Market Summary #9

General Electric to Sell Aircraft Leasing Business for $30 Billion

AerCap will acquire GE’s jet leasing business in a $24 Billion cash deal plus $6 Billion worth of shares from the Irish leasing company. General Electric plans to reduce its debt by around $30 Billion, using the proceeds from the transaction and other existing cash sources. After the deal was announced, GE was put on credit watch by the S&P Global Ratings for a possible downgrade of its debt. This sale marks yet another commitment for GE to be a more focused and simpler industrial company.

KKR is Seeking to Raise $12 Billion for another Infrastructure Fund

After raising $3.9 Billion for its Asia-Pacific infrastructure fund in January, the Private Equity firm is said to be looking to gather about $12 Billion for its fourth global infrastructure fund. Although no confirmation has been made, this would make for one of KKR’s largest infrastructure ventures. The firm has invested close to $25 Billion in around 40 assets spread across the globe since 2008. Its Asia-Pacific Fund has been used for investments in waste management, renewable energy and communication towers, aligning with the current world trends of sustainable environment and 5G.

Biden signs Stimulus Package Into Law

On the 11th of March, US president Joe Biden signed a bill for a stimulus package worth 1.9 trilion dollars. This package is equivalent to 8,5% of the US national income and its purpose is to boost the economy and provide relief to lower income families. Forecasts already point out a 1% increase in the global income this year and it´s estimated that the economy will expand 5,6% this year, a bigger growth then expected in December.

Brent crude floats near $70 on demand recovery anticipation

Oil prices edged up on Monday, with Brent drifting near $70 a barrel, propped up by output cuts from major producers. Top oil exporter Saudi Arabia has cut the supply of April-loading crude to at least four north Asian buyers by up to 15%. The supply cuts come as the OPEC and its allies, a group known as OPEC+, decided earlier this month to extend most of its supply cuts into April.

Netflix explores selling its content

The well known giant in the streaming market is now looking for options to sell some of its original tv shows and films to other tv outlets like NBC Universal. In the last months Netflix has loss some of its clients to other streaming platforms like Disney+ or HBO, and its looking to create a new revenue stream by selling some of its original content to offset the billions invested in many older shows that no longer bring new users or help retain older ones.

Danone to oust Faber as chairman as pressure from shareholders intensifies

The yogurt-maker company voted to remove Emmanuel Faber out as a chairman, just days after he stated he would no longer serve as CEO but would remain with that position. A decision taken as pressure from investors intensified with complaints about the stock market performance of Danone, the weak sales growth, and critics on their investment strategic decisions. The news leave Danone in need of a new CEO quickly.

PEMEX discovers new billion-barrel oil field in Tabasco

Petróleos Mexicanos discovered in The Gulf of Mexico what’s expected to be a billion-barrel oil field, as it aims to reverse a decade of sinking production. The state-owned oil company is worse off than at any time in its nearly 83-year history. Its output has fallen sharply since the early years of this century and its debt at $113 billion is the highest of any major oil company. Also the president canceled competitive oil auctions that allowed private companies to exploit Mexico’s vast oil.

Nokia and Samsung sign patient license

The Finnish telecom company signed a deal with Samsung to license patents for video standards. Samsung will pay royalties for the award-winning video technology of Nokia, a company that currently holds a portfolio of 20,000 patent families. The president of Nokia said on March 11th, that the agreement validates the investments made in research and development valued at €129 billion over the past two decades.