Within the last 48 hours, Verizon and Microsoft have blown the starter’s gun and now it’s takeover time in the US. We are likely to see a significant rise in big deals as the cash flush American banks and corporations start to spend their money. And once the trend starts in the US there will be a scramble in Australia, although competition laws will curb the extent of Australian takeovers. In addition, our banks may be more conservative.
Over in the US, banks are back in the risk business, which they exited after the subprime debacle some five years ago. Verizon and Microsoft are providing the signal that the US economy and share markets have been yearning for.