TEL AVIV (Reuters) - Teva Pharmaceutical Industries (NYSE:TEVA) is expected to cut 20-25 percent of its 6,860 workers in Israel and a few thousand more in the United States, financial news website Calcalist reported on Thursday.
The world's largest generic drugmaker will send termination letters to "tens of percents" of its 10,000 employees in the United States in upcoming weeks, Calcalist reported, citing people familiar with the matter.
New Teva CEO Kare Schultz is working out the details with regional management in Israel and the United States, Calcalist said, noting those set to be ousted include its chief scientific officer, Michael Hayden, Teva's president of research and development.
A spokesman for Israel-based Teva declined to comment on the report.
Teva is widely expected to implement a cost-cutting program following the publication of third-quarter results earlier this month.
The company said it would miss 2017 profit forecasts due to falling prices of generics in the U.S. market and weakening sales of its multiple sclerosis drug Copaxone.
Saddled with nearly $35 billion in debt due to its $40.5 billion acquisition of Allergan's generic drug business Actavis (NYSE:AGN) last year, investors have been pushing Teva for clarity on its future.
"It will be an absolute priority for me that we stabilize the company's operating profit and cash flow in order to improve our financial profile," Schultz said on a post-earnings call with analysts. [nL8N1N84VN]
Interim Chief Financial Officer Mike McClellan has said the company was "working on a 2018 plan and evaluating all options".
Teva has been selling off assets to help meet its debt payments.
Fitch Ratings this month downgraded Teva's debt to junk.
By Luoyan Liu and Andrew Galbraith
SHANGHAI (Reuters) - Worries over a sustained bond selloff in China bled into the country's stock markets on Thursday, dealing blue chips their worst one-day loss in nearly 18 months, as investors reacted to the government's latest measures to reduce risks in the financial system.
The yield on Chinese 10-year treasury bonds (CN10YT=RR) touched a three-year high of 4.03 percent on Thursday, traders said.
The unease comes as the government steps up its deleveraging campaign, most recently with measures aimed at curtailing micro-lending and imposing tighter regulation on asset management businesses.
The blue-chip CSI300 index (CSI300) tumbled nearly 3 percent to 4,103.73 points, its biggest drop since June 13, 2016, while the Shanghai Composite Index (SSEC) slid 2.3 percent to 3,352.99 in its worst day since December.
"For the short term, the biggest worry in the stock market is Beijing's sweeping new rules to regulate the asset management business, which require financial institutions to set leverage limits on asset management products," said Yang Weixiao, an analyst with Founder Securities.
In some sectors such as healthcare and consumer products, analysts said the concerns provided a good opportunity for profit-taking after long run-ups.
The CSI index is still up 24 percent so far this year, while the SSEC is up 8 percent.
The selloff in mainland China snowballed into Hong Kong, where the benchmark Hang Seng Index (HSI) fell 1 percent after soaring above the 30,000 level on Wednesday for the first time in a decade. The China Enterprises Index (HSCE) lost 1.9 percent. (HK)
The yield on 10-year government bonds has risen nearly 40 basis points since the end of September.
A joint-venture fixed-income portfolio manager based in Shanghai said the bond selloff was the biggest adjustment for the market since 2010, though he suspected it won't get too much worse.
"But people are still afraid of the regulation factor. The market still wants to reduce leverage and keep cautious," he said.
"I don't think the government will save the market at this stage. It's just balancing between economic growth and financial market health... (and) I guess the government or the regulators are still focused on building a more healthy market."
The yield on 5-year AAA corporate debt <AAAIFR5YY=CDC> rose to its highest level in more than three years amid the selloff.
One of China's three policy banks said that it would postpone a bond issue originally planned for Thursday, a sign of the pressure some borrowers face as yields soar.
The Export-Import Bank of China (EXIM) said without elaborating that it would postpone a planned issuance on Thursday of bonds worth no more than 10 billion yuan due to "some reasons".
The 10-year yield on EXIM bonds <CN170303=> was 4.99 percent on Thursday, having risen more than 63 basis points since the end of September.
EXIM, owned by the finance ministry and central bank, plays a critical role in providing export financing and government-directed lending to other countries.
