Financial markets are pricing in more risk on possibility of a Brexit succeeding in the upcoming 23 June plebiscite following release of latest opinion polls which show a 5% lead opening up for those in favour of an "Exit". The Murdoch backed Sun newspaper also favours an exit which might have an influence over the voters. With US markets giving up hopes of a near term rate rise in the US, Brexit is now the biggest news being watched by the financial markets. Brexit fears resulted in the GBP falling to its lowest level against the USD in a month at 1.41 and the Japanese Yen strengthening across the board against the Euro, GBP and the USD as it is usually considered a "safe haven" currency.
microsoft borrows to buy linkedin
Microsoft announced it is paying USD 26.2b to acquire Linkedin. However despite holding over USD 100b in cash, the company will still borrow money to fund the acquisition. This is an example of how corporates are taking advantage of low interest rates to acquire new businesses and able to deduct interest expenses for tax purposes despite holding cash which are held outside the United States in low tax jurisdictions.
MARKET DATA
| Australia Cash rate Australia 90 day bank bill Australia 10 y bond US 10y Govt bond AUD/USD AUD/EUR AUD/JPY AUD/CNY ASX 200 S&P 500 Dow Jones Shanghai Composite Brent Oil (USD per BBL) Gold Spot (USD per oz) *Iron Ore 60% MBIOI-IR index USD/t (Updated Wednesday) | As at 10-Jun 1.75 2.01 2.10 1.68 0.7415 0.6561 79.83 4.8660 5,227 2,079 17,732 2,833 49.84 1,282 43.76* | As at 3-Jun 1.75 1.99 2.16 1.70 0.7246 0.6497 78.74 4.7710 5,318 2,099 17,807 2,938 49.64 1,245 43.61* |
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