Stocks on
Wall Street rallied on Friday after strong jobs data made it almost
certain the Federal Reserve would raise interest rates in two weeks,
while a surprise move by major oil exporters to keep pumping near-record
output pushed crude prices down.
The
dollar rose, gold climbed about 2 percent and base metals, including
copper, gained after the U.S. jobs report for November paved the way for
the Fed to raise rates for the first time in nearly a decade at a
two-day meeting that ends Dec. 16.
The
U.S. economy created 211,000 jobs in November, the U.S. Labor
Department said. September and October data was revised to show 35,000
more jobs than previously reported.
"The
numbers did not disappoint. We cleared the last hurdle for a rate
increase," said Chris Gaffney, president of EverBank World Markets in
St. Louis.
U.S.
stocks jumped more than 2 percent, with the Dow industrials and the
S&P 500 posting their biggest gains in three months. All 10 major
S&P 500 sectors climbed except the energy index (.SPNY), which fell
after the Organization of the Petroleum Exporting Countries failed to
cap near-record output.
Stocks rallied in a sign investors are taking their cue from economic performance instead of central bank monetary policy.
"We're
going to see the market focussed on what the U.S. economy is doing,
rather than Fed policy," said Brad McMillan, chief investment officer at
Commonwealth Financial Network in Waltham, Massachusetts.
MSCI's all-country world stock index gained 0.8 percent.
The
Dow Jones industrial average (.DJI) closed up 369.96 points, or 2.12
percent, to 17,847.63. The S&P 500 (.SPX) gained 42.07 points, or
2.05 percent, to 2,091.69 and the Nasdaq Composite (.IXIC) added 104.74
points, or 2.08 percent, to 5,142.27.
Less-than-expected
tweaks to the European Central Bank's stimulus package on Thursday sent
markets into a tailspin but will make it easier for the Fed to raise
rates, said Omar Aguilar, chief investment officer of equities at
Charles Schwab Investment Management.
The
euro, which gained 3 percent on Thursday, will ease the impact of a
strong dollar on U.S. corporate earnings, and should help bolster equity
markets, he said.
"I can see from now until the end of the year moderate gains, growing into a nice steady pace," Aguilar said.
By: Herbert Lash.
OPEC Fails To Agree On Production.
Friday's developments set up the fractious cartel for more price wars in an already heavily oversupplied market.
Oil prices have more than halved over the past 18 months to a fraction of what most OPEC members need to balance their budgets. Brent oil futures fell by 1 percent on Friday to trade around $43, only a few dollars off a six year low.
Banks such as Goldman Sachs predict they could fall further to as low as $20 per barrel as the world produces more oil than it consumes and runs out of capacity to store the excess.
A final OPEC statement was issued with no mention of a new production ceiling. The last time OPEC failed to reach a deal was in 2011 when Saudi Arabia was pushing the group to increase output to avoid a price spike amid a Libyan uprising.
“We have no decision, no number,” Iranian oil minister Bijan Zangeneh told reporters after the meeting.
OPEC's secretary general Abdullah al-Badri said OPEC could not agree on any figures because it could not predict how much oil Iran would add to the market next year, as sanctions are withdrawn under a deal reached six months ago with world powers over its nuclear programme.
Most ministers left the meeting without making comments.
Badri tried to lessen the embarrassment by saying OPEC was as strong as ever, only to hear an outburst of laughter from reporters and analysts in the conference room.
‘Everyone welcome’
A year ago, Saudi Arabia pushed though an OPEC decision to defend market share instead of cutting output, ultimately hoping to drive high-cost producers such as US shale firms out of the market.
Many poorer OPEC members have said the group's largest producer was effectively twisting their arms, prompting the Saudi oil minister, Ali al-Naimi, to say he would listen to everyone this time.
Iran has made its position clear ahead of the meeting with Zangeneh saying Tehran would raise supply by at least 1 million barrels per day - or one percent of global supply - after sanctions are lifted. The world is already producing up to 2 million bpd more than it consumes.
