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: Leighton-Led WGP To Build, Manage Transmission Gully

The Wellington Gateway Partnership, led by a unit of ASX-listed Leighton Holdings, has won the $1 billion contract to build the Transmission Gully road north of Wellington. More>>

ALSO:

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:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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