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

 

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Scoop Business: Reserve Bank’s Spencer Calls On Govt To Rethink Housing Tax

The Reserve Bank has urged the government to take another look at a capital gains tax on investment in housing, allow increased high-density development and cut red tape for planning consents to address an over-heated Auckland property market. More>>

ALSO:

The Nation: Call For Cross-Party Auckland Housing Plan

Penny Hulse calls for cross-party accord on Auckland housing because “it’s too important to score political points on”. More>>

ALSO:

Flu Season: Overcoming Vaccination Reluctance

While research shows that 40% of New Zealand businesses offer free or subsidised flu vaccinations to employees this time of year, HR professionals say persuading staff to participate is the biggest challenge. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news