Bankers are preparing to sell a jumbo debt package to support the $110 billion acquisition of Warner Bros. Discovery Inc. It’s a risky deal and comes at a moment when the bond markets have been wobbling. Even with the backing of the billionaire Ellison family, this will be a major test of debt investors’ willingness to support megamergers. Paramount Skydance Corp., led by Top Gun: Maverick co-prod...
Bankers are preparing to sell a jumbo debt package to support the $110 billion acquisition of Warner Bros. Discovery Inc. It’s a risky deal and comes at a moment when the bond markets have been wobbling. Even with the backing of the billionaire Ellison family, this will be a major test of debt investors’ willingness to support megamergers. Paramount Skydance Corp., led by Top Gun: Maverick co-producer David Ellison, agreed to buy Warner in February after outbidding streaming giant Netflix Inc. The financial resources of his father, Oracle Corp. co-founder Larry Ellison, were central to winning the auction. After all, Paramount’s market value is barely $12 billion and it’s already weighed down with debt. The main item on the bill is paying Warner shareholders $81 billion in cash to satisfy the $31-per-share offer price. Paramount must also assume Warner’s $29 billion of net debt. Around half of this will be rolled over into the enlarged company through a deal agreed this week. That still leaves $15 billion of Warner borrowings needing to be refinanced. As for the sources of cash to cover all this, the starting point is the Ellisons and their Gulf sovereign wealth fund partners writing a check for $47 billion. Roughly half of that equity is being provided by the family. It will be for the debt markets to stump up $49 billion to cover the rest of the purchase price and the refinancing. On its face, the investment case here looks pretty scary. The merged business will start life with extremely high leverage. Paramount’s existing debt, Warner’s rolled-over borrowings and the new debt add up to nearly $90 billion. Net debt will be 6.5 times this year’s forecast profit as measured by earnings before interest, tax, depreciation and amortization. That’s the kind of credit ratio you see in a private equity buyout, not a public company. What makes this so nerve-wracking is that Paramount is doubling down on cable-TV, an industry that’s losing customers to streaming services. T...
The Champions League final this weekend was supposed to showcase Viktor Orban as one of football’s great patrons in the state-of-the-art $620 million stadium he built in Budapest. Instead, Orban is gone, ousted in Hungary’s seismic election last month , and his beloved sport is emblematic of what he’s left behind: a system of subsidies and cronyism that drained billions from a country now faced wi...
The Champions League final this weekend was supposed to showcase Viktor Orban as one of football’s great patrons in the state-of-the-art $620 million stadium he built in Budapest. Instead, Orban is gone, ousted in Hungary’s seismic election last month , and his beloved sport is emblematic of what he’s left behind: a system of subsidies and cronyism that drained billions from a country now faced with the cost. During his 16 years of uninterrupted rule, Orban took control of all facets of Hungary , enriching an inner circle of disciples along the way and leading to a standoff with the European Union over corruption allegations. Football clubs were taken over by friends, political allies or companies close to the government. Academies were set up to nurture a generation of exportable players. New, all-seater stadiums were built with the help of tax breaks. The chief of Hungary’s biggest bank became head of the sport’s national governing body, while Orban’s pro-Russian foreign minister became the boss of one of the most storied Budapest clubs. Successive Orban governments funneled the equivalent of more than $3.2 billion of public money into football, according to Bloomberg estimates based on data from the government and Hungarian football association. “Just as the state was rife with corruption, so too was the world of football,” said Pal Daniel Renyi, author of the 2021 book A Must Win Game on Orban’s relationship with the sport. “It was anything but a level playing field.’’ Peter Magyar, a former insider of Orban’s Fidesz party, scored a landslide election win last month on a pledge to tackle rampant corruption, including in sports financing. Magyar, who is now Hungary’s prime minister, earlier this year derided Orban as a “football expert’’ who had lost touch with reality. Orban has consistently denied his leadership was corrupt. (Sign up to the Eastern Europe Edition newsletter , delivered every Friday.) Once an amateur player dreaming of a pro career, politics and...
