16th April 2022
Musk gonna Musk.
Hey folks, welcome to this Saturday’s rundown of what happened over the week.
[Inflation] This year’s hawkish change in tack from central banks is close to ending the era of negative-yielding debt, shrinking the global tally of bonds with sub-zero yields by $11tn. Bonds worth $2.7tn currently trade at a yield of less than zero, the lowest figure since 2015, and a sharp plunge from more than $14tn in mid-December.
[M&A] Elon Musk made a $43 billion offer to buy Twitter. However, Twitter’s Board responded to the hostile offer by implementing a poison pill. Under the new structure, if any person or group acquires beneficial ownership of at least 15% of Twitter’s outstanding common stock without the board’s approval, other shareholders will be allowed to purchase additional shares at a discount.
[M&A] Asset manager Investcorp is in exclusive talks to acquire Italian football club AC Milan from US hedge fund Elliott Management in a deal that could value the Serie A team at more than €1bn. A sale above €1bn would mark a huge win for Elliott, which took control of AC Milan in 2018 at a fraction of that value after the club’s previous Chinese owner failed to pay back debt to the hedge fund’s credit arm that it used to buy the club a year earlier.
[Economy] China’s central bank has reduced the amount of reserves that banks must maintain in an attempt to boost the economy. However, it chose not to cut a key interest rate; Chinese policymakers are concerned that easing too aggressively could exacerbate capital outflows as the US raises rates to combat inflation.
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