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US companies are seizing the opportunity in the debt market as risk premiums decline, with major banks like Citi, Goldman Sachs, HSBC, and BNP Paribas among 13 firms issuing investment-grade bonds. This surge marks the busiest day for high-grade deals since September 4, which saw 19 transactions, according to data from Bloomberg.
An elite private high school in Newport Beach, California, is entering the bond market by selling approximately $54 million in municipal bonds. The funds will be used to construct a middle school and new athletic facilities, marking the largest capital project since 2018. The school's board includes executives from prominent firms like Pimco and Goldman Sachs.
Pfizer is considering selling its hospital drugs unit, formed after the $17 billion acquisition of Hospira in 2015, amid pressure from activist investor Starboard Value. The unit, which includes various sterile injectables, generates around $500 million in annual EBITDA and could be valued at several billion dollars. This move follows a significant decline in Pfizer's market value and ongoing debt reduction efforts, exacerbated by supply disruptions from a tornado that damaged a key manufacturing facility.
JPMorgan Chase & Co. has appointed Hiroki Kimakura from Goldman Sachs to lead yen rates trading in Tokyo, amid increasing activity in Japan's $7.3 trillion sovereign debt market. Kimakura takes on the role of managing director and head of Japan fixed-income trading, overseeing Japanese government bonds and yen interest-rate derivatives. He succeeds Yoichi Takemura, who recently transitioned to hedge fund firm Garda Capital Partners.
UBS has revised its 2025 GDP growth forecast for China to around 4%, down from 4.5%, citing potential US tariffs under President-elect Trump and ongoing weakness in the property market. Other banks like Goldman Sachs and HSBC maintain slightly more optimistic projections between 4% and 5%. As external pressures mount, China is expected to enhance domestic demand through stimulus measures, although concrete actions have yet to be implemented.
10:30 11.11.2024
European banks are facing intensified competition as a second Trump presidency signals potential financial deregulation in the U.S. While U.S. banks have thrived, European lenders struggle with low profitability and strict regulations. The anticipated easing of U.S. banking rules could further widen the earnings gap, prompting European banks to lobby for regulatory relief.
China's consumer prices rose at the slowest pace in four months in October, with a 0.3% increase year-on-year, while producer prices fell 2.9%, marking the largest drop in 11 months. Despite a substantial 10 trillion yuan stimulus package aimed at easing local government debt, analysts predict limited immediate impact on economic activity and demand. The central bank's recent aggressive monetary measures and upcoming tax policies for the housing market may provide some support, but a recovery in consumption and the housing sector is expected to take time.
Cencora is set to acquire Retina Consultants of America (RCA) for $4.6 billion, enhancing its specialty drug business and expanding its network of nearly 300 retina specialists across 23 states. The deal aims to strengthen relationships with community providers and improve patient outcomes through innovative research and operational support. RCA will retain a minority interest, while Cencora plans to fund the acquisition with existing cash and new debt financing, expecting it to positively impact its earnings per share in the first year.
As private investments surge from $4 trillion to $14 trillion, individual investors are increasingly drawn to alternatives for wealth growth. With fewer public companies and a growing number of private equity-backed firms, diversifying portfolios through private markets is essential, despite the need for longer-term commitments and careful selection of investment vehicles. Financial advisors play a crucial role in guiding investors through this evolving landscape, ensuring access to proven managers and strategies.
Goldman Sachs and Carlyle Group executives are poised for substantial bonuses, potentially reaching $50 million, following the prospect of Donald Trump's return to the White House. The anticipated benefits from Trump's regulatory and tax policies have already boosted Goldman Sachs' stock price significantly. If these gains persist, CEO David Solomon could unlock a special payout linked to the company's performance.
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