Yesterday's stunning announcement by the US Treasury, which released a report titled "Treasury Announces Additional Action to Curb Inversions, Address Earnings Stripping", and which was clearly aimed at ending not only all tax inversions, but the biggest pharma M&A deal in history, Pfizer's tax-inverting takeover of Allergan (pardon Actavis) hit AGN like a ton of bricks, sending the stock crashing 20%.
The market's slumberous levitation of the past month, in which yesterday's -0.3% drop was the second largest in 4 weeks and in which the market had gone for 15 consecutive days without a 1% S&P 500 move (in March 2015 the sasme streak ended at day 16) may be about to end, after an overnight session, the polar opposite of yesterday's smooth sailing, which has seen a sudden return of global risk off mood.
Turkish President Recep Tayyip Erdogan has criticised the West for attempting to give Turkey “lessons in democracy” amid increasing criticism from the U.S. and Europe that Turkey is suppressing press freedoms under his regime. “Those who attempt to give us lessons in democracy and human rights must first contemplate their own shame,” Erdogan said. Middleeasteye.net reports: His comments came after US President Barack Obama said Turkey’s approach towards the media was taking it “down a path that would be very troubling”.
Last July, the United States entered into an agreement with Iran with the hopes of limiting their nuclear ability. At a high level, the US would lead the way in lifting oil and financial sanctions imposed due to Iran’s nuclear programs; in return Iran would reduce their stockpile of enriched uranium, storage facilities and centrifuges. What was not negotiated, however, were sanctions on missile technologies and conventional weapons.
Per the White House: