Highlights from The Deal's Eleventh Annual Dealmaking Outlook Event at the New
York Stock Exchange
NEW YORK, Dec. 13, 2013
NEW YORK, Dec. 13, 2013 /PRNewswire/ --The Deal, TheStreet's (NASDAQ:TST)
institutional business, hosted its eleventh annual forecasting event, The Deal
Economy: Predictions & Perspectives for 2014. Held at the New York Stock
Exchange on December 5, the invitation-only event gathered some of the most
influential members of the deal community for a series of discussions on the
key trends and issues confronting dealmakers in 2014.
Videos from the event are available online. Below are some highlights from
panels and speakers throughout the day:
Jeffrey Kanige, Editor in Chief, The Deal in his opening remarks:
"Some executives are pursuing less risky strategies to keep investors happy.
This trepidation accounts for the prevalence of share buybacks, dividends and
refinancing deals...All indicators point to an environment ripe for dealmaking
—liquidity in the markets is at a high, interest rates on borrowing remain
near historic lows, the stock market is booming and companies are flush with
Stefan M. Selig, Executive Vice Chairman, Global Corporate & Investment
Banking, Bank of America Merrill Lynch in the "Sense of the Markets:
Confidence Makes a Comeback" panel:
"With big deals - clearly there is an ability to get those deals done. Given
the Verizon financing, one of the things we were all surprised with...was how
much institutional appetite there was to do deals of that size and I think
there was always some concern and trepidation about the ability to do big
deals. I think that's now off the table. So CEO's and boards that want to do
deals of size...can absolutely do them and they are actually, potentially, if
well-structured and strategic, going to be well received. I think the one
thing you are unlikely to see are big deals in the leverage buyout space. The
$20-$30 billion deals we saw before the financial crisis might be a historical
Peter Orszag, Vice Chairman of Corporate and Investment Banking, Chairman of
the Public Sector Group and Chairman of the Financial Strategy and Solutions
Group, Citigroup, Inc.in his on-stage keynote conversation:
"There's no doubt that interest rates are going to be higher in 2014 and 2015
than they are today. Both because of tapering and because of the underlying
motivation for the taper which is that the economy will be, in all likelihood,
a bit stronger in 2014 than it is this year. Top line growth will be higher."
James Rickards, Author, "Currency Wars;" Senior Managing Director, Tangent
Capital Partners in the "Capital Calls: Liquidity Lowdown – a Fluid Situation"
"We all know that bubbles and Ponzi's are two different things. China is
managing to have both at the same time. China is having a bubble financed with
a Ponzi... there will be some event... and everyone will show up to get their
money back and it will be like 2008 in China. I do think the government can
contain it. When you have $3 trillion in reserves you can bail out a lot of
banks without it becoming worldwide contagion. But, if they have to, at the
margin, reduce purchases or sell treasuries to bail out their banking system,
that could have a very negative impact on the U.S."
James J. Cramer, Host, "Mad Money w/Jim Cramer" & Co-Anchor, "Squawk on the
Street," CNBC; Founder, TheStreet Inc. in a special keynote address:
"We now have a market that looks sublime and placid on the surface, but
underneath lurks a seething Washington bear. A bear hibernates then springs up
every few months to wreak havoc on stocks...the markets have become a bucolic
farmer's field to make hay when the sun shines except when the hidden
landmines of Washington appear underfoot and blow up those who have been
lulled into the thinking that all is well in the Republic."
Oliver Niedermaier, Chairman and CEO, Tau Investment Management in the "Sector
Showdown: Meet the Distruptors" panel:
"When you look at this race to the bottom today, everybody is squeezed for
margin. Obviously you have the short-termism on the retail and fashion
side...all dripping down into this supply chain where these factory owners are
absolutely starved of capital, have no expertise, have no access to western
buyers and are just trying to get through somehow. Obviously they are cutting
corners...it leads to huge inefficiencies and huge tragedies. How can you turn
that around into a race to the top? We think fairly easily if you inject a
couple of things including capital into these situations. Because if you make
these manufacturers more efficient, more compliant, more reliant, more
scalable ultimately everybody's going to want to source from them...By
investing capital, expertise, and access to Western buyers...you can change
completely the dynamics."
Robert L. Nardelli, former chairman and CEO, The Home Depot and Chrysler LLC;
founder and CEO, XLR-8, an investment and advisory company, in the closing
"If you think about the energy business and the innovation on horizontal
drilling with fracking – probably the most disruptive technology of the
decade...because I think the energy industry created 1.6 million jobs, it's
contributed over $62 billion in city, state, federal taxes. The average worker
on a fracking rig is averaging $94,000 a year. So if you want to gain energy
independence, you want to boost the economy, and therefore be able to create
jobs, that's a sweet spot to be in right now."
Supporting underwriters for The Deal Economy included Ernst & Young, Pepper
Hamilton, McKinsey & Company, William Blair and W.P. Carey. CNBC was the
official broadcast partner for the event.
For sponsorship & speaking inquiries about next year's event, please contact
Emily Newman (212-321-5565; email@example.com).
About The Deal
The Deal, a business unit of TheStreet, has been serving corporate dealmakers,
advisers and institutional investors the most sophisticated analysis of the
deal economy since 1999. Our transaction information service, The Deal
Pipeline, is powered by a newsroom of senior journalists who offer proprietary
research and reporting across M&A, bankruptcies, auctions and financings. It
includes a breaking news service, First Take; daily and weekly sector
newsletters; The Daily Deal, a 2x daily report of the day's top stories; a
research center with over a decade's worth of intelligence and a database of
over 100,000 deals; and an iPad & iPhone app. Our marketing & media services
group produces the industry's leading forecasting event, The Deal Economy,
held annually in New York City in addition to industry webcasts and integrated
marketing programs. For more information, visit www.thedeal.com
SOURCE TheStreet, Inc.
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