Main US stocks Merck Tesla and Southwest Airlines

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Merck

Merck said this morning that it has applied for emergency use authorization for its pill that can help treat people with mild to moderate Covid-19 in the United States.

If approved, it would become the first oral treatment to hit the market and could be a game-changer for governments battling the virus, with existing treatments requiring people to visit a medical center. The move comes after the latest data showed molnupiravir halved the risk of being hospitalized or killed by the virus.

Merck said it was set to seek clearance in other countries “within the next few months.” Notably, the shares of vaccine makers like Pfizer and Moderna were hit when the latest data on the pill was released earlier this month on theories that governments would switch to new types of preventative treatments and drugs.

Notably, U.S. regulators are expected to meet later this month to decide whether they should recommend that vaccines manufactured by Moderna and J&J be used for booster shots. A meeting to discuss the Pfizer vaccine is scheduled for a week later.

You’re here

You’re here held an event at the site of its new factory in Germany over the weekend, where CEO Elon Musk revealed the first vehicle could roll off the production line as early as next month, but warned that the rise in power might take longer than to build the plant itself.

Tesla is hoping to get approval for the new site imminently, with officials to decide by Thursday, but warned it would take time to ramp up production to its target of 5,000 (to “hopefully” 10,000 ) vehicles per day. It has set itself an interim target of reaching volume production before the end of 2022.

Musk also said the company is awaiting the arrival of people from all over Europe, fearing it will not be able to find the talent it needs for the new site.

Southwest Airlines

Southwest Airlines is on the line today after being forced to cancel thousands of flights over the weekend due to bad weather and air traffic control issues.

Data from flightaware.com showed the airline canceled 808 flights – or 28% of all scheduled flights – on Saturday and 1,103 other flights – about 30% of its schedule – on Sunday. “With fewer frequencies between cities in our current schedule, recovery during operational challenges is more difficult and prolonged,” the airline said in an emailed statement to Reuters.

The cancellation rate was considered to be much higher than that of the other airlines involved.

Global payments

The chief executive of Global Payments said he was open to a major acquisition following its $ 21.5 billion deal to buy TSYS two years ago.

I certainly see deals as big as TSYS in our future, ”Jeff Sloan told Reuters. Global Payments is a major player in transactional services for businesses and has decided to strengthen its offering by acquiring TSYS, which processes credit card transactions for banks. Sloan said the industry consolidates as it seeks scale and adapts to the drastic change in online shopping.

The main attraction of any potential deal would be accessing markets where it currently lacks a presence, Sloan said. The CEO added that the company will continue to make targeted acquisitions in the meantime.

Honeywell International

Honeywell International said the business jet industry has “almost completely wiped out the effects of the COVID-19 pandemic” as it raises its outlook for the next decade.

The company said on Sunday it expects 7,400 business jets worth some $ 238 billion to be delivered between 2022 and 2031, up about 1% from its forecast of ‘one year ago. He said manufacturers reported an increase in orders for 2022 and also reported a sharp increase in used aircraft purchase plans, which are 12% ahead of last year. He said the surge in demand for used aircraft coupled with a record available-for-sale inventory “will inevitably lead to additional demand for new business jets.”

“Increased demand for used jets is estimated at over 6,500 units over the next five years, putting pressure on an already record stock and driving demand for new jets,” said Heath Patrick, president of the Americas Aftermarket at Honeywell Aerospace. “The results of our latest operator survey support the continued growth in the use of private jets, as more than 65% of those surveyed predict increased use of business jets in 2022. Despite the current challenges posed by the pandemic , flight hours have recovered and exceeded pre-pandemic levels. The overall health of the business jet market is strong and growth is expected to continue. ‘

Emerson and Aspen technology

Emerson Electric has agreed to merge two of its software businesses with Aspen Technology in an approximately $ 11 billion deal, according to reports in the Wall Street Journal.

The cash and stock deal is expected to value Aspen Technology at around $ 160 per share, according to the report. Shareholders will receive $ 87 in cash and get 0.42 new combined company shares for each share they currently own. This implies a premium of around 27% over the Aspen Technology share price closing on October 6, when Bloomberg first announced the potential deal. The offer is about 13% above the closing share price on Friday.

Emerson would own approximately 55% of the combined business, with Aspen Technology shareholders owning the remainder. It will retain its current name and will be headed by CEO Antonio Pietri. The deal aims to meet growing demand for industrial technology, with Emerson helping make power plants and factories more efficient and Aspen Technology providing software to the natural resource, manufacturing and pharmaceutical industries.

Hasbro

Hasbro announced on Sunday that chief executive officer Brian Goldner is taking time off from his post as he continues to seek medical attention after being treated for cancer in 2014.

Lead Independent Director Rich Stoddart has been appointed Interim CEO with immediate effect. He has experience as a CEO at the marketing execution firm InnerWorkings and at the advertising firm Leo Burnett Worldwide.

“After careful consideration, I decided to take medical leave to focus on my health. I am confident that the Company will be in the capable hands of Rich Stoddart as Interim CEO, our highly experienced management team and the best employees in the company. The future of Hasbro couldn’t be brighter as we continue to boost the Blueprint and build the world’s leading games and entertainment company, ”said Goldner.

Cleveland cliffs

Cleveland-Cliffs said it entered the scrap metal business after agreeing to buy Ferrous Processing and Trading Co for $ 775 million, with no cash or debt.

Ferrous Processing and Trading is one of the largest processors and distributors of premium scrap metal in the United States, accounting for 15% of the domestic premium scrap metal market. The company processes around 3 million tonnes of scrap per year, about half of which is classified as premium grade. It operates 22 facilities primarily located in the Midwest.

“Cleveland-Cliffs is entering the scrap metal business as a major player with the acquisition of a large scrap metal company. More importantly, FPT has a very significant presence in blue chip scrap. With all new flat-rolled FEA capabilities entering our market over the next four years, quality scrap will become increasingly scarce. As the largest supplier of flat-rolled steel in North America, Cleveland-Cliffs is the primary source of steel that generates premium grade scrap at manufacturing facilities, ”said Cleveland-Cliffs.

Analyst recommendations

Eli lilly was upgraded to Buy from Hold by Berenberg, who estimates the company can generate annual sales growth of 10% on average through 2030, more than double the average of its peers.

Starbucks was reclassified as Buy from Hold by Deutsche Bank in hopes that the coffee giant could benefit from surging demand in the United States and sustained growth in China.

ConocoPhillips was downgraded to Neutral from Buy by Goldman Sachs, citing overvaluation given that the stock has risen more than 83% since the start of 2021.

SoFi Technologies was launched as an overweight by Morgan Stanley, believing that fintech stock has a “history of strong revenue growth”.

Netflix has its price target raised to $ 740 from $ 643 by Credit Suisse in hopes of a strong year end thanks to a solid content slate.

platoon saw its price target slashed from $ 185 to $ 155 by Keybanc to bring it in line with lower ratings for the digital fitness market.

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