda just went public in Hong Kong raising almost $4bn in the process and Fosun has access to the coffers of its Portuguese insurer among other sources of money.

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Latin America Weakness in 2015? Energy & M&A Big Factors

With Latin America equities likely to underperform other emerging markets in 2015 for the sixth year in a row, favor Mexico and expect weakness in Brazil, Morgan Stanley says.

While Mexico and Brazil valuations look rich, Morgan Stanley is overweight Mexico and underweight Brazil as part of its outlook for Latin America investing in 2015. Big factors in the outlook for Latin America are global and out of its control: the direction of oil prices, the effectiveness of Japan’s economic policies, and reform in China, writes Jorge Kuri, director of Latin America equity research atMorgan Stanley.

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Microsoft: Initial Xbox One Sales Exceed 1 Million

According to Bloomberg,

Sony Corp. (6758) said on Nov. 17 that it sold more than 1 million PlayStation 4 consoles in North America in the first day of release, topping initial sales for the predecessor PlayStation 3 in 2006. The PS4 goes on sale Nov. 29 in 30 countries in Europe and Latin America, followed by Japan on Feb. 22.

Microsoft Says Xbox One Sales Top 1 Million in Less Than a Day (Bloomberg)

Microsoft Says Xbox One Sales Top 1 Million in Less Than a Day (Bloomberg)

The two companies are competing for the attention of gamers and trying to revive a console market that shrank 32 percent to $13.3 billion from 2008 to 2012, according to market researcher NPD Group. Both are offering machines with upgraded graphics and more entertainment tie-ins. The Xbox One sells for $499, while the PlayStation 4 is offered for $399.

Microsoft, which has been pitching the Xbox One’s motion-sensing Kinect camera as a controller for all forms of living room entertainment, has focused its message on applications and exclusive content, including the games “Ryse: Son of Rome” and “Dead Rising 3,” and an upcoming live-action TV show from Steven Spielberg.

Microsoft rose 0.5 percent to $37.57 yesterday in New York and has gained 41 percent this year. Sony’s American depositary receipts fell 1.9 percent to $18.30.

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Hedge Fund’s Cancun Dream Explained in Junkiest Junk Deal

Hedge Fund’s Cancun Dream Explained in Junkiest Junk Deal

At a time when bond buyers are shunning junk, Hyatt Hotels Corp. (H) and Farallon Capital Management LLC are trying to drum up financing for 13 all-inclusive beach resorts from Cabo San Lucas to Cancun with Latin America’s riskiest debt in three years.

Playa Resorts Holding BV, a joint venture between Hyatt and the $19.2 billion San Francisco-based hedge fund, is planning to raise $300 million of seven-year bonds that Moody’s Investors Service rates Caa1, or seven levels below investment grade. If completed, the sale would be the first of such a low-rated corporate dollar bond in the region since now-defunct Brazilian meatpacker Independencia SA issued debt in 2010.

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China Bond Yields at Three-Year High Amid Resource Grab

As reported by Bloomberg News, the highest funding costs since 2008 may make it more expensive for  China’s state banks to lend to commodity producing nations, as the world’s fastest-growing major economy tries to secure natural resources to fuel growth.

China Leaders Forum 2011, How American Companies can Plug Into The Chinese Rocket-Propelled Economy

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Five-year borrowing costs for the so-called policy banks surged 70 basis points to 4.6 percent this year and touched a three-year high of 4.68 percent on Aug. 4,  China bond prices show. Top-rated Indian lenders pay 9.45 percent on their five- year debt, compared with 8.94 percent at the end of 2010, data compiled by Bloomberg show.

The government relies on  China Development Bank Corp. and Export-Import Bank of  China to lend to resource-rich nations such as Brazil, Kazakhstan and Venezuela in exchange for commodity and energy supplies. Borrowing costs surged after the central bank raisedinterest rates to control inflation and lenders increased provisions against loans for local governments. The value of banks’ dollar loans are falling as the yuan strengthened 3.3 percent against the currency in 2011.

The associated issues will be discussed more in detail at  Golden Networking‘s China Leaders Forum 2011, October  7.

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