September 12th, 2016
Daily Market Commentary
- The Consumer Price Index in Portugal was down 0.2% and up 0.7% in month-over-month and year-over-year terms, respectively.
- Oil extended declines following the biggest drop in more than a month after U.S. producers increased drilling as the market contends with an overhang of crude and fuel inventories.
- Gold was little changed after three days of declines as investors mull the prospect of U.S. rate hikes this month before a Federal Reserve governor speaks later Monday.
- OPEC flipped its forecasts for rival supplies in 2017, predicting an increase in output from outside the group instead of a decline, the latest sign that the global surplus is persisting. Production from outside the Organization of Petroleum Exporting Countries will grow by 200,000 barrels a day next year, according to the group, which a month ago had projected a drop of 150,000 a day.
- Agrium Inc. and Potash Corp. of Saskatchewan Inc. have agreed an all-share merger that will create the world’s largest crop-nutrient supplier. Potash Corp. investors will get 0.4 of a share in the new company for each share they own and Agrium shareholders will get 2.23 shares, the companies said Monday in a joint statement.
- The Ontario Teachers’ Pension Plan and several North American private-equity firms are among bidders to Citigroup Inc.’s subprime-lending business in Canada, according to the Globe and Mail.
- A rout that sent U.S. equities to their worst decline since Britain’s secession vote may not be over yet, if index futures are any indication.
- HP Inc. sees its future in copiers and printers. The personal-computer maker has agreed to buy Samsung Electronics Co.’s printer business for $1.05 billion, betting that it can grab share and generate income, even in a shrinking global market.
- Starbucks Corp. plans to increase its global tea business to $3 billion over the next five years as its starts selling its new line of tea drinks, known as Teavana, across the Asia Pacific region Monday following the products’ entry in China last week.
- European stocks headed for their biggest loss since the aftermath of Brexit amid investor concern that central banks may be less willing to continue supporting economic growth with loose monetary policy.
- French drugmaker Sanofi and Alphabet Inc.’s life sciences arm plan to invest about $500 million in a joint venture to tackle diabetes amid forecasts for the number of people with the disease to surge
- Linde AG and Praxair Inc. ended talks to create the world’s largest supplier of industrial gases over the German company’s concerns that jobs and operations would be cut at its Munich headquarters, people familiar with the matter said.
- The U.K.’s vote to leave the European Union won’t deter British American Tobacco Plc’s plans to invest about 1 billion euros ($1.1 billion) in Romania in the next five years as the maker of Lucky Strike and Pall Mall cigarettes counts on a bilateral investment deal between the two countries.
- Japanese shares slumped as a selloff in global markets spurred the biggest jump in volatility in three months, amid speculation central banks are questioning the rationale for keeping interest rates low for longer.
- Samsung Electronics Co. lost $22 billion of market value over two days as investors factor in a bigger hit to its bottom line from widening bans and warnings on its Note 7 smartphones.
*All information is taken from Bloomberg, unless otherwise noted.