Here is what you need to know.
Dell bought EMC in one of the largest tech deals of all-time. Dell announced it has purchased EMC for about $US67 billion or $US33.15 per share, a roughly 28% premium from Friday’s closing price. “The combination of Dell and EMC creates an enterprise solutions powerhouse bringing our customers industry leading innovation across their entire technology environment,” Michael Dell said.
AB InBev is considering upping its offer for SABMiller. Bloomberg reports, AB InBev is considering raising its offer for SABMiller to about $US66 per share (£43), before the October 14 deadline for a final offer. Last week, SABMiller rejected InBev’s offer of £42.15. SABMiller Chairman Jan du Plessis said the offer “significantly undervalued” the company.
Ferrari’s IPO values it at just under $US10 billion. Ferrari’s initial public offering of 17 million shares will value the company at approximately $US9.8 billion. The offering is said to price Ferrari’s stock at between $US48 and $US52 per share, raising $US894 million. Ferrari will trade on the New York Stock Exchange under the ticker ‘RACE.’
Glencore plans to sell mines to raise cash. Glencore is planning to sell copper mines in Australia and Chile after “receiving a number of unsolicited expressions of interest for these mines from various potential buyers.” The sale of the mines would help the company reduce its $US100 billion in liabilities.
Infosys posted a strong quarter. According to MoneyControl, the IT services behemoth announced
“profit increased 12.1 per cent sequentially to Rs 3,398 crore, and rupee revenue by 8.9 per cent to Rs 15,635 crore.” However, the strong quarter lost some of its lustre as CFO Rajiv Bansal announced his resignation. Additionally, the company said its employee stock offering program could dilute ownership by as much as 2% going forward.
Stanley Fischer says a Fed rate hike isn’t guaranteed by the end of the year. The Fed’s number two man told a group at the International Monetary Fund meetings in Peru, a 2015 rate hike by the Fed is “an expectation, not a commitment.” According to Reuters, Fischer suggested the Fed was still evaluating the data, and that “considerable uncertainties” clouded the US’ economic outlook. Currently, the market is pricing in a 10% probability of an October rate hike and a 38.8% chance of a December move.
China’s yuan is the strongest its been in 2 months. On Monday, the Chinese yuan strengthened to 6.3235 per dollar. The yuan hasn’t been this strong since the People’s Bank of China announced consecutive devaluations in August. The yuan hit a four-year low of 6.4489 per dollar on August 12.
Stock markets around the world trade mixed. Britain’s FTSE (-0.5%) leads the way lower in Europe after China’s Shanghai Composite (+3.3%) paced the advance in Asia. S&P 500 futures are flat at 2007.50.
US economic data is absent. The economic calendar is clean in observance of Columbus Day. The US Treasury market is closed and will reopen on Tuesday.
Earnings season picks up on Tuesday. Fastenal and Johnson & Johnson are scheduled to report ahead of Tuesday’s opening bell and CSX, Intel and JPMorgan Chase are set to release their quarterly results after Tuesday’s close.