Ten years after Symantec paid $13.5bn for Veritas, Carlyle Group agreed in August to buy the data-storage business for just $8 billion (the biggest LBO of the year). Of course, the buyout deal made sense when the cost of funding was negligible and The Fed had your back but, as Bloomberg reports, amid soaring borrowing costs, banks have pulled the $5.5 billion debt offering for Veritas signaling a clear end to the reach-for-yield, nothing is a problem, bond market's risk appetite..
110,000 current and soon to be eligible retirees working for IBM woke up to an unpleasant surprise this morning, when the WSJ reported that as a result of soaring healthcare costs, the tech bellwether giant will be terminating its company-sponsored health plan and instead giving (soon to be former) beneficiaries a lump sum payment to buy coverage on a health-exchange: a move which the WSJ characterized as indicating that employers are unlikely to keep providing the once-common benefits as medical costs continue to rise.
Despite the eagerness of Abenomics and the new BOJ head Kuroda to have their cake and eat it too, in this case manifesting in soaring stock prices, plunging Yen, rising GDP and exports, and most importantly, flat or declining bond yields, so far they have succeeded in carrying out three of the four (assuming Japanese economic data reporting is more accurate than that of its neighbor China), as it is physically impossible for any central planner to completely overrule the laws of math, economics and physics indefinitely.
ByBen Kramer-Miller:Semafo (OTCPK:SEMFF) just reported its second quarter earnings results and they were nothing short of spectacular. The company's earnings came in at $13 million or $0.05/share on revenue of $88 million. Operating cash-flow came in at $38 million.
It seems the US "costs" are not working on Russian assets. Apparently on the back of diplomatic-sounding comments from Putin, Russian stocks, bonds and currency are the new fear-of-missing-out trade and are soaring:
Add Desert Hot Springs, CA to the list of California cities in dire straits due to poor management, union wages, and ridiculously unaffordable pension promises.
Please consider Another U.S. city mulls bankruptcy due to soaring wages and pensions
In what was painfully obvious to everyone with half a brain months ago (see here) Japan's desperate gambit at reflating would backfire massively by sending energy prices soaring in a world in which Japan no longer has access to internally producer, nuclear power plants and is forced to import all of its energy from abroad.
British no-frills airline easyJet said on Tuesday that net losses widened to £114 million (131 million euros, $187 million) during the group's first half, hit by soaring fuel costs.EasyJet said losses after tax for the six months to March 31 compared with a net loss of £59 million during the group's first half in 2009/10."The past six months has been tough with sharply rising fuel costs combined with cautious behaviour by consumers and an adverse impact from taxes on passengers," easyJet chief executive Carolyn McCall said in a statement.