• Garnry does not believe in $62 billion Bayer-Monsanto deal
• Ryanair foresees pressure on air fares
• Profit taking in USD
• Petrobas back in the bond market is a positive sign for Brazil
• Click on this link for a reply of our morning call
By Clemens Bomsdorf
chemistry giant Bayer
has come with an official $62 billion cash offering for a take-over of US seed-supplier Monsanto
, which is often the target of environmentalists. Garnry judges this as“a pretty crazy deal”, which as it calls for a “massive dilutive deal for shareholders” will probably not get through. Expect, nevertheless, some share-price volatility as this story develops.
Also budget-carrier Ryanair
reported for the 12 months ending March 31 said it foresees fare prices falling 7% in fiscal year 2017. Garnry says the Ryanair stock is a buy if it slides into the €12-12.50 zone.
with PMI data will set the tone for Europe's session.
Source: Saxo Bank. Create your own charts with Saxo Trader click here to learn more
Source: Saxo Bank / Bloomberg
In US bond markets, the focus is still on Fed speakers as Treasuries moved a bit higher from last week. Worth mentioning in emerging markets is that Brazilian Petrobras
returned to the bond market after a one-year absence. The rise of the oil price is a factor, but it is also “evidence of optimism returning in Brazil”, says Saxo's fixed income trader Michael Boye
He points at the Petrobras 5.375 2021 USD bond being attractive with its 8.5% yield for less than five years. However, the Fed rate hike is also a risk factor.
German chemistry giant Bayer is most well known for having invented Aspirin,
the pain killer. Now it wants to swallow Monsanto. Photo: iStock
Clemens Bomsdorf is consulting editor at TradingFloor.com
Editor’s note: From the Floor takes advantage of TradingFloor.com's unique real-time access to Saxo Bank’s various trading desks around the globe to put our community in touch with the developments that matter to their portfolios