Wednesday, 7 October 2015

Samurai Summary: Top Tweets 07/10/2015

Rival beer maker AB Inbev has stepped up its takeover offer to $104 billion equating to £42.15 per share for the London listed brewery. But it seems as if SABMiller's management is putting up a fight although it considers the current proposal as fair it would really like £45 per share. Altari, the biggest shareholder of SABMiller has urged management to consider properly any proposal made by AB Inbev and has given AB Inbev deal the nod of approval.
The last few days has produced a dramatically different picture to what we've been seeing on global markets over the past months with resources leading the surge higher as bulls finally gained the edge over the bears. An impressive feat can be attributed to the NFP (Non-farm Payrolls) which came in a lot weaker than expected leading participants to believe rates will be lower for longer.

As a result of such sentiment this has lead to weakness within the dollar helping prop up deadbeat commodity prices that have suffered too long from a bear grip. Mining companies have jumped off their lows as the dollar heads downward which hopefully for their part becomes a dominant theme in the months to come.

Something I think will trigger off a pattern which started with the release of Chinese PMI numbers last week, economic data coming out of China may start to take a bit of worry off everyone's mind...for now that is.

Foreign reserves dropped by less than expected translating into the government not intervening in financial markets at the pace they were a few months back which is quite evident from the level of calmness. I recall writing a blog last month about the state of Chinese equity market volatility and at the time it had reached a new high which led me to believe that the worst was over. That has worked nicely but we shouldn't drop our guard too soon as we just don't know what may set off another extensive selloff.  
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