Premarket Equities: Dealmaking has not completely dried’s something that still goes through

But not everyone sits on the sidelines hoping for a return to more normalcy.

Volkswagen (VLKAF) Just as Russia’s invasion of Ukraine shocked investors, it first began considering spinning off a minority stake in the high-performance automaker in February. A change in Volkswagen’s management has added to the uncertainty around the listing. Oliver Blume pulled the reins as chief executive of the German auto giant this month after Herbert Diess was sacked in July.

Yet the automaker chose to stay on course, even if it meant less funding due to investor anxiety.

Reuters reports that an IPO could value Porsche as much as €85 billion ($84.5 billion) and could raise more than €10.5 billion ($10.4 billion) for Volkswagen. Still, he would be one of Europe’s biggest IPOs to date, according to Dealogic data.

That’s not all: CVS (CVS) announced on Monday that it had struck an $8 billion deal to acquire Signify Health, a home healthcare services company.

CVS CEO Karen Lynch said in a statement, “This acquisition will strengthen our connection with consumers at home and empower healthcare providers as they execute on their vision of redefining the healthcare experience. You will be better able to meet your patient’s needs.

Volkswagen shares in Frankfurt rose more than 3% on Tuesday morning. Now year-to-date he is down 16.5%. CVS shares are flat in pre-market trading. In 2022, it is down 3.6% so far.

Recession: Dealmaking has slowed sharply this year as market sentiment worsened due to recession fears, high energy prices in Europe and uncertainty about the central bank’s plans to curb inflation.of CNN Business Fear and Greed Index After a quick ‘greedy’ read a month ago, I’m back in the ‘fear’ realm.

According to Dealogic data provided to Before the Bell, 987 IPOs have priced so far this year, compared to 2,045 at the same point in 2021. The transaction value he has decreased by more than 70%.

Mergers and acquisitions held up somewhat at about 25,350 compared to 26,985 in the same period last year. But there have been far fewer deals as the market valuations of many companies have plummeted.

Merger deals are nearly $2.8 trillion year-to-date, compared to more than $4 trillion in 2021.

Looking ahead: The return of investors and management from the summer holidays could lead to more dealmaking activity.

Private equity firms in particular still have large amounts of cash to deploy, which could fuel merger activity.

The so-called “dry powder” of global private equity players hit a record $2.3 trillion in June, according to PwC. That’s three times what he had on hand early in the global financial crisis.

“The increase in capital explains why the PE share in M&A has grown from about a third of total deal value five years ago to almost half of total deal value today,” said the consultant. I’m here. Recent reports.

OPEC agrees to cut production after falling oil prices

Two competing factors have driven oil prices. Concerns about a global recession and concerns about oil supply restrictions. My old fears are now overwhelmed.

Update: Crude oil prices fell on Tuesday, with Brent crude futures down more than 3%.

The decline follows a near 3% increase on Monday after OPEC announced that: reduce next month’s oil productionthe cartel’s first production cuts since the depths of the pandemic.

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

“This rate cut is more symbolic and just a fraction of the headline numbers, so it is likely to have little impact on the market balance,” UBS analyst Giovanni Staunovo said in a research note. high,” he said. “Many Alliance members are under production caps, but this move will not affect their production.”

Still, the move reflects OPEC’s willingness to take action while monitoring the market. With oil prices plummeting since early June, producers are eyeing the risk of economic slowdowns in China, the US and Europe weighing on barrel demand.

In an August market report, OPEC cut the cartel’s forecast for global crude oil demand by 300,000 barrels per day in 2022 and by the same amount in 2023.

About Radar: There are many moving parts. OPEC is also watching for possible increases in supplies if Iran can agree a new nuclear deal with the US and Europe that eases sanctions on exports.

At the same time, a European ban on imports of Russian crude oil by sea is due to take effect in early December, which could put upward pressure on prices despite plans for a cap.

A billionaire interviewed a top investor.this is what he learned

David Rubenstein, billionaire and co-founder of private equity giant Carlyle, interviews famous investors such as Larry Fink and Marc Andreessen for his new book How to Invest: Masters on the Craft. did.

what did he learn The greats in the field tend to come from middle-class backgrounds, have a solid education, be proficient in math, and possess “a huge amount of self-confidence,” which gives them a willingness to go against things. is giving

“They are often great because everyone says they should go left.” [and] They go right,” Rubenstein told CNN business colleague Matt Egan“They also have the ability to recognize mistakes and get out of them.”

Some of that thinking is applicable to the current market environment, where investors need to have an iron stomach, Rubenstein added.

“When the market is down, it’s time to enter the market. You buy. [at] “When the market is going up, it’s generally time to sell.”

If that sounds counterintuitive, consider: Many of the world’s largest technology companies will be able to weather this period of uncertainty with their business intact. According to Rubenstein, investing now is an opportunity.

“There’s an opportunity to buy a lot of companies at much lower prices than they were trading a year or so ago,” he said. “These are really good companies.”


The August ISM Non-Manufacturing Index, which tracks the US services sector, is posted at 10am ET.

Coming tomorrow: game stop (GME) We share the latest earnings as the meme stock experiences another big moment.


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