France Right to Be Concerned About Alstom: Blain

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May 7 (Bloomberg) -- Bill Blain, Strategist at Mint Partners, discusses M&A, the crisis in Ukraine, and worldwide monetary policy. He speaks on Bloomberg Television’s “On The Move.” (Source: Bloomberg)

But failed with the -- the price for shareholders is to decide.

We could spend the rest of the day talking about m and a and current motivations.

I think it would be wrong to dismiss this as this is a french being typically french.

It is more than that.

The french are quite right to be concerned that they are seeing their prime assets -- france does not have -- does have excellent companies.

Alstrom is one of them.

They're concerned that if they lose control, where does that leave the economy in the future?

We have also got to link it to what is going on in the u.k. with the astrazeneca take over as well.

Tables came in this morning that say that the u.s. companies gaining tax advantage by switching and spending their piles of money overseas is not a good motivation necessarily for him and a. -- m&a. provisions missed on estimates.

This is a company right for takeover.

-- rioppe for takeover.

It is attracted to the right partner and eight would probably be ge.

We should not overemphasize the french government comments.

We should not say to negative because they're trying to be constructive.

The goes ahead, a good thing for france but the french government is right to be concerned.

We are looking at a lot of m and a. it is a lot of positions linked to russia.

Carlsberg having a tough time because this is one of their biggest markets.

What is your take on the situation in russia?

The ruble is weakening, an economy that is barely standing at the moment.

Are we going to -- is it going to hurt a lot of the companies in europe?


We have to look at the russian situation and understand -- away from all the noise about ukraine, look at what has happened in the geopolitical reality.

Russia has been pushed into a corner.

They are not going to share in the global expansion and growth when it comes.

If it comes.

Let's hope it does.

We make it signals of that later.

That leaves russia as a hole that will get worse.

It is interesting.

You have seen socgen, a bank that is smarter than people give it right at four, coming out and announcing massive provisions because they understand -- give it credit for, announcing massive provisions because they understand what can happen with the russian economy.

Because it could drag it down with it or the russian president going for foreign asset seizures?

I think there are two aspects.

The first one is, what will the reality of less business before your' economy.

It will have a knock on effect and will be multiplied -- demu ltiply earnings across europe.

Europe is well placed and we have seen it in the numbers to share global growth.

Even the worst parts are expanding.

Russia has been pushed out of that.

How russia reacts is the real question.

It is like a replay of the reagan era in some ways.

I suspect obama's long-term strategy is that it changes attitudes in russia when the russian populace realize how badly damaged the economy has been.

Is the most important question and the one that is completely impossible to predict.

Overarching this we have the ecb, bank of england, tomorrow.

Today we have janet yellen.

Re: going to see more dovish yellen?

The bond market -- i will always say the bond markets are the most important things in the world.

They determine reality.

This am and a is journalized it -- journalistic froth.

Bond markets are fascinating.

The u.s. treasury market, despite signs we are getting the economy recovering, and i think we will get stronger signals, bond market yields remained very low in supportive.

In europe, we have got italy and spain, both with 3% 10 years the back of the expectations that the ecb is going to go in and buy.

The ecb is not going to go in and buy.

What they have done is a typical ecb thing of saying, we will think about buying and yes, we are planning it, and the market assumes it happens, and it does not actually have to do anything that might upset the political status quo.


Playing with words.

Kicking the can down the road and scoring a goal.

Bill, thank you so much.

Coming up on the program, it is the biggest ipo ever and the most hyped ipo of the year.

Alibaba files for a blockbuster public offering in the u.s.. we will break down the numbers next.


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