Chinese Buyers Descend to Buy Japanese Real Estate
Since the yen's decline to a 22-year low and with the impending excitement over 2020 Tokyo Olympics, Chinese investors have been coming into Japan to buy up housing properties. Realty agencies in Beijing have already been offering twice-monthly tours to Tokyo and Osaka for prospective buyers, and Shanghai is expected to start property tours soon as well. As a result (at least partly), Tokyo apartment prices have advanced to highest levels since the early 1990s. In the last 2 years, levels have increased 11%, according to the Real Estate Economic Institute Co. A brokerage agent noted that his number of mainland buyers have increased 20% in just the past year. Such trends have already taken place in the U.S. ($28.6 billion on homes bought by buyers in China, Hong Kong and Taiwan) and Sydney (where the Chinese has bought nearly a quarter of new homes).
Univision Looks to Pursue I.P.O. in United States
Spanish-language cable networks owner Univision Holdings intends to pursue an initial public offering in the U.S., according to recent filings with the Securities and Exchange Commission (SEC). Based in New York, the company operates television and radio networks for the Hispanic audience in the States. In 2014, the firm posted a revenue of $2.91 billion. While the volume of shares is unknown, Univision has stated it hopes to raise $100 million - the traditionally cited figure in registration statements. This means the end valuation could be much higher. The I.P.O. will be led by Morgan Stanley, Goldman Sachs and Deutsche Bank.
Rakuten Acquires Tokyo-based Start-up Voyagin
Japan's largest e-commerce site and leading online travel agency, Rakuten, is expanding its business with the buyout of tour planning start-up Voyagin. While the deal's financial terms remain undisclosed, Voyagin's co-founders have confirmed that Rakuten paid cash and now holds more than 50% stake. Voyagin currently features over 1,800 activities and has served more than 30,000 customers in the past year. With this addition, Rakuten - which books over 3.8 million hotel nights each month - will look to increase its international consumer base, as its user are currently mostly domestic tourists. Travel to Japan has increased recently due to depreciation of yen, as well as relaxed visa policies for countries such as China and Vietnam. In April, Japan hosted about 1.8 million foreign visitors, a 43.3% increase year-over-year. This number is expected to continue growing as Japan prepares for the 2020 Olympic Games.
Tesla Motors Inc. stock rose this week, following the company's announcement that it delivered 11,507 Model S sedans during the 2nd quarter, up 52% from the previous year's period. Tesla had previously anticipated sales of between 10,000 and 11,000 cars. Its shares have gained 24% in 2015 so far, with 44% in the last 3 months. This is far above the S&P 500's growth rate, of 0.4% in the last quarter. However, while the average price target for Tesla shares is $276.37, analysts at Bank of America Merrill Lynch maintains a conservative estimate of $180. Furthermore, BAML has kept its rating of Tesla unchanged at underperform, suggesting the company's shares are overvalued. This is due to their contention that Tesla remains a niche company in the near-term.
