Allergan, the maker of Botox is supposedly cutting about 13% of its workforce to become more cost effective and efficient as it fights a hostile take over bid from Valeant Pharmaceuticals. The company reported its plans to cut down about 1500 of its employees and 250 vacant positions as it aims to focus on its “high value” opportunities, on Monday. According to Allergan this strategy will yield annual pretax savings of about $475 million in 2015.

Interestingly, Allergan announced the cuts the same day they revealed their second quarter results which seem to have surpassed the expectations of the analysts. CEO David Pyott told analysts during a conference call that the results were an indication that the company was on the right track and the announced actions would take them further ahead.

The takeover certainly isn’t big news since Allergan has rejected several offers in the past from Valeant Pharmaceuticals and others like Bill Ackman’s Pershing Square Capital Management. In fact, the latest offer amounts to $53 billion in cash and stock! Another important fact is that Valeant has promised to cut down costs of its own if Allergan agrees to co-operate. Bill Ackman told CNBC that Allergan should have taken these steps some time ago and the shareholders have been asking this for some time. Bill Ackman himself, has a 9.7% stake in the company. Ackman expressed disappointment in Allergan’s decision to fight off the takeovers since he seems to think that their opportunities have been curtailed as a result of standing alone.

He is reported to have said. “Allergan can only achieve so much as a stand alone company.” Allergan on the other hand, has now resorted to ‘poison pill’ defenses and Pyott seems to think that Valeant’s offer is unreasonably far from the “intrinsic value” of their company. There is bad blood between the two companies and they have been publicly criticizing each other about the takeover since April. Valeant has even recently complained to the Securities and Exchange Commission and authorities in the Canadian province of Quebec about Allergan’s false statements regarding Valeant’s business.

Valeant Chairman and CEO J.Michael Pearson believes that they are obligated to take action against Allergan’s attempts to ‘mislead investors and manipulate the market for Valeant stock.” Allergan however claims the statements to be true and responded by an email, asking Valeant to reveal the ongoing activities of their business. Allergan said on Monday that it expects Botox to deliver net sales from $2.2 billion to $2.28 billion. The use of Botox itself is surrounded by much controversy. It is a product used to make aging lines on the skin smoother but its also known to treat neck spasms, eye muscle disorders, migraines and some other conditions.

Recently in China, authorities are keeping a close eye on the meat dealers since an accusation were made that they were involved in providing expired products and naming them as fresh. This action has disturbed the foreign fast food chains in China. This news has spread after a private investigation done by a local television which clearly showed that expired meat is again labelled as fresh and sent to different popular fast food chains of China.

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China’s State Food and Drug Administration have planned to check all eight main land meat plants. It ordered to check Shangai Plant which has been closed by local supervisors. Several other wide-spread checks are being made on different meat supplier instead of doing it on entire China meat processing industry.

OSI- an Illinois based company has already apologized to both the authorities and its customers. Star Bucks is now tied up with Yum brand’s KFC and Pizza Hut to get products directly from the meat plants rather than purchasing it from the untrustworthy meat suppliers. All the coffee chains said that this action is merely affecting one item which is chicken apple Panini sandwich. The Husi processing plant was responsible for supplying meat to foreign fast food chain in Shangai and McDonalds in Japan for its one-fifth chicken Mc nuggets. McDonalds has decided to stop taking Mcnuggets from meat plants of China and Thailand. It is certainly difficult for foreign food chains to change their meat suppliers on such a short notice.

Asian share market jumbled high on Tuesday whereas, movements were low in Tokyo. Stock markets of India and China were in the lead with a gain, at the same time MSCI’s broadcast of Asian pacific share outside Japan added 0.2 percent. European stocks were an inch up, in opposition of previous dip.

Hong Kong’s Hang Sang is recovering 1.3 percent after facing the fall from last three sessions.

nikkei+stocks+xxx

Barack Obama, U.S president is still in support of Israel. He says that it’s a right of Israel to protect itself from the Human assault. On the other hand, he also showed concern for the people of Palestine. He said that he had sent John Kerry to the Middle East in order to resolve this dispute.

Obama claimed that Russia has a very great influence over separatist therefore; they are not allowing them to remove bodies from the crash site.
In the mean time, demands has been made by United Nations Security Council for international inquiry on the last week’s Malaysian flight accident and ask the country to make sure that the veracity of this case should be maintained.

The U.S economic report remained light today with investors looking at customer’s price rises and home sales to get an idea about the economy of upcoming cruel winter. Some companies like Coco-cola, DuPont and McDonald’s are going to announce their quarterly results before the opening bell.

