Deal Making in the U.S. Takes a Back Seat

REPLAY VIDEO
Your next video will start in
Pause
  • Info

  • Comments

  • VIDEO TEXT

Oct. 21 (Bloomberg) –- In today's "Global Outlook," Bloomberg's Mia Saini takes a look at mergers and acquisitions in the U.S. on Bloomberg Television's "On The Move Asia." (Source: Bloomberg)

Click the average dollar value shown with this white line on your screen.

The s&p 500 is the yellow line on your screen.

The average, 90 billion dollars.

From about 12% compared to two years earlier.

Between september 2011 and last months, i can say the s&p climbed 15% and pass the 1700 mark for the first time.

Usually, share prices increase.

Deals follow.

This time around, there appears to be none of this.

That is not happening because there is too much concern about the pace perhaps of the economic growth and other issues for chief executives to pursue, the takeovers, like what will happen after the debt ceiling conversations again happen early next year.

Citigroup says buying back shares is the release to risky thing you can do and has grown in popularity.

Citigroup has gone on to say there are a variety of opposite -- explanations for why dealmaking has lagged.

The cost of financing, higher valuations for potential targets, reluctant to spend cash for takeovers and lastly, there is a cautiousness about taking on more debt as the economic outlook gets a lot cloudier in the future.

I can mention to you the biggest deals this year, we will take a look on your screen.

The acquisition, softbank, and globally, there have been 1.8 trillion deals so far this year.

The year is not over yet.

It hundred 48 billion dollars.

Europe coming in second.

Here in the asia-pacific, 348 billion dollars.

That is a look at your global outlook for today.

Shares of general electric

This text has been automatically generated. It may not be 100% accurate.

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change