Ion-Marc Valahu répond à Bloomberg – 16.06.2014

Ion-Marc Valahu, a co-founder and fund manager at Clairinvest in Geneva, wrote in an e-mail. “The fear is that the situation gets out of control and the U.S. has to intervene militarily.”

 

By Jonathan Morgan
June 16 (Bloomberg) — U.S. stock-index futures declined, after equities posted their first weekly drop in almost a month, as concern grew the U.S. will be forced to intervene in Iraq to stop insurgents from taking over the country.
Covidien Plc surged 37 percent in early New York trading after Medtronic Inc. agreed to buy the Irish company for $42.9 billion. Medtronic gained 13 percent as Sanford C. Bernstein & Co. said the deal will allow it to challenge Johnson & Johnson as the world’s biggest medical-device company. Lockheed Martin Corp. rose after saying it’ll supply sensor systems to Canada.
Futures on the Standard & Poor’s 500 Index expiring in September fell 0.3 percent to 1,922.8 at 7:24 a.m. in New York.
The benchmark equity gauge lost 0.7 percent last week, snapping a three-week rally, as Sunni insurgents in Iraq occupied more territory and oil prices jumped. Dow Jones Industrial Average contracts slid 46 points, or 0.3 percent, to 16,651 today.
“U.S. futures are down with the rising tensions in Iraq,”
Ion-Marc Valahu, a co-founder and fund manager at Clairinvest in Geneva, wrote in an e-mail. “The fear is that the situation gets out of control and the U.S. has to intervene militarily.”
Iraq moved toward a civil war as a rebel group known as the Islamic State in Iraq and the Levant raided the north and brought several cities under its control. While the army fought back and killed hundreds of insurgents, it hasn’t been able to stop their progress. Militants took Tal Afar, a town west of Mosul, and made for capital Baghdad.
The U.S. has dispatched an aircraft carrier to the Persian Gulf as Obama weighs options to help the Shiite-led government of Prime Minister Nouri al-Maliki. Republicans have criticized the president for not taking military action.

Economic Reports

A Federal Reserve report at 9:15 a.m. Washington time may show a rebound in industrial production. Output advanced 0.5 percent in May, after declining 0.6 percent in April, economists surveyed by Bloomberg predicted. A separate release from the New York Fed at 8:30 a.m. may show that a gauge of manufacturing in the region fell to 15 in June, from 19.01 in May, according to economists.
Covidien rallied 37 percent to $98.47. Medtronic will pay the equivalent of $93.22 for each share of Dublin-based Covidien, or about 29 percent more than Covidien’s closing price on June 13, the companies said. The combined entity, called Medtronic Plc, will be based in Ireland for tax purposes.
Medtronic advanced 13 percent to $68.39. The deal will allow Medtronic to rival Johnson & Johnson’s medical-technology business in size and scale, Bernstein said in a note.
Lockheed Martin added 0.5 percent to $164.91 in New York trading. The company will provide eight Gyrocam sensor systems to the Canadian Department of National Defense. The systems will be delivered in the third quarter, according to a statement.

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Srinivasan Sivabalan