Trump effect fading | Calamatta Cuschieri

Global markets were moving south on Thursday, as investors eyed fresh corporate reports and digested the latest remarks by President-elect Donald Trump

Wall Street was in the red after the lack of details on economic policy in Trump’s speech took the wind out of a record-setting post-election rally
Wall Street was in the red after the lack of details on economic policy in Trump’s speech took the wind out of a record-setting post-election rally

Global markets were moving south on Thursday, as investors eyed fresh corporate reports and digested the latest remarks by President-elect Donald Trump. European markets traded mixed though, with the FTSE managing to hold onto the slightest of gains to keep its record 11 consecutive day winning streak alive.

Wall Street was in the red after the lack of details on economic policy in Trump’s speech took the wind out of a record-setting post-election rally. All the 11 major S&P 500 sectors were lower, with the technology, financial and industrial sectors all trading at least 1% lower.

Not again!

Fiat Chrysler (FCA) are the latest automobile company to be accused of cheating and rigging emissions tests
Fiat Chrysler (FCA) are the latest automobile company to be accused of cheating and rigging emissions tests

Fiat Chrysler (FCA) are the latest automobile company to be accused of cheating and rigging emissions tests on a number of its vehicles, a charge it is denying.

The United States Environmental Protection Agency (EPA) accused FCA of using software that allowed excess diesel emissions in around 100,000 vehicles. US-listed shares of FCA plunged more than 18% on Thursday, prior to a trading halt which put them on track for the biggest one-day sell-off in six years.

The accusation concerns US trucks and SUVs sold since 2014, according to sources familiar with the matter. The company is believed to have undeclared emissions control software allowing vehicles to excess pollution in violation of the law.

Amazon goes on a hiring spree

Amazon.com revealed plans to hire more than 100,000 people in the US
Amazon.com revealed plans to hire more than 100,000 people in the US

Amazon.com revealed plans to hire more than 100,000 people in the US in the next 18 months, grabbing the spotlight as Trump pushes companies to employ more Americans.

The world’s largest online retailer will look to add full-time positions in various sectors, ranging from software development to warehouse work. Amazon is spending heavily on new warehouses so it can stock goods closer to customers and fulfil orders quickly and cheaply. The new hires will be key to the company’s promise of two-day shipping to members of its Amazon Prime shopping club, which has given it an edge over rival retails.

Shares in Amazon.com were trading 1.83% higher during Thursday’s session.

Richemont and M&S beat expectations

Marks & Spencer were among those reporting results on Thursday
Marks & Spencer were among those reporting results on Thursday

Marks & Spencer were among those reporting results on Thursday. Shares sailed 5.37% higher during the session after keeping its fiscal-year guidance unchanged and announcing better-than-expected performance in both clothing and home product sales for its third quarter.

Shares of luxury goods company Richemont were also trading in positive territory after reporting sales of €3.09 billion in the last quarter of 2016. Shares jumped 8.6% on Thursday.

This article was issued by Rebecca Naudi, Investment Manager at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article is being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.

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