Disney’s sale, Chevron’s acquisition, and the Bitcoin ETF

Hello Folks,

Here’s what’s in stock for today.

👉 Disney’s $10 billion sale of its India assets to Reliance Industries

👉 Chevron’s multi-billion-dollar acquisition of Hess

👉 Bitcoin surges as BlackRock lists ETF name and ticker.

Let’s dive deeper!!!

Disney is nearing a cash and stock deal to sell its India operations to Reliance Industries for $10 billion, according to Bloomberg. Reliance is controlled by Asia’s richest business tycoon, Mukesh Ambani, and is among the largest companies in India.

The House of Mouse aims to sell a controlling stake in Disney Star, while Reliance has priced these assets between $7 billion and $8 billion.

JioCinema, the streaming platform owned by Reliance, has gained significant market share in the past year by offering free access to the Indian Premier League, which is the country’s premier cricketing tournament.

The digital rights of the big-ticket annual tournament was previously held with Disney.

Chevron Bids $53 Billion for Hess

Dealmaking’s back, baby. After months of tumbleweeds in the usually lucrative world of mergers and acquisitions, Chevron announced the second mega deal in the energy sector this month.

Chevron disclosed its intention to acquire Hess for $53 billion. As interest rates have made it expensive to borrow money, Chevron will issue $60 billion worth of shares to fund the acquisition.

The upcoming merger further intensifies the rivalry between Chevron and Exxon as the two heavyweights aim to tap into the lucrative oil resources located in Guyana.

Chevron is the second-largest oil and gas producer in the U.S. after Exxon and is betting heavily on fossil fuels amid rising global demand.

10-Year Treasury Tops 5%

The yield on the 10-year Treasury note just surpassed 5% for the first time since 2007. Analysts expect the Fed to keep interest rates elevated while increasing bond issuances to manage widening deficits.

Generally, the 10-year Treasury bond is viewed as the benchmark for the risk-free rate, which is used to compare other asset classes.

An increase in yields has multiple cascading effects on global markets. For instance, it increases borrowing costs for households, businesses, and governments, resulting in a tepid lending environment.

BlackRock Lists Spot Bitcoin ETF on DTCC

BlackRock’s highly anticipated spot Bitcoin ETF, the iShares Bitcoin Trust, is now listed on the DTCC or Depository Trust and Clearing Corporation. The spot Bitcoin ETF is yet to be approved by the SEC.

Following the news, BTC prices have surged to $34,400, up over 30% in the past month.

Headlines You Can’t Miss!

Intel stock drops on report Nvidia is working on an Arm-based PC chip

Apple to spend $1 billion to expand AI capabilities

Micron is building the biggest-ever chip fab in the U.S.

Wall Street expects the anti-obesity drug market to surpass $100 billion

Sam Bankman-Fried trial moves to final stages

Chart of the Day

Is another tech sell-off on the cards?

The tech-heavy Nasdaq Composite index and the 10-year U.S. Treasury prices are directly correlated (at least until December 2022). So, how does this work?

As interest yields increase, bond prices fall. A higher cost of debt also results in a broader equity market sell-off as consumer demand slumps, resulting in lower sales and profit margins for businesses.

While yields have remained elevated in 2023, bond prices have nosedived. But the Nasdaq index has surged over 25% year-to-date. Should you brace for carnage and volatility in the next 12 months?

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions. Please be careful and do your own research.