Mixed markets back from holiday | Calamatta Cuschieri

Oil and Retail tug-of-war, Softbank’s bid for Uber & hacks driving up Sailpoint

Japan's Softbank has reportedly made a heavily discounted bid to buy Uber shares at a valuation of $48bn
Japan's Softbank has reportedly made a heavily discounted bid to buy Uber shares at a valuation of $48bn

US investors returned from their long-weekend Thanksgiving break on Monday and markets saw U.S. equities ending little changed after briefly touching intra-day records as declining oil prices pulled down energy stocks at the start of a busy news week. West Texas Intermediate crude slipped after U.S. drillers expanded operations while OPEC and Russia prepare to discuss longer supply curbs.

U.K. stocks ended lower on Monday for a third straight session as mining shares fell under the weight of concerns about the health of Chinese companies. The FTSE 100 index dropped 0.4% to close at 7,383.90 after a choppy trading session. The retail sector however took the global centre stage as the holiday shopping season continued. Cyber Monday shopping is expected to set an online sales record, according to forecasts.

Softbank and companies bid for Uber

Japan's Softbank has reportedly made a heavily discounted bid to buy Uber shares at a valuation of $48bn as the Japanese conglomerate leads a consortium of firms that is planning to buy at least 14% of the ride-sharing firm. If the deal goes ahead, Softbank would acquire the stock for nearly 30% less than Uber's most recent valuation of $69bn. The shake-up could help bring stability to Uber after a difficult year.

As part of the deal, the board would be expanded from 11 to 17 directors, with Softbank's investor group taking up two of the new board seats, according to the Reuters news agency. It would also reduce the influence of former chief executive, Travis Kalanick, who was ousted in June. And while the size of the potential investment has not been disclosed, earlier this month Uber said the money would fuel its expansion and investments in technology.

Sailpoint storms out the gate

Cybersecurity firm SailPoint’s shares jumped 20 percent after pricing well above initial range following their debut on Friday’s IPO, riding a wave of interest in cybersecurity. The company priced its initial public offering at the NYSE at $12, well above the price talk of $9 to $11, and opened Friday at $14.90, up over 20 percent.

This year’s recent cyber-attacks have put the cybersecurity industry under the spotlight. Many cybersecurity breaches have happened because individuals gained access to corporate networks with stolen passwords or because authorized employees on a network engaged in unauthorized activities.

 

 

Disclaimer:

This article was issued by Peter Petrov, Trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article is being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.

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