What You Need To Know This Week — August 31st, 2019
What You Need To Know This Week
A weekly recap to keep you informed on the most important events this week impacting markets, business, tech and the global economy.
ARGENTINA FLIRTS WITH DEFAULT AS IT LOOKS TO RESTRUCTURE OVER $100 BILLION OF DEBT
Argentina’s government will ask creditors such as the International Monetary to push back debt payments and extend maturities on a total of $101 billion of debt. The country’s finance minister is looking for financial relief as Argentina faces a worsening economy and a potential debt default prior to upcoming elections in October.
TOBACCO COMPANIES PHILIP MORRIS AND ALTRIA CONFIRM MERGER TALKS
Philip Morris International and Altria confirmed that they are in discussions for an all-stock, $200 billion merger of equals. The deal would bring the companies back together after Altria spun-out Philip Morris in 2008. The companies are considering the merger to help withstand the decline in demand for tobacco.
CYCLING EQUIPMENT COMPANY PELOTON REVEALS PLANS FOR IPO
Stationary bike and fitness class streaming company Peloton filed its prospectus for its anticipated initial public offering. The company, which is known for its $2,000 exercise bikes, was last valued at $4.15 billion when it raised $550 million in venture capital funding last August.
CHINA DE-ESCALATES TRADE WAR AS IT INDICATES IT WON’T RETALIATE ON NEW U.S. TARIFFS
China’s Ministry of Commerce offered conciliatory remarks, hoping that the U.S. would withdraw the planned additional tariffs to avoid further escalating the ongoing trade war. China indicated that it has ample countermeasures to retaliate, but discussions should focus on whether previously implemented tariffs can be cancelled. The S&P 500 was up 1.3% on the news.
Recommended Articles, Podcasts, Books and Tweets
Listen to Eric Cinnamond talk about small cap investing on The Investors Podcast.
Bayer’s acquisition of Monsanto has turned into one of the worst corporate deals in history.
The U.S. Treasury is considering issuing 50 and 100-year bonds.
Elon Musk is “full of shit” and used Tesla to bail out failing SolarCity, according to Vanity Fair.
When is the value factor going to start working again?
Risk parity’s chances of amplifying market declines are “grossly overstated”.
-The Accelerate Team
