World Economy: The U.S. markets widen their losses after a hesitant opening.

Apr 29, 2008

The U.S. markets widen their losses after a hesitant opening.

The U.S. markets widen their losses after a hesitant opening. Investors repeat caution on the eve of the decision by the Fed on interest rates. Economists hope that it will be the last act of the cycle of monetary started mid-September, thus proving that the worst of the financial crisis is past. On the values front, Merck (MKGAY.PK - News) continues its descent into hell after the rejection of permission to file a new drug by the FDA. At 17:30, the Dow Jones (news) lost 0.40% to 12820.13 points while the Nasdaq Composite (NASDAQ: news) lost 0.24% to 2418.67 points.

Merck plunged this afternoon from 8.66% to 37.85 euros, realizing the worst performance of the Dow Jones. The title of the American pharmaceutical company is affected by the refusal of the FDA to authorize a new anti-cholesterol treatment. For Merck as for investors, the coup is rude. A few weeks earlier, the U.S. drugs agency had expressed serious doubts about the effectiveness of one of its flagship treatment, Vytorin. Result from the beginning of the year, the action accuses a fall of over 35% and brokers display their caution.

The macroeconomic figures

The consumer confidence index measured by the Conference Board rose to 62.3 in April, its lowest level since March 2003. It emerged to 65.9 in March, revised 64.5, after 76.4 in February. Economists polled by Reuters tablaient on 62 points.

The values to follow

HONEYWELLHoneywell announced the signing of the definitive agreement to acquire Metrologic Instruments, technology specialist at the scanner, for 720 million dollars. The deal should be completed in the second quarter. Metrologic has made in 2007 a turnover of approximately 246 million dollars.

MERCKMerck announced that the FDA had refused to grant it permission to market a new treatment against cholesterol called Cordaptive. A few weeks ago already, the U.S. drugs agency had doubts about the effectiveness of Vytorine, another anti-cholesterol developed in partnership with Schering-Plough. "We plan to meet with the FDA and to submit additional information to enable it to assess more thoroughly the risk / benefit ratio of MK-O524A," said Peter Kim, president of the Merck research.

OFFICE DEPOT (NYSE: ODP - News) Office Depot recorded a profit of 69 million dollars in the first quarter, or 25 cents per share, against 154 million or 55 cents per share a year earlier. The number two U.S. office supplies explained that the difficulties of the real estate sector in the USA had penalized sales in its main markets.

TAKE-TWOTake-Two has put on sale ® video game Grand Theft Auto IV ¯. This game is the flagship franchise of the group has received very good reviews and could see record sales. ® Grand Theft Auto 4 ¯ could generate a turnover of 400 million dollars in one week. The group is currently the subject of a bid for Electronic Arts (NASDAQ: ERTS - News) at a price of 26 dollars per share Take-Two, which represents a total of 2 billion dollars. A proposal deemed insufficient by the publisher of video games.

World Economy

The U.S. markets widen their losses after a hesitant opening.

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