Yum! Brands Slumps by Almost 19%, SAB Miller Rejects Another Takeover Offer From InBev
October 8, 2015 6:26 am
The US markets saw gains yesterday, with a particular surge from biotech stocks. The tech heavy Nasdaq gaining 0.90%, the Dow Jones up 0.73% and the S&P finishing 0.80% higher. Investors are keeping a close eye on the S&P500 in particular, with the index edging closer to that psychologically important 2K level. The S&P spent more than six months above the 2,000 mark, only to drop below it in the late August market plunge.
In the currency markets, Dollar YEN is currently around 119.699, down on the day after Japanese Core Machinery Orders were announced lower than expected. EUR/USD is up on the day, trading in the region of 1.13035. The Aussie Dollar, which is seen as a liquid proxy for China, fell 0.40% this morning to 0.71760, after the Reserve Bank of Australia left rates steady earlier this week.
Overnight in Asia Chinese markets were back after a weeklong national holiday. The Shanghai Composite Index was up by 2.97% whilst the Hang Seng index lost 1.55%. The Japanese Nikkei fell 0.99%.
Mixed results for Oil this morning after yesterday’s Crude Oil Inventory numbers exceeded expectations, with an increase of 3.1 million barrels rather than the 2.5 million predicted. West Texas Intermediate crude is at $48.05 per barrel, up 24 cents, while Brent Crude is trading around $51.54 per barrel, down by 26 cents.
In equities news, Yum! Brands, which owns KFC, Taco Bell and Pizza Hut, saw its share price drop by almost 19% yesterday after reporting dire quarterly results. The company has grown at an incredible pace in China over the past few years – the majority of its sales now come from the country – and the tough outlook the firm gave regarding its position there sent investors scurrying for safety. To add insult to injury, it’s also been pointed out that the firm just spent hundreds of millions of Dollars over the past few months buying back shares – only to subsequently see its share price fall by almost a fifth, meaning that it significantly overpaid to repurchase its own stock.
In Merger news – or lack of it – SAB Miller has rejected another takeover offer from main competitor InBev. The manoeuvring of the world’s top two brewers goes on; InBev has another week to make an offer to SAB Miller, after which it will be required to walk away for six months. InBev stock is currently trading down by around 0.5%, whilst SAB Miller stock is up by around 0.2%.
The US markets saw gains yesterday, with a particular surge from biotech stocks. The tech heavy Nasdaq gaining 0.90%, the Dow Jones up 0.73% and the S&P finishing 0.80% higher. Investors are keeping a close eye on the S&P500 in particular, with the index edging closer to that psychologically important 2K level. The S&P spent more than six months above the 2,000 mark, only to drop below it in the late August market plunge.
In the currency markets, Dollar YEN is currently around 119.699, down on the day after Japanese Core Machinery Orders were announced lower than expected. EUR/USD is up on the day, trading in the region of 1.13035. The Aussie Dollar, which is seen as a liquid proxy for China, fell 0.40% this morning to 0.71760, after the Reserve Bank of Australia left rates steady earlier this week.
Overnight in Asia Chinese markets were back after a weeklong national holiday. The Shanghai Composite Index was up by 2.97% whilst the Hang Seng index lost 1.55%. The Japanese Nikkei fell 0.99%.
Mixed results for Oil this morning after yesterday’s Crude Oil Inventory numbers exceeded expectations, with an increase of 3.1 million barrels rather than the 2.5 million predicted. West Texas Intermediate crude is at $48.05 per barrel, up 24 cents, while Brent Crude is trading around $51.54 per barrel, down by 26 cents.
In equities news, Yum! Brands, which owns KFC, Taco Bell and Pizza Hut, saw its share price drop by almost 19% yesterday after reporting dire quarterly results. The company has grown at an incredible pace in China over the past few years – the majority of its sales now come from the country – and the tough outlook the firm gave regarding its position there sent investors scurrying for safety. To add insult to injury, it’s also been pointed out that the firm just spent hundreds of millions of Dollars over the past few months buying back shares – only to subsequently see its share price fall by almost a fifth, meaning that it significantly overpaid to repurchase its own stock.
In Merger news – or lack of it – SAB Miller has rejected another takeover offer from main competitor InBev. The manoeuvring of the world’s top two brewers goes on; InBev has another week to make an offer to SAB Miller, after which it will be required to walk away for six months. InBev stock is currently trading down by around 0.5%, whilst SAB Miller stock is up by around 0.2%.
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