Naimi earlier had said he hoped growing global demand could absorb an expected jump in Iranian production next year: “Everyone is welcome to go into the market”.
He made no comment after the meeting.
At the meeting, OPEC welcomed back returning member Indonesia, its 13th member. The cartel accounts for about a third of world oil output and does not include Russia or the United States, which rival Saudi Arabia as the world's biggest producers.
“The pressure will build on OPEC and oil prices. At this rate of overproduction we will run out of onshore storage in the first quarter,” said Gary Ross, a veteran OPEC watcher and the founder of PIRA think-tank.
By: Rania El Gamal, Alex Lawler and Reem Shamseddine (Reuters).
Amazon Aims To Speed Up Deliveries With New Truck Trailers.
Don't be surprised if you see an Amazon-branded semi-trailer on the road this holiday season. The shopping giant just announced that it's snapped up "thousands" of trailers (the rear cargo portion of tractor-trailers) to beef up its shipping capabilities in North America, CNET reports. That'll be particularly useful as we approach the holidays, since it'll help to avoid delays and offer shoppers more time to select Amazon's speedy two-day and one-day shipping options. The company will still rely on partners for their drivers and trucks, and it's only using the trailers to move packages to its distribution centers. Amazon is already relying on couriers and branded vehicles for its same-day Prime Now service, as well as for AmazonFresh grocery deliveries, so there's a chance it could eventually compete with the likes of FedEx and UPS.
By: Devindra Hardawar.
Review: Emerging Market Formulations & Research Unit, Flagship Records.
For The #FacebookTeam
For its part, Pfizer defended the merger as "a great deal for America",
and not just about the tax benefits it would receive by relocating to
Ireland. In October 2014, Chicago-based AbbVie and Dublin-based Shire
Pharmaceuticals called off a $54 billion inversion deal after the
Treasury issued new rules.
The deal values Allergan shares at $363.63 each, about 16 percent more
than their closing price of $312.46 on Friday.
Pfizer Inc. Chairman and CEO Ian Read will serve in the same roles with
the combined company while Allergan Plc. leader Brent Saunders will
become president and chief operating officer.
The transaction, which requires shareholder and regulatory approval, is
expected to close in the second half of 2016 but could face stiff
opposition from USA lawmakers.
Under the terms of Monday's deal, Allergan shareholders will hold 44
percent of the combined company at completion, while Pfizer will have 56
percent.
Pfizer stockholders will receive one share of the combined company for
each of their Pfizer shares.
Although the rebranding will be called Pfizer Plc, legally, the
company's combination will be under Allergan Plc.
Pfizer's innovative businesses will be significantly enhanced by the
addition of a growing revenue stream from Allergan's durable and
innovative flagship brands in desirable therapeutic areas such as
aesthetics and dermatology, eye-care, gastrointestinal, neuroscience and
urology. The company has around 40,000 employees working for Pfizer
(NYSE:PFE) PLC.
The combined company will have its global operational headquarters in NY
and its principal executive offices in Ireland. Allergan will also be
divesting its interest in the generics business Teva Pharmaceuticals.
President Obama has said that he would support a 28% corporate tax rate,
down 7 percentage points from the current rate as well as a 19% tax on
foreign income instead of the full 35% tax rate. Pfizer tried a similar
strategy previous year, but its bid to buy U.K.-based AstraZeneca for
$119 billion was unsuccessful. This "inversion" would make the company's
corporate tax rate from a hefty 40% to a meager 12.5 percent.
It was reported that the boards of both the companies are set to approve
the deal and announce the same on Monday. Still, though, the changes
"do not seem to materially impact" the Pfizer-Allergan hook-up,
Bernstein analyst Tim Anderson wrote in a recent note to clients.
