U.S. Stocks Up, Higher Oil; BIS Inflation Alarm

123jump.com Staff
29 Jun, 2009
New York City

The Bank for International Settlements that holds reserves of its central bank members highlighted risks of inflation as banks may be slow in withdrawing stimulus to the economies around the world.

[R]11:30 AM New York – The Bank for International Settlements that holds reserves of its central bank members highlighted risks of inflation as banks may be slow in withdrawing stimulus to the economies around the world.[/R]

Stocks in New York traded sideways as investors await unemployment report and manufacturing industry update. The short trading week is expected to have light trading ahead of July 4th weekend.

The Bank for International Settlements in its annual report released today in Basel, Switzerland that the central banks in the developed world risk higher inflation and may be slow in withdrawing liquidity. The development of another asset bubble before the central bank liquidity withdrawals is “justifiable worry.”

Teppco Agrees to Revised $3.3 Billion Offer

Enterprise Products Partners LP agreed to acquire Teppco Partners for $3.3 billion. The deal combines the natural processing and transportation assets of Enterprise with the crude oil refining and logistics assets of Teppco. The deal is expected to be accretive in 2010 on cost savings and elimination of processing and logistic costs and cheaper cost of capital.

Teppco rejected the earlier offer that valued the company at $2.8 billion in March.

Teppco Partners, L.P. ((TPP)) increased 4.4% to $29.95 after Enterprise Products Partners L.P. ((EPD)) agreed to acquire the pipeline operator.

The combined partnership will own 48,000 miles of pipelines of which 22,000 miles will transport NGL, 20,000 miles of natural gas pipelines and more than 5,000 miles of crude oil pipelines.

Chief executive of Enterprise, Michael A. Creel said that the merger will be accretive by 2010 and the company hopes to achieve at least $20 million of cost savings.

Gainers & Losers

State Street Corporation ((STT)) declined 2% to $47.34 after SEC opened investigation regarding its bonds funds investment strategies.

Biogen IDEC ((BIIB)) decreased 6.1% to $47 after the company said that the tenth patient developed brain infection after taking multiple sclerosis drug Tysabri. The drug was recalled in 2005 and was reintroduced with stricter safety standards in July 2006.

Teppco Partners, L.P. ((TPP)) increased 4.4% to $29.95 after Enterprise Products Partners L.P. ((EPD)) agreed to acquire the pipeline operator.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 93.92 or 0.95% to 9,783.47, Hang Seng index in Hong Kong decreased 71.75 or 0.39% to 18,528.51, CSI 300 index in China higher 51.55 or 1.65% to 3,179.97. ASX 200 index in Australia decreased 16.90 or 0.43% to 3,886.90. The KL Composite index in Malaysia closed higher 0.07 or 0.01% to 1,075.84.

The Kospi Index in South Korea decreased 6.08 or 0.44% to close at 1,388.45.SET index in Thailand closed higher 5.80 or 0.97% to 601.60 and JSE Index in Indonesia decreased 6.48 or 0.32% to 2,033.72. The Sensex index in India increased 21.10 or 0.14% to 14,785.74.

Europe Markets Review

In London FTSE 100 Index traded higher 28.11 or 0.66% to 4,269.12, in Paris CAC 40 Index increased 41.34 or 1.32% to 3,171.07 and in Frankfurt DAX index traded higher 59.25 or 1.24% to 4,835.72.In Zurich trading SMI increased 53.59 or 1.00% to 5,429.58.