In this week’s Hong Kong Edition, Echo Wong dissects the city’s retirement system at the advent of eMPF, and Yang Yang interviews the local founder of a classical concert series. For the Review, Kristine Servando gets past her trepidation and tries horse meat at an upscale restaurant. To subscribe to this weekly newsletter for free, click here . Pay It Forward Tax season is upon us (electronic fil...
In this week’s Hong Kong Edition, Echo Wong dissects the city’s retirement system at the advent of eMPF, and Yang Yang interviews the local founder of a classical concert series. For the Review, Kristine Servando gets past her trepidation and tries horse meat at an upscale restaurant. To subscribe to this weekly newsletter for free, click here . Pay It Forward Tax season is upon us (electronic filings are due in a little over a month), which means Hong Kongers will be going through their finances and checking the numbers, including in their retirement accounts. That could lead to some grumbling. The billion-dollar system has always got mixed reviews from (current and future) pensioners, largely because of the limited investment options. And those gripes just got amplified by the technical glitches some are running into during a transition to a new electronic system. Teething problems aside, the question on everyone’s mind is, of course: Will eMPF really help my retirement? And that leads into more questions about what more the city can, and should, do to shore up the system’s utility and attractiveness. An industry professional recently told me that he’d just put all investments in stock funds, the highest-risk asset class in the system. But he had never counted on his Mandatory Provident Fund to retire. After all, a monthly compulsory contribution of HK$1,500 ($190) can barely cover a dinner out, he said. That thinking is not uncommon, and it’s something regulators hope to address with the new system that aims to lower investment fees, review contribution levels, and maybe eventually allow listed private equity funds to access. To get deeper into why the changes matter and how the new system will work, we answer some key questions here. What is eMPF? It’s a platform that has effectively shifted all pensions and MPFs — managed by companies like Manulife, HSBC and Sun Life — into an electronic system. Instead of going to individual providers, now pensioners log on to...
Global investments in oil projects are due to fall for the third year in a row, as the supply shock from the Middle East conflict shifts priorities to new trade routes and other energy sources. Despite higher oil prices, spending on oil projects is set to drop below $500 billion in 2026, according to the International Energy Agency ’s annual World Energy Investment report published Thursday. Oil m...
Global investments in oil projects are due to fall for the third year in a row, as the supply shock from the Middle East conflict shifts priorities to new trade routes and other energy sources. Despite higher oil prices, spending on oil projects is set to drop below $500 billion in 2026, according to the International Energy Agency ’s annual World Energy Investment report published Thursday. Oil markets have been in turmoil since the US-Israeli war on Iran effectively closed the Strait of Hormuz, through which a fifth of the world’s seaborne crude was shipped. The disruption has caused price spikes and supply shortages in several parts of the world, forcing companies and countries to rethink their energy investment strategies. “We are in the midst of the largest energy security crisis the world has ever faced — and I believe this will reshape investment strategies globally,” IEA Executive Director Fatih Birol said in the statement. “We are already seeing intensified efforts by both producer and consumer countries to diversify trade routes and energy sources.” Overall energy investments are expected to rise slightly to $3.4 trillion in 2026, and are mostly going to power grids, storage, low-emissions fuels, nuclear, renewables and electrification. Key fuel importers are now looking for energy resources at home, mainly renewables, nuclear and coal. Gas spending is projected to rise to $330 billion, the highest level in a decade, supported by a wave of new liquefied natural gas export projects, mainly in the US and Qatar, the Paris-based agency said, in its first full-year estimates for 2026. In the Middle East, the war has cut export income and sparked a search for new export routes as confidence in the reliability of the Strait of Hormuz has been “profoundly shaken.” Also, the tens of billions of dollars required to repair facilities “could reduce outward capital flows, which have been a growing source of financing for infrastructure and energy projects in other regi...
Jerome Powell ended his two-term tenure as Federal Reserve chairman this month. During his time in charge of the central bank, he was tasked with battling the highest inflation rates the country had seen in over 40 years. Many believe inflation wouldn’t have reached such a high level if he had pushed the Fed to act more quickly. Now inflation is rearing its ugly head once again. The war in Iran ha...
