European shares fell in thin trade on Monday while the dollar powered ahead after U.S. Federal Reserve Chair Janet Yellen indicated that the central bank was poised to raise interest rates this year. Investor concerns about Greece's debt problems and a poor regional and local election result by Spain's ruling People's Party also weighed on the euro and European shares. The pull-back in European stocks mirrored losses on Wall Street on Friday after Yellen suggested the Fed was ready to act if the economy kept improving as expected, though a raft of recent data has suggested it is growing only modestly in the second quarter.
U.S. Federal Reserve Vice Chairman Stanley Fischer said it was "misleading" to give so much importance to the Fed's first interest rate hike since the process of returning to a more normal level will take a few years. Fischer, speaking in Israel, said that while markets largely expect the first rate hike in September, it will be determined by data and not by date. "What we are thinking about is raising the interest rate from zero, which is an ultra expansionary monetary policy to a quarter percent, which is an extremely expansionary monetary policy.
The cash and stock deal, which values Time Warner Cable at $195 per share, comes just one month after Comcast Corp dropped its $45.2 billion merger agreement with Time Warner Cable over antitrust concerns. The deal is expected to be announced on Tuesday and includes the acquisition of the sixth-largest U.S. cable operator, Bright House Networks, by Charter, the person added. Time Warner Cable declined to comment, while Charter and Bright House did not immediately respond to a request for comment.