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Pfizer Rejected. British drug giant AstraZeneca has rejected what Pfizer says will be its final over to acquire the company at a $US117 billion valuation, the FT reports. “A top 10 shareholder said they were ‘sick as a parrot’ at the UK pharmaceutical company’s decision,” the paper said. “AstraZeneca’s shares were down 12.8 per cent at £42.05 by mid morning in London.”
AT&T Buying DirecTV. The telecom behemoth announced it will purchase the satellite TV provider for an all-in total of $US67 billion. It will now face regulatory scrutiny. Here’s how, BI’s Steve Kovach says, they intend to beat it: “AT&T will frame the DirecTV purchase as a way to provide blanket internet access to portions of the country that don’t have reliable broadband yet. Meanwhile, AT&T will have to prove to the government that its proposed merger won’t give it an unfair advantage over other TV and internet providers. However, AT&T could spin its own proposal as a counterweight to the Comcast deal.”
Deutsche Bank Fundraising. The Frankfurt-based megabank announced it raised $US11 billion in new capital, including $US2.4 billion from the Qatari royal family. The firm has recently faced calls to ramp up its capital ratios.
China Home Price Growth Slows. Year-over-year new home prices slowed to an 11-month low in April, China said Sunday. Existing home prices fell from March in 22 of 70 cities in April, compared with just 14 in March. Data last week showed property sales dropped 6.9% in the January-April period from a year earlier in terms of floor space, and fell 7.8% in terms of value.
Europe Stocks Tank. Italian stocks fell 2.39%, and London’s FTSE and Germany’s Deutsche Boerse were down 0.4%. “The weakness in the market today is likely a hangover from last week’s disappointing euro-area growth figures, but also reflects uncertainty ahead of the European elections,” the Wall Street Journal quoted ING’s
Aengus McMahon as saying. “There is certainly more nervousness in the market, but I think that will dissipate as soon as the elections are over.”
ECB Easing In The Offing. 90% of economists polled by Bloomberg believe Mario Draghi will ease monetary policy in June. “Draghi clearly pre-committed,” Elwin de Groot, an economist at Rabobank in Utrecht, the Netherlands, told Bloomberg. “As any other central banker should know, he would risk his reputation, and a significant strengthening of the euro, if the ECB doesn’t follow through in June.”
Subprime Across The Pond. There’s been a new surge in non-conforming loan sale packages in the U.K.’s white-hot property market, the FT reports. A senior London-based securitization banker told the paper: “Banks have had these loans on their balance sheets for a while and are seeking to take advantage while the market is more receptive to racier credits. Also, with regulators’ stress tests coming up, these are the kind of assets you want to get rid of because they hurt you.”
Credit Suisse Penalties. Bloomberg reports the Geneva-based firm will pay $US2.5 billion to U.S. regulators over charges it helped Americans evade taxes, and that CEO Brady Dougan could step down.
Irish Debt Rallies. Yield on Ireland’s 10-year bond fell four basis points to 2.62% Monday. After Moody’s hiked Ireland’s credit rating two notches to Baa1 on Friday evening.
No US Data Today. Dallas Fed President Richard Fisher speaks at noon.
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