Page 24 - ARUBA TODAY SEPT 9
P. 24

A24

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
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