Allergan, the maker of Botox is supposedly cutting about 13% of its workforce to become more cost effective and efficient as it fights a hostile take over bid from Valeant Pharmaceuticals. The company reported its plans to cut down about 1500 of its employees and 250 vacant positions as it aims to focus on its “high value” opportunities, on Monday. According to Allergan this strategy will yield annual pretax savings of about $475 million in 2015.

Interestingly, Allergan announced the cuts the same day they revealed their second quarter results which seem to have surpassed the expectations of the analysts. CEO David Pyott told analysts during a conference call that the results were an indication that the company was on the right track and the announced actions would take them further ahead.

The takeover certainly isn’t big news since Allergan has rejected several offers in the past from Valeant Pharmaceuticals and others like Bill Ackman’s Pershing Square Capital Management. In fact, the latest offer amounts to $53 billion in cash and stock! Another important fact is that Valeant has promised to cut down costs of its own if Allergan agrees to co-operate. Bill Ackman told CNBC that Allergan should have taken these steps some time ago and the shareholders have been asking this for some time. Bill Ackman himself, has a 9.7% stake in the company. Ackman expressed disappointment in Allergan’s decision to fight off the takeovers since he seems to think that their opportunities have been curtailed as a result of standing alone.

He is reported to have said. “Allergan can only achieve so much as a stand alone company.” Allergan on the other hand, has now resorted to ‘poison pill’ defenses and Pyott seems to think that Valeant’s offer is unreasonably far from the “intrinsic value” of their company. There is bad blood between the two companies and they have been publicly criticizing each other about the takeover since April. Valeant has even recently complained to the Securities and Exchange Commission and authorities in the Canadian province of Quebec about Allergan’s false statements regarding Valeant’s business.

Valeant Chairman and CEO J.Michael Pearson believes that they are obligated to take action against Allergan’s attempts to ‘mislead investors and manipulate the market for Valeant stock.” Allergan however claims the statements to be true and responded by an email, asking Valeant to reveal the ongoing activities of their business. Allergan said on Monday that it expects Botox to deliver net sales from $2.2 billion to $2.28 billion. The use of Botox itself is surrounded by much controversy. It is a product used to make aging lines on the skin smoother but its also known to treat neck spasms, eye muscle disorders, migraines and some other conditions.

Recently in China, authorities are keeping a close eye on the meat dealers since an accusation were made that they were involved in providing expired products and naming them as fresh. This action has disturbed the foreign fast food chains in China. This news has spread after a private investigation done by a local television which clearly showed that expired meat is again labelled as fresh and sent to different popular fast food chains of China.

China’s State Food and Drug Administration have planned to check all eight main land meat plants. It ordered to check Shangai Plant which has been closed by local supervisors.  Several other wide-spread checks are being made on different meat supplier instead of doing it on entire China meat processing industry.

OSI- an Illinois based company has already apologized to both the authorities and its customers. Star Bucks is now tied up with Yum brand’s KFC and Pizza Hut to get products directly from the meat plants rather than purchasing it from the untrustworthy meat suppliers. All the coffee chains said that this action is merely affecting one item which is chicken apple Panini sandwich. The Husi processing plant was responsible for supplying meat to foreign fast food chain in Shangai and McDonalds in Japan for its one-fifth chicken Mc nuggets. McDonalds has decided to stop taking Mcnuggets from meat plants of China and Thailand. It is certainly difficult for foreign food chains to change their meat suppliers on such a short notice.

Allergan Inc, on Monday announced that it is planning to cut down 13 percent of its work force, which include job of 1500 workers, in order to increase profits over the next six years. This job cut would not have an effect on the main plant that is located in West port and co Mayo, which has a staff of 900 workers. This will help the organization in convincing investors that a standalone company has a better value. It will facilitate them in making 20 percent growth between the time periods of 2014-2019. The company had expected a 2014 profit of $5.64 to $5.73 per share, with earnings growth of 20 per cent to 25 per cent in 2015.

Valeant, the rival of Allergan offered $52 billion for the company but Allergan refused. They said that the acceptance of that proposal will affect the development of the company and it was not in the best interest of share holders. On the other hand, Valeant was saying that they will increase the profit by cut cost and now Allergan is saying that we can do it by ourselves as well.

