In today’s briefing:
- Nippon Steel/United States Steel Corp
- Silver Measured Move to 35.50
Nippon Steel/United States Steel Corp
- On 18 April, a White House official said that any review of the deal between Nippon Steel Corporation (5401 JP) and United States Steel (X US) by CFIUS will continue as scheduled.
- X shares trade at ~5.2x on NTM IBES-consensus EBITDA given priced-in deal risk vs. implied 7x at the time of the winning NSC’s bid, and look attractive relative to comparables.
- There remains a possibility that Nippon could finalize the takeover after the U.S. presidential election, presenting potential upside.
Silver Measured Move to 35.50
- S&P 500 looks vulnerable. Maintain large cash positions for forseeable future.
- US Dollar bull flagging and may put pressure on equities in near term.
- Nikkei at inflection point. Bulls must stand up here to defend.
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