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Chemical Finance Digest, Sept. 26-30
3:19 PM MDT | October 4, 2011 | By VINCENT VALK
Topping the headlines last week, early third-quarter earnings came in mixed, as Mosaic’s rose by 77%, but missed estimates, while Omnova’s fell by 40%, but beat estimates.
In M&A news, BASF announced plans to sell its fertilizer business to EuroChem for $945 million. Meanwhile Lonza has extended the deadline for its $1.4 billion tender offer for Arch Chemicals to October 14, while Air Products bought a 25% stake in a major Saudi gases firm.
No new debt was issued, though Moody’s upgraded Westlake’s credit rating to ‘Baa3’ and Solutia’s outlook to positive. Solutia is currently rated ‘Ba3.’
In macroeconomic news, the second-quarter U.S. GDP growth estimate was revised up a bit, to 1.3%, from 1%. IHS Global Insight now forecasts third-quarter growth to be 2%, up a percentage point from a month ago, though “recession risks remain uncomfortably high (40%) as the economy still faces multiple threats at home and from overseas,” says Global Insight economist Nigel Gault.
The week ahead will see U.S. monthly employment figures for August released on Friday. Consensus is for 65,000 new jobs.