U.S. Import Prices Rise 0.2% In November, In Line With Estimates

Largely reflecting a rebound in fuel prices, the Labor Department released a report on Friday showing U.S. import prices increased in line with economist estimates in the month of November.

The report said import prices rose by 0.2 percent in November after falling by 0.5 percent in October. The rebound in prices matched economist estimates.

Prices for fuel imports soared by 2.6 percent in November following a 2.5 percent nosedive in October, partly reflecting a 48.5 percent spike in natural gas prices.

Excluding fuel prices, import prices edged down by 0.1 percent in November after dipping by 0.2 percent in the previous month.

The continued decrease in non-fuel import prices reflected falling prices for capital goods and foods, feeds, and beverages.

The Labor Department said export prices also edged up by 0.2 percent in November after slipping by 0.1 percent in October. Economists had expected export prices to inch up by 0.1 percent.

The uptick in export prices came as prices for agricultural exports surged up by 2.2 percent in November after jumping by 1.7 percent in October. Soybean prices led the way higher.

Meanwhile, the report said prices for non-agricultural exports came in unchanged in November after slipping by 0.2 percent in each of the two previous months.

Import prices and export prices in November were both down by 1.3 percent compared to the same month a year ago.

INTL FCStone To Buy Brokerage Businesses Of Tellimer Group – Quick Facts

INTL FCStone Inc. (INTL) has agreed to buy the brokerage businesses of Tellimer Group, which will include the purchase of Exotix Partners LLP, Tellimer Capital Ltd (Nigeria) and the broking business. INTL FCStone said the acquisition price is not material to the company.

Jacob Rappaport, Head of Equities for INTL FCStone Inc., said: “The addition expands our reach by providing access to new markets, capabilities, and specialized expertise. The capability of the broking business fits extremely well with our existing equities and fixed income businesses, and we believe the integration of our product portfolio, global client base, and large balance sheet will enhance INTL FCStone.”

Roche, Spark Therapeutics Deal Receives CMA Clearance – Quick Facts

Roche (RHHBY) and Spark Therapeutics, Inc. (ONCE) announced that the UK Competition and Markets Authority has unconditionally cleared Roche’s pending acquisition of Spark. The transaction is pursuant to a tender offer to purchase all of the outstanding shares of common stock of Spark for $114.50 per share. The offering period of the offer is scheduled to expire on December 16, 2019.

The closing of the tender offer is conditioned upon customary closing conditions, including the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.

RBI saw growth slowdown, acted ahead of time by cutting rates: Shaktikanta Das

The RBI Governor’s comments come after five consecutive rate cuts starting February this year.

Reserve Bank of India (RBI) Governor Shaktikanta Das on Monday said the central bank had acted ahead of time by slashing rates in February this year, and hoped the decision to pause rate cuts earlier this month will prove to be a right call over time.

Mr. Das’ comments come after five consecutive rate cuts by RBI starting February this year. The Monetary Policy Committee (MPC) of the RBI has cut interest rates by 1.35% this year.

Speaking at the India Economic Conclave organised by the Times Group, he said both the government and RBI have acted in time. As early as February this year, the RBI saw that there is a growth slowdown, and that a momentum for slowdown is building up, so we started cutting rates this year, he added.

In the last MPC meeting when we took a pause, I don’t know why the market was surprised. February, I was told that the markets were surprised, but subsequently I’m happy and thank all of you for accepting that it was a right call to take, he said.

“This time the call that we’ve taken, I do hope that the events will unfold in a manner which will prove that the MPC decision was right,” he said.

H&M fourth-quarter sales miss expectations

STOCKHOLM — Swedish fashion retailer Hennes & Mauritz AB said Monday that sales in its fiscal fourth quarter grew 9% on the year, missing expectations.

Sales in the quarter ended Nov. 30 rose to 61.7 billion Swedish kronor ($6.56 billion). A FactSet poll of 15 analysts expected SEK66.06 billion.

The retailer HM.B, -0.67% said sales in local currencies increased by 5% year-on-year.

“Sales development for the quarter compared with the previous year was affected by calendar effects, mainly because Black Friday this year fell a week later, i.e. just before the end of the month of November,” the company said.

“Therefore some of the big Black Friday online sales will not be recognized until December,” H&M said.

The amount in question is expected to be approximately SEK500 million, and adjusted for this amount, sales in the fourth quarter of 2019 increased by 10% and in local currencies by 6% compared with the previous year.

The company’s complete fourth-quarter report will be published on Jan. 30.

Cineworld To Acquire Cineplex In C$2.18 Bln Cash Deal – Quick Facts

Cineworld Group plc. (CINE.L) announced Monday that it has signed an agreement to acquire Cineplex Inc. (CGX.TO) for C$34 in cash per share. The deal values Cineplex at C$2.18 billion or $1.65 billion.

The acquisition price implies an enterprise value of C$2.8 billion or $2.1 billion.

The acquisition of the largest cinema operator in Canada will add 165 cinemas and 1,695 screens.

The acquisition is subject, amongst other things, to Cineworld and Cineplex shareholder approvals and various regulatory consents. The completion is expected to occur by the end of first half of fiscal 2020.

The Boards of both Cineworld and Cineplex have approved the deal, and intend to recommend that their respective shareholders vote in favour of it.

The company projects highly synergistic transaction, with approximately $130 million of annual pre-tax combination benefits by the end of fiscal 2021.

The company expects the deal to be double digit accretive to earnings and free cash flow in the first full year following completion.

Anthony Bloom, Chairman of Cineworld, said, “Going forward our immediate post-acquisition objectives will be to combine Cineplex with our US business to create a leading North American cinema operator; maximise the synergistic combination benefits of the Cineplex acquisition; continue the currently successful refurbishment of the Regal chain in the US…”