The agreement also facilitates the widely discussed potential for Pfizer
to reconfigure itself by splitting the newly enlarged company into two:
one focused on new drug development, the other on selling older
medications. Sacred Heart
http://sacredheartspectrum.com/2015/12/pfizer-shares-zoom-almost-9-on-allergen-deal/
Business
Pfizer shares zoom almost 9% on Allergen deal
Rafael Nash
05 December 2015, 12:51
Pfizer shares zoom almost 9% on Allergen deal”
For its part, Pfizer defended the merger as "a great deal for America",
and not just about the tax benefits it would receive by relocating to
Ireland. In October 2014, Chicago-based AbbVie and Dublin-based Shire
Pharmaceuticals called off a $54 billion inversion deal after the
Treasury issued new rules.
The deal values Allergan shares at $363.63 each, about 16 percent more
than their closing price of $312.46 on Friday.
Pfizer Inc. Chairman and CEO Ian Read will serve in the same roles with
the combined company while Allergan Plc. leader Brent Saunders will
become president and chief operating officer.
The transaction, which requires shareholder and regulatory approval, is
expected to close in the second half of 2016 but could face stiff
opposition from USA lawmakers.
Under the terms of Monday's deal, Allergan shareholders will hold 44
percent of the combined company at completion, while Pfizer will have 56
percent.
Pfizer stockholders will receive one share of the combined company for
each of their Pfizer shares.
Although the rebranding will be called Pfizer Plc, legally, the
company's combination will be under Allergan Plc.
Pfizer's innovative businesses will be significantly enhanced by the
addition of a growing revenue stream from Allergan's durable and
innovative flagship brands in desirable therapeutic areas such as
aesthetics and dermatology, eye-care, gastrointestinal, neuroscience and
urology. The company has around 40,000 employees working for Pfizer
(NYSE:PFE) PLC.
The combined company will have its global operational headquarters in NY
and its principal executive offices in Ireland. Allergan will also be
divesting its interest in the generics business Teva Pharmaceuticals.
President Obama has said that he would support a 28% corporate tax rate,
down 7 percentage points from the current rate as well as a 19% tax on
foreign income instead of the full 35% tax rate. Pfizer tried a similar
strategy previous year, but its bid to buy U.K.-based AstraZeneca for
$119 billion was unsuccessful. This "inversion" would make the company's
corporate tax rate from a hefty 40% to a meager 12.5 percent.
It was reported that the boards of both the companies are set to approve
the deal and announce the same on Monday. Still, though, the changes
"do not seem to materially impact" the Pfizer-Allergan hook-up,
Bernstein analyst Tim Anderson wrote in a recent note to clients.
The agreement also facilitates the widely discussed potential for Pfizer
to reconfigure itself by splitting the newly enlarged company into two:
one focused on new drug development, the other on selling older
medications.
Sacred Heart
http://sacredheartspectrum.com/2015/12/pfizer-shares-zoom-almost-9-on-allergen-deal/
Business
Pfizer shares zoom almost 9% on Allergen deal
Rafael Nash
05 December 2015, 12:51
Pfizer shares zoom almost 9% on Allergen deal”
For its part, Pfizer defended the merger as "a great deal for America",
and not just about the tax benefits it would receive by relocating to
Ireland. In October 2014, Chicago-based AbbVie and Dublin-based Shire
Pharmaceuticals called off a $54 billion inversion deal after the
Treasury issued new rules.
The deal values Allergan shares at $363.63 each, about 16 percent more
than their closing price of $312.46 on Friday.
Pfizer Inc. Chairman and CEO Ian Read will serve in the same roles with
the combined company while Allergan Plc. leader Brent Saunders will
become president and chief operating officer.
The transaction, which requires shareholder and regulatory approval, is
expected to close in the second half of 2016 but could face stiff
opposition from USA lawmakers.
Under the terms of Monday's deal, Allergan shareholders will hold 44
percent of the combined company at completion, while Pfizer will have 56
percent.
Pfizer stockholders will receive one share of the combined company for
each of their Pfizer shares.
Although the rebranding will be called Pfizer Plc, legally, the
company's combination will be under Allergan Plc.
