Reuters Insider - U.S. Morning Call: Drugs and chemicals

Hanwha Solutions

07/06/2016 13:46

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 Source:             Thomson Reuters                                   
                                                                       
 Description:        Valeant shares tumble in premarket after the      
                     drugmaker reported disappointing first-quarter    
                     profit. Lotte and Hanwha Chemical eye U.S. buys to 
                     boost growth.                                     
 
 
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Transcript (May be auto-generated)

                 Good morning. Wall Street seems to have a drug problem this morning. Shares in 
Valeant tumbling almost 11% in pre-market. The troubled Canadian drugmaker 
disappointed investors by reporting lower-than-expected first-quarter profit. 
The company also slashed its full-year sales and adjusted profit guidance for a 
second time this year. Behind the weakness, challenges within its dermatology 
department. The company, which is also in the spotlight for its business and 
accounting practices, says it will now file its results in a timely manner. And 
Alexion also tumbling 11% after its drug Soliris missed a main goal in its 
study. But Sarepta Therapeutics soaring 37% after the FDA asked for more 
information on its muscle-wasting treatment. That's raising hopes it could be 
improved. In other business news, IBM says it inked a $300 million deal with 
Dubai's Emirates Airline. The agreement means IBM will provide the airline IT 
services for 10 years, which will help Emirates improve the efficiency on its 
passenger support systems. Verizon's set to submit a bid of around $3 billion 
for Yahoo's core internet business - that's according to the Wall Street 
Journal. 

Citing people close to the matter, the newspaper said private equity firm TPG is
also seen submitting a second round bid. Watch this space. And staying with M&A,
Lotte Chemical, Hanwha, and Hanwha Chemical are eyeing up US companies. Asian 
chemical companies are flush with cash as plunging oil prices slashed their cost
base. So many are now looking for assets to boost growth. Lotte Chemical is 
bidding for Axiall, while Hanwha has submitted a letter of intent to buy. 

Let's take a look at how Wall Street might open after Fed Chair Janet Yellen 
basically killed off talk of a June rate hike. Yellen said last month's jobs 
report was disappointing and bears watching. She also added that further gradual
rises in rates are likely to be appropriate but stopped short of giving a 
time-frame. All that is giving futures a lift. The Dow Jones, the S&P, and the 
Nasdaq are mostly higher. And that's today's morning call. I'm Jade Barker and 
this is Reuters