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The rosier future for the US economy | Calamatta Cuschieri

If you thought 2017 was a great year for games, 2018 looks like it may be even better with Sony expecting to make its highest-ever annual profit

calamatta_cuschieri
Calamatta Cuschieri
2 November 2017, 2:25pm
The U.S. stock market closed mostly higher on Wednesday, with the Dow and the S&P 500 ending near record levels after the Federal Reserve stood pat on interest rates but referred to the U.S. economy in positive terms.

The central bank, after a two-day meeting, said economic activity has been picking up at a “solid rate”. The rosier view of the economy also suggests that it is on track to hike interest rates in December, as has been expected. 

The attention is now focused on who will become the next Fed chair. President Donald Trump is expected to name his pick as early as Thursday, with all indications pointing to the choice being Jerome Powell, the current member of the Federal Reserve Board of Governors.

In addition, the markets rally is supported by investors that are hoping on the passage of a tax package and the corporate tax cuts. Yet, almost 75% of the S&P Companies have reported beating analyst estimates.

Sony is expecting to make its highest-ever annual profit

If you thought 2017 was a great year for games, 2018 looks like it may be even better.

Sony reported a second-quarter earnings and revenue that beat forecasts thanks to a strong performance from its PlayStation gaming business. The company's shares recently hit a nine-year high, but there are also questions about where the future growth will come from.

The reason behind the growth is linked to the expectation about the future profit.

The Japanese giant expects operating income for the year ending March 31 to be 630 billion Japanese yen. If realized, this would be the highest ever profit for the company since its record-breaking year in 1998.

PlayStation has been the crown jewel for Sony for a long time and the latest quarter was helped by increased game and hardware sales. Major game titles such as "FIFA 18" and "Unchartered: The Lost Legacy" were released during the quarter.

On Monday, the company also announced a number of new games coming out over the next couple of years. The company's shares recently hit a nine-year high, but there are also questions about where the future growth will come from. Sony has been investing in areas such as VR and artificial intelligence.

 

Disclaimer:

This article was issued by Linda De Luca, 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.

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Calamatta Cuschieri is one of Malta’s largest financial services firms. The company offe...
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