Top 5 things to know about the market on Monday, September 14 By


© Reuters.

By Geoffrey Smith – Oracle (NYSE đŸ™‚ wins race for U.S. operations from TikTok, Nvidia (NASDAQ đŸ™‚ invests $ 40 billion to buy ARM from Softbank (OTC :), while Gilead bets $ 21 billion on experimental drug against cancer. Stocks are expected to open higher on more reassurance over a Covid-19 vaccine, but oil is down as BP (NYSE đŸ™‚ warns of an early spike in global demand for oil. Here’s what you need to know about the financial markets on Monday, September 14.

1. Oracle wins the race for TikTok

Oracle has taken the lead in being the savior of the U.S. operations of video streaming service TikTok, but it’s still unclear whether the deal will be acceptable to regulators in China and the United States.

The Wall Street Journal reported that Oracle is expected to be advertised as TikTok’s “trusted technology partner”, and that the deal will not be structured as an outright sale.

The deal will require approval from US and Chinese authorities. If they gave it, it would mark the de-escalation of the multifaceted battle of the two powers for economic supremacy. U.S. officials will want absolute certainty that TikTok user data won’t be able to find its way back to Beijing, while China will have to declare that the deal does not violate a recently passed law banning the sale of certain TikTok technologies. artificial intelligence. The yuan hit its highest level since May thanks to positive interpretations of the news.

2. Nvidia pays Softbank $ 40 billion for ARM

Nvidia (NASDAQ đŸ™‚ has agreed to buy UK-based chip designer ARM for $ 40 billion from Softbank (T :). That’s roughly $ 8 billion more than what Softbank paid five years ago.

The news propelled shares of the Japanese venture capital firm to another 9.0% rise, another sign of confidence in the leadership of founder Masayoshi Son. Confidence had been hit hard by losses of leading investment in companies such as WeWork and Uber (NYSE :).

More than half of the purchase price will be paid in the form of Nvidia shares, giving Softbank continued exposure to the fast-growing high-performance chip industry. Only $ 12 billion will be paid in cash. The deal will require the approval of at least four regulators, in the US, UK, EU and China.

3. Best News in the Covid-19 Vaccine Hunt

Pfizer (NYSE đŸ™‚ CEO Albert Bourla said over the weekend that the vaccine he is developing in collaboration with BioNTech (NASDAQ đŸ™‚ in Germany may be available for distribution in the United States by the end of the year. year. Bourla told CBS there was a “good chance” that companies could send data from the crucial Phase 3 trial of their drug to the Food and Drug Administration by the end of October.

Also over the weekend, AstraZeneca (NYSE đŸ™‚ received approval from UK authorities to resume the phase 3 trial of its vaccine, jointly developed with the University of Oxford.

However, the CEO of Serum Initiative of India, the world‘s largest vaccine manufacturer, has warned that there is not enough production capacity to vaccinate all those in need of protection until 2024 at most. early.

4. Stocks should open higher; Gilead, Amazon in brief

U.S. stocks are expected to open significantly higher thanks to assurances from the pharmaceutical sector regarding progress in the search for a vaccine to fight the Covid-19 virus.

As of 6.30am ET (10.30am GMT), the contract was up 218 points, or 0.8%, while the contract was up 1.1% and up 1.4%.

Some stocks likely to be the center of attention this morning include Microsoft (NASDAQ :), which was Oracle’s main rival for the TikTok partnership, and Amazon (NASDAQ :), which announced the hiring of 100,000 more in the United States and Canada.

There will also be scrutiny from Gilead Sciences (NASDAQ :), which is expected to pay $ 21 billion for Immunomedic (NASDAQ :), whose most valuable asset, an investigational drug to treat breast cancer, has yet to gain FDA approval. Gilead pays more than double the market value of Immunomedics.

5. BP increases its forecast for peak oil demand

Crude oil prices have drifted down amid lingering concerns about the imbalance between supply and demand due to the slow recovery in parts of the global economy.

As of 6:30 a.m., futures were down 0.8% to $ 37.05 a barrel, while futures were down 0.7% to $ 37.55.

The mood was further degraded by the release of BP’s new outlook for the energy industry, which predicted global oil demand to peak by the mid-2020s before entering long-term decline. Most forecasts at the start of the year were for “peak oil demand” no earlier than 2040.

Ironically, the morning’s data was more supportive of a recovery in demand: and the data both far exceeded expectations for July.


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