BioAmber CEO: Expect More Big Pay Days After 'Take or Pay' Deal
BioAmber CEO: Expect More Big Pay Days After 'Take or Pay' Deal
Stocks Rise as Investors Hope Fed's Rate Hike Is Delayed on Greece Worries
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BioAmber's "take-or-pay" deal with Vinmar this week, along with lower corn prices, is the start of big things to come for the sustainable chemical maker, said the company's CEO Jean-Francois Huc. BioAmber announced Monday it signed a 210,000 ton per year contract for bio-based succinic acid with Vinmar. Under the terms of the 15-year master off-take agreement, Vinmar has committed to purchase and BioAmber Sarnia, a joint venture with Mitsui Co., has committed to sell 10,000 tons of succinic acid per year from the 30,000 ton per year capacity plant that is currently under construction in Sarnia, Canada.
What a difference a day makes. Stocks closed higher Tuesday as investors bet the Federal Reserve could delay its looming rate hike as Greece flirts with default. All three major indexes finished Tuesday's volatile trading session higher, following a major selloff on Monday, when the Dow lost 350 points. 'The situation in Greece has the potential to delay a Fed rate increase until December or even next year should the situation deteriorate further,' wrote Brian Rehling, co-head of global fixed income strategy at Wells Fargo Investment Institute in a Tuesday note. Greece announced over the weekend that it will hold a referendum on July 5 to allow citizens to decide if the country should remain in the 19-country eurozone. A 'Grexit' would mean a return to Greece's old drachma currency. Though sources told Reuters that Greek officials are open to nixing the referendum in order to make way for a debt deal. Plus, Apple's (AAPL) streaming music service begins on Tuesday for $9.99 a month, following a 90-day free trial. The service will include music from Taylor Swift, who removed her songs from competitor streaming service Spotify. Apple's service is also set to compete with Pandora (P).
Stocks edged up slightly in midday trading Tuesday over hopes that an 11th hour debt deal may save Greece from default. However, following a major selloff on Monday where the Dow lost 350 points, the index is still negative for the year. While no deal is in place for Greece's debt and a default looks likely, Greek Finance Minister Yanis Varoufakis told Reuters he is hopeful a last-minute agreement will be made. The debt-laden country has a $1.7 billion payment due to the International Monetary Fund at midnight Tuesday Athens time and reports are that Greece won't make the payment. Greece announced over the weekend that it will hold a referendum on July 5 to allow citizens to decide if the country should remain in the 19-country eurozone. A 'Grexit' would mean a return to Greece's old drachma currency. Greece isn't the only country with a debt crisis on its hands. Puerto Rico's Gov. Alejandro Garcia Padilla said on Sunday that the island's $72 billion in debt is 'not payable,' posing risks for the U.S. municipal bond market. Though the White House said a bailout for Puerto Rico was not being considered. Apple's (AAPL) streaming music service begins on Tuesday for $9.99 a month, following a 90-day free trial. The service will include music from Taylor Swift, who removed her songs from competitor streaming service Spotify. Apple's service is also set to compete with Pandora (P).
U.S. stocks opened higher Tuesday as Wall Street gets ready to close the books on the second quarter. Home prices continued to rise in April, but at a slower pace than the previous month, according to the latest S&P/Case Shiller Index report. The 20-city index rose 4.9 percent year-over-year, though the rate of annual price gains slowed in 11 urban areas. Denver and San Francisco saw the biggest price gains. Amazon (AMZN) has expanded its one-hour delivery service for Prime members to parts of central London. An update to the Prime Now app notes the services is now 'available in selected London postcodes'. This is the first foray for Prime Now outside the U.S., some six months after the service first launched
In Tuesday's Analysts' Actions, TheStreet highlights a positive coverage initiation on Fitbit (FIT) as well as a couple of rating changes on Lowe's (LOW) and Abercrombie & Fitch Co. (ANF). Analysts at RBC Capital started coverage on newly public wearable fitness tracker company Fitbit with an OUTPERFROM rating and a $45 price target. Analysts at BMO Capital upgraded Lowe’s to OUTPERFORM from MARKET PERFORM with an $81 price target. The firm cited the stronger housing and overall economic activity in the Southeastern states for the higher rating on shares of the home improvement retailer. And analysts at FBR Capital cut its rating on teen apparel retailer Abercrombie & Fitch to MARKET PERFORM from OUTPERFORM with a $24 price target. FBR analysts believe a brand turnaround could be a multiyear transition. TheStreet's Kurumi Fukushima reports in New York.
Stocks turned mixed Friday as disappointing earnings from Micron (MU) pushed tech stocks lower. The S&P 500 added 0.15%, the Dow Jones Industrial Average gained 0.55%, while the Nasdaq lost 0.33%. Micron shares fell more than 18%, after the chipmaker reported quarterly earnings and revenue that fell short of analysts' estimates. Meanwhile, shares of Nike (NKE) rallied after reporting better than expected earnings. Investors still remain cautious following a selloff in China and Greece's ongoing debt crisis. The Shanghai Composite fell 7.4%, amid worries that Chinese equities are overvalued. Japan's Nikkei 225 index and Hong Kong's Hang Seng also posted losses. The final reading for June consumer sentiment via the University of Michigan's Consumer Survey came in at 96.1, compared to estimates of 94.6. Investors also were bracing for a rebalancing of the Russell 2000, an index of small-cap stocks, in an annual event that could result in tens of billions of dollars in trades right before the markets close.
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