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FINANCE IN THE NEWS


STOCK MARKET EVOLUTION (EUROSTOXX 50)

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UNREST IN MIDDLE EAST

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Stock market reactionJanuary-February 2011


IMPACT EARTHQUAKE JAPAN

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Hurricane Katarina (S&P 500), 2005

Tsunami (Sri Lanka All Share), 2004

Pearl Harbour (DJI), 1941

Earthquake Kobe (Nikkey 225), 1995

September 11 2001 (S&P 500)

Recent earthquake(Nikkey 225), 2011


HUGE US DEBT BURDEN

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http://www.usdebtclock.org


EUROPEAN PUBLIC DEBT LEVELS

Public debt 2011 (%GDP)

EU (27 ) 82.5

Belgium 98

Germany 81.2

Ireland 108.2

Greece 165.3

Spain 68.5

France 85.8

Italy 120.1

Luxembourg 18.2

Netherlands 65.2

Austria 72.2

Poland 56.3

Portugal 107.8

United Kingdom 85.7

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NEW VOCABULARY

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“Grexit”,“Spanic”,…


BELGIAN GOVERNMENT BONDS 10Y

Source: Bloomberg11


CONFIDENCE LEVELS REMAIN HISTORICALLY LOW

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RAISING EQUITY: IPOS

� Samsonite (Hong Kong): $1.25 bio

� Prada (Hong Kong): $2.14 bio

� Linkedin (NYSE): $405 mio

� Bankia (Madrid): € 3.1 bio

� Groupon (Nasdaq): $700 mio

� Zynga – Farm Ville (Nasdaq): $1 bio

� Manchester United (NYSE): $223 mio

� Japan Airlines (Tokyo): € 6.3 bio (second largest of 2012)!

� Workday (NYSE): $637 mio

� Coming up (?):

Mexx, Angry birds (Finnish Rovio Entertainment), Dropbox, Bpost

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FACEBOOK IPO

� Amount raised: $ 16 bio ($38 x 421 mio)

� Total Valuation: $104 bio

� Dual-class shares

� Zuckerberg has 18% ownership but 57% of voting rights

� At market value of $104 bio:

� 900 mio users � $115/user

� Revenues: $ 4.04 bio � P/S= 26

� Profit: $ 720 mio � P/E= 144

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FACEBOOK IPO

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RAISING DEBT: RECENT BOND ISSUES

� IBM (AA-): July 2012

� $1 bio (1.875% - 10 years)

� Walt Disney (A): February, 2012

� $1 bio (1.25% - 3 years)

� $0.4 bio (2.55% - 10 years)

� Dr Pepper (BBB): $500 mio (2.7% - 10 years)

� MGM Resorts International (B-): March, 2012

� $1 bio (7.75% - 10 years)

� Very succesful recent issues by Belgian companies (Roularta, ETEX, AB Inbev, Kinepolis, CFE, Arseus, Omega Pharma, Fluxis, DEME, Vandemoortele, Eandis, DEME, Delhaize,…)

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EVOLUTION INTEREST RATES

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EVOLUTION INFLATION

“Inflation is when you pay fifteen dollars for the ten-dollar haircut you used to get for five dollars when you had hair. “

Sam Ewing

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RECENT TRANSACTIONS

� Universal - EMI ($1.9 bio)

� Berkshire Hathaway/3G – Heinz ($23 bio)

� AB Inbev – Modelo ($20.1 bio)

� UPS - TNT Express ($7 bio)

� Dell buyout ($24.4 bio)

� Liberty Global – Virgin Media ($16 bio)

� American Airlines – US Airways (stock swap-combined market cap of $10 bio)

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€ 9.5

Source: Bloomberg


SOME LOCALLY IMPORTANT TRANSACTIONS

� Immoweb: sold to Axel Springer (€127.5 mio)

�Lutosa: sold to McCain (€225 mio)

� Iris-Canon (€70 mio)

�Glacio - ijsboerke

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MISCELLANEOUS: HOW LONG TO BE A MILLIONAIRE?

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!

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