Shell to Buy BG Group in a $70 Billion Deal
April 08, 2015
5th Circuit US Court of Appeals Denied A Challenge to President Obama’s 2012 Deferred Action for Childhood Arrivals Program; Shell to Buy BG Group in a $70 Billion Deal; Number of Job Openings Increased by 3.0% to 5.1 Million For An All-Time High Since January 2001.
- Yesterday, the 5th Circuit US Court of Appeals denied a challenge to President Obama’s 2012 Deferred Action for Childhood Arrivals program. The three-judge panel rendering the decision argued that the challengers to the program, who included a group of immigration agents and the state of Mississippi, lacked sufficient evidence of harm from immigrants to have legal standing. Earlier this year, a Texas federal judge granted an injunction to halt the implementation of the Obama administration’s expanded immigration actions taken in 2015. The Obama administration has since requested a stay on the injunction, and yesterday’s ruling in the fifth circuit could impact a ruling by a similar three-judge panel over that injunction moving forward. [Politico]
Economic Indicators & News
- In a massive deal that will unite two key players in European energy, Royal Dutch Shell PLC has indicated its plans to purchase BG Group PLC in a $70 billion deal, in which Shell will pay a 50% premium to shareholders. The move by Shell was made in light of current conditions in the oil markets, where prices have fallen and changed some of the calculus behind energy finance. Strategically, the move will make Shell the largest producer of liquefied natural gas at a time when the company has struggled to replace lost reserves. [WSJ]
- The number of job openings in February slightly increased by 3.0% to 5.1 million, the highest level since January 2001. There were 4.9 million hires and 4.7 million discharges representing 3.5% and 3.3% of the total labor force, respectively. The greatest number of separations, including layoffs and discharges, occurred in mining and logging industries, while the most quits were in professional and business services and health care. Net employment growth was the strongest in the Northeast region and was relatively static in other parts of the country. [BLS JOLTS]
- This afternoon, the Federal Reserve released minutes from the FOMC meetings last month. In those meetings, the FOMC did not increase rates, and the committee appeared more concerned about some slowing in the US economy. However, the announcement still paved the way for a decision to begin to raise interest rates in June. [Bloomberg]