Italy resists changes, evident in Italy Prime Minister Matteo Renzi’s defeat in a referendum over his proposals for constitutional reform. His departure is expected to heighten the uncertainty in the eurozone’s third largest economy, but uncertainty seems to have already arrived. The euro tumbles against the dollar in early Asian trade, and if this keeps up, it will fall to the lowest level since early 2003. Stay tuned to Sentifi to have the most complete look of the currency and the crowd’s sentiment surrounding this event.
EUR: Tumbles as Italy PM Renzi is about to exit the stage
The currency dropped 1.3 percent to $1.0505, falling below its 1 1/2-year low of $1.0518 touched late November. This is unfortunate and seen as testing its key support levels considering the currency has rebounded in the past couple of years. It’s dangerously close to its 2015 March low of $1.0457, and if it crosses that threshold, it would hit the lowest level since early 2003, opening away for a test of $1, or even parity against the dollar. This is also bad news for Italian banking system. The country’s third biggest lender Monte dei Paschi di Siena is looking to raise €5 billion in less than four weeks to avert the risk of being wound up. And if it fails, the whole baking system would be sure to crumble.
DUET Group: Shares jump 18 percent on takeover confirmation
The company responded to a rumor that Hong Kong-based Cheung Kong Infrastructure offered the company a takeover bid of $3 per share with a confirmation, boosting it shares 18 percent. DUET board added it is in the process of evaluating the proposal, and asked shareholders to take no action due to the fact that there’s no guarantee that the proposal will go any further.
Axis Bank: Faces accusations of money laundering
An income tax probe into Axis Bank has found a conversion scam in its Mundka branch. Rs 125 crore — about $18.789 million — were transferred in shell companies and then into accounts of 3 bullion traders through online transfer. The bills were purposely kept below Rs 2 lakh to avoid review, and records show more than 4,000 transactions running into crores on the night of Nov. 8. In addition, the bank failed to raise suspicious transaction report and cash transaction report. The investigation is ongoing.
Virgin Galactic: Plane has a successful test flight
The spaceflight company’s second SpaceShipTwo, VSS Unity, completed a successful first free flight over the Mojave Desert. The plane was first introduced in February, and with this flight, the company is hoping it will usher in an era of private space tourism.
Prakash Industries Ltd.: Investigated for coal scam
India’s Central Bureau of Investigation has launched a probe into the company on allegations that it’s cheating in the allocation of Chotia coal block in 2003. The company supposedly made false claims about production figures of its sponge iron plant in several of its communications to the Coal Ministry during the application for the block.
Panasonic: In talks to buy ZKW Group
European automotive light maker ZKW Group has become a target of acquisition for Panasonic as the Japanese company accelerates its push into the automotive electronics market. It’s reported that the deal could be worth as much as $1 billion, and the basic agreement could be reach early this month. Panasonic also targets annual sales of ¥2 trillion for its automotive business in the fiscal year ending in March 2019. Before this rumor, Panasonic acquired 49 percent stake in Spanish automotive mirror manufacturer Ficosa International. It is planning to invest $1.6 billion to Tesla Motors’ $5 billion battery factory.
Novartis & Actelion: Norvatis won’t bid for Actelion
Novartis CEO Joe Jimenez said his company will only concentrate on acquisition in the range of $2 billion to $5 billion, effectively ruling his company out of a bid for Actelion which is worth nearly $20 billion. Actelion is currently in talks with U.S. healthcare group Johnson & Johnson, and the Swiss financial crowd was hoping Norvatis would emerge as a white knight and protect Actelion from being acquired by a foreign company. Jimenez further said he is measuring the impact President-elect Donald Trump would have on the U.S. healthcare sector while adjusting his priorities accordingly.
Zenefits: CEO leaves the company, may join Trump transition team
With the confirmation of his departure, Zenefits soon-to-be-ex CEO David Sacks is considering joining President-elect Trump’s transition team to unite with his friend and former co-author Peter Thiel. The company is looking for Sacks’s replacement.
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