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24 September 2018
 |
| financial markets (The Total Investment & Insurance Solutions) |
Global stocks are slipping Monday after the U.S. and China officially
placed new tariffs on each other's goods. China also reportedly pulled out of a
meeting to discuss further trade talks. Oil prices are climbing after OPEC
decided not to produce more oil. Several major deals announced over the
weekend. Cable and internet company Comcast outbid Twenty-First Century Fox and
won an auction for British pay TV company Sky, but Comcast shares are seeing
the biggest decline on the S&P 500.
KEEPING SCORE: The S&P 500 index fell 9
points, or 0.3 percent, to 2,920 as of 10:10 a.m. Eastern time. The Dow Jones
Industrial Average lost 120 points, or 0.5 percent, to 26,623. Both the S&P
500 and Dow set record highs last week.
The Nasdaq composite dropped 22 points, or
0.3 percent, to 7,964 and the Russell 2000 index of smaller-company stocks slid
1 point, or 0.1 percent, to 1,710.
Stocks rallied over the summer and into
autumn without making a lot of big moves. The S&P hasn't risen or fallen 1
percent in a day since late June. After the market's volatility early this
year, the long streak of small moves is similar to the market's pattern from
2017.
CHINA-US-TRADE: The U.S. is now taxing
another $200 billion in Chinese imports at a rate of 10 percent, and China
added taxes of 5 to 10 percent on $60 billion in U.S. products. Both countries
placed tariffs on $50 billion in goods earlier as part of a dispute over
Beijing's state-led technology development and other policies. After talks in
late August didn't produce a breakthrough the two sides recently discussed
another meeting, but the Wall Street Journal reported that China pulled out of
those talks.
In the U.S., industrial and basic materials
companies took the worst losses. General Electric fell 2.9 percent to $11.82
and 3M lost 1.6 percent to $212.94. DowDuPont shed 1.5 percent to $68.63.
Overseas, Germany's DAX fell 0.6 percent and
the CAC 40 in France lost 0.5 percent. The FTSE 100 in Britain dipped 0.3
percent. Hong Kong's Hang Seng index fell 1.6 percent and India's Sensex gave
up 1.5 percent. Markets in Japan and South Korea were closed for national
holidays.
CHANNEL CHANGER: Late Friday Comcast won an
auction for majority control of British pay TV giant Sky. Comcast's final offer
was worth about $39 billion and ended months of back and forth bidding between
Comcast and Twenty-First Century Fox, which is already a major Sky shareholder.
Both were seeking to establish a foothold in Europe. Sky's board recommended
that its shareholders accept the offer, and Comcast said it hopes to complete
the deal by the end of October.
In London, Sky shares jumped 8.6 percent.
Comcast sank 7.9 percent to $34.89, while Disney, which is buying Fox, climbed
2.1 percent to $112.77.
BOOMBOX: Subscription radio company Sirius XM
says it's buying music streaming service Pandora Media in a deal that will
allow Sirius to expand its service beyond cars and into homes and other mobile
areas. The companies valued the deal at about $3.5 billion in stock. Pandora
jumped 6.5 percent to $9.69 while Sirius fell 4.5 percent to $6.67.
Sirius XM has more than 36 million
subscribers in North America, while Pandora has more than 70 million monthly
active users. Pandora has a "go-shop" period in which it can solicit
other offers from other potential buyers.
ENERGY: OPEC and key allies like Russia
decided not to increase their oil output further. Production is falling in some
OPEC nations, including Iran, which faces new sanctions from the U.S. Benchmark
U.S. crude gained 1.8 percent to $72.04 a barrel in New York while Brent crude,
the international standard for oil prices, rose 2.3 percent to $80.03 a barrel
in London.
STRIKING GOLD: Barrick Gold will buy
competitor Randgold Resources for $6.1 billion in stock to create the world's
largest gold miner. Shareholders in Barrick, which is based in Toronto, will
own about 66.6 percent of the merged company, which will combine Randgold's
African mines with Barrick's holdings in the Americas.
Shares of both companies rallied. Barrick
rose 5.7 percent to $11.07 and Randgold gained 6.6 percent to $68.13.
DONATELLA-ME IT'S A DONE DEAL: An Italian
newspaper reports that the Versace group is on the verge of announcing its
sale, and Bloomberg and Reuters reported that luxury fashion and handbag maker
Michael Kors is the buyer. The Italian publication, Corriere della Sella, said
the deal is worth 2 billion euros ($2.4 billion).
Michael Kors stock skidded 7.1 percent to
$67.50.
BONDS: Bond prices fell. The yield on the
10-year Treasury note rose to 3.08 percent from 3.06 percent.
CURRENCIES: The dollar edged up to 112.60 yen
from 112.52 yen. The euro rose to $1.1794 from $1.1747.The Total Investment & Insurance Solutions
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