US Secretary of State John Kerry traveled to Baghdad on Monday to pledge the US' “intense” and “sustained” support in Iraq's ongoing crisis. However, the promise of support came with one condition; that the Iraqi government take the necessary steps to reunite the nation.
The White House answered calls from Iraqi leaders for an air strike by offering 300 military advisers and asking the nation's government to address the underlying issues by reorganizing the government and including the voice of minority parties.
In his discussions with Nouri al-Maliki, Kerry said the Iraqi Prime Minister had committed to create a new government that would include minority parties like Sunnis and Kurds beginning on July 1. Still, many believe that the conflict can't be resolved until Maliki steps down.
In other news around the markets:
-
The Wall Street Journal reported that Lululemon Athletica founder Dennis Wilson is working with Goldman Sachs to find a way to reorganize the company's board of directors. After a very public disagreement with the board last week, Wilson could be considering teaming up with a private equity firm for a buyout or a proxy fight.
-
Last week, Valeant Pharmaceuticals offered to pay Allergan shareholders $72.00 as well as 0.83 Valeant share per Allergan share. On Monday, Allergan responded by saying the tender offer was “grossly inadequate” as it undervalues the company and would be a risky move for shareholders. Valeant's offer will expire on August 15, with the possibility of being extended.
-
The investigation into insider trading allegations against activist investor Carl Icahn, pro golfer Phil Mickelson and Sports bettor William Walters continued as Federal authorities subpoenaed both Dean Foods Co. and Chlorox Co. It isn't clear what type of information investigators have requested from the two companies, but all three of the accused men claim they had no involvement and no charges have been filed to date.
-
After American Apparel Inc. founder Dov Charney was ousted from the company's leadership by the board of directors last week, he began to look for a way to maintain his post as CEO. Charney filed a petition for arbitration on Monday, saying that some shareholders may be open to making changes to the board.
Asian Markets
Asian markets were mostly higher; the NIKKEI rose 0.05 percent, the Shanghai composite was up 0.47 percent, the Shenzhen composite gained 0.65 percent, the Hang Seng index rose 0.33 percent and the KOSPI was up 0.98 percent.
European Markets
Europe's markets continued to struggle on Tuesday; the STOXX 600 and the FTSE both fell 0.12 percent, the DAX lost 0.04 percent, the MIB was down 0.32 percent and the IBEX fell 0.10 percent.