Markets were headed slightly higher on Monday morning despite a survey released that showed economists are expecting the Federal Reserve?s stimulus plan wind down in 2014. The National Association of Business Economists said that in their November survey showed that the majority of economists believe that the Fed will begin tapering their stimulus plan early next year. The survey encompassed a total of 51 economists and 62% of them believe that the Fed will begin cutting back the bond-buying program within the first three-months of 2014. Of all the economists there were 30% that believe the Fed will begin winding down in the second-quarter of 2014. Overall 90% of those surveyed believe that the Fed will wind down their program next year. The survey also showed that economists are expecting the U.S. economy to pick up steam and grow at a 2.8% annual rate next year versus the 2.1% annual rate this year.

Shares of Sysco were sky rocketing over 13% after the company announced that they will be purchasing US Foods for nearly $3.5 billion. The company will pay roughly $3 billion in common stock and $500 million in cash. They will take on $4.7 billion of US Foods debt. This totals the entire deal at $8.2 billion. When the companies combine, this will enable Sysco to increase their leverage on selling and distributing goods. They currently hold about 18% of the United States food distribution market and once the deal is done they are expected to hold a staggering 25%. The buyout deal has been approved by both of the companies boards. Sysco estimates that the entire deal will be fully completed by the third-quarter of 2014. They also expect this acquisition to immediately boost the companies profits once they adjust for costs and related expenses. Bill Delaney, Chief Executive of Sysco, said that the industry will remain competitive. ?It is a very dynamic market, there are 15,000 to 16,000 distributors out there, and more nontraditional competitors.? However with their new purchasing power, combined with innovation efforts and the cost saving capabilities the new merger will provide them with, they will do well, Delaney said.

In fast food news, shares of McDonald?s (MCD) were dropping after the company announced weaker-than-expected sales in November. The company said that worldwide sales at restaurants open at least 13 months were up 0.5%, which missed the 0.6% analysts were expecting. In the United States, same-restaurant sales were down 0.8%, which missed the 0.3% gain analysts had been expecting. This was partially attributed to an increase in competition and weaker customer traffic, the company said. Shares were falling over a percentage point on Monday.

That?s all for the day.
All the best,
Jack Aubrey, Oakshire Financial

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