Wall Street reverses course to trade lower as health stocks drag
The S&P Healthcare index was down 1.32 percent, with Amgen's 3 percent drop to $163.02 the biggest drag on both the S&P 500 and the Nasdaq. The Nasdaq Biotech index was down 3.5 percent as Celladon plunged about 81 percent to a record low of $2.62. U.S. Food and Drug Administration staff reviewers said Amgen's skin cancer immunotherapy cannot be considered for an accelerated review at this time, citing concerns over the design and results of a key study.
Mon, 27 Apr 2015 13:00:52 -0400
Google launches portal to buy patents
(Reuters) - Google Inc said it would launch an experimental portal that allows interested patent holders to sell their patents to the company. Patent holders can tell Google about the patents they're willing to sell and the expected price through the portal, the company said on its blog. Google said it will let the submitters know of its interest in buying their patents by June 26 and expects to pay the sellers by late August.
Mon, 27 Apr 2015 11:07:12 -0400
U.S. services sector growth cools in April: Markit
Financial firm Markit said its "flash," or preliminary, reading of its Purchasing Managers Index for the services sector slipped to 57.8 in April from a final reading of 59.2 in March, which had been the highest level since August. Markit's April reading of employment at service companies, meanwhile, rose to a 10-month high of 55.4 from March's 54.0. Last week, Markit in its flash reading of U.S. manufacturing activity said the goods-producing sector's growth fell in April by the most in six months, although it remained solidly in expansion territory.
Mon, 27 Apr 2015 09:47:55 -0400
Applied Materials scraps Tokyo Electron takeover on U.S. antitrust concerns
U.S.-based Applied Materials Inc on Monday scrapped its $10 billion planned takeover of chip-making gear rival Tokyo Electron Ltd after the deal, a rare foreign bid for a Japanese firm, fell foul of U.S. anti-trust regulators. Tokyo Electron said both companies gave up on the deal after more than 18 months of talks after it became clear that differences with the U.S. Justice Department could not be bridged. The reasons for the regulator's decision were not immediately clear, but California-based Applied Materials said the U.S. authorities had deemed insufficient a proposal to address antitrust concerns. "We must take with humility the result that we could not convince the regulators," Tokyo Electron Chief Executive Tetsuro Higashi told reporters.
Mon, 27 Apr 2015 11:12:43 -0400
Mylan says Teva offer too low and stock 'unacceptable'
Mylan, which is pursuing its own takeover of Perrigo Co Plc , had been expected to reject the offer after having indicated that such a combination would not be a good fit. Wall Street analysts had said Mylan might be looking for $90 to $95 per share and an increased cash component. Coury said in the letter, which described Teva's culture as "dysfunctional," that Teva's stock was an unacceptable currency because it had underperformed its peers, including Mylan, over the last three years. Mylan said it remained committed to its $31 billion offer for Perrigo, which has been rejected.
Mon, 27 Apr 2015 12:10:12 -0400
Deflation? Oil's 45 percent rebound could be markets' next headache
Whisper it, but the next challenge for financial markets and policymakers may not be deflation, but the remarkable surge in oil prices from the six-year low touched in January. Since then, Brent crude futures have risen 45 percent. These measures have ranged from interest rate cuts to bond-buying "quantitative easing" programs. All have been in response to the fall in inflation rates and inflation expectations driven by the 60 percent collapse in oil prices over the latter part of last year.
Mon, 27 Apr 2015 06:23:27 -0400
Investors question Deutsche Bank's overhaul
By Thomas Atkins and Jonathan Gould FRANKFURT (Reuters) - Deutsche Bank's biggest strategic overhaul under co-chief executives Anshu Jain and Juergen Fitschen got a thumbs down from investors on Monday who judged it too little too late. Germany's flagship lender has trailed rivals under the tenure of Jain and Fitschen who despite the reverberations from the financial crisis stuck to an expensive universal banking model offering everything from mortgages in Germany to derivatives in London. Faced with tough regulations, weak markets and mounting legal bills from misconduct settlements, Deutsche is now following rivals such as UBS and Barclays in axing unprofitable business lines to boost earnings and shore up its balance sheet. After four months of deliberations, Jain and Fitschen have decided to cut up to 150 billion euros in investment bank assets, sell their Postbank retail division via a stock market listing by the end of 2016 and invest more in equities trading and wealth management.
Mon, 27 Apr 2015 08:46:19 -0400
For Hong Kong regulator, HSBC presents major challenges
A move by British banking giant HSBC to relocate its headquarters back to Hong Kong would present major challenges to the city's banking watchdog, regulatory experts said. The Hong Kong Monetary Authority (HKMA) is regarded as one of Asia's leading regulators and has experience with subsidiaries and branches of large banks. HSBC's $2.6 trillion balance sheet is nearly eight times the size of Hong Kong's economic output. So the HKMA would have to scale up its regulatory operations, analysts and regulatory experts said.
Mon, 27 Apr 2015 07:50:56 -0400
VW investors hope Piech exit may usher in change
Investors hope that Volkswagen will be able to revive profitability at its core division, cure underperformance overseas and bury lingering plans for acquisitions after the resignation of Chairman Ferdinand Piech. Piech, the mastermind of VW's global expansion and a towering figure at the German group for more than two decades, stepped down on Saturday after losing a showdown he had provoked with Chief Executive Martin Winterkorn. Almost 80 percent of VW investors expect the carmaker's stock market value to increase after Piech's departure as it may help unlock greater earnings potential at the 12-brand group, a survey by advisory firm Evercore ISI showed. The exit of Piech, who spearheaded VW's campaign to make everything from motorcycles to 40-tonne trucks, also curbs the risk of purchases while VW is cutting billions of euros of costs at its core brand and revamping operations, Evercore ISI said.
Mon, 27 Apr 2015 09:28:07 -0400
French IT firm Cap Gemini to buy U.S. rival IGATE for $4 billion
By Emelia Sithole-Matarise and Cyril Altmeyer PARIS (Reuters) - Cap Gemini SA , a French information technology services company, said it will buy U.S.-based rival IGATE Corp for $4 billion in a deal that would make North America into its biggest market and hand IGATE's founders a $1 billion windfall. Cap Gemini also raised its 2015 sales forecast on Monday in a statement that was pushed up to coincide with the announcement of the deal. IGATE, which has strength in the financial services sector, has grown quickly since its 1996 stock market listing. Cap Gemini said IGATE has been recording double-digit growth and a 19 percent operating margin.
Mon, 27 Apr 2015 12:31:09 -0400
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