Fiat Chrysler soars on Chinese interest. Representatives of a well-known Chinese automaker made at least one offer this month to buy Fiat Chrysler Automobiles at a small premium over its market value, Automotive News has learned. The offer was rejected for not being enough, a source said. Meanwhile, other sources independently identified executives from other large Chinese automakers conducting their own due diligence on a potential purchase of FCA, including meeting last week with representatives of U.S. retail groups about a potential acquisition. A source said FCA executives have traveled to China to meet with Great Wall Motor Co. And Chinese delegations were seen last week at FCA‘s headquarters in Auburn Hills, Michigan. Read more here.
Netflix signs Shonda Rhimes away from ABC in huge coup. Disney recently turned the screws on Netflix by pulling its content and unveiling a streaming service of its own, but now the tables have turned. Netflix revealed that it has signed Shonda Rhimes away from Disney-owned ABC to a multiyear production deal. Rhimes and her production company, Shondaland, will move from their ABC Studios base to Netflix, though she’ll continue to work on ABC shows currently airing or in development like Grey’s Anatomy. Rhimes says she’ll be able to focus more on storytelling and avoid the stress of 18-24 episode network TV seasons. Read more here.
Bitcoin vaults to new record above $4K, boosted by Japan. The digital currency Bitcoin vaulted to a new record high above $4000 on Saturday, boosted by strong Japanese demand on its way to multiplying its value fourfold this year. Bitcoin hit an all-time high of$4,225.40 early Sunday before slightly paring those gains to trade near $4,000, according to CoinDesk. The digital currency has now quadrupled in 2017, and is up about 40% in August alone. Bitcoin‘s market value is now around $64B, up about $10B in the last week. Bitcoin trade in Japanese yen accounted for nearly 46% of global trade volume. Read more here.
Tesla raised $1.8B, $300M more than expected, in its first high-yield junk bond offering Friday. The yield of 5.30% was slightly higher than the original guidance of 5.25%. Earlier in the week, Elon Musk’s luxury electric car maker Tesla was expected to raise at least $1.5B to accelerate production of its new Model 3, but strong demand allowed Tesla to raise more, albeit at a slightly higher yield than expected. Goldman Sachs was the lead underwriter of the eight-year bonds. S&P rated the bonds negative B and Moody’s B3. “It was well-received,” said Efraim Levy of CFRA. “In a large extent it does show that people are interested in the bonds of the company because they believe in the long-term growth … story.” Read more here.
Japan second-quarter GDP blows past expectations on robust domestic demand. Japan’s economy grew in the 2nd quarter at the fastest pace in more than 2 years as consumer spending and capital expenditure both rose at the fastest in more than 3 years, highlighting stronger domestic demand. Gross domestic product expanded an annualized 4.0% in April-June, government data showed, more than the median estimate for 2.5% annualized growth and the biggest increase since January-March 2015. Compared to the previous quarter, the economy expanded 1.0%, versus the median estimate for 0.6% growth. Read more here.
Click here for reuse options!