Jerome Powell ended his two-term tenure as Federal Reserve chairman this month. During his time in charge of the central bank, he was tasked with battling the highest inflation rates the country had seen in over 40 years. Many believe inflation wouldn’t have reached such a high level if he had pushed the Fed to act more quickly. Now inflation is rearing its ugly head once again. The war in Iran has pushed oil and other commodity prices higher as the Strait of Hormuz remains closed. In his last press conference as chairman, Powell left investors with a seven-word warning about how this bout of inflation could impact the broader market, and investors should be paying attention. The seven words from Powell that investors must hear After the FOMC kept rates steady once again at the Fed’s April meeting, journalists asked Powell how the current inflation caused by spiking oil prices could impact future Fed rate decisions. Inflation has climbed considerably since the start of the war in Iran. March saw the CPI climb 3.3% year over year, and that climbed to 3.8% in April. The Fed’s current forecast for May expects a 4.2% increase. Energy prices are the biggest driver, with gas prices up 28.4% year over year and fuel oil prices up 54% in the April CPI report. The Federal Reserve Bank of Dallas published a study in April that found that the longer the Strait of Hormuz remains closed, the higher oil prices will climb and the slower they’ll fall once reopened, with severe knock-on effects for consumer inflation. In Powell’s response at the press conference, he noted there’s more to inflation than just gas prices. But that shouldn’t put investors at ease. Remember, when gas prices go up, that’s disposable income coming out of people’s pockets, so they’re going to spend less on other things. So, there will be a hit to GDP. Those last seven words, “there will be a hit to GDP,” are not the words typically associated with the S&P 500 (^GSPC +0.02%) and Nasdaq Composite (^IXIC +0.07%...
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This is the forum for daily political discussion on Seeking Alpha. A new version is published every market day. Please don't leave political comments on other articles or posts on the site. The comments below are not regulated with the same rigor as the rest of the site, and this is an 'enter at your own risk' area as discussion can get very heated. If you can't stand the heat... you know what they say... More on Today's Markets: Moderation Guidelines: We remove comments under the following categories: Personal attacks on another user account Anti-Vaxxer or covid related misinformation Stereotyping, prejudiced or racist language about individuals or the topic under discussion. Inciting violence messages, encouraging hate groups and political violence. Regardless of which side of the political divide you find yourself, please be courteous and don't direct abuse at other users. For any issue with regards to comments please email us at : moderation@seekingalpha.com. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
undefined China’s mutual fund assets climbed above 39 trillion yuan ($5.7 trillion) for the first time at the end of April, as a rebound in domestic equities lifted fund valuations following a volatile first quarter. Total net assets in China’s mutual fund industry rose 4.9% from a month earlier to 39.36 trillion yuan, according to data from the Asset Management Association of China. Unit: trillio...
undefined China’s mutual fund assets climbed above 39 trillion yuan ($5.7 trillion) for the first time at the end of April, as a rebound in domestic equities lifted fund valuations following a volatile first quarter. Total net assets in China’s mutual fund industry rose 4.9% from a month earlier to 39.36 trillion yuan, according to data from the Asset Management Association of China. Unit: trillion yuan China’s Mutual Fund Assets Hit Record High Sources: Asset Management Association of China, CEIC 25 30 35 40 39.36 July April Hybrid funds led the gains, rising 10.4% to 4.16 trillion yuan, while equity funds increased 3.2% to 5.28 trillion yuan, their first monthly expansion this year.
CHUYN/iStock Unreleased via Getty Images Earlier this year, I decided to reiterate my sell rating on The Procter & Gamble Company ( PG ). While the stock and valuation saw a meaningful rebound, I concluded that this was due to premature optimism rather than being fundamentally driven. Organic sales were flat, margins saw contraction, and guidance wasn't overly encouraging either. Since the publica...
