Investors are toasting a massive takeover offer in the beer market.
Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:
1. It's takeover time
Anheuser-Busch InBev (AHBIF) has offered to buy SABMiller (SBMRY) for $104 billion in cash. If the deal goes through, it would be one of the biggest takeovers of all time, and the biggest deal so far this year.
Shares in both companies are rising by about 3% as investors cheer the news. However, SABMiller said Wednesday it believes the bid isn't quite high enough.
AB InBev notes that its offer of £42.15 per share ($64.35) represents a 44% premium over SABMiller's share price before takeover talk began in September.
AB InBev said it originally offered £38 per share, then £40 per share, before sweetening the bid further.
Meanwhile, competitors Diageo (DEO) and Heineken (HEINY) announced plans to swap some business units. Part of the deal involves Heineken selling its 20% stake in Guinness Ghana Breweries to Diageo.
2. Stock market movers
Volkswagen, Yum: Shares in Yum! Brands (YUM) took a 17% dive in extended trading on news that the fast food giant is still struggling in the Chinese market following a series of food safety scandals. The company owns KFC, Taco Bell and Pizza Hut.
Shares in Volkswagen (VLKAY) are shooting up by about 5.5% in Europe after the automaker's new CEO told a German newspaper that the company would start a recall in January to fix millions of diesel vehicles that contain emissions cheating software. The recall will last throughout 2016.
3. Market overview
U.S. stock futures are rising ahead of the open and global markets are looking perky.
Nearly all European markets are up in early trading, while every major Asian markets closed out the day with gains.
Crude oil futures are also within spitting distance of $50 per barrel, rising by another 2% Wednesday after a surge of about 5% on Tuesday triggered by lower U.S. production. Later in the morning, oil traders will be closely monitoring a weekly report on U.S. crude inventories, which will be posted at 10:30 a.m. ET.
4. Earnings
Agricultural giant anto (MON) is reporting ahead of the open.
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