Published at 03:21 (GMT) 31 Mar
FT: Global dealmaking is off to its fastest start since 2007, with the value of mergers and acquisitions struck in the first three months of 2015 up 21% on the same period a year ago, to $811bn.
Healthcare groups led the way, with a further 3 acquiring prescription management company Catamaran in a $12.8bn all-cash deal, Horizon Pharma, a US-listed drugmaker, reached a $1.1bn deal for Hyperion Therapeutics and Israel's largest drugmaker Teva Pharmaceuticals bought Auspex Pharmaceuticals for $3.2bn
But it was US ketchup maker Heinz that provided the highlight of Q1, with the biggest deal of 2015 so far. Its takeover of Kraft — masterminded by Heinz's Brazilian owners 3G Capital and Warren Buffett — will create a company worth $100bn including debt.
On FX, focus on the above M+As, good to watch impact on stocks and FX. Given some all Cash deal. Eye capital flows, real money flows. USD INDEX near key 98, looking firm for more upside now. Eye test of 98.50/99.00. Support at 97.50.
EUR/USD at 1.0822-25, interest to sell on rallies, given broadly firmer USD. Eye break of 1.0800. As EUR weighed by ongoing concerns over Greece, ECB QE. Eye any M+A related flows - could be 2 ways. Though EUR seen vulnerable to more downside to retest 12-year lows 1.0457.
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