Fee levels for SNAP fell significantly following the lock up expiry and quarterly earnings report. Last week, the unprecedented 400% rally in Chinese property stocks showed signs of ending as gains began to reverse. Meanwhile in Europe, Telit Communications cancelled their dividend and fell due to weak interim results.
Hertz (HTZ) cancelled plans to redeem debt causing shares to plummet >20% and short demand to increase. In Europe, we’ve seen securities lending demand rise off the back of earnings reports. Meanwhile in Asia , shares in Standard Chartered Plc fell sharply in Hong Kong trading after the company warned investors about its growth prospects and did not reinstate its dividend.
IMAX China Holding Inc. reported a drop in first half net income amid criticism it missed out on distribution of several films that were successful in the Chinese market. We’ve seen strong directional demand for Caesars Entertainment, as short sellers maintain their bearish bets. In Europe, growth in online retailing is triggering heightened borrow fees and utilization for traditional Italian retailers.
Demand has increased for Asia’s largest international airline after its chief executive officer admitted to a “disappointing” first half financial performance. There is increased fundamental demand for Virtu Financial Inc. (VIRT) as high-frequency firms face headwinds from the rising cost of infrastructure and low volatility. Meanwhile, Paris’ biggest landlord, Gecina, is embarking on a rights issue to fund expansion.
Liquidity has tightened in Spanish discount grocery store chain Distribuidora Internacional de Alimentacion SA (DIA SM). Insys Therapeutics, Inc. (INSY) remains a focus of fundamental demand as the share price declines amid kickback scandals and greater scrutiny on the company’s lead drug, Subsys. Meanwhile, China’s largest shipping company announced plans to buy out of its main rivals in another sign of consolidation in the embattled industry.
We are seeing increased demand in the US for Kate Spade & Company as Coach looks to acquire the handbag maker for $18.50 per share. Macau casino stocks fell in Hong Kong trading last week after the world’s biggest gaming hub reported June revenue that missed analyst estimates. Further rights issues announced in Southern Europe.
Directional demand is increasing for stocks in the Biotech sector as valuations rebound, while in Asia, a recent sale of bonds by one of China’s leading property developer’s surprised investors and led to a sharp sell-off on its first day. In Europe, short sellers have returned to Africa-focused UK oil exporter Tullow Oil.
Bullish sentiment for U.S. assets leads to increased IPO activity. In Asia, one of Japan’s largest car airbag manufacturers filed for bankruptcy on Monday. China’s domestic equities will join MSCI’s benchmark indexes, marking a landmark step in the continued integration of the nation with the global financial system. The Finnish construction company, Yit Oyj has sought to acquire Lemminkainen Oyj as it bids to increase its footprint in northern Europe.
As Sears Holdings’ struggles continue, we are seeing increased bearish sentiment for companies with exposure to the retailer, specifically REIT, Seritage Growth Properties. Borrowers are seeking shares of Toshiba Corp after plans to sell its memory-chip business took an unexpected turn last week. In Europe, capital raising deals are driving securities lending demand. Continue reading