Nov 7, 2019

Equity and M&A deals plummet in tough Q3

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Adapted from S&P Global; Chart: Axios Visuals

U.S. and global dealmaking slowed significantly in the third quarter, with equity and merger and acquisition announcements "plummeting" year over year and quarter over quarter, according to the latest data from S&P Global Market Intelligence.

By the numbers: The global total value raised from equity deals fell 37.1% quarter over quarter and 29.4% year over year to $91.85 billion.

  • In the U.S., deal value fell by 35% from the second quarter and 11% from Q3 2018.
  • The total sum of $10 billion-plus global M&A transactions fell 78.8% and the sum of $1 billion-plus global IPOs fell 62.5%.

Be smart: Q3's weakness happened in the context of heightened global uncertainty and a number of geopolitical events that shook confidence, including the Saudi Arabia oil field strike, Brexit negotiations and a surprise election result in Argentina, S&P analysts note in the report.

The bottom line: "The trade war has been taking a toll on economic growth. Countries such as Germany with the greatest exposure to manufacturing and trade have seen the most weakness. Consumers have remained resilient, which bodes well for consumption-driven economies such as the U.S., but the tariffs keep coming."

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WeWork reports $1.25 billion net loss for Q3

Illustration: Sarah Grillo/Axios

WeWork reported a $1.25 billion net loss for the third quarter during a call on Wednesday with the embattled company's bondholders, more than doubling its year-earlier number.

Why it matters: These results represent WeWork's final quarter under the leadership of Adam Neumann, who was ousted after a failed IPO.

Go deeperArrowNov 13, 2019

Wilbur Ross says December tariff hike likely without China breakthrough

Commcerce Secretary Wilbur Ross during a cabinet meeting on Oct. 21. Photo: Alex Wong/Getty Images

Commerce Secretary Wilbur Ross said Monday on Fox Business that time is running out for the U.S. and China to agree on a trade deal before Dec. 15, when the U.S. is set to impose an additional 15% tariff on around $156 billion worth of Chinese goods.

Why it matters: Future tariff hikes would likely further squeeze the U.S. and Chinese economies, dragging down already declining business investment in the U.S. and possibly pushing the manufacturing industry into a deeper recession.

Go deeperArrowDec 2, 2019

World trade is getting more restrictive

Reproduced from World Trade Organization; Note: Does not reflect cumulative value; Chart: Axios Visuals

Trade is getting more restrictive around the globe. In the six months through October, newly introduced trade restriction policies in G20 countries covered the 2nd highest amount of goods on record, according to a new report from the World Trade Organization.

G20 economies implemented 28 new trade-restriction measures in the last six months — not just through tariff increases, but also through import bans and stricter customs procedures.

Go deeperArrowNov 22, 2019