Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


While you were sleeping: Office supplies value

While you were sleeping: Office supplies value

Feb 20 (BusinessDesk) – Wall Street gained as reports of merger talks between Office Depot and OfficeMax indicated that there is plenty of value left even as benchmark equity indexes approach record highs.

Shares of Office Depot and OfficeMax jumped, last up 10.5 percent and 20.4 percent respectively, on reports the two office supply retailers were in advanced talks to merge.

Shares of Staples also gained, last up 9.6 percent.

The talks come hot on the heels of other deals such as the US$23-billion agreement by Berkshire Hathaway and 3G Capital to acquire HJ Heinz announced last week.

"Equity investors have to be encouraged by M&A since, if the number crunchers are offering large premiums, that shows how much value is still in the market," Mike Gibbs, co-head of the equity advisory group at Raymond James in Memphis, Tennessee, told Reuters.

In afternoon trading in New York, the Dow Jones Industrial Average rose 0.35 percent, the Standard & Poor's 500 Index advanced 0.48 percent, while the Nasdaq Composite Index climbed 0.39 percent. The S&P 500 earlier touched 1,528.17, the highest in five years. That compares with its record high 1,565.15, set in 2007.

Wall Street was closed for the President's Day holiday yesterday.

The latest economic data showed a surprise decline in confidence among American homebuilders in February. The National Association of Home Builders/Wells Fargo builder-confidence index dropped to 46 this month from 47 in January, which was the highest since April 2006.

In Europe, the Stoxx 600 Index jumped 1.1 percent, bolstered by a report showing German investor confidence grew more than expected in February to the highest level since April 2010.

The ZEW Centre for European Economic Research said its index of investor and analyst expectations rose to 48.2 this month from 31.5 in January.

Key equity indexes also rallied in the UK, Germany, and France, gaining 1 percent, 1.6 percent and 1.9 percent respectively.

EU data last week showed that Europe's largest economy contracted a larger-than-expected 0.6 percent in the fourth quarter of 2012.

"Despite the upbeat ZEW reading, we remain cautious with regard to Germany’s prospects as there are many challenges to overcome in 2013,” Johannes Gareis, euro-zone economist at Natixis in Frankfurt, told Bloomberg. “We still expect positive growth out of Germany, albeit at a slower pace than 2012.”

There was some good news out of Athens overnight with the central bank reporting a slight decline in the country's current account deficit. However, French President Francois Hollande hit the nail on the head with his comment that Greece's outlook will only improve if its economy starts to expand again.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Warming: Warming Signs From State Of Climate Report

Climate data from air, land, sea and ice in 2013 'reflect trends of a warming planet' -- says the latest State of the Climate report, launched by U.S. and New Zealand scientists. More>>

ALSO:

Scoop Business: Embrace Falling Home Affordability, Says NZIER

Despair over the inability to afford a house is misplaced and should be embraced as an opportunity to invest in more wealth-creating activity, says the principal economist at the New Zealand Institute of Economic Research, Shamubeel Eaqub. More>>

Productivity Commission: NZ Regulation Not Keeping Pace

New Zealand regulators often have to work with out-of-date legislation, quality checks are under strain, and regulatory workers need better training and development. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news