Merger news continues to drive Securities Lending demand in the U.S. Fee levels are spiking quickly for recent IPO, Snap Inc. as the share price tumbled after the company reported a $2.2 billion loss. The world’s second-largest shipbuilder, Hyundai Heavy Industries, has split into four companies as it seeks to navigate through one of the most prolonged slumps in the industry. In Europe, everyone is talking about TalkTalk Telecom’s dividend scale back.
Last week the US and China announced some details of a tentative trade agreement. Many observers are scratching their heads. Commerce Secretary Ross says the goal is to reduce the roughly $360 bln bilateral deficit. There is little in the agreement that will achieve this.
The beef and other agricultural goods that the US can begin selling China are not on favored terms, and US producers will be competing, for example, with Brazil. Moreover, the amounts are too small to produce much of the trade imbalance. The US has agreed to be more open to cooked poultry from China, but this too is not on favored terms, and will health concerns may limit US demand.