DAILY MARKET REPORTS
- U.S. stocks jumped Monday after the Senate passed a tax bill over the weekend, setting the stage for lawmakers to attempt to push a final bill to the White House before Christmas.
- Cuts to the corporate tax rate could boost corporate earnings growth and help the long U.S. stock rally keep going, investors and analysts say.
- Aetna shares rose 1.7 percent after drugstore chain operator CVS Health agreed to buy the health insurer for $69 billion in the year’s largest corporate acquisition.
US FINANCIAL MARKET
CVS to Buy Aetna for $69 Billion, Combining Major Health-Care Players
- Aetna stockholders are to receive $207 per share—$145 in cash and 0.8378 of a CVS share, or $62, in stock.
- That represents a premium of about 29% to where Aetna shares were trading before The Wall Street Journal reported that the companies were in talks in October.
Broadcom Wants to Remake Qualcomm’s Board as It Presses for Deal
- Broadcom opened the next front in its $105 billion takeover bid for Qualcomm saying Monday it plans to submit its own candidates to sit on its target’s board.
- Nominees are due by the end of the week.
- Broadcom said it intends to propose 11 new independent directors, and would support expanding the board to reappoint three outside directors who were named within the last three years.
Global air passenger traffic demand up 7.2 percent in October: IATA
- Airline capacity rose 6.2 percent and load factor – a measure of how full planes are – increased by 0.8 percentage points to 80.8 percent.
- IATA said it expected passenger traffic demand to continue its upwards trend in 2018.
Facebook launches a messaging app for children that has parental controls
- Messenger Kids links to a parent’s Facebook account and grants parental approval for chat and video call contacts.
- The new app features a narrower, kid-friendly library of GIFs and facial filters.
- Messenger Kids is ad-free and won’t use your child’s information for ads, the company said.
Lamborghini joins the boom in supercar SUVs
- Lamborghini unveils the once-improbable Urus SUV on Monday at its headquarters in Sant’Agata, Italy, where the supercar maker owned by the Volkswagen group is expanding the factory to meet utility vehicle demand.
- The Urus enters a luxury field crowded with the Mercedes G-Class, the Bentley Bentayga and the trailblazing Porsche Cayenne — and soon to be joined by Aston Martin, Rolls Royce and, in all probability, Ferrari.
Cboe announces bitcoin futures to start trading Sunday
- Cboe Global Markets is leaping ahead of CME in an effort to become the first to launch bitcoin futures.
- Cboe announced Monday it is launching futures trading in the cryptocurrency beginning Sunday, Dec. 10, making the Chicago-based exchange the first to give investors a new way to wager on, and against, the booming new market.
- The Commodity Futures Trading Commission said Friday it would allow the CME and Cboe to launch bitcoin contracts.
- Cboe’s bitcoin futures will trade under the ticker symbol “XBT” and will be cash-settled against the auction price from Gemini Trust, the digital currency exchange founded by twins Cameron and Tyler Winklevoss.
- In contrast, the CME bitcoin futures contract will be cash-settled against an index that’s currently weighted to four bitcoin exchanges: Bitstamp, GDAX, itBit and Kraken.
US ECONOMY & POLITIC
Senate Passes Sweeping Revision of U.S. Tax Code
- The bill passed 51-49, with all but one Republican voting for it and all Democrats voting against. The sole Republican, Sen. Bob Corker of Tennessee, stated his opposition before the vote, citing worries it would expand budget deficits.
- The bill, which included about $1.4 trillion in tax cuts, would lower the corporate rate to 20% from 35%, reshape international business tax rules and temporarily lower individual taxes.
- It also touched other Republican goals, including opening the Arctic National Wildlife Refuge to oil drilling and repealing the mandate that individuals purchase health insurance, which would punch a sizable hole in the 2010 Affordable Care Act. But some objectives, such as repealing the alternative minimum tax, fell by the wayside in last-minute wrangling.
US factory orders slip; core capital goods orders revised up
- Business spending on equipment has increased strongly this year as corporations anticipated hefty tax cuts from the Trump administration.
- Factory goods orders dipped 0.1 percent amid a drop-in demand for both civilian and defense aircraft.
- September data was revised to show orders increasing 1.7 percent instead of the previously reported 1.4 percent rise.
- Orders for non-defense capital goods excluding aircraft -seen as a measure of business spending plans – rose 0.3 percent in October instead of the 0.5 percent drop reported last month.
McKinsey & Co. senior exec Thomas Barkin named new head of the Federal Reserve Bank of Richmond
- The Federal Reserve Bank of Richmond on Monday named former McKinsey & Co. executive Thomas Barkin as its next president and CEO.
- Barkin will replace Jeffrey Lacker, who retired in October after 28 years at the Richmond Fed.
- Mr. Barkin has worked for McKinsey for about 30 years and is based in the firm’s Atlanta office, where his clients include financial institutions and travel and transportation companies. He is also a member of the board of trustees at Emory University.
EUROPE & WORLD
Chinese smartphone maker Xiaomi is eyeing a $50 billion IPO: Report
- The Beijing-based company has picked up momentum to challenge phone competitor Huawei in its home market, selling 21 million units in the second quarter of 2017.
- It’s recently expanded beyond handsets, announcing an A.I. partnership with internet search giant Baidu and rivaling Amazon’s Echo with an in-home smart speaker.
- In 2014 Xiaomi was valued at $46 billion, which at the time made it the most valuable start-up in the world.
- The company is considering a Hong Kong IPO for next year.
Airbus’s Bregier sees 2017 aircraft deliveries topping 700
- Chief Fabrice Bregier said slightly fewer than 600 aircraft had been delivered by the end of November.
Dialog shares tumble on warning Apple could build its own chips
- The company, which analysts reckon derives more than half of its revenue from Apple, said there was no risk to its existing supply deals in 2018 and it was in the advanced stages of working with Apple on designing “2019-type products” that could lead to commercial contracts by next March.
- However, the company acknowledged for the first time that “Apple has the resources and capability to internally design a PMIC and could potentially do so in the next few years.
TODAY in HISTORY
- George Washington delivered his farewell address to his officers at Fraunces Tavern in New York City (1783)
- James Monroe of Virginia was elected (by electors) the fifth president of the United States (1816)
- The Senate approved U.S. participation in the United Nations (1945)
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