London View

UK Retail Sales Rise, SNB to Adopt Negative Interest Rates, Shire Mulls Potential Pharma Bid

Both the Dow and the S&P500 had stellar days yesterday after the US Fed stated that it plans to be patient regarding the decision to raise interest rates, with Fed Chair Janet Yellen adding that any such decision would only be likely after ‘at least a couple of meetings’. The news helped the S&P500 experience its biggest daily rise in over a year, with the index climbing by more than 2%  to regain its 2k+ level. The Dow also gained, closing up by 1.69%. Worldwide markets also felt the boost from the US, with the Nikkei closing up by 2.3% and both the DAX and CAC currently up by more than 1.5%.

Meanwhile, UK retail sales saw a significant surge in November, thanks to the UK’s recent adoption of Black Friday and the subsequent sales bounce for UK retailers. Month-on-month sales rose by 1.6%, the most significant monthly growth in over a decade.

The SNB has announced plans to introduce negative interest rates for commercial bank deposits, in an attempt  to try and ensure that the Franc does not strengthen beyond the 1:1.2 level against the Euro.

In the Pharmaceuticals space, Bloomberg is reporting that Shire is considering making a bid for NPS Pharmaceuticals, although other possible acquisition targets are also being mooted. Earlier this year Shire itself was the focus of an acquisition attempt, by US firm Abbvie, although the deal fell through when changes to controversial inversion laws meant that the proposed merger was no longer financially viable. Shire stock is currently up by around 1.8% this morning.