Canada vote brings present clarity, future risk 3 May 2011 After the fourth election in seven years, the Conservatives have a clear majority. That should mean businessfriendly growth, especially in energy and minerals. But with a polarized result there's a danger of a sharp shift, by Canada's evenkeeled standards, in four years' time.
Coal bubble rears head in Arch’s $3.4 bln ICG bid 2 May 2011 Arch investors seem oddly unfazed despite the company paying a premium far greater than potential synergies can justify. True, ICG offers big reserves of precious steelmaking coal. But it's hard not to see the deal as another example of the extraordinary bullishness over coal.
Wounded Community takes parting shot at Tenet 2 May 2011 Though stung by its takeover target's vicious defense, Community Health has lobbed in a sweetened $4.1 bln bid for the rival hospital operator. Investors aren't taking it seriously and Tenet probably won't either. But it may make it easier for Community to limp away.
Demise of bin Laden brings risks as well as relief 2 May 2011 Osama bin Laden s death is an important landmark which leaves hope for the Arab Spring intact. But there will be fear of repercussions and markets may be curbed in the near term. Speculators in silver, equities and commodities may opt for caution. The dollar may strengthen.
EU probe could lead to stronger CDS market 2 May 2011 The EU says major banks ties with financial information group Markit and clearing house ICE could amount to unfair competition in the credit default swap market. Postcrisis efforts to strengthen the system may have excluded rivals. More clarity on the rules should be welcome.
China’s strong banks choke the weak 2 May 2011 The country's big lenders like ICBC and AgBank are swimming in liquidity. Meanwhile, secondtier banks like Minsheng have too few deposits and those they have are the most unreliable kind. This is no accident. China's skewed market puts smaller lenders in a tough spot.
Hasty hostility costs Valeant its Cephalon quarry 2 May 2011 The drugmaker hoped to snaffle up rival Cephalon in weeks with a proxy fight. Valeant made it clear it attached little value to the target's pipeline and wouldn't get in a bidding war. That left plenty of room for white knight Teva to swoop in for Cephalon with a $6.8 bln offer.
U.S. looked safe haven even with bin Laden alive 2 May 2011 Treasuries were certainly priced that way. So killing the al Qaeda chief shouldn't cause a risk rethink for better or worse. Possible defense savings alone won't fix the budget. And the sudden lift to mood and Obama's polls will fade if the economy continues to muddle along.
Geithner’s FX exemption makes sense 2 May 2011 The U.S. Treasury has rightly decided not all derivatives are equal. Currency swaps, unlike say CDS contracts, are shortterm and carry very welldefined risks. DoddFrank purists won't agree, but sparing them from clearing rules is better than gumming up an efficient market.