{"id":23438,"date":"2014-10-07T19:17:01","date_gmt":"2014-10-07T23:17:01","guid":{"rendered":"https:\/\/biznews.fiu.edu\/?p=23438"},"modified":"2017-06-21T12:36:19","modified_gmt":"2017-06-21T16:36:19","slug":"wmwu-09292014","status":"publish","type":"post","link":"https:\/\/biznews.fiu.edu\/2014\/10\/wmwu-09292014\/","title":{"rendered":"Weekly Market Wrap Up, September 29, 2014"},"content":{"rendered":"<p><strong>Key News:<\/strong><\/p>\n<ul>\n<li>After Alibaba\u2019s shares leaped 38 percent on their first day of trading on Friday<\/li>\n<li>A decrease in investor purchases prompted an unexpected decline in sales of U.S. existing homes in August, indicating the housing rebound is not yet self-sustaining.<\/li>\n<li>Financial markets in Britain and around Europe generally welcomed Scottish voters\u2019 rejection of independence on Friday.<\/li>\n<\/ul>\n<p><strong><br \/>\nGlobal News:<\/strong><\/p>\n<ul>\n<li>Islamic State Onslaught Spurs Mass Exodus of Syrian Kurds<\/li>\n<li>China\u2019s growth trajectory is still pointing down, even after an $81 billion liquidity injection.<\/li>\n<li>European stocks fell the most in more than three weeks.<\/li>\n<\/ul>\n<p><strong>Market Overview:<\/strong><\/p>\n<p>Equity indices sit near their lows at midday with small caps leading the retreat. The Russell 2000 (-1.4%) and Nasdaq Composite (-1.2%) trail the S&amp;P 500 (-0.7%), while the Dow Jones Industrial Average (-0.4%) has resisted some of the selling pressure.<\/p>\n<p>The top-weighted sector-technology (-0.8%)-trails the broader market, while the materials space (+0.1%) has been able to stay in the green thanks a boost from Sigma-Aldrich (SIAL 136.53, +34.16), which has surged 33.4% after agreeing to be acquired by Merck KGaA (MKGAF 89.50, 0.00) for $140.00\/share, representing a 37.0% premium to Friday&#8217;s closing price.<\/p>\n<p>The countercyclical side has fared a bit better with consumer staples (-0.1%), telecom services (-0.5%), and utilities (-0.5%) trading ahead of the broader market, while health care (-0.7%) lags amid weakness in biotechnology. The iShares Nasdaq Biotechnology ETF (IBB 271.14, -4.09) is lower by 1.5%.<\/p>\n<p><strong>Fixed Income:<\/strong><\/p>\n<p>Treasuries are near their highs with the 10-yr yield down two basis points at 2.56%. Treasury market inflation bets dropped to a 14-month low. The price of the 2.375 percent note maturing in August 2024 rose 3\/32, or 94 cents per $1,000 face value, to 98 12\/32. The last three-day rally ended Aug. 25.<\/p>\n<p><strong>Foreign Exchange:<\/strong><\/p>\n<p>Australia\u2019s dollar fell 0.6 percent to 88.69 U.S. cents at 12:58 p.m. New York time and touched 88.53 cents, its lowest level since Feb. 4. It dropped 0.7 percent to A$1.4469 per euro. The euro was little changed at $1.2832 after rising as much as 0.3 percent. It sank earlier to $1.2816, the weakest level since July 2013. The U.S. currency declined 0.1 percent to 108.91 yen, and the euro slipped 0.1 percent to 139.77 yen.<br \/>\n<strong>Week in numbers:<\/strong><\/p>\n<ul>\n<li>Asian deals were up more than five times to $41.3 billion last week from $7.7 billion the previous week<\/li>\n<li>1.3% Annual sales growth in the global beer industry since 2004<\/li>\n<li>4.3% Growth in beer sales in the Asia Pacific Region last year<\/li>\n<li>73% Share of Family Dollar stores located within a three mile radius of a Dollar General<\/li>\n<\/ul>\n<p><strong><br \/>\nKey Issue of the week:<\/strong><\/p>\n<p>&#8211; Inversion?<\/p>\n<p>An inversion is basically re incorporating a company oversees in order to reduce the tax burden on income earned abroad.<\/p>\n<p>&#8211; So what\u2019s the trend?<\/p>\n<p>Hedge funds and investment advisers happen to own a high percentage of shares of companies planning these particular M&amp;A inversions. When observing nine leading companies (charted) that have announced planned inversions hedge funds and investment advisers together own within the average range of 72.22% and 97.52%.<\/p>\n<p><strong>M&amp;A Overview<\/strong><\/p>\n<p>Last week was the busiest 7 day mergers and acquisition period since the week ended August 15th which was skewed by one massive deal by Kinder Morgan Inc. Whom plans to acquire three subsidiaries in a series of transactions that are valued at almost $70 billion, including debt. The technology sector was also active last week as SAP SE announced a subsidiary would acquire software company Concur Technologies for $7.2 billion.<\/p>\n<p>The pace of all global mergers and acquisitions has picked up steadily last week. 16 new corporate mergers valued at $1 billion dollars or more were announced. Deal making activity totaled more than $105 billion in the week ending in Sept 19, more than double the $43.7 billion announced the previous week.<\/p>\n<p>The largest deal was Chinese energy company Sinopec Marketing as it plans to sell a 30% stake in its retail business to a group of investors for $17.5 billion. The second largest deal was Telefonica revised offer to buy Vivendi\u2019s Brazilian broadband unit GVT in a deal valued at $10.3 billion.<\/p>\n<p>&nbsp;<\/p>\n<div>\n<p>Article submitted by\u00a0Daniel Rodriguez, Daniel Baez and Sebastian Giraldo-Casta\u00f1o\u00a0of the Capital Markets Lab (CML). To learn more about the Capital Markets Lab (CML) please visit <a href=\"https:\/\/business.fiu.edu\/capital-markets-lab\/\">https:\/\/business.fiu.edu\/capital-markets-lab\/<\/a>.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Key News: After Alibaba\u2019s shares leaped 38 percent on their first day of trading on Friday A decrease in investor purchases prompted an unexpected decline in sales of U.S. existing homes in August, indicating the housing rebound is not yet self-sustaining. Financial markets in Britain and around Europe generally welcomed Scottish voters\u2019 rejection of independence [&hellip;]<\/p>\n","protected":false},"author":70,"featured_media":24661,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[10,3505],"tags":[311,458,2502,2663,2893],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/biznews.fiu.edu\/wp-json\/wp\/v2\/posts\/23438"}],"collection":[{"href":"https:\/\/biznews.fiu.edu\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/biznews.fiu.edu\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/biznews.fiu.edu\/wp-json\/wp\/v2\/users\/70"}],"replies":[{"embeddable":true,"href":"https:\/\/biznews.fiu.edu\/wp-json\/wp\/v2\/comments?post=23438"}],"version-history":[{"count":10,"href":"https:\/\/biznews.fiu.edu\/wp-json\/wp\/v2\/posts\/23438\/revisions"}],"predecessor-version":[{"id":28327,"href":"https:\/\/biznews.fiu.edu\/wp-json\/wp\/v2\/posts\/23438\/revisions\/28327"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/biznews.fiu.edu\/wp-json\/wp\/v2\/media\/24661"}],"wp:attachment":[{"href":"https:\/\/biznews.fiu.edu\/wp-json\/wp\/v2\/media?parent=23438"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/biznews.fiu.edu\/wp-json\/wp\/v2\/categories?post=23438"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/biznews.fiu.edu\/wp-json\/wp\/v2\/tags?post=23438"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}