Global News October 12, 2015

  1. Bloomberg News
  2. Global News October 12, 2015

Bloomberg Business

-Asian stock rally continues: China’s Shanghai Composite Index closed 3.3 percent higher amid speculation of further government stimulus to boost the economy. Markets across Asia managed to hold on to last week’s gains with the MSCI Asia Pacific Excluding Japan Index up 0.8 percent at 4:13 p.m. in Hong Kong. Tokyo markets were closed for a holiday. Markets in Europe were slipping, with the Stoxx Europe 600 down 0.3 percent to 361.62 at 10:18 a.m. in London.

-Precious metals gaining: Gold rose to its highest level in seven weeks with silver, palladium and platinum also posting more gains following last week’s rally. According to U.S. Commodity Futures Trading Commission data combined net long positions in the metals have jumped to their highest level since June.

-Fischer still #Team2015: Federal Reserve Vice Chairman Stanley Fischer, speaking at the IMF meeting in Lima, Peru said that the U.S. economy may be strong enough to merit an interest rate increase by the end of the year. He cautioned that policy makers are monitoring incoming domestic data on jobs and will be keeping an eye on international developments when deciding the timing of liftoff. Market based expectations for a rate increase by the end of 2015 have increased slightly to 38.8 percent this morning.

-Merger Monday: Anheuser-Busch InBev NV has until 5 p.m. on Wednesday to make a formal offer for SABMiller Plc before it has to walk away for six months. The company has discussed raising its offer to 43 pounds a share, according to people familiar with the discussions. Meanwhile, Dell Inc. will announce that it is purchasing data storage provider EMC Corp. for $25 a share in cash plus tracking stock in cloud software maker VMware Inc., valued at about $8 per EMC share, according to a person familiar with the matter.

-Brexit debate: British Prime Minister David Cameron will attempt to get pledges from his European Union partners on the pound and the role of London’s financial district as part of negotiations ahead of the in-or-out referendum on Britain’s EU membership that he promised to hold before the end of 2017, according to the Sunday Telegraph. The head of the campaign to keep Britain in the EU said that exit would be a «leap in the dark» at the launch of their campaign in London.


CNN Money

-Stock market mover — EMC: Shares in EMC Corp (EMC) are shooting up by 4% premarket after the data storage firm announced Dell is taking it over for about $67 billion in cash and shares. This valuation makes it the biggest tech deal of all time, according to data from Dealogic. The takeover will complete Dell’s transformation from a consumer PC business to an IT solutions provider for companies.

-Global markets overview: Stock markets around the world are middling right now. U.S. stock futures are trading around where they left off on Friday. European markets are vacillating between minor gains and losses. Asian markets mostly ended with gains. Chinese stock markets were standout stars as the Shanghai Composite jumped 3.3% and the volatile Shenzhen index surged 4.2%. In Turkey, the main stock market and national currency are roughly stable after two deadly bomb blasts tore through crowds taking part in a peace rally in the capital over the weekend. At least 97 people died in the attack.

-Weekly market recap: U.S. markets notched a good week. The Dow Jones industrial average rose by 3.7% over the past five trading days. The S&P 500 gained 3.3% and the Nasdaq jumped 2.6%.

-Ferrari sets $1 billion IPO. Ticker symbol?:  RACE. That’s the ticker symbol that Ferrari will use when it debuts on the New York Stock Exchange with a $10 billion valuation within the next few months. Parent company Fiat Chrysler Automobile (FCAM) said Monday it plans to set a price of $48 to $52 per Ferrari share and intends to sell about 10% of the company in the initial public offering. The company hopes to raise just about $1 billion from investors. However, Ferrari has begun slightly expanding its production — delivering 7,255 cars last year — to ensure its waiting list doesn’t get too long.Ferrari reported 2.8 billion euros ($3.3 billion) in sales last year, resulting in a profit of 265 million euros ($302 million).