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

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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