Druckenmiller Bets on Unexpected With China Boom, Oil Rise (Bloomberg)
Stan Druckenmiller is betting on the unexpected. The billionaire investor, who has one of the best long-term track records in money management, is anticipating three market surprises: an improving economy in China and rising oil prices. He also doesn’t expect the Federal Reserve to raise interest rates in 2015, a move most investors are forecasting will happen in September after six years of keeping them near zero. “My fear is that we won’t see anything for a year and a half,” Druckenmiller, speaking of an interest rate increase, said in a Bloomberg Television interview. “I have no confidence whatsoever that we’ll see a rate hike in September or December.”
This Chipmaker Looks Like A ‘Buy’: Analyst (CNBC)
“We think there is more chip growth to be had even with recent market share losses and concerns,” Morningstar Senior Analyst Brian Colello told CNBC on Wednesday. With Qualcomm share prices down 6 percent this year, Jana Partners‘ founder told CNBC on Monday that the tech company needs to review the units to decide whether they should be spun off. “What we think they ought to do is just a transparent review of the client businesses, and determine whether or not it makes sense to do either a partial or full split. So we are not definitely saying that they should split it up,” hedge fund Barry Rosenstein said.
Elliott Raises DMG Mori Seiki Stake Above 10 pct (Reuters)
U.S. activist hedge fund Elliott Management has raised its stake in DMG Mori Seiki to 10.1 percent, the German machine-tool maker said in a statement on Wednesday. DMG Mori Seiki’s smaller, Japanese partner, DMG Mori Seiki Co. Ltd, owns 50.8 percent of the German company following a tender offer that ended last month. Elliott’s share was previously just over 5 percent. It began building up its stake after Japan’s DMG launched the offer. Elliott declined to comment. The German and the Japanese companies have said they hope the merger will cement the German company’s position as global market leader in machine-tool manufacturing.