Good morning, welcome to the Financial News Network, your source for the latest business news. Here's a few things to watch for in the financial world today July 2.
Big deals being made in the pharmaceutical sector. Bristol-Myers Squibb is in agreement to acquire Amylin Pharmaceuticals in a $5.3 billion deal. This comes in response to Bristol-Myers recently losing its exclusive patent on its blood thinner drug Plavix, a product that gave the company $7.1 billion in 2011. Many other drug makers are looking for acquisitions and partnerships in the wake of generic competition to create value that was lost. AstraZeneca is following this trend with a $3.4 billion agreement with Bristol-Myers to help develop Amylin's pipeline of drugs. This partnership will give the companies both a shared risk and reward for potential treatments.
Barclays announced today it will launch an independently led audit of its business practices after the resignation of Chairman Marcus Aguis. The reason for Aguis's exit deals with last week $453 million settlement of an interest-rate manipulation probe. By taking responsibility for the probe, Aguis said he hopes to help strengthen Barclays damaged reputation. It is unclear whether his departure will relieve pressure from Chief Executive Robert Diamond. However, these two actions are on the right track to bring the bank back from being viewed negatively by investors.
Finally, the United States isn't the only place that is dealing with poor employment. A report from Eurostat, the European Union's statistics office, shows unemployment rose to 11.1% in May, the highest since the euro was launched in 1999. In total, that's 17.6 million people out of work, up 88,000 from the previous month. And this number is not expected to get better. Even though eurozone leaders agreed to set short- and long-term measures to deal with the debt crisis, many analysts are saying it is very likely Europe will dip into other recession, causing the unemployment rate to rise yet again.
Those were a few things to watch out for here on the Financial News Network. For more coverage and analysis of the business world check us out at fnno.com or follow us on twitter @FNNOnline. I'm Chuck Pierce and thanks for watching.