E Global Investing: Friday File

*Grupo Bimbo however gained 5.3%.

*In Hong Kong, Guangshen Railway, which we used to own, sank to HK$18.20, a new low. It is not an appealing speculation like our biggest holding there, Tencent, which rises and falls bigly every day. The gambling instinct leads locals to try TCEHY and disdain stocks which just roll along.


*The Chilean Supremes turned down the attempt by SoQuiMich to overturn the sale of 24% of its shares to China's Tianqi Lithium, which means that Canada's Nutrien will get the cash and meet international rules for permitting its creation by merger.

*The other court case was in Canada, where the Revenue Service appealed to the Tax Court of Canada against a ruling favoring Cameco over huge taxes applied for alleged price distortions using its subs in Europe. CCJ can use the money but now it will take as much as two years to get the court to rule. CCJ stock fell 5.5% (!) on the news.


*In the court of public opinion, President Trump hit what I think is a winner, tackling high prices. He wants Medicare to use average European prices to benchmark what it is being charged in the USA. Obviously if the drugmakers can afford to sell at lower prices in Europe then US patients should not have to overpay. Even more egregious are price cuts for major emerging markets like China where the chance to sell more meds leads to even bigger bargain prices. But in the USA too if drug prices were lower demand would pick up. Even people with insurance blanch at drugs costs 4 of 5 figures per dose.


*Fibra Uno of Mexico issued 9.8 bn pesos in bonds locally to try to balance its heavy dollar debts. It also reported revenues in Q3 rose 21.5% from prior Q3 to pesos 4.345 bn. The oldest Mexican REIT says funds from operations rose 41% y/y to pesos 3.44 bn. It also boasted an impressive 95.4% occupancy rate on its available properties, mostly in commercial, factory, educational, and hotel sectors, and with mostly foreign tenants. It gained from the NAFTA revival of course, but what will happen now that the Rio Grande border is becoming a political focus is anybody's guess.

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