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The Market In 5 Minutes: Wednesday, April 6, 2016

Macro Focus

The Russian government said $45 to $50 per barrel is an acceptable price for the oil market to balance itself, according to a report by Reuters. The Russian government, along with other major oil producing nations, are set to meet in Doha on April 17 to discuss a potential freeze on oil output. However, there remain doubts that such an agreement could be made as Saudi Arabia has already stated it will only freeze output if Iran agrees to do the same.

President Barack Obama on Tuesday delivered a speech in which he called on Congress to put an end to "wasteful" tax inversion deals. Speaking to reporters, President Obama said these tax inversion deals "sticks the rest of us with the tab and it makes hard-working Americans feel like the deck is stacked against them."

Peter Schiff was on Tuesday's edition of PreMarket Prep, where he reiterated his bearish thesis for the market in the wake of the Federal Reserve's decision not to raise interest rates last week. He wasn't convinced by the positive market talk coming out of the Fed.

BZ Newsdesk Focus

Pfizer has terminated its merger agreement with Allergan following the U.S. Department of Treasury's tax inversion announcement on Monday. Pfizer noted the decision to terminate the merger agreement was mutual. As part of the agreement, Pfizer will pay Allergan $150 million as a breakup fee.

Sell-Side Theme's

Wall Street analysts were mixed on Valeant  amid its most recent developments.

BMO weighed in on the big pharma space.

Sell-Side's Most Noteworthy Calls

Barclays believes Tesla has been ambitious in drawing meaningful demand for Model 3, but the question that arises now is whether the company will be able to successfully deliver. The analyst "curmudgeoningly" maintained a $165 price target.

Credit Suisse slashed its target on LinkedIn  from $230 to $176 and said "patience is required."

Needham imitated Apple with a Strong Buy rating and the stock is worth $180 in the long term.

Trip Chowdhry thinks BlackBerry will fail. The stock has been crushed over the last few years.

Deal Talk

Reuters cited a source familiar with the matter that said the U.S. Justice Department will file a lawsuit to stop the Halliburton HAL 5.93%-Baker Hughes BHI 6.07% merger. The complaint could be filed as soon as this week.

Mitel Networks MITL 3.35% may be in advanced merger talks with Polycom PLCM 8.39% in a deal that would value Polycom at about $1.7 billion.

Glencore says it has agreed to sell a 40 percent stake in its agricultural business to Canada Pension Plan Investment Board (CPPID).


Business Insider points out that six investment banks will be missing out in more than $200 million in fees from the Pfizer-Allergan deal.

What's Up In The News?

The Panamanian lawyer at the center of a data leak scandal that has embarrassed a clutch of world leaders said his firm was a victim of a hack from outside the company, and has filed a complaint with state prosecutors.

Amazon AMZN 1.7% CEO Jeff Bezos wrote a letter to shareholders and defended the corporate culture that has been the target of various media reports over the past few years.

At The New York Times International Luxury conference in Versailles, France, Gucci CEO Marco Bizzarri called for an end to separation of the sexes, or at least to their collections. From 2017, the anchor brand of the Kering group will no longer hold different shows for men’s and women’s wear, but will rather combine the two into a single show, to be held each season.

Gawker urged a Florida judge to throw out wrestler Hulk Hogan's $140 million sex-tape verdict, saying the "grossly excessive" verdict was awarded by a biased jury and based on shoddy evidence.


"The Obama Administration took direct aim at the deal.... a deal that would have made Pfizer more competitive due to the lower taxes that they would have enjoyed via this move to Ireland... Now before you all go screaming suggesting that I am somehow in bed with the enemy - I am NOT." Read more from Kenny Polcari's morning thoughts.

Would World Wrestling Entertainment WWE 2.92% ever sell itself? It's not likely, but Gadfly calls it the "main event of buyers dreams."


#WisconsinPrimary made this Presidential race even more interesting, as Republican Ted Cruz picked up a huge victory while Bernie Sanders continued his momentum.

The FX miniseries "The People Vs. OJ Simpson" finally concluded last night. The show received a ton of buzz during its run, despite the fact that everyone seemingly knew the outcome of every episode.

Quote Of The Day

"I threw everything out the window. There's a lot of things to learn from my mistakes on this trade."

Veteran trader and PreMarket Prep co-host Dennis Dick detailed how he got left holding the bag with one of the worst losses of his career this week.

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