Pfizer's innovative businesses will be significantly enhanced by the
addition of a growing revenue stream from Allergan's durable and
innovative flagship brands in desirable therapeutic areas such as
aesthetics and dermatology, eye-care, gastrointestinal, neuroscience and
urology. The company has around 40,000 employees working for Pfizer
(NYSE:PFE) PLC.
The combined company will have its global operational headquarters in NY
and its principal executive offices in Ireland. Allergan will also be
divesting its interest in the generics business Teva Pharmaceuticals.
President Obama has said that he would support a 28% corporate tax rate,
down 7 percentage points from the current rate as well as a 19% tax on
foreign income instead of the full 35% tax rate. Pfizer tried a similar
strategy previous year, but its bid to buy U.K.-based AstraZeneca for
$119 billion was unsuccessful. This "inversion" would make the company's
corporate tax rate from a hefty 40% to a meager 12.5 percent.
It was reported that the boards of both the companies are set to approve
the deal and announce the same on Monday. Still, though, the changes
"do not seem to materially impact" the Pfizer-Allergan hook-up,
Bernstein analyst Tim Anderson wrote in a recent note to clients.
The agreement also facilitates the widely discussed potential for Pfizer
to reconfigure itself by splitting the newly enlarged company into two:
one focused on new drug development, the other on selling older
medications. Sacred Heart
http://sacredheartspectrum.com/2015/12/pfizer-shares-zoom-almost-9-on-allergen-deal/
Business
Pfizer shares zoom almost 9% on Allergen deal
Rafael Nash
05 December 2015, 12:51
Pfizer shares zoom almost 9% on Allergen deal”
For its part, Pfizer defended the merger as "a great deal for America",
and not just about the tax benefits it would receive by relocating to
Ireland. In October 2014, Chicago-based AbbVie and Dublin-based Shire
Pharmaceuticals called off a $54 billion inversion deal after the
Treasury issued new rules.
The deal values Allergan shares at $363.63 each, about 16 percent more
than their closing price of $312.46 on Friday.
Pfizer Inc. Chairman and CEO Ian Read will serve in the same roles with
the combined company while Allergan Plc. leader Brent Saunders will
become president and chief operating officer.
The transaction, which requires shareholder and regulatory approval, is
expected to close in the second half of 2016 but could face stiff
opposition from USA lawmakers.
Under the terms of Monday's deal, Allergan shareholders will hold 44
percent of the combined company at completion, while Pfizer will have 56
percent.
Pfizer stockholders will receive one share of the combined company for
each of their Pfizer shares.
Although the rebranding will be called Pfizer Plc, legally, the
company's combination will be under Allergan Plc.
Pfizer's innovative businesses will be significantly enhanced by the
addition of a growing revenue stream from Allergan's durable and
innovative flagship brands in desirable therapeutic areas such as
aesthetics and dermatology, eye-care, gastrointestinal, neuroscience and
urology. The company has around 40,000 employees working for Pfizer
(NYSE:PFE) PLC.
The combined company will have its global operational headquarters in NY
and its principal executive offices in Ireland. Allergan will also be
divesting its interest in the generics business Teva Pharmaceuticals.
President Obama has said that he would support a 28% corporate tax rate,
down 7 percentage points from the current rate as well as a 19% tax on
foreign income instead of the full 35% tax rate. Pfizer tried a similar
strategy previous year, but its bid to buy U.K.-based AstraZeneca for
$119 billion was unsuccessful. This "inversion" would make the company's
corporate tax rate from a hefty 40% to a meager 12.5 percent.
It was reported that the boards of both the companies are set to approve
the deal and announce the same on Monday. Still, though, the changes
"do not seem to materially impact" the Pfizer-Allergan hook-up,
Bernstein analyst Tim Anderson wrote in a recent note to clients.
The agreement also facilitates the widely discussed potential for Pfizer
to reconfigure itself by splitting the newly enlarged company into two:
one focused on new drug development, the other on selling older
medications. Sacred Heart
http://sacredheartspectrum.com/2015/12/pfizer-shares-zoom-almost-9-on-allergen-deal/