Good morning! Here’s what you need to know.
Novartis deals. Swiss drug giant Novartis has essentially swapped its vaccine business, worth $US7.1 billion plus royalties, for the rights to GSK’s oncology products, for which it paid $US14.5 billion. Reuters says Novartis is trying to simplify its business.
Allergan and Ackman. The Wall Street Journal reported Bill Ackman’s Pershing Square and drug developer Valeant have made a bid for the maker of Botox, Allergan. Allergan said they have yet to receive a offer and has had no discussions with either Valeant or Pershing Square.
Airbnb NYC purge. Airbnb removed thousands of New York listings after state attorney general Eric Schneiderman filed an affidavit suggesting many may be violating tenancy laws.
Netflix earnings. Netflix shares were up 7% after-hours after posting solid earnings and subscriber numbers. The firm announced price increases for new subscribers, though this won’t kick in immediately. “This is a pretty smart idea since it encourages current customers to stay on Netflix, while also grabbing more money from new customers,” BI’s Jay Yarow wrote. “It also nudges people to sign up for Netflix now before it’s too late.”
Platinum miner negotiations. Platinum producers in South Africa will meet with the leaders of the Association of Mineworkers and Construction Union in an effort to end a 13-week long labour strike. Platinum is a key material used in catalytic converters.
China IPO pipeline. China posted draft IPO prospectuses for 18 firms Monday, bringing the total number of potential issuers up to 46. State media estimating they could raise as much as 22.6 billion yuan ($3.6 billion) from investors.
Housing data. Two key datapoints today for housing. First up at 9 a.m. is the FHFA home price index, which is expected to have slowed to 0.3% from 0.5%. Then at 10 a.m. we get existing home sales, also expected to have slowed to a seasonal annually adjusted rate of 4.56 million from 4.6 million.
Richmond Fed. Also at 10 a.m. we get Richmond Fed data for April. Analysts expect a reading of zero compared with -7 in March.
Earnings. McDonald’s and Yum! brands both announce today. We also get Amgen, AT&T, BNY Mellon, and Lockheed Martin.
Markets. Stocks were drifting higher in Europe and the U.S., led by Germany’s Deutsche Boerse at 1.3%. The Nikkei fell 0.85%. Coffee futures are now up 86% on the year as droughts in Brazil drag on.