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Markets flat with American holiday | Calamatta Cuschieri

US Thanksgiving, Mitsubishi quality control & Uber electrifying India

calamatta_cuschieri
Calamatta Cuschieri
24 November 2017, 12:15pm
Mitsubishi Materials, a division of one of Japan's biggest conglomerates, saw shares fall by as much 11% on Friday, after admitting to a quality scandal
Mitsubishi Materials, a division of one of Japan's biggest conglomerates, saw shares fall by as much 11% on Friday, after admitting to a quality scandal
European stocks erased early losses to close little changed as positive economic data in the region offset negative sentiment following a slump in Chinese equities. The dollar extended a retreat sparked by Wednesday’s more dovish than expected Federal Reserve minutes. The UK’s FTSE benchmark however was led down by a double-digit plunge in shares of British Gas parent Centrica PLC after a disappointing financial update.

With U.S. markets closed and most American investors out for the Thanksgiving holiday, the Stoxx Europe 600 struggled for traction amid mixed regional benchmarks and a stronger euro. The common currency headed for a five-week high after data showed the euro-area economy picked up momentum in November and as Germany’s Social Democrat party was said to be open to talks with Chancellor Angela Merkel.

Mitsubishi quality scandal

A member of the Mitsubishi group has become the latest Japanese company to be caught out over quality control, after admitting it falsified data about some products. Mitsubishi Materials, a division of one of Japan's biggest conglomerates, saw shares fall by as much 11% on Friday, after admitting to a quality scandal. One division, Mitsubishi Cable, falsified data on sealing materials used for joining metal parts such as pipes. Meanwhile, Mitsubishi Shindoh was found to have rigged data on copper products supplied to 29 companies.

The materials, worth $264m, were shipped between April 2015 and September of this year to 229 firms, including 70 in the aerospace industry and 7 car makers. No safety or legal problems had been found from either case, Mitsubishi Materials said. Kobe Steel, Mitsubishi Motors, Nissan and Subaru all recently admitted to manipulating data. Several of them saw the quality lapses stretch on for decades.

Uber – Mahinda partnership

Ride-hailing firm Uber will partner with automaker Mahindra and Mahindra to pilot electric vehicles on its platform in India, the two companies said on Friday, at a time when the government is pushing to have all new vehicles electrified by 2030. Uber joins local rival Ola, backed by Japan’s SoftBank Group, which earlier this year launched a pilot for electric cars in the western city of Nagpur and is planning a large-scale roll-out by next year.

India is working on a new policy for electric vehicles, but the auto industry is skeptical about its success due to the high cost of batteries and lack of charging infrastructure, which they say could make the whole proposition unviable. Uber will deploy hundreds of electric vehicles in Delhi and Hyderabad by March next year and will consider expanding the pilot to other cities, Madhu Kannan, the company’s chief business officer for India and emerging markets told reporters in Mumbai.

 

 

Disclaimer

This article was issued by Peter Petrov, Junior 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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