A big deal on the mergers and acquisitions front has been trumped by some just plain awful economic data out of Europe and Japan. Europe continues to be mired in recession, with composite GDP coming in at a negative .6%, below the consensus view. Japan’s GDP was similarly down at a negative .4%. In a big acquisition, Heinz was purchased by Warren Buffet’s Berkshire Hathaway, with help from another hedge fund investor. The premium on the deal was 20% over the closing price of Heinz yesterday. It is hard to believe the market can dig out of the rubble of the European story, so look for markets to struggle throughout the day. Gold and oil are near unchanged and interest rates continue to creep up as the 3.25% 30 year mortgage seems a distant memory.
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