Global Investor News - M&A Action, Carl Icahn and Bank of Japan

It was an mixed day yesterday as markets globally ended mixed and news out of Japan and the US on economic data surprised investors.

Online PR News – 29-April-2016 – Tokyo, Japan – Prime Asset Capital

Global Investor News - M&A Action, Carl Icahn and Bank of Japan

It was an mixed day yesterday as markets globally ended mixed and news out of Japan and the US on economic data surprised investors.

The majority of Asian markets closed down yesterday as news from the Bank of Japan surprisingly confirmed that they would not be making any changes to policy. The Bank of Japan has been under the spotlight recently as economists continue to try and work out what needs to be done to shore up their economy and fight the deflation seen for so long now.

Off the back of the news out of Japan, US GDP data came in well under expectations sparking concerns about the strength of the slowing improving economy. Growth was seen at 0.5% for the first quarter of 2015, down from 1.4% achieved in Q4 of 2015.

A fall in consumer spending and a weaker export economy due to the USD gaining on a basket of currencies of the first 3 months are key factors in slowing growth yet forecasters remains positive for Q2 with predictions for GDP increasing by 1.9%.

Whilst investors were digesting the lack of movement by the Bank of Japan and the decline in GDP growth, Carl Icahn announced that he had sold out his entire position in Apple Inc. The stock guru shocked the markets and the news had a significant impact on technology stocks. Icahn’s decision was based on his skepticism about Apples future in China and whether the government will hinder competition. The stock was down over 3% by the end of the day to close at $94.83 and saw some reprieve in afterhours trading.

With all the negativity in the news, the mergers and acquisitions sector saved the day with over $40bn worth of deals hitting the news. Comcast the owners of the NBC network placed a $3.8bn bid to buy Dreamcast Animation. The deal puts Comcast in direct competition with Disney.

The busiest sector for M&A continued to be the Pharmaceuticals with 3 deals worth mentioning.

The largest for the day was a deal between Abbott and St. Jude’s, Abbott offered $25bn for the medical device manufacturer. Sanofi the French pharma giant made a relatively hostile bid for US firm Medivation. The cross border deal for $9.3bn had already been declined in March however Sanofi has brought another offer to the table in its attempts to secure the small Pharma business. Finally, Abbvie had its offer accepted on Stemcentrix. Stemcentrix is a VC funded company, the deal will make the 5th largest acquisition involving a VC funded company on record at $10.2bn.

Global Market Closes 29th April:
NIK 225 – 16,666.05 (-3.61%)
Hang Seng – 21,388.03 (+0.12%)
FTSE – 6,322.40 (+0.24%)
DAX – 10,321.15 (-0.04%)
S&P 500 – 2,075.81 (-0.92%)
NASDAQ – 4,805.29 (-1.14%)

2015 was an exceptional year for M&A activity and the Pharmaceutical sector was the leader by far, it is quite possible that the sector will be the forerunner again for 2016.

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