CHUYN/iStock Unreleased via Getty Images Earlier this year, I decided to reiterate my sell rating on The Procter & Gamble Company ( PG ). While the stock and valuation saw a meaningful rebound, I concluded that this was due to premature optimism rather than being fundamentally driven. Organic sales were flat, margins saw contraction, and guidance wasn't overly encouraging either. Since the publication of that update, Procter & Gamble has seen declines of around 7% as of this writing. That significantly underperforms the S&P 500's 8% gain over this period, and so my bearishness played out quite well. The Cincinnati-based consumer staples giant reported their most recent results late last month, and today I have decided to provide an update. Seeking Alpha Below, it is shown that Q3 was an overall encouraging quarter for the company. Organic growth bounced back, and productivity savings are making a real difference to profitability. However, Procter & Gamble's decision to leave full-year guidance unchanged shows that the recovery thesis remains premature. With that being the case, the premium valuation seems to be undeserved, and the fact that share buybacks are decreasing may be another hint that there is overvaluation. As a result, I have decided to reiterate my sell rating on the stock. Consumer Behavior P&G Q3 Slides At a first glance, the chart above looks very similar to the one that was shown in my previous article. However, if you take a closer look, you'll see that for the most recent data point, the monthly YoY value share change has turned positive. This isn't enough to conclude that consumer behavior has fundamentally shifted. If you take a look back at the results for FY'17 and FY'18, you can see that there have been occasional positive data points that were ultimately non-meaningful. Still, it is nice to see that consumers may be favoring their products again now over cheaper ones, particularly with consumer sentiment being where it is. Investors would be...
baona/iStock via Getty Images Investment Thesis As I continue my coverage of international ETFs, I want to take a close look at the iShares MSCI Intl Value Factor ETF ( IVLU ), a four-star gold-rated fund by Morningstar with a 0.31% expense ratio, 0.02% median bid/ask spread, and $4.3 billion in assets under management, per its website . Indeed, IVLU's 174% ten-year total return as of April 30, 20...
baona/iStock via Getty Images Investment Thesis As I continue my coverage of international ETFs, I want to take a close look at the iShares MSCI Intl Value Factor ETF ( IVLU ), a four-star gold-rated fund by Morningstar with a 0.31% expense ratio, 0.02% median bid/ask spread, and $4.3 billion in assets under management, per its website . Indeed, IVLU's 174% ten-year total return as of April 30, 2026, ranks #5/26 among the international large-cap value ETFs I track, while its 100% five-year total ranks #2/36. Needless to say, I expect to find something truly impressive. The Sunday Investor However, in the spirit of keeping fees reasonably low while still providing strong exposure to the value factor, this article explains why I believe the Schwab Fundamental International Equity ETF ( FNDF ) and the Invesco RAFI Developed Markets ex-U.S. ETF ( PXF ) are slightly better options. I hope you enjoy the read, and as always, I look forward to your questions afterward. IVLU Overview IVLU tracks the MSCI World ex USA Enhanced Value Index, whose Index fact sheet states that it provides "large and mid-cap representation across 22 Developed Markets countries exhibiting overall value style characteristics," as measured by a company's price-to-book value, price-to-forward earnings, and enterprise value-to-cash flow from operations ratios. Importantly, the Index makes sector-to-sector comparisons, and according to its methodology document , it accomplishes this by being sector-neutral with its parent Index, the MSCI World ex USA Index . Additional points from that document are summarized below. 1. The selection process begins with the MSCI World ex USA Index, which covers about 85% of the free-float market capitalization of 22 Developed Market countries (excluding the U.S.). 2. Each security is assigned a value score by combining the z-scores of three valuation ratios at equal weight: P/B, forward P/E, and EV/CFO. The Index makes exceptions for Financial sector securities (only P/...
Benchmark Treasuries retreated for the first session in six as fresh US strikes in the Persian Gulf spurred a rally in oil prices and fueled concern over faster inflation. US 10-year yields advanced five basis points to 4.53%, while their two-year equivalents added four basis points to 4.08% in Asia trading Thursday. Brent crude futures climbed more than 3% after American forces carried out out ai...
Benchmark Treasuries retreated for the first session in six as fresh US strikes in the Persian Gulf spurred a rally in oil prices and fueled concern over faster inflation. US 10-year yields advanced five basis points to 4.53%, while their two-year equivalents added four basis points to 4.08% in Asia trading Thursday. Brent crude futures climbed more than 3% after American forces carried out out air strikes on a military site, and struck other targets near the Strait of Hormuz. The Bloomberg Dollar Spot Index rose 0.3%. Treasuries had rallied in recent days on optimism a deal would be reached to end the US-Iran conflict. The lack of an agreement is threatening to prolong the oil supply disruption, raising expectations for inflation which has led to a climb in bond yields since late February. Central banks including the Federal Reserve are expected to raise interest rates in response.