Higher rates are pushing up forward points on the yuan currency <CNY=CFXS>, even though spot yuan has been very stable.[CNY/]
The UK economy expanded as expected in the third quarter, official data confirmed on Wednesday.
In a report, the Office for National Statistics (ONS) said gross domestic product expanded by a seasonally adjusted 0.4% in the three months ended September 30.
Year-over-year, UK economic growth expanded 1.5% in the third quarter, matching the prior quarter’s growth.
The numbers were in line with the first estimates.
Immediately following the report, GBP/USD was trading at 1.3301 from around 1.3291 ahead of the release of the data, EUR/GBP was at 0.8903 compared to 0.8909 and GBP/JPY changed hands at 147.98, compared to the prior 147.88.
Oil prices rose further on Wednesday, with the U.S. benchmark surging to its best level since July 2015 amid speculation weekly supply data due later in the day will show a large drop in U.S. crude inventories.
The U.S. Energy Information Administration will release its official weekly oil supplies report for the week ended Nov. 17 at 10:30AM ET (1530GMT).
After markets closed Tuesday, the American Petroleum Institute said that U.S. oil inventories fell by 6.4 million barrels last week. That compared with analysts' expectations for a decline of around 2.1 million barrels.
The API report also showed a gain of 869,000 barrels in gasoline stocks, while distillate stocks fell by 1.7 million barrels.
There are often sharp divergences between the API estimates and the official figures from EIA.
U.S. West Texas Intermediate (WTI) crude futures jumped $1.08, or about 1.9%, to $57.88 a barrel by 3:20AM ET (0820GMT). It touched its highest level since July 2015 at $57.98 earlier in the session. Trading was thinning out ahead of Thursday’s Thanksgiving holiday in the U.S., according to market participants.
Meanwhile, Brent crude futures, the benchmark for oil prices outside the U.S., rose 64 cents, or around 1.1%, to $63.21 a barrel.
Oil prices ended higher on Tuesday amid expectations that oil producing countries will agree to extend an output cut at their meeting at the end of this month.
The Organization of the Petroleum Exporting Countries (OPEC), together with a group of non-OPEC producers led by Russia, has been restraining output since the start of this year in a bid to end a global supply overhang and prop up prices.
The deal to curb output is due to expire in March 2018, but OPEC will meet on Nov. 30 to discuss the outlook for the policy.
In other energy trading, gasoline futures inched up 1.4 cents, or 0.8%, to $1.776 a gallon, while heating oil gained 1.3 cents to $1.949 a gallon.
Natural gas futures dropped 1.1 cents, or 0.4%, to $3.006 per million British thermal units, as traders looked ahead to weekly storage data due later in the global day. It comes out one day ahead of its normal release time due to the Thanksgiving holiday.
MILAN (Reuters) - U.S. hedge fund Christofferson Robb & Company (CRC) has presented an offer to buy Banca Carige's (MI:CRGI) consumer credit unit Creditis, a source familiar with the matter said on Wednesday.
The bank, which is selling assets and on Wednesday launched a 560 million euros capital increase to strengthen its balance sheet, must accept the offer by Wednesday and close the sale by Dec. 6, according to the prospectus for the capital increase.
Accepting the offer is a key condition for CRC to take on unsold shares in the capital increase under an existing accord with broker Equita.
Oil prices are up almost 2% to $58 per barrel as the API reported falling U.S. crude inventories, while expectations of a prolonged OPEC-led production cut offered support.
TransCanada (NYSE:TRP) is also cutting deliveries by at least 85% on its 590K bpd Keystone pipeline through the end of November, which was shut down last week after a 5,000-barrel spill in South Dakota.
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Now read: USO: Expect Rallies In Oil
LONDON, (Reuters) - British factories enjoyed the biggest deluge of new orders in nearly three decades this month, an industry survey showed, adding to signs that the post-Brexit vote fall in the value of sterling is helping manufacturers.
The Confederation of British Industry's industrial order book balance surged in November to +17 from -2 in October, marking its highest level since August 1988. A Reuters poll of economists had pointed to a reading of +3.
The survey's gauge of export orders also rocketed, hitting its highest level since June 1995.
The Bank of England hopes that exports by British manufacturers can partially offset lower spending by consumers at home who have been pinched by a rise in inflation following last year's fall in the value of the pound.
