Author: Vitaliy Dadalyan

15 Dec by Vitaliy Dadalyan Tags:

Caution Abounds Even as Emerging Markets Ready Year-Ending Rally

(Bloomberg) -- Emerging markets are gearing up to ride a risk rally in the final full week of December, with a troika of uncertainties all but lifted from traders’ radars.There’ll be plenty of caution around, though.While last week’s meeting of the U.S. Federal Reserve and the U.K. election have been removed from the list of worries, there are sufficient doubts about the progress of the U.S.-China trade negotiations to keep buyers away. And if there’s anything to be gleaned from expected volatility in the Chinese currency, the skeptics are legion. Options-implied one-year volatility for the offshore yuan stood at 5.05% on Friday, above the roughly 4.5% in April and July, a time when traders saw a trade deal as imminent.While Washington and Beijing agreed the first phase of a trade deal on Friday that will see the U.S. reduce some tariffs and China increase agricultural purchases, broader problems between the world’s...
15 Dec by Vitaliy Dadalyan Tags:

China’s BAIC Mulls Raising Daimler Stake to Almost 10%

(Bloomberg) -- BAIC Group is considering lifting its stake in Daimler AG to as much as 9.9%, according to people familiar with the matter, strengthening Chinese ownership of the Mercedes-Benz maker as Germany gets drawn deeper into global trade tensions.The move would put almost 20% of Stuttgart-based Daimler into the hands of two major Chinese owners. Zhejiang Geely Holding Group, owned by billionaire Li Shufu, bought a 9.7% holding last year.State-owned BAIC, which last reported a 5% holding in Daimler, has also raised the prospect of taking a seat on the supervisory board, said the people, who asked not to be identified as the matter is confidential. Geely has no board representation.Gaining a second anchor shareholder could benefit Daimler, which has seen profit margins pressured from hefty investments into electric mobility. Potentially, the move could ease the way for the German manufacturer to lift its 49% stake in its main Chinese...