Broadcom buying CA
Semiconductor giant Broadcom Inc, which recently failed in a bid to buy US rival Qualcomm Inc, on Wednesday announced a cash deal to buy software and services firm CA Technologies for US$18.9 billion. Broadcom described CA as a major provider of information technology management software and said the acquisition would help it diversify its offerings. The deal was approved by the boards of both companies. Broadcom is to pay US$44.50 per share of CA stock; about 20 percent over the closing price for common shares at the end of formal market trading on Wednesday. The companies expect the acquisition to close in the final quarter of this year. The merger must be approved by shareholders and regulators.
Comcast raises Sky bid
The battle for European pay TV service Sky escalated on Wednesday as US rivals Comcast Corp and 21st Century Fox Inc took turns upping the ante in their quest to expand their media empires. The stakes now stand at ￡26 billion (US$34 billion) — the value of Comcast’s latest offer. That bid came after Fox raised its bid to ￡24.5 billion earlier in the day. Comcast’s new bid translates to ￡14.75 per share, or 18 percent more than its original offer. Fox is dangling ￡14 per share for the 61 percent of Sky that it does not own.
Disney to air ‘Overwatch’
Fans of the Overwatch video game will soon be able to watch competitions on television under a deal announced on Wednesday by Activision Blizzard and Walt Disney Co. Disney and its ESPN channels will be exclusive partners for broadcasting Overwatch matches on television in the US, in the “most significant commitment” they have made to video games as a spectator sport, Activision Blizzard eSports league chief Pete Vlastelica said. The alliance is part of an effort to establish Overwatch eSports audiences and business models akin to those in traditional sports. Financial terms of the multiyear deal were not disclosed. Playoff games beginning this week along with finals taking place in Brooklyn on the last weekend of this month will be on Disney XD or ESPN channels, according to the programming schedule.
JD to raise US$1.9bn
JD Finance (京東金融) is close to snagging 13 billion yuan (US$1.9 billion) of investment from several Chinese financial services giants, gaining a clutch of influential backers in its fight against Jack Ma’s (馬雲) Ant Financial (螞蟻金服). The spinoff from online retailer JD.com Inc (京東) has signed agreements with CICC Capital (中金資本), an investment arm of Bank of China (中國銀行) and buyout firm CITIC Capital (中信資本) for a fundraising that values the nascent company at roughly 133 billion yuan, JD Finance said in a statement. It hopes to complete the round of financing this quarter.
Central bank hikes rate
The Bank of Canada on Wednesday hiked its benchmark interest rate to 1.5 percent, the first increase since the middle of January, as the G7 tries to tame inflation. The interest rate increase of 25 basis points — as analysts forecast — put the rate at its highest point in a decade, and the bank said future hikes were expected. Inflation “is expected to edge up further to about 2.5 percent before settling back to 2 percent by the second half of 2019,” the bank said in a statement. “Higher interest rates will be warranted to keep inflation near target,” it said.
Only the old hands at the Coffeyville oil refinery could remember anything like the prices posted this month. The small Kansas plant in the heart of the rural US was offering just US$1.75 per barrel for Wyoming sweet crude. With more than 2 billion people on lockdown from India to California, energy demand has plunged. In corners of the US, Canada, Russia and China, oil prices at the well head are collapsing under the weight of an unprecedented glut. With it, the industry is bracing for something that last happened on this scale 35 years ago: producers shutting down their wells as
FIGHTING TWO ‘WARS’: Indonesia’s president said the world was fighting against the virus and a weakening economy and the G20 must lead efforts to find a vaccine Leaders from G20 nations on Thursday said they were injecting more than US$5 trillion into the global economy and committed to do “whatever it takes” to overcome the COVID-19 pandemic and its fallout. “The virus respects no borders,” they said in a joint statement after an extraordinary G20 leaders’ summit convened virtually amid the outbreak. “We are strongly committed to presenting a united front against this common threat.” The gathering, chaired by Saudi Arabia, was joined by leaders from member countries and included representatives of international organizations such as the UN. Coordination among G20 countries was instrumental for action to stabilize the
ECONOMY Moody’s sees G20 recession The world’s 20 most industrialized nations are likely to suffer a recession this year because of the COVID-19 pandemic, financial ratings agency Moody’s said on Wednesday. The G20’s overall GDP would contract by 0.5 percent, with the US economy shrinking by 2 percent and the eurozone by 2.2 percent, Moody’s said. China could see economic activity expand 3.3 percent, but that would still be well below average for the world’s second-biggest economy, it said. BANKING India mulls shutdowns India’s central bank and major lenders are considering shutting down most branches across the nation to prevent tens of thousands of
MURKY WATERS: Traders are preparing for a gloomy earnings reporting season, as profits are likely to fall sharply due to the effects of the COVID-19 pandemic Wall Street on Friday closed lower, but still notched big gains for the week as investors held out hope that a US$2 trillion rescue package would cushion businesses and households from the economic devastation being caused by the COVID-19 pandemic. The S&P 500 closed 3.4 percent lower, but still climbed 10.3 percent for the week, its biggest gain since March 2009. That followed two weeks of relentless selling. The Dow Jones Industrial Average’s 12.8 percent weekly gain was its biggest since 1938, thanks largely to Boeing Co, which climbed 70.5 percent this week. Stocks had soared over the previous three days as