As well as weaker sterling, a rebound in growth in the euro zone and beyond has helped British factories.
"UK manufacturers are once more performing strongly as global growth and the lower level of sterling continue to support demand. Output growth has picked up again, and export order books match the highest in more than 20 years," said Anna Leach, the CBIs' head of economic intelligence.
"Nonetheless, uncertainty continues to hold back investment and cost pressures remain strong."
Despite the strong reading for November, the CBI's gauge of factory output expectations for the next three months cooled to its lowest since October 2016.
Gold prices were higher in early dealings on Tuesday, rebounding from its biggest one-day percentage drop in more than two-months as investors awaited fresh signals about the likely trajectory of monetary policy in the U.S. in the months ahead.
Traders were also keeping an eye on safe-haven demand for the precious metal after U.S. President Donald Trump put North Korea back on a list of state sponsors of terrorism on Monday.
Comex gold futures were up about $6.00, or around 0.5%, to $1,281.00 a troy ounce by 3:15AM ET (0815GMT).
The yellow metal fell 1.6% on Monday in its biggest one-day percentage drop since Sept. 11, as the dollar gained amid German political turmoil that left Chancellor Angela Merkel’s prospects of serving a fourth term in doubt.
Markets will be watching Federal Reserve Chair Janet Yellen when she speaks in New York on Tuesday evening for any clues on interest rates. Yellen said on Monday she would resign her seat on the Fed's Board of Governors once Jerome Powell is confirmed and sworn in to replace her as head of the U.S. central bank.
Staying on the Fed front, minutes of its most recent policy meeting will be published on Wednesday and it could offer clues on the pace of potential interest rate hikes by the central bank.
The Fed is scheduled to hold its final policy meeting of the year on Dec. 12-13, with interest rate futures pricing in a 100% chance of a rate hike at that meeting, according to Fed Rate Monitor Tool. For 2018, the Fed is currently forecasting three interest rate hikes, but the markets expect two at most.
Gold is highly sensitive to rising rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar, in which it is priced.
On the political front, tax reform will likely stay at the forefront, as markets look for any new developments on the Trump Administration's tax bill. Last week, the House voted to pass a tax bill that would lower corporate taxes and cut individual taxes for most households in 2018, in a step towards the biggest U.S. tax code overhaul since the 1980s.
But the legislation may face a tougher fight in the Senate amid resistance within Republican ranks. Senate lawmakers are expected to vote on their version of the bill after this week’s Thanksgiving holiday.
More than two Republican defections would likely kill the bill. Wisconsin Senator Ron Johnson has already publicly stated he opposes the bill in its current form.
In other metals trading, silver futures rose 12.7 cents, or 0.8%, to $16.97 a troy ounce, platinum added 0.8% to $931.10, while palladium inched up 0.1% at $987.25 an ounce.
Meanwhile, copper futures were largely unchanged at $3.090 a pound.
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TOKYO (Reuters) - Japan's transport ministry said on Friday it has ordered scandal-hit Kobe Steel Ltd (T:5406) to improve management at one of its plants, as it struggles to restore confidence in its manufacturing following revelations of data falsification.
Measures taken to prevent a recurrence of wrongdoing at Kobe Steel's Daian plant in central Japan were inadequate, the transport ministry said in a statement, pointing to a lack of concrete steps in areas like the alleviation of pressure from head office and the training of inspection staff.
"We will work quickly to plan and implement the measures as required by the transport ministry," a Kobe Steel spokeswoman said.
The ministry inspected the Daian plant last month because of its role in supplying components for the domestically built Mitsubishi Regional Jet (MRJ) passenger aircraft under development by Mitsubishi Heavy Industries Ltd (T:7011).
No safety issues were found during that inspection, with Kobe Steel saying on Friday in its latest update that more than 90 percent of affected customers had found no immediate safety issues.
On Wednesday, Kobe Steel's Hatano plant, one of its main copper plants, was stripped of its industrial quality certifications after an investigation into its quality control.
Kobe Steel has said that a lack of quality controls and a focus on profits was behind widespread data tampering that has impacted more than 500 companies and shaken up the supply chains of car and plane makers around the world.