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Yes Bank Gets Binding Offer for $1.2 Billion Stake Sale

If they are able to raise this capital then it will sustain Yes Bank’s growth for next one year,” said Kranthi Bathini, director at Wealthmills Securities Pvt. “But we need to know the name of the investor, timing of the capital infusion and the Reserve Bank of India’s comfort with this proposal.”

Bank of America - Yes Bank Gets Binding Offer for $1.2 Billion Stake Sale

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Comments of the Day

01 November 2019

 

 

Video commentary for October 31st 2019

 

Eoin Treacy's view

A link to today's video commentary is posted in the Subscriber's Area. 

Some of the topics discussed include: stocks pause on the last day on the month, Apple reverses earlier decline, Dollar eases, Yen strong, Rand and Chilean Peso weaken, gold firm,  bonds firm, high yield spreads still tight, Ted spread expands.

 

 

China Bans Anti-Blockchain Sentiment As It Prepares For Launch of State Cryptocurrency

Thanks to a subscriber for this article from the Independent which may be of interest. Here is a section:

It is understood that the new law will precede the launch of China's state-backed cryptocurrency, which is expected to be unveiled early next year. No specific dates have been given but in August a senior official at China's central bank said it was "close to being out".

China's interest in the space appears to have had a positive impact on already established cryptocurrencies like bitcoin, which some say add legitimacy to the cryptocurrency industry.

China's plans were accredited for bitcoin's recent price surge that saw its value rise from below $7,500 to above $10,000 in the space of just a few hours. 

“This is a clear signal that the leader of the world’s second-largest economy is moving towards embracing the technology – in which Bitcoin plays a vital part – and therefore taken as a positive boost for the whole digital currencies sector," Nigel Green, CEO of financial advisory firm deVere Group, told The Independent.

“Perhaps quite sensibly, investors could not ignore the comments and sentiment expressed by President Xi and reacted by increasing exposure to bitcoin. It also comes as China is said to be developing its own national digital currency, which is further proof that in some form or another, digital currency is the future."

 

Eoin Treacy's view

China is well on the road to completely dispensing with cash. It is now increasingly difficult to use cash in stores and an increasing proportion of business is transacted online. The benefits for a sovereign, of creating a digital currency where it has full control over the issuance, supply and availability but enforces the use, flow and acceptability of transactions are obvious. Quite whether it is beneficial for investors and consumers is an altogether different question.

 

 

Yes Bank Gets Binding Offer for $1.2 Billion Stake Sale

This article by Suvashree Ghosh for Bloomberg may be of interest to subscribers. Here is a section:

“If they are able to raise this capital then it will sustain Yes Bank’s growth for next one year,” said Kranthi Bathini, director at Wealthmills Securities Pvt. “But we need to know the name of the investor, timing of the capital infusion and the Reserve Bank of India’s comfort with this proposal.” Gill said in an interview earlier this month that the share sale will happen “much sooner than the market expects.” The company has been in talks with private equity investors,
technology companies and family offices.

 

Eoin Treacy's view

The liquidity crisis in India’s housing finance sector has resulted in many related shares trading down in excess of 80% from their peak values a couple of years ago.  Issues relating to overvaluation of luxury properties and corruption within the boards of companies has come to light over the last year which has been very deleterious to sentiment. The challenge the sector has had was in raising fresh capital to plug holes in balance sheets left by write-offs. 

 

 

Shell Shares Continue Slide After Tense Call With Analysts

This article by Kelly Gilblom and Javier Blas for Bloomberg may be of interest to subscribers. Here is a section:

At one point, van Beurden quipped that the buyback program would be cheaper now because the shares were falling, which invited a terse response from an analyst who said: “I agree.”
“Please help me with my confused state,” said Christopher Kuplent, an analyst at Bank of America Corp., before asking the penultimate question on the call about whether they are
disclosing information in the right way.

Van Beurden responded that they could have avoided the cautionary note about the buybacks completely. He said that people could have done the math that lower oil prices make life more financially challenging for Shell, however, he said it was better to acknowledge a likely stormy year ahead to the market.

Then he offered another mind-bending answer as shares slipped further. “That macro does actually have an effect on our cash flow is obviously a statement of the obvious. So we could also have said: ‘Well that’s hopefully all understood isn’t it?”’ he added. “But not making a statement of the obvious it is also making a statement.”

 

Eoin Treacy's view

When CEOs are candid and state the obvious it tends to have unintended consequences. Royal Dutch Shell’s management just told the market they may not have the money to buy back as many shares next year because oil prices are low and are likely to stay that way for the next 12 months. That’s not exactly what investors were expecting to hear.

 

 

Eoin's personal portfolio: precious metals long initiated

 

Eoin Treacy's view

One of the most commonly asked questions by subscribers is how to find details of my open traders. In an effort to make it easier I will simply repost the latest summary daily until there is a change. I'll change the title to the date of publication of new details so you will know when the information was provided.

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