Bloomberg Business
-Anglo keeps mining slump going: European mining stocks continued their losing streak into a seventh day despite a rebound in metals prices and oil. Anglo American Plc tumbled the most on record yesterday, and today shows no signs of letting up – down 8.8 percent. The stock is on track for its worst week since 2008 and it’s only Wednesday. The year has already been grim for the company. Anglo has slumped 76 percent and with asset sales, mine closures, and job cuts will shrink to a shadow of its former self. Short sellers have been circling — short interest for Anglo is at a record, while that of peer Glencore Plc is also at a two-year high.
-Yahoo scraps spinoff plan: Under pressure from investors concerned about the tax risks, Yahoo! Inc. is abandoning the long-planned spinoff of its stake in Alibaba Group Holding Ltd., and will instead explore a spinoff of its main Internet businesses, according to a person with knowledge of the matter. The reversal is an admission of defeat for CEO Marissa Mayer, who was brought in three years ago to revitalize the once-dominant brand. But, despite a «great pay package,» she has struggled to find the right strategy to return the company to growth. Yahoo was up 2.4 percent in premarket trading.
-China braces for the Fed: China cut the yuan’s reference rate to the weakest since 2011, fueling speculation that the central bank is trying to release pent-up depreciation pressure before a potential rate increase by the Federal Reserve. There are signs that the People’s Bank of China has started guiding the yuan lower before the Fed acts, say Bloomberg economists. An index of emerging-market currencies dropped to a record low yesterday on fears a Fed rate hike will spur capital outflows. Traders now put the odds of a Fed liftoff next week at 80 percent.
-Hedge funds still dollar bulls: Even after Mario Draghi’s struck a blow to the currency last week, hedge funds haven’t shied away from their dollar bets, says PIMCO’s Sam Diedrich. Giving support to the dollar: possible Fed liftoff next week and «economic stress» in developing economies that could get worse, he said. But Goldman Sachs Group Inc. and Macquarie Bank Ltd. have lowered their forecasts for the greenback versus the euro, predicting the U.S. currency will need more time to advance to parity.
CNN Money
-Dow + DuPont: Shares in Dow Chemical (DOW) and DuPont (DD) are soaring by about 10% premarket after the Wall Street Journal and Financial Times reported that the companies are in talks about a massive merger. The Wall Street Journal and Financial Times reported overnight that the chemical companies are talking about combining their operations, then splitting themselves up again into three separate businesses. The reports cited unnamed people familiar with the negotiations. Both firms declined to comment on what they described as «rumors and speculations.»
-Market movers — Yahoo, Smith & Wesson: Shares in Yahoo (YHOO, Tech30) are rising by about 2% premarket after Yahoo’s board announced it would not spin off its Alibaba (BABA, Tech30) stake as previously planned. Instead, it is thinking about a reverse spin-off — transferring the group’s other businesses to a new company, and distributing shares to investors. Yahoo has a 15% share in Chinese e-commerce giant Alibaba, worth about $30 billion. The company halted the Alibaba spin-off plan due to concerns about a gigantic tax bill of about $10 billion. The tech pioneer has been lumbering through an attempted turnaround and has been weighing its next steps. Shares in gun manufacturer Smith & Wesson (SWHC) are looking weak premarket after the firm reported earnings on Tuesday that showed quarterly sales were up 32% from last year. While the results were impressive, investor reaction was tepid since the company’s shares have already surged by 126% this year. Shares in gun stocks such as Smith & Wesson and Sturm, Ruger (RGR) have rallied in 2015 following mass shootings. Gun fanatics have been buying more firearms as they worry that gun control rules could tighten.
-Oil prices regain lost ground: Crude oil futures have recovered a bit after hitting recession-era levels below $37 per barrel on Tuesday. Crude is now trading around $38 a barrel. A massive supply glut has wiped out two-thirds of oil’s value after it peaked at roughly $108 a barrel in June 2014.
-Stock market overview: U.S. stock futures are looking soft and most European markets are in negative territory in early trading. This comes after most Asian markets tumbled on Wednesday and closed in the red. Tuesday was also a weak day for stocks. The Dow Jones industrial average dipped 0.9%, the S&P 500 dropped 0.7% and the Nasdaq edged down by 0.1%.