Economy
With Europe's economy still in shambles, EU finance ministers have called on the European Commission, EU executive, and the European Investment Bank to seek ways of collecting billions of euros for investment projects without getting deeper into debt. EU finance ministers are set to discuss the projects and investment tools at their next meeting in Luxembourg in October. The EU's economy grew by just 0.1% this past year and its unemployment rate is almost double the U.S., with approximately 25M people unemployed.
Condensate exports from the U.S. are continuing for the third straight month, following the easing of a 40-year crude export ban in June. Oil producers are looking to export a growing surplus of condensate due to the shale boom, while consumers, such as refiners, have lobbied to keep exports forbidden to ensure lower energy costs in the U.S. Washington has still held back on issuing more permits to export the minimally refined oil, despite growing international pressure to soften the ban.
U.S. Treasury Secretary Jacob Lew has warned Chinese Vice Premier Wang Yang regarding the recent wave of Chinese antimonopoly investigations against foreign companies, saying it could result in serious implications for relations between the two countries. At least 30 foreign firms, including Microsoft (NASDAQ:MSFT), Qualcomm (NASDAQ:QCOM) and many automakers have come under investigation as China seeks to enforce a 2008 antitrust law. China's regulators say they are not targeting multinational firms specifically and the enforcement work is fair and transparent.
Stocks
Alibaba is planning to increase the size of its IPO due to strong investor demand. Previously setting a $60-$66 price range per share, the Chinese e-commerce company plans to announce the new price range as early as today, and intends to raise the top end of the price range to above $70, Bloomberg reports. Alibaba (Pending:BABA) is expected to set a final price for the shares on Sept. 18, with trading to begin the next day.
Netflix is continuing its international expansion this week, launching service in in France, Germany, Austria, Switzerland, Belgium and Luxembourg. "This is the biggest international launch we’ve ever done,” says CEO Reed Hastings. "It represents nearly 80M broadband households and about 200M people." International expansion is critical to Netflix's (NASDAQ:NFLX) growth prospects. The company's current international investments, such as Latin America and the U.K., are on track to be profitable by the fourth quarter.
After six months of being largely cut off from Amazon, writers published by Hachette Book Group (OTCPK:LGDDF) are planning to appeal directly to Amazon's (NASDAQ:AMZN) board over e-book prices, saying the retailer's reputation is at stake. Amazon wants to pay Hachette less for e-books, while Hachette authors have seen delivery delays and discount cuts as a result of the dispute. The 1,100 Authors United members have until Wednesday to sign the letter, which will then be sent to Amazon’s 10 board members.
After announcing the sale of a $17.5B stake in its retail unit, Sinopec (NYSE:SNP) now says it will use the cash toward optimizing its retail fuel business, boosting its non-fuel sales and paying down debts owed to its parent. The deal comes as the Chinese government pushes to restructure its state-owned enterprises by bringing in private capital. The stake will be sold to a group of 25 Chinese and foreign investors.
Danaher has agreed to buy Nobel Biocare in an all-cash deal valued at approximately $2.2B, including debt. Danaher (NYSE:DHR) says the acquisition would widen its market presence and make it the largest consumable and equipment player in the dental industry with sales approaching $3B. The deal is expected to be completed in late 2014 or early 2015, after which Nobel Biocare (OTCPK:NBHGY) will continue to operate as a standalone company.
Heineken has confirmed that it has turned down SABMiller's (OTCPK:SBMRF) offer, after being approached for a potential merger. The company called the offer "non-actionable" in its statement. The growing presence of Heineken (OTCQX:HEINY) in emerging markets such as Africa and Mexico makes it an attractive add-on for SABMiller which could still come back to the Dutch brewer with a higher offer.
Russian Finance Minister Anton Siluanov has announced that some of Russia's $85.3B National Welfare Fund, which is meant for infrastructure investments, could be given to major companies that now face constrained access to Western resources and capital. Rosneft (OTC:RNFTF) and Novatek (OTC:NOVKY) will be first in line for the financial aid, added Siluanov. Rosneft previously stated last month that it needed 1.5T rubles ($39.7B) in aid from the government to withstand Western sanctions.
Bill Ackman is planning to file for an IPO of a new fund on the Amsterdam Stock Exchange, to be called Pershing Square Holdings. The fund has already raised more than $1.5B in commitments from European pension funds, as well as U.S. hedge funds, and will allow for raising permanent capital that is not subject to investor redemptions. The new fund will be separate from Ackman's $13B Pershing Square Capital Management.
The Air France strike has begun, as the airline's main pilot union protests the transfer of its short- and medium-haul services to its low-cost unit Transavia. 52% of flights have been cancelled, and the strike could expose the airline to as much as €15M ($19.4M) in extra costs and lost revenue a day. Air France (OTCQX:AFLYY) shares in Paris have so far fallen -3.6%.
Meanwhile, Lufthansa pilots are planning an eight-hour strike for tomorrow, bringing all long-haul flights from their Frankfurt hub to a halt. The new strike will be the fourth staged by Lufthansa (OTCQX:DLAKY) pilots in the last three weeks, as they try to increase pressure on the airline for an early retirement plan. Lufthansa shares -1.9% in Frankfurt.
After setting out to be a leader in battery manufacturing, Nissan (OTCPK:NSANY) is preparing to cut production, reversing its previous stance toward electric car manufacturing. The move would see Nissan following alliance partner Renault (OTC:RNSDF) by purchasing cheaper batteries from South Korea's LG Chemical (OTC:LGCEY). The financial hit for Nissan will depend on what else can be done with the plants, with hefty charges likely if facilities are closed.
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