According to, JPM Morgan analyst, Chris Scot, this cut down is of 5 to 10 percent which is more than expectation. Consequently, the company should deserve superior appraisal. This reformation will take away 250 vacant positions with it and will give guarantee earning of 10 percent shares in 2016

 

Asian share market jumbled high on Tuesday whereas, movements were low in Tokyo. Stock markets of India and China were in the lead with a gain, at the same time MSCI’s broadcast of Asian pacific share outside Japan added 0.2 percent. European stocks were an inch up, in opposition of previous dip.

Hong Kong’s Hang Sang is recovering 1.3 percent after facing the fall from last three sessions.

Barack Obama, U.S president is still in support of Israel. He says that it’s a right of Israel to protect itself from the Human assault. On the other hand, he also showed concern for the people of Palestine. He said that he had sent John Kerry to the Middle East in order to resolve this dispute.

Obama claimed that Russia has a very great influence over separatist therefore; they are not allowing them to remove bodies from the crash site.
In the mean time, demands has been made by United Nations Security Council for international inquiry on the last week’s Malaysian flight accident and ask the country to make sure that the veracity of this case should be maintained.

The U.S economic report remained light today with investors looking at customer’s price rises and home sales to get an idea about the economy of upcoming cruel winter. Some companies like Coco-cola, DuPont and McDonald’s are going to announce their quarterly results before the opening bell.

Australian central band chief said on Tuesday, that the jury is out on whether exceptional monetary policies around the globe have contributed in stimulating activity in the real economy other than just encouraging risk taking behavior in financial markets.

Governor Glenn Steven of the Research Bank of Australia emphasizes that quantitative easing has obviously contributed in lowering borrowing costs around the globe but its just not clear if this lead to a higher business investment. He continued by suggesting that some would take this to imply that the unconventional monetary policy has not been all that effective others would say that this was indicative of the fact that policy did not try hard enough. He said that it was difficult to draw a clear conclusion from the picture.

He pointed out that the slow recoveries in many major countries could just be a consequence to the loss in business confidence and that could not be changed by interest rates.

He explained that if people started believing that return – regardless of the past returns – would be low in the future, this would be a huge deterrent in investment. However he also elaborated that this pessimism couldn’t possibly last forever, in fact, steps should be taken to curtail its damage and convince investors otherwise. He regarded the growth agenda being pushed by the group of 20 nations (G20) to be helpful in restoring confidence. This involves supply side reforms, increased infrastructure investment, ensuring a safe financial sector and progress on free trade agreements.

sian shares faced a tough time on Thursday since the unsatisfactory Chinese manufacturing survey. The survey took the limelight from a better news on Japan. Whereas the U.S dollar sustained because of the rumor of an early rate rise from the Federal Reserve.

The markets of Europe appeared more optimistic with the financial spreadbetters increase from 0.1 percent to 0.3 percent for FTSE,DAX, GDAXI and CAC 40 FCHI.

In August the HSBC/Markit Flash China Manufacturing Purchasing Manager’s Index (PMI) fell descended to 50.3. It went 10 months high of 51.7 in the month of July.

Investors act in response and sold the Australian dollar AUD=D4 which is habitually used as a liquid proxy for bets on China. Though the CSI300 of the leading Shanghai and Shenzhen A-share listing dropped 0.9 percent.

 

MSCI’s broadcast Index of Asia-Pacific (MIAP) shares outside Japan slid 0.6 percent with Index in South Korea Korea and Taiwan TWII in the red.

However, Japanese stocks managed to jump the trend with the help of a review. The review demonstrates the activity increased speed in August.

JMMA showed that Japan PMI climbed a seasonally adjusted 52.4 which is more than July’s 50.5. This is the highest reading of PMI since March.

Tokyo’s Topix  and Nikkei both stopped at 0.9 percent. They began determinedly after  the drop of the yen against the U.S dollar, which is an encouraging indication for Japanese export and corporate earnings.

Chrysler has recalled almost 800,000 Jeep SUVs. The recent development happened as a result of problems in the ignition switches.

There were reports that the problem in the ignition is causing the engine to get stalled.

The recall covers Grand Cherokees from 2005-07 and Commanders from 2006-07.

The exact figure of recalls is 792,300. However Chrysler’s representative has also stated that they are not sure how many more can be recalled.

chrysler recalls jeeps suvs
In a statement released the Chrysler company has mentioned that some external force quiet possibly through the knee jerk can hit the switches which can result in shifting of the position. Ultimately it may result in shutting down the engine which is very dangerous.

Such things can also cause the air bags issue, which may not open or even if they do, they may not get inflated.

‘As of now no injuries were reported because of such problem,’ the company representative said.

They have also mentioned that their engineers have come up with a solution for this issue which will be implemented on the recalled Chrysler SUVs.