Waiting for the FED’s decision with an acquisition | Calamatta Cuschieri

European Markets closed in the red on Tuesday as the United States Federal Reserve began its two-day session in Washington DC with the bank’s interest rate decision scheduled for Wednesday.

With the Dutch general election also on Wednesday and a call for a second Scottish independence referendum, investors are also anticipating the triggering of Article 50 of the Lisbon Treaty by UK Prime Minister Theresa May due by the end of the month. In the past, May said that she intends to negotiate a Brexit deal with the European Union that will work for the whole UK, including Scotland.

In London, the FTSE 100 closed 0.14% lower. Germany’s DAX ended the session 0.01% in the red. Adidas led the modest losses, decreasing 2.39%. In France, the CAC 40 declined 0.61%. BNP Paribas was the worst performer, losing 2.17%.

Meanwhile, the US Government bonds searched for direction as markets awaited to react on evidence of economic conditions in the country, and with the expectation of the FED’s rate hike.

Acquisition

E-payment platform operator Euronet Worldwide Inc offered $15.2 in cash for every outstanding share of MoneyGram International Inc. The bid launched on Tuesday values the target entity at more than $1 billion, in addition to the assumption of approximately $940 million of MoneyGram’s outstanding debt.

This trumps the bid by Ant Financial Services Group, the financial services affiliate of China’s Alibaba Group Holding Ltd and also disrupts the plans of Ant Financial for a US Expansion. Euronet and MoneyGram both traded on NASDAQ, whilst an agreement with Ant Financial would have required clearance from the Committee on Foreign Investment (CFIUS) in the US, which had halted several Chinese Deals in the United States.

The combination of these two companies would create a very well positioned global payments company that would benefit customers around the world.

The Four money transfer platforms of Euronet operate mostly with independent agents. They indicate the business is complementary with MoneyGram's focus on large retailers and national post offices.

Tech side

• Apple Is hiring

Jonathan Zdziarski, iPhone forensics expert and security researcher, announced he is joining Apple Inc.'s Security Engineering and Architecture team.  Over the years, Zdziarski wrote about a range of iOS-related security issues, including the tech giant's battle with the Federal Bureau of Investigation over unlocking San Bernardino shooter's iPhone. 

Zdziarski stated in his blog, "Privacy is sacred; our digital lives can reveal so much about us – our interests, our deepest thoughts, and even who we love. I am thrilled to be working with such an exceptional group of people who share a passion for protecting that."

• Samsung SDI’s new ESS

Samsung SDI (Samsung’s battery affiliate) has launched a new Energy Storage System (ESS) E2 that boasts high capacity and high power aimed at the European Market. Major ESS firms ABB, Siemens and Younicos also attended the tradeshow in Dusseldorf. The E2 differentiated module design increased the cell per container significantly. The E2 has a capacity of 9.1MWh per container, near double its predecessor, the E1's 4.8MWh. Samsung SDI’s battery are reportedly being used for Tesla’s Electric Car and New energy businesses

This article was issued by Rodrick Duca, Trader 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.