Chemical Finance Digest, Aug. 29-Sept. 2

Topping the headlines last week, Omnova lowered its full-year earnings outlook to 40-44 cts/share from 60 cts/share. The company attributed the move to "a deceleration in the global economy" and higher raw material costs.

 

In M&A news, Solvay has officially completed the acquisition of Rhodia, while Univar bought a Brazilian distributor.

 

In debt news, Praxair is issuing new bonds worth $500 million. The bonds are due in 2021, and carry an interest rate of 3% - just about a percentage point higher than the yield for comparable U.S. treasuries.

 

In macroeconomic news, the U.S. economy added no new jobs in August. "Recent trends are perilously close to stall speed for the economy," notes IHS Global Insight chief economist Nigel Gault.

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