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2 Sep 2015
GBP has large pending M&A inflows while CNY most negative - Nomura
FXStreet (Delhi) – Research Analysts at Nomura, notes that the UK Pound has the most positive expected cash flow as the pipeline increased by $19.4bn during the past month while the pipeline is still positive for the USD. Even though, the net pending cash flows for the US decreased by $9.5bn to $51.7bn during August.
Key Quotes
“CNY has the largest negative pipeline, followed by JPY and CAD. The cash flow expected for JPY and CAD, increased by $5.4bn and $12.9bn respectively, meaning the negative impact on the currencies from pending M&A transactions is less than it was as of the end of July.”
“The pipeline for CNY on the other hand became more negative during the month. For both JPY and CAD, the cash flows expected from deals announced during the month were negative, meaning that the positive change to their pipelines was from cash flows expected from previously announced deals being completed.”
“The pending cash flows for EUR from M&A deals are relatively muted at just -$0.7bn. This is because, although there are many large pending deals, the net cash consideration is modest. Similarly for Australia, the pending total flows are fairly significantly positive, but the cash component is modestly negative.”
“The CHF M&A pipeline shifted to negative from positive during August, declining $14.8bn to -$9.0bn. This in large part was new deals announced during the month (particularly the Zurich Insurance group acquisition), although there were also some deals where we believe the cash flows have been completed.”
“The largest cash deals during August not surprisingly involved the United Kingdom, given the change in the pipeline as 4 of the top 5 pending cross border deals have a UK firm (or foreign subsidiary of a UK firm) being the target of an acquisition.”
Key Quotes
“CNY has the largest negative pipeline, followed by JPY and CAD. The cash flow expected for JPY and CAD, increased by $5.4bn and $12.9bn respectively, meaning the negative impact on the currencies from pending M&A transactions is less than it was as of the end of July.”
“The pipeline for CNY on the other hand became more negative during the month. For both JPY and CAD, the cash flows expected from deals announced during the month were negative, meaning that the positive change to their pipelines was from cash flows expected from previously announced deals being completed.”
“The pending cash flows for EUR from M&A deals are relatively muted at just -$0.7bn. This is because, although there are many large pending deals, the net cash consideration is modest. Similarly for Australia, the pending total flows are fairly significantly positive, but the cash component is modestly negative.”
“The CHF M&A pipeline shifted to negative from positive during August, declining $14.8bn to -$9.0bn. This in large part was new deals announced during the month (particularly the Zurich Insurance group acquisition), although there were also some deals where we believe the cash flows have been completed.”
“The largest cash deals during August not surprisingly involved the United Kingdom, given the change in the pipeline as 4 of the top 5 pending cross border deals have a UK firm (or foreign subsidiary of a UK firm) being the target of an acquisition.”