Morning MoneyBeat Europe: Global Stocks Falls As China Acts

       

By Phillipa Leighton-Jones
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        The Breakfast Briefing
        Global stocks fell Tuesday after China's central bank devalued its currency and a Greek official said Greece and its international creditors agreed on terms for a third bailout.
        In Europe, the Stoxx Europe 600 index was down 0.2% in early trade, led by a 1.7% drop in the auto sector. Greece's Athex Composite index was 1.3% higher in early trade.
        Greece and its international creditors reached an agreement to provide the country with a bailout worth as much as EUR86 billion ($94.4 billion), but some details remained unresolved, a Greek government official said.
        Most Asian bourses fell and currencies sank in response to the People's Bank of China's move to weaken its currency as the world's second-largest economy sags.
        Read our full take on the markets today here.
        -- Christopher Whittall
        Market Snapshot: FTSE 100 down 0.38%, CAC 40 down 0.60% and DAX down 0.54%. Nikkei finished Tuesday down 0.42%. Brent crude up 0.58% at $50.69. Gold up 0.92% at $1114.3/oz. EUR/USD at $1.104. Ten-year Treasury yield lower at 2.19%, Bund yield lower at 0.63%, Gilt yield lower at 1.90%.
        What You May Have Missed on MoneyBeat
        5 Things to Know About China's Devaluation : China on Tuesday devalued its currency in a way that left it 1.9% weaker versus the U.S. dollar. The move will likely have a ripple effect through financial markets as well as in politics, as China is the world's largest trader and the yuan is increasingly used overseas. Here are five things you need to know about Beijing's latest move.
        Precision Castparts Is Buffett's Largest Deal Ever. Here Are the Others: Warren Buffett's Berkshire Hathaway Inc. just announced its largest-deal ever. While Mr. Buffett hasn't made the price tag for all of his deals known, MoneyBeat took a look back at Berkshire's largest deals based on publicly-available data, according to Dealogic.
        Precision Castparts Deal Shows How Warren Buffett's Playbook Is Changing: Historically, Warren Buffett has said he likes to invest in firms with a large "moat," a term he uses to refer to a company's competitive advantages. But lately, he's been putting money into industries with no clear market leader.
        Warren Buffett Apparently Loves IBM's Falling Stock: Warren Buffett dropped hints on CNBC this morning that Berkshire has bought more shares of International Business Machines Corp. In response to a question about how he feels about IBM's performance, Mr. Buffett said: "I love it when a[company's stock] goes down."
        M&A Is Nearly in Record Territory. Here's Why: Warren Buffett announced his largest deal ever Monday. Berkshire Hathaway's superlative-worthy deal -- $32 billion for Precision Castparts Corp. -- is just the latest sign of the fervor in the M&A market. Year-to-date, the volume of deal making still trails 2007 -- the all-time record year for M&A both globally and in the U.S. -- but not by much.
        U.K. Buyout Firm Doughty Hanson Shuts Raft of European Offices: Private equity firm Doughty Hanson is shutting down much of its European office network, following the decision to abandon fundraising in April and a slew of senior executive departures.
        How Greece's Drama Helped Balance Germany's Books: Germany will make a profit from the eurozone debt crisis and saving Greece, even if Athens doesn't pay back its debt, according to a leading German economic institute. The findings by Halle-based Institute for Economic Research, known as IWH, might come a surprise to German taxpayers who believe that Germany, as Greece's largest creditor, is sitting on the highest bill.
        Health-Care Deals Prop Up Hedge Funds That Bet on M&A: The healthcare sector has been the bright spot in what's otherwise been a meager 2015 for hedge funds betting on mergers and acquisitions, bankruptcies and other corporate events.
        CVC's Funds Most in Demand With Second-Hand Investors: CVC Capital Partners has topped an annual list of most in-demand European large buyout funds in the secondaries market for the second year running. Buyout funds managed by Apax Europe, EQT Partners, BC Partners and Cinven were all among the top Western European vehicles in demand from buyers of second-hand fund stakes.
        From The Wall Street Journal
        China Acts to Devalue the Yuan : China's central bank devalued its tightly controlled currency, causing its biggest one-day loss in two decades, as the world's second-largest economy continues to sputter.
        Heard on the Street: Yuan Fall Won't Ease Pressure on Economy : Beijing is hoping that a more flexible currency will help stabilize China's sputtering economy. But this monetary high-wire act carries enormous risk.
        Greece, Creditors Reach Deal on Bailout Terms: Greece and international creditors have reached an agreement on the terms needed to provide the country with a third bailout, although some details remain unresolved, a Greek government official said.
        Google Forms New Parent Company; Shakes Up Management: Google unveiled a reorganization that separates its highly profitable search and advertising business from fledgling efforts in an array of so-called moonshots. Sundar Pichai will be CEO of the core Google businesses.
        Heard on the Street: Google's Alpha-Bet on Talent : Investors have been seeking more clarity from Google. And now, they'll be getting it--sort of.
        M&A Activity on Pace for Record: Global mergers and acquisitions are on pace this year to hit the highest level on record, thanks to a buying spree from companies on the hunt for growth.
        Under Scrutiny Standard Chartered Beefs Up Compliance: Standard Chartered said it has hired a slew of top compliance executives, a move that comes as the bank braces for increased scrutiny of its global sanctions controls from U.S. officials.
        Russian Authorities Step in to Avert Ruble Slide : The Kremlin and the central bank sought to dismiss concerns about the battered currency as they claimed that the banking system was safe and sound.
        (END) Dow Jones Newswires

        August 11, 2015 04:23 ET (08:23 GMT)