Stocks open sharply higher … Glaxo to buy Tesaro … Qatar to pull out of OPEC
NEW YORK (AP) – Stocks are opening sharply higher on Wall Street, following gains in overseas markets after the U.S. and China struck a 90-day truce in their trade dispute. The Dow Jones Industrial Average jumped more than 400 points in early trading today following the cease-fire. At 10:44 a.m. Eastern Time, it was up 302 points. The S&P 500 index was up 29 points, to 2,789. And the Nasdaq composite climbed 105 points, to 7,436.
UNDATED (AP) – Shares of Tesaro soared early today after GlaxoSmithKline said it would pay about $5.1 billion in cash to buy the cancer drugmaker. Glaxo plans to pay $75 per share for Tesaro, which makes the ovarian cancer treatment Zejula. Glaxo CEO Emma Walmsley says the deal will accelerate growth of the British drugmaker’s oncology business. Glaxo expects the deal to close in the first quarter.
DUBAI, United Arab Emirates (AP) – The tiny, energy-rich Arab nation of Qatar says it will withdraw from OPEC in January, mixing its aspirations to increase production outside of the cartel’s constraints with the politics of slighting the Saudi-dominated group amid the kingdom’s boycott of Doha. The surprise announcement from Qatar’s minister of state for energy affairs again throws into question the role of the cartel after needing non-members to push through a production cut in 2016 after prices crashed below $30 a barrel.
BERLIN (AP) – The German government is increasing funding for efforts to reduce emissions in the country’s cities as it tries to avert further bans on driving diesel vehicles. Chancellor Angela Merkel said after meeting city representatives today that her government will boost a “clean air” program to 1.5 billion euros ($1.7 billion) from 1 billion euros. It will also provide another 432 million euros to help upgrade municipal vehicles to higher emissions standards.
LONDON (AP) – Unilever has agreed to buy GlaxoSmithKline’s health food drinks business in India and Bangladesh, including popular Horlicks brand products, for 3.3 billion euros ($3.8 billion). The purchase expands the company’s footprint in rapidly growing emerging markets. Unilever says the deal includes the merger of its local unit with GSK Consumer Healthcare India and the purchase of GSK Bangladesh Ltd. The takeover is expected to be completed within 12 months.