Page 24 - ARUBA TODAY SEPT 9
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BUSINESSWednesday 9 September
Wall Street surges, boosted by China’s solid rally AP: EU approves GE
takeover of Alstom,
STEVE ROTHWELL stock market despite some couraging news on merg- sonable levels, said Quincy on some conditions
AP Business Writer disappointing news on its ers. Krosby, a market strategist
NEW YORK (AP) — The wild economy. General Electric surged on for Prudential Financial. RAF CASERT
ride for investors continued The country’s exports shrank reports that the European “We expect to see more Associated Press
on Tuesday. 5.5 percent last month Union is set to approve its deals, and the more deals BRUSSELS (AP) — The Euro-
Stocks surged to their sec- compared with a year ear- $17 billion acquisition of Al- that are announced the pean Union has approved
ond-biggest gain of the lier, while imports tumbled stom SA’s power business. more helpful it will be,” said General Electric’s $14.1 bil-
year, more than wiping out 13.8 percent. August’s fig- The deal was announced in Krosby. lion takeover of the power
a big loss from Friday and ures were hit by disruption June last year. GE climbed In Europe, Germany’s DAX and transmission division
leaving the Dow Jones in- from a massive explosion 96 cents, or 4 percent, to advanced 1.6 percent, Brit- of French manufacturer
dustrial average down just Alstom, after the U.S. com-
slightly for the month. Trader Steven Kaplan, right, works on the floor of the New York Stock Exchange. The wild ride for pany committed to selling
The market was rebound- investors continued on Tuesday, as stocks surged to their second-biggest gain of the year, more some operations to main-
ing from a steep sell-off last than wiping out a big loss from Friday. tain competition.
week, when a mixed jobs Tuesday’s decision came
report left investors uncer- (AP Photo/Richard Drew) after an eight-month inves-
tain about the outlook for tigation to see if the take-
interest rates. at the busy Tianjin port and $24.96. ain’s FTSE 100 climbed 1.2 over would distort the Euro-
Big moves have become government-enforced fac- Teco Energy soared after percent and the CAC 40 in pean market.
commonplace in financial tory shutdowns in the run- agreeing to be acquired France gained 1.1 percent. EU Antitrust Commissioner
markets in recent weeks up to a huge military pa- by the Canadian energy U.S. government bond Margrethe Vestager said
as investors have worried rade in Beijing last week. and services company Em- prices fell, pushing the yield the approval depended on
about the health of the China’s trade has been era for about $6.5 billion. on the 10-year benchmark the sale of Alstom’s heavy
Chinese economy and weak for months, reflect- Teco’s stock rose $5.27, or Treasury note up to 2.18 duty gas turbines business,
the outlook for U.S. interest ing muted global demand 25 percent, to $26.34. percent from 2.13 percent arguing its takeover by GE
rates. Many slumps have and a domestic slowdown. Meredith jumped $4.53, or on Friday. The euro rose to would have hurt competi-
been followed by strong Despite the disappointing 9.9 percent, to $50.47 after $1.1182 from $1.1168. The tion in a sector she sees as
rebounds. reports, China’s Shanghai agreeing to be acquired dollar rose to 119.76 from essential in fighting climate
Some strategists believe a Composite Index jumped by rival media company 119.39 yen. change.
sell-off in stocks that began 2.9 percent in a rebound Media General. In metals trading, Gold was The approval of the deal,
in the middle of August is from losses earlier in the The deal news was a good little changed at $1,121 an she said, “shows that
over, while others say that day. A big slump in the Chi- sign for investors because ounce. Silver rose 21 cents Europe is open for busi-
there may still be more sell- nese markets this year has it signaled that executives to $14.75 an ounce and ness and that Europe-
ing. unsettled investors. and investors still believe copper rose 12 cents to based technology can
“There is some value out Investors also got some en- that stock prices are at rea- $2.43 per pound.q thrive and attract foreign
there, but I’m not fully con- investment.”
vinced that the selling pres- Vestager’s office wields
sure is out of the picture,” huge power in the world of
said Robert Pavlik, chief mergers and acquisitions.
market strategist at Boston Its opposition has thwarted
Private Wealth. several major deals in the
The Standard & Poor’s 500 past or forced companies
index gained 48.19 points, into fundamental changes
or 2.5 percent, to 1,969.41. — such as selling chunks of
The Dow rose 390.30 points, their operations — to meet
or 2.4 percent, to 16,492.68. the EU’s aim of maintaining
The Nasdaq composite market competition.
climbed 128.01 points, or Vestager said that as part
2.7 percent, to 4,811.93 of the approval of the GE-
points. Alstom deal, a portion of
Trading was closed in the the heavy duty gas tur-
U.S. on Monday in obser- binebusiness would be sold
vance of the Labor Day to Italy’s Ansaldo.
holiday. After often intense trans-
Traders were encouraged Atlantic cooperation with
by a rebound in China’s the Antitrust Division of the
U.S. department of Justice,
Blackstone to buy Strategic Hotels in $4B deal Vestager said she was sat-
isfied with the terms of the
The Associated Press a 13 percent premium to Hotels has an ownership retained JP Morgan and deal.
The private equity firm the stock’s trading price interest in 17 properties was exploring options that She insisted, however, that
Blackstone will spend near- on July 23, before a media with 7,921 rooms as well included a potential sale. the conditions of the merg-
ly $4 billion to buy real es- report detailed a potential as meeting and banquet Shares of Strategic Hotels er also proved that mul-
tate investment trust Stra- transaction. space. Its portfolio includes jumped 3.5 percent, or 48 tinationals would not be
tegic Hotels & Resorts Inc., The companies said Tues- Ritz-Carlton locations in cents, to $14.07 Tuesday allowed to dominate the
which specializes in high- day that the deal is valued California, the Fairmont morning, or more than dou- European market by simply
end hotels and resorts. at about $6 billion, includ- Scottsdale, Arizona, and ble the roughly 1.5 percent buying out a competitor.
Blackstone Real Estate Part- ing debt. They expect to the Four Seasons Resort in advance of broader index- “It also shows that you have
ners VIII LP will pay $14.25 complete the acquisition Jackson Hole, Wyoming. es. The shares had climbed to play by the same rules
for each outstanding share by next year’s first quarter. The company said last 2.8 percent so far this year, as anyone else, that you
of Strategic. That represents Chicago-based Strategic month that its board had as of Friday.q cannot buy yourself into a
monopoly,” she said.q
