Daily brief - 22 Jan 2024

Macy's stands firm, says no to $5.8 billion takeover bid

Macy's, has turned down a big offer of $5.8 billion to buy the company. The bid came from two investment firms, Arkhouse and Brigade, but Macy's didn't think it was good enough. They're worried the investors might not have enough money to make the deal happen. Despite this, Arkhouse is eager and might ask Macy's shareholders directly to agree to the deal. Macy's, facing tough times with more people shopping online, is letting go of some of its staff. Yet, they're still open to other chances that might help the company and its shareholders.

Riley under SEC's lens for controversial client deals

The SEC is looking into B. Riley Financial Inc.'s dealings with a client linked to a failed hedge fund. They're checking how B. Riley worked with Brian Kahn, especially his buyout of Franchise Group Inc., which was partly funded by Nomura Holdings. B. Riley's shares have dropped because of this and some investors are betting they'll fall more. The SEC's investigation is still early, and there's no proof of wrongdoing yet. B. Riley says they'll cooperate with any SEC questions, while Nomura, also involved, hasn't said anything. The whole situation is causing worry about B. Riley's future.

Yuan and bonds struggle as investors look elsewhere

Investors are losing faith in Chinese assets, not just in stocks but also in the yuan and government bonds. China's economy isn't doing well, and even though there might be lower interest rates, it won't be as much as other countries. This makes China's bonds less appealing compared to higher-yielding options like India and Brazil. The yuan, too, is expected to stay weak against other currencies. While China's bonds did okay at the start of the year, places with higher interest rates are now more attractive. Investors are thinking about other countries' bonds, especially when they offer more money back.