Update: Big Merger Monday**Economic Data**
South Africa Oct Naamsa Vehicle Sales Y/Y: -8.6% v -7.7%e
Poland Oct Preliminary CPI M/M: 0.1% v 0.2%e; Y/Y: -0.8% v -0.7%e
Czech Oct Budget Balance (CZK): -29.1B v -2.8B prior
Canada Oct RBC Manufacturing PMI: 48.0 v 48.6 prior
Oct Final Markit Manufacturing PMI: 54.1 v 54.0e
Sept Construction Spending M/M: 0.6% v 0.5%e
Oct ISM Manufacturing: 50.1 v 50.0e; Prices Paid: 39.0 v 38.8e
A heavy round of M&A headlines this morning plus some good news in October manufacturing surveys is firmly supporting risk appetite. As of writing, the DJIA is up 0.55%, the S&P500 is up 0.65% and the Nasdaq is up 0.85%.
The October ISM manufacturing survey flat-lined, as expected, putting the index at its lowest point since May 2013. Traders are looking past the weak headline numbers at the decent increase in new orders and production, both of which rose to about 53 from just above 50 in the September survey. The final October Markit Manufacturing PMI survey seemed to confirm the good news seen in the ISM survey.
Chinese state-owned manufacturer Comac unveiled the first plane produced by a Chinese firm to compete in the global market for large passenger jetliners. China currently relies on Boeing and Airbus aircraft, but the effort to create the homegrown C919 jetliner is aimed at seizing a portion of this large domestic opportunity.
The two successor companies of Hewlett-Packard began trading this morning. Shares of HP, Inc. are trading under the old HPQ ticker, while Hewlett Packard Enterprise is trading under ticker HPE on the NYSE. HP, Inc. will focus on personal computers and printers, while Hewlett Packard Enterprise will sell commercial computers systems, software and tech services.
Citron Research has pulled back from hints it would unleash new bombshell revelations Monday about Valeant Pharmaceuticals. Citron said that it would be focusing on new claims piling up against the Valeant and stood by the Enron analogy, asserting that it remains "uninvestible" for the foreseeable future. VRX is up 7.6% this morning.
Visa reached a deal to acquire former subsidiary Visa Europe for €16.5 billion ($18.2 billion) in cash and stock, with the potential for an additional payment of up to €4.7 billion. Visa and Visa Europe, a cooperative of European banks with over 500 million cards, were part of a global bank-owned network until 2007. Shares of Visa are down 3% on the news.?
Shire said it would buy Dyax for about $5.9 billion, or $37.30/shr, representing a 35.5% premium to Dyax's closing stock price on Friday. Dyax shareholders may also get an additional contingent value right worth $4.00/sjr if Dyax's DX-2930 drug is approved. Share said it would still be pursuing the Baxalta bid after the Dyax deal.**Looking Ahead**
- 12:00 #IT
Italy Oct New Car Registrations Y/Y: No est v 17.2% prior
- 12:00 #US
Fed's Williams (moderate, FOMC voter)
- 12:00 #DE
German Chancellor Merkel Speaks at CDU Party Conference in Darmstadt
- 13:00 #MX
Mexico Oct IMEF Manufacturing Index: 50.2e v 50.1 prior; Non-Manufacturing Index: 50.2e v 49.3 prior
- 16:00 #US
Weekly Crop Progress Report
- 18:00 #KR
South Korea Oct CPI M/M: -0.2%e v -0.2% prior; Y/Y: 0.7%e v 0.76% prior; CPI Core Y/Y: 2.1%e v 2.1% prior
- 22:30 #AU
RBA Interest Rate Decision: Expected to leave Cash Rate Target unchanged at 2.00%
- 22:30 #HK
Hong Kong to sell combined HKD46B in 3-month,.6-month and 12-month Bills
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