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

 

Wine: 20% Of Marlborough Storage Tanks Damaged By Quake

An estimated 20 percent of wine storage tanks in the Marlborough region, the country’s largest wine producing area, have been damaged by the impact of the recent Kaikoura earthquake. More>>

ALSO:

ACC: Levy Recommendations For 2017 – 2019 Period

• For car owners, a 13% reduction in the average Motor Vehicle levy • For businesses, a 10% reduction in the average Work levy, and changes to workplace safety incentive products • For employees, due to an increase in claims volumes and costs, a 3% increase in the Earners’ levy. More>>

Women's Affairs: Government Accepts Recommendations On Pay Equity

The Government will update the Equal Pay Act and amend the Employment Relations Act to implement recommendations of the Joint Working Group on Pay Equity. More>>

ALSO:

Immigration: Increase In Seasonal Workers For RSE

The current cap will be increased by 1,000 from 9,500 to 10,500 RSE workers for the 2016-17 season. Mr Woodhouse says the horticulture and viticulture industry is New Zealand’s fourth largest export industry, producing almost $5 billion in exports. More>>

ALSO:

Hurunui: Crown Irrigation Invests Up To $3.4m In North Canterbury

Crown Irrigation Investments will invest up to $3.4m in the Hurunui Water Project, an irrigation scheme that will be capable of irrigating up to 21,000 hectares on the south side of the Hurunui River in North Canterbury. More>>

ALSO:

Not So Great:Butterfly Eradication Success

The invasive pest great white butterfly has been eradicated from New Zealand in a world-first achievement, Primary Industries Minister Nathan Guy and Conservation Minister Maggie Barry say. More>>

Gordon Campbell: On The Government’s Tax Cuts Fixation

Long before the earthquake hit, the dodginess of the government tax cuts programnme was evident in the language of its packaging. It is being touted as a “tax cuts and family care” package... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news