The EU Comission blocks the merger between Deutsche Börse and NYSE Euronext -- The EU regulator voted against the plan of Deutsche Börse and of NYSE Euronext to create the largest stock market in the world, after concluding that the merger would hurt competition, Bloomberg reports. The deal would have led to a "quasi-monopoly" of derivatives traded on the European market, the European Commission announced yesterday, and it went on to say: "Any return on this deal would not be enough to counter the damage caused to consumers following the merger". The E.U. blocked the merger amid fears that the resulting entity - which would lead to more than 90% of the derivatives market in Europe - would make competition far too difficult for new players, according to the Chicago Tribune. The U.S. regulators approved the merger in December, on the condition that the two companies would sell a minor asset. Following yesterday's decision, both companies said that they are now focusing on singular strategies and are negotiating the halting of the deal. The NYSE said it would resume its 550 million dollars stock buyback program, once it reports its earnings on February 10th and the merger agreement is officially canceled. Deutsche Börse will publish its financial results on February 13th. 
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Thursday, February 2, 2012
The EU Comission blocks the merger between Deutsche Börse and NYSE Euronext
The EU Comission blocks the merger between Deutsche Börse and NYSE Euronext -- The EU regulator voted against the plan of Deutsche Börse and of NYSE Euronext to create the largest stock market in the world, after concluding that the merger would hurt competition, Bloomberg reports. The deal would have led to a "quasi-monopoly" of derivatives traded on the European market, the European Commission announced yesterday, and it went on to say: "Any return on this deal would not be enough to counter the damage caused to consumers following the merger". The E.U. blocked the merger amid fears that the resulting entity - which would lead to more than 90% of the derivatives market in Europe - would make competition far too difficult for new players, according to the Chicago Tribune. The U.S. regulators approved the merger in December, on the condition that the two companies would sell a minor asset. Following yesterday's decision, both companies said that they are now focusing on singular strategies and are negotiating the halting of the deal. The NYSE said it would resume its 550 million dollars stock buyback program, once it reports its earnings on February 10th and the merger agreement is officially canceled. Deutsche Börse will publish its financial results on February 13th. 
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The rejection by European regulators of the merger of German exchange operator Deutsche Börse AG and NYSE Euronext could bring to an end an 18-month world-wide deal boom among stock exchanges that fizzed, and then fizzled.
but I’m struggling to get the cash I need to get if off the ground. I need £30,000 but can’t seem to find anyone to help me.
Teresa, by email
IT is really tough to persuade banks and other organisations to cough up the cash in these uncertain times. You will need a brilliant business plan and be able to totally sell yourself. And be prepared to show you will take a risk yourself by putting your own cash in or lending against your home.
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But it is a pretty large sum. Do you really need that much? Can you ask for less, prove that your idea works, then go looking for big bucks to expand?
Read more: http://www.mirror.co.uk/advice/money/2012/02/01/i-need-30-000-to-start-my-business-how-can-i-get-help-115875-23729591/#ixzz1lBTcDtAE
Brussels' decision delivered a devastating blow to the emergence of Frankfurt as a "European champion" to rival London for dominance in Europe and world financial markets.
Joaquin Almunia, the EU competition commissioner, insisted that the merger would have given DB-NYSE a "near monopoly" with over 90pc of the world's market in exchange traded derivatives.
"The merger would have led to the worsening of conditions for companies trying to access financial instruments and would have harmed the European economy as a whole," he said.
"We found ample evidence in our investigation that Eurex-DB and Liffe-NYSE Euronext compete head-to-head and are each other's closest competitors. These two companies constrain each other's prices and compete in product and technology innovation. Therefore, the merger would have eliminated a healthy process of competition."
Reto Francioni, chief executive of Deutsche Boerse, reacted angrily and argued that the commission had failed to support a "globally competitive" European exchange
Jan-Michiel Hessels, NYSE Euronext chairman said: "While we are disappointed and strongly disagree with the EU decision, which is based on a fundamentally different understanding of the derivatives market, it is now time to move on."
The ruling followed a furious debate within the commission and a campaign by Michel Barnier, the French financial services commissioner, in favour of the merger to create a new "European champion" in global markets.
The argument was rejected by Mr Almunia. "The creation of a 'European champion' at the expense of entrenching a monopoly with market power would not be beneficial for the European economy or for European consumers," he said.
The operations are part of the European Central Bank's 'TARGET2' network of automatic payments between the national central banks of the Euroland club. The Bundesbank has already provided €496bn (£413bn) to countries in trouble, chiefly Greece, Ireland, Italy and Spain.
"This is reaching the danger point. It is already one and a half times the total budget of the German government," said Professor Frank Westermann of Osnabrück University. "If any of the crisis countries exits the euro or if there is an EMU break-up, the Bundesbank bears extreme risks."
The Bundesbank - the dominant body in the euro system - used to keep a stock of €270bn of private securities (refinance credit) before the start of the financial crisis. This was depleted last year as it sold assets to meet growing demands on the TARGET2 scheme.
Once the debt drama began to engulf the bigger economies, the Bundesbank was forced to borrow money to meet its obligations to offset capital flight, since it refused to sell its stash of gold. It now owes €228bn to German banks.
Bundesbank's official position is that TARGET2 does not increase risk for Germany, but there has been mounting alarm from Germany's IFO Institute and private economists.
Many Germans literally think that being anti-EU equates being a neonazi. It's one of the untouchable dogmas of the German establishent.
The German chancellor is expected to meet with Chinese investors during her visit to Beijing, and officials are hoping that she might persuade them to invest in Europe.
German news magazine Spiegel reports:
A senior government representative stressed in Berlin on Tuesday that "Chinese investments are expressly welcome. They will be sought, used and appreciated" -- both in Germany and in the rest of the euro zone.
It may not be an easy sell. Three months ago, Klaus Regling of the EFSF toured the Far East looking for support, and came away empty handed.
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