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

 


While you were sleeping: Forest Lab deal lifts

While you were sleeping: Forest Lab deal lifts

Feb 19 (BusinessDesk) – Wall Street moved higher, supported by a US$25 billion takeover of Forest Laboratories by Dublin-based Actavis which reminded investors that there is still value to be found in equities.

"Just the fact that acquisitions are being made shows that prices aren't completely out of whack," Rick Meckler, president of investment firm LibertyView Capital Management in Jersey City, New Jersey, told Reuters. “That's supportive to the market and it certainly shifts investors' focus from profit taking.”

Shares of Forest soared, last up 29.4 percent.

"Bolstered by one of the deepest and most diversified product portfolios in the industry with an exceptionally strong pipeline, this transaction creates a powerful engine for generating long-term, double-digit revenue and earnings growth,” Paul Bisaro, chairman and CEO of Actavis, said in a statement.

In afternoon trading in New York, the Standard & Poor’s 500 Index rose 0.17 percent, while the Nasdaq Composite Index added 0.69 percent.

The Dow Jones Industrial Average was unchanged at 16,154.35, as gains in shares of Goldman Sachs, last up 1 percent, and those of Walt Disney, last up 0.9 percent, offset slides in shares of Verizon Communications, last down 1.2 percent, and those of AT&T, last down 1 percent.

US markets were closed on Monday for the Presidents’ Day holiday.

Shares of Coca-Cola slid, last down 4.1 percent, after the company reported a drop in fourth-quarter profit. Investors are not optimistic about the outlook.

“The changes that the company is making just aren’t enough,” Ali Dibadj, an analyst at Sanford C Bernstein & Co, told Bloomberg News. “Many investors aren’t sharing the confidence that management does of the company’s future.”

Meanwhile, the latest US economic data were yet again plagued by the severe winter. The National Association of Home Builders’ housing market index dropped by 10 points to 46 in February.

“Significant weather conditions across most of the country led to a decline in buyer traffic last month,” NAHB Chairman Kevin Kelly said in a statement. “Builders also have additional concerns about meeting ongoing and future demand due to a shortage of lots and labour.”

The Fed Bank of New York’s general economic index dropped more than expected, declining to 4.48 in February from 12.5 in January.

In Europe, the Stoxx 600 Index ended the day with a small gain from the previous close at 334.6. Germany’s DAX also edged higher, closing with a gain of 0.03 percent. The UK’s FTSE 100 climbed 0.9 percent. France’s CAC 40 fell 0.1 percent.

Here, German investor confidence took a larger-than-expected beating this month. The ZEW Center for European Economic Research’s index of investor and analyst expectations dropped more than expected in February, sliding to 55.7 from 61.7 in January.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Housing: Affordability Drops 14%, Driven By Auckland Prices

Housing affordability across New Zealand fell 14 percent in the year ending November 2014, with Auckland’s lack of affordability set to reach levels it hit during the height of the global financial crisis, according to the latest Massey University Home Affordability Report More>>

ALSO:

The Dry: Fonterra Drops Forecast Milk Volumes By 3.3 Percent

Fonterra Cooperative Group, the worlds largest dairy exporter, reduced its milk volume forecast for the 2014-2015 season by 3.3 per cent due to the impact of dry weather on production in recent weeks. More>>

ALSO:

Strike: Lyttelton Port Workers Vote To Escalate Dispute

Members of the Rail and Maritime Transport Union (RMTU) at Lyttelton Port today voted to escalate their industrial action. Around 200 RMTU members have been operating an overtime ban since 17 December and today they endorsed a series of full withdrawals of labour at the port. More>>

ALSO:

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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