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Pre-market stocks: transactions are not completely exhausted. Here’s what’s still going on

But not everyone is sitting on the sidelines hoping for a return to more normal conditions.

volkswagen (VLKAF) began considering selling a minority stake in the performance automaker in February, just as Russia’s invasion of Ukraine rattled investors. A management reshuffle at Volkswagen added to the uncertainty over the listing. Oliver Blume took the reins as chief executive of the German auto giant this month after Herbert Diess was ousted from his post in July.

Still, the automaker has opted to stay the course, even if it means raising less money due to nervous investors.

Reuters reported that the IPO could value Porsche up to 85 billion euros ($84.5 billion) and Volkswagen could raise more than 10.5 billion euros ($10.4 billion). . That would still make it one of the biggest IPOs ever in Europe, according to Dealogic data.

That’s not all: SVC (SVC) announced on Monday that it has reached an $8 billion deal to acquire Signify Health, a home care services company.

“This acquisition will enhance our connection with consumers in the home and enable providers to better meet patient needs as we execute on our vision to redefine the healthcare experience,” CVS CEO Karen Lynch said in a statement. a statement.

Volkswagen stock in Frankfurt rose more than 3% on Tuesday morning. It is now down 16.5% since the start of the year. CVS shares are stable in pre-market trading. They have lost 3.6% so far in 2022.

Take a step back: Trading has slowed sharply this year as market sentiment deteriorated on fears of recession, soaring energy prices in Europe and uncertainty over central bank plans to slow inflation. The CNN Business Fear & Greed Index is back in “fear” territory after briefly producing a “greed” reading a month ago.

So far this year, only 987 IPOs have been rated, compared to 2,045 at the same time in 2021, according to Dealogic data provided to Before the Bell. The value of transactions fell by more than 70%.

Mergers and acquisitions held up slightly better, with around 25,350 on the books compared to 26,985 in the same period last year. But deals have been much smaller as many companies have seen their stock market valuations plunge.

Transaction value for mergers is nearly $2.8 trillion year-to-date, up from more than $4 trillion in 2021.

Future outlook: Dealings could pick up speed as investors and executives return from their free time this summer.

Private equity firms, in particular, are still sitting on plenty of cash they need to deploy, which could support merger activity.

The so-called “dry powder” among global private equity players hit a record $2.3 trillion in June, according to PwC. This is triple what they had on hand at the start of the global financial crisis.

“This capital growth explains why the share of private equity in mergers and acquisitions has fallen from about a third of total deal value five years ago to nearly half of total deal value today. “, said the consulting firm in a recent report.

OPEC agrees to cut production after oil price crash

Two competing forces have boosted oil prices: fears of a global recession and concerns about limited crude supply. Right now the old anxiety is taking over.

The latest: Oil prices fall on Tuesday, with Brent futures falling more than 3%.

The decline follows a nearly 3% gain on Monday after OPEC said it would cut oil production next month, the cartel’s first production cut since the depths of the pandemic.

The Organization of the Petroleum Exporting Countries and allied producers, including Russia, agreed to cut their production targets by 100,000 barrels a day in October.

“The cut is more symbolic and will likely have little impact on market balances as it is only a fraction of the overall figure,” UBS analyst Giovanni Staunovo said in a research note. “Many alliance members are producing below their cap and this decision will not affect their production.”

Still, the move reflects a willingness by OPEC to act as it watches the market. A sharp decline in oil prices since the start of June has focused producers on the risk that an economic slowdown in China, the United States and Europe will undermine demand for their barrels.

In its August market report, OPEC cut its estimate of global crude oil demand from the cartel by 300,000 barrels per day for 2022, and by the same amount for 2023.

On the Radar: There are a lot of moving parts. OPEC is also monitoring a possible increase in supply if Iran is able to agree on a new nuclear deal with the United States and Europe that would ease sanctions on its exports. This could bring prices down.

Meanwhile, Europe’s ban on imports of Russian crude by sea will come into effect in early December, which could put upward pressure on prices, despite plans to cap it.

A billionaire interviewed top investors. Here’s what he learned

David Rubenstein, the billionaire co-founder of private equity giant Carlyle, interviewed celebrity investors like Larry Fink and Marc Andreessen for his new book “How to Invest: Masters on the Craft.”

What did he learn? The greats in the field tend to have middle-class backgrounds, solid education, math skills and a “tremendous amount of self-confidence”, which gives them the drive to go against the grain.

“A lot of times they get awesome because everyone says you should go left [and] they’re fine,” Rubenstein told my colleague Matt Egan of CNN Business. “They also have the ability to recognize a mistake and work through it.”

Some of that thinking can be applied to the current market environment, when investors need to have an iron stomach, Rubenstein added.

“When the markets are down, that’s where you come in. You’re going to buy [at] lower prices,” he said. “When the markets go up, that’s usually when you should sell.

If that sounds counterintuitive, consider this: Many of the world’s biggest tech companies will weather this period of uncertainty with their businesses intact. Investing now, according to Rubenstein, presents an opportunity.

“You have a chance to buy a lot of companies at much cheaper prices than a year or so ago,” he said. “These are very good companies.”

Next

August’s ISM non-manufacturing index, which tracks the services sector in the United States, shows at 10 a.m. ET.

Coming tomorrow: GameStop (EMG) shares its latest earnings as stocks meme experiences another big moment.

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