Daily Briefing Nov 1, 2016

Baker Hughes Shares Trade Down on Tie-Up with GE

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Baker Hughes Inc. is merging with General Electric Co.’s oil and gas business to create the world’s second-largest oilfield services provider. Stay right here on Sentifi to read all about the crowd’s sentiment about this merger.

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Baker Hughes Inc.: Shares drop 7 percent on the merger

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It was due to the concerns from the investors that this deal has a complicated structure. Nevertheless, the merger is meant to secure a place for both companies in the competition of supplying more-efficient products and services to the energy industry. The new publicly-traded company is expected to earn $32 billion in annual revenue.

Mark Carney: Stays with the Bank of England for an extra year

Despite the chat of his resignation, Mark Carney today has set the record straight by announcing an extension of his term — which is until mid-2019 — that will let him see the U.K. beyond its exit from the EU. The pound slipped 0.2 percent after the media reported on the possibility of his resignation, but traded up 0.02 percent following his term extension. The reaction from the crowd and his colleagues about his new term is generally favorable. He will meet his colleagues in the next few days to discuss about the monetary policy and if they need to ease it further.

WPP: Reports a 3.2 percent increase in Q3 revenues

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CEO Sir Martin Sorrell said Brexit has already affected his company’s U.K. revenues. “Q3 reflected Brexit. Every client we talk to with heavy U.K. exposure, almost without exception, has Brexit and uncertainty as its first item,” he said. That said, he expressed his optimism about the mergers of media businesses, such as the one between AT&T and Time Warner, as they will give those companies a fighting chance against the duopoly that is Facebook and Google.

TeamHealth Holdings Inc.: Sells itself to Blackstone for $6.1 billion

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The deal with the private equity firm will allow the U.S. hospital staffing company cope with pricing pressure stemmed from the recent wave of consolidation. Following the news, TeamHealth traded up 16.3 percent while Blackstone dipped 0.5 percent.

CenturyLink Inc. & Level 3 Communications: Ties up for $34 billion

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The merger will diversify the companies’ offerings and services amid the current consolidation in the telecom sector where Charter Communication just acquired Time Warner Cable for $79 billion. CenturyLink CEO and President Glen Post claimed the combined company is one of the most robust fiber network and high-speed data services companies in the world. CenturyLink shares fell more than 12 percent, while Level 3 traded up nearly 4 percent following the acquisition.

Eurowings: Possibly faces more strikes this week

Following the strike last Thursday that canceled more than 400 flights, the cabin-crew union UFO is willing to negotiate again with Lufthansa AG’s Eurowings to resolve a contract dispute. Eurowings has previously offered a pay increase of 7 percent on average to the flight attendants, but they rejected the offer and threaten to walk off on two unspecified days this week unless a better offer is made. Eurowings said it welcomed the union’s offer. The strikes came after Lufthansa CEO Carsten Spohr laid out cost-cutting plans to compete with the likes of Ryanair Holdings Plc. and EasyJet Plc.

Lumber Liquidators: Shares crater 16 percent following quarterly losses

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The hardwood floormaker reported net losses of $18.4 million, or 68 cents per share, compared to the analysts’ estimate of only 19 cents per share. The huge losses were due to a $4.3 million charge in a securities class action lawsuit where the company was accused of misleading investors and making false statements about its laminate flooring.

ANZ Bank: Sells businesses in five Asian countries to DBS Group Holdings Ltd.

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Southeast Asia’s largest lender DBS has agreed to buy ANZ Bank’s wealth and retail businesses in Singapore, Hong Kong, China, Taiwan and Indonesia for $79 million. This cements the consolidation in the region’s competitive wealth industry. ANZ will take a $201 million loss on the deal.

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