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

 


While you were sleeping: Records and takeover deals

While you were sleeping: Records and takeover deals

June 9 (BusinessDesk) – Wall Street touched record highs, with Germany’s DAX closing at a record high, amid a flurry of takeover deals and optimism about the global economic outlook.

In the final hour of trading in New York, the Dow Jones Industrial Average eked out a 0.02 percent gain, the Standard & Poor’s 500 Index edged 0.09 percent higher, and the Nasdaq Composite Index rose 0.3 percent. Earlier in the session the Dow reached a record high 16,970.17, while the S&P 500 touched a record 1,955.55.

In the Dow, gains in shares of JPMorgan Chase, up 1.1 percent, and those of Walt Disney, up 1 percent, offset declines in shares of Microsoft, down 0.8 percent, and those of Pfizer, down 0.5 percent.

There were several merger and acquisition deals. Tyson Foods offered to buy Hillshire Brands for about US$8.55 billion, including debt, Merck agreed to buy Idenix Pharmaceuticals in a deal worth about US$3.85 billion, while Analog Devices will acquire Hittite Microwave in a transaction valued at about US$2 billion.

Shares of Family Dollar Stores soared, last up 13.9 percent, after records showed that Carl Icahn had acquired a 9.4 percent stake.

“My view is the Goldilocks economy is back -- not too cold, not too hot, but just right,” Michael Arone, the Boston-based chief investment strategist at State Street Global Advisors’ US Intermediary Business, told Bloomberg News. “What we’re starting to see is companies starting to do capital expenditures and M&A to invest in their businesses.”

Meanwhile, St Louis Federal Reserve Bank President James Bullard said the Federal Open Market Committee is much closer to its macroeconomic goals than in any of the past five years.

“The monetary policy stance remains far from its pre-crisis settings,” Bullard told the Tennessee Bankers Association's annual meeting in Palm Beach, Florida, adding that the “likely reasons” were that labour markets did not seem fully recovered, while inflation had been low.

“The (Fed’s decision-making) committee now faces a classic challenge concerning the appropriate pace of monetary policy normalisation,” Bullard said.

After the speech, Bullard told reporters that the Fed might raise rates sooner than anticipated.

“If you get 3 percent growth for the rest of this year, if you get unemployment coming down below 6 percent, if you continue to have jobs growth at 200,000, if you continue to see inflation moving back up toward target, I think if we get to the fall of the year and all of those things are transpiring as I’m suggesting they will, that will change the conversation about monetary policy, and there will be more sentiment toward an earlier rate hike,” Bullard said, according to the Wall Street Journal.

In Europe, the Stoxx 600 Index finished the day with a 0.4 percent increase from the previous close. Elsewhere, Germany’s DAX, France’s CAC 40, and the UK’s FTSE 100 all ended their sessions with a 0.2 percent gain for the day.

Germany’s DAX finished the day at 10,008.63, closing above 10,000 for the first time.

The euro, however, weakened, declining 0.4 percent against the greenback to US$1.3586.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Statistics: Net Annual Migration Passes 71,000

A record 71,300 more migrants arrived in New Zealand than left in the January 2017 year, Statistics New Zealand said today. This surpassed the previous annual record set in December 2016. More>>

ALSO:

Fossils: Ancient Penguins Lived Alongside Dinosaurs?

Penguins are much older than previously thought and their evolution probably dates back to the days of the dinosaurs, according to research on the fossilised leg bone and toes of a giant ancient penguin found in rocks near Waipara, North Canterbury. More>>

No Voda/Sky: Commission Declines Clearance For Merger

The Commerce Commission has declined to grant clearance for the proposed merger of Sky Network Television and Vodafone New Zealand. More>>

ALSO:

EARLIER:

Power: IEA Report On New Zealand's Energy System

Outside of its largely low-carbon power sector, managing the economy’s energy intensity and greenhouse gas emissions while still remaining competitive and growing remains a challenge. More>>

ALSO:

NASA: Seven Earth-Size Planets Around A Single Star

NASA's Spitzer Space Telescope has revealed the first known system of seven Earth-size planets around a single star. Three of these planets are firmly located in the habitable zone, the area around the parent star where a rocky planet is most likely to have liquid water. More>>

ALSO:

Auckland Transport Case: Men Guilty Of Corruption And Bribery Will Spend Time In Jail

Two men who were found guilty of corruption and bribery in a Serious Fraud Office (SFO) trial have been sentenced in the Auckland High Court today... The pair are guilty of corruption and bribery offences relating to more than $1 million of bribes which took place between 2005 and 2013 at Rodney District Council and Auckland Transport. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news