Thursday Briefing: Investing in Microsoft and LinkedIn Deemed Risky

June 16, 2016

LinkedIn continues to dominate the Sentifi Top Attentions list for the third consecutive day, but this time, it’s bit less upbeat. Flocks of bullish investors have flocked to Microsoft and LinkedIn, something that is deemed risky by a Hong Kong wealth management firm. Meanwhile, in Nigeria, its central bank just released forex policy guidelines, and in China, Didi Chuxing just closed its latest funding round of $7.3 billion. The weekend is almost here, but the financial market is showing no sign of slowing down. Read on to find the most important stories on Sentifi today.


1/ LinkedIn Corp: Analysts warn of the business synergies of the acquisition [2,025 messages in the last 24h]

The marriage between Microsoft and LinkedIn has attracted many bullish investors, and Castleton Rose Hong Kong has issued a warning against it. The reason is pretty simple. The business synergies may not be as attractive as the investors expected. The huge acquisition comes with a huge degree of risk because LinkedIn has been performing efficiently in terms of capitalization.

2/ Central Bank of Nigeria: Releases forex policy guidelines [972 messages in the last 24h]

The central bank has released the guidelines dubbed the Framework for Re-introduction of Managed Float Exchange Rate System. The CBN Governor Godwin Emefiele hopes “the re-introduction of a flexible inter-bank exchange rate market would restore the automatic adjustment mechanism of the exchange rate.” A non-deliverable Over The Counter Naira-settled Futures was also introduced.

3/ Didi Chuxing: Completes a $7.3 billion financing round [577 messages in the last 24h]

Didi Chuxing has 87.2% share of China market, much more than Uber.

The largest ride-hailing app in China has completed its $7.3 billion financing round which has pushed its valuation to more than $25 billion. This fuels the competition between Didi and Uber even more as Uber has also raised substantial fund itself. The current situation sees Didi have the advantage with 87.2% share of China’s private-car hailing market, but Uber is putting up a good fight.



4/ Inditex: Adds more jobs thanks to strong growth [478 messages in the last 24h]

A total of 11,936 has been created by Inditex in the last 12 months thanks to its strong growth evident in the net sales of €4.9 billion in the first quarter of 2016. It’s a rise of 12% from the previous quarter. The first quarter also saw the company expand to a total of 90 countries, with 72 new stores in 31 markets.

5/ George Osborne: Makes a threat over Brexit [451 messages in the last 24h]

In the face of growing support for Brexit, Chancelllor George Osborne threatened to raise income tax and fuel duty while cutting funds for the NHS and pensions, in the form of an emergency post-referendum budget. Needless to say, he’s facing lots of rebellion from the people. Following the announcement, 57% of his Conservative Party’s lawmakers said they would block his proposal.

6/ Exact Sciences Crp: Shares raise on recommendation for the U.S. Preventive Services Task Force [439 messages in the last 24h]

The molecular diagnostics company announced the USPSTF has issued its colorectal cancer screening recommendations and clarified the inclusion of Exact’s Cologuard. The news boosted the company’s shares by 6.5%.

7/ Cavium Inc: Shares fall on potential acquisition [411 messages in the last 24h]

Cavium aims to expand its market and growth with the acquisition of QLogic.

The chipmaker said it has agreed to buy QLogic for $1.36 billion, causing its shares to fall more than 8%. Nevertheless, the boards of both companies said they have approved the deal, which will be completed in the third quarter.




8/ Rolls-Royce: Prefers Bremain [369 messages in the last 24h]

The CEO of Rolls-Royce Warren East has said to his staff that a Brexit would affect the company’s decision at a critical time in its restructuring, namely in its ability to plan and budget. The company relies on a huge network of suppliers across Europe with more than 9,000. The company expects to cut 300 jobs by the end of the first half of this year, after already having cut 200 senior management positions.

9/ Tencent: Aims to acquire Finnish game developer [368 messages in the last 24h]

The Chinese company Tencent said it’s very close to reach a $9 billion acquisition deal with Supercell, which is the maker of the super popular mobile game Clash of Clans. Tencent is in discussions with the Japanese company SoftBank to buy its majority stake in Supercell. This is part of Tencent’s plan to acquire the top game makers in popular game genres.

10/ Aegerion Pharma: Shares rise on merger [321 messages in the last 24h]

Aegerion has agreed to a strategic merger with QLT Inc. QLT will change its name to Novelion Therapeutics Inc. following the merger. Aegerion shares rised 28.6% on the merger, and QLT shares increased 7%.

If you want to harness the wisdom and insights from the crowd to monitor your portfolio free of charge, please sign up for myMarkets.