Increased sanctions on North Korea | Calamatta Cuschieri

European markets closed the trading session on Tuesday mixed after the United Nations Security Council unanimously voted earlier today in favor of new, strongest sanctions against North Korea over its latest nuclear test

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Calamatta Cuschieri
13 September 2017, 11:00am
The United Nations Security Council unanimously voted earlier today in favour of new, strongest sanctions against North Korea over its latest nuclear test
The United Nations Security Council unanimously voted earlier today in favour of new, strongest sanctions against North Korea over its latest nuclear test
European markets closed the trading session on Tuesday mixed after the United Nations Security Council unanimously voted earlier today in favor of new, strongest sanctions against North Korea over its latest nuclear test. The sanctions impose a ban on the country’s textile exports and cap imports of crude oil. It also prohibits all countries from authorising new work permits for North Korean workers. The US Ambassador to the United Nations stated clearly, "We don't take pleasure in further strengthening sanctions today. We are not looking for war. Today we are saying the world will never accept a nuclear armed North Korea,"

On the other hand, North Korea's Ambassador to Moscow said that the idea North Korea would change its policies because of United States sanctions is an illusion. “We have lived under US sanctions for decades. Under the harshest of sanctions. But we have acquired everything we wanted to. If the US hopes that our position would be shaken and changed, that is an illusion," He added that the North Korean nuclear and missile program serves the purposes of deterring the "hostile policy of the US" and preserving peace on the Korean Peninsula.

United Kingdom

Meanwhile, in the United Kingdom, investors were unsettled by the passing of the Brexit bill by British lawmakers, as well as the inflation figure which rose to 2.9% in August. British lawmakers voted in favour of legislation to several political, financial and legal ties with the European Union at its second reading. It also passed the government's proposed timetable for debating Brexit legislation.

Indexes

The FTSE 100 dropped 0.17%, Randgold Resources the weakest performer. The German DAX gained 0.40% at the close, pushed up by the banking sector. In France, the CAC 40 inched up 0.62% to finish in the green, Peugeot contributing the most.

100-year bond for Austria

The Austrian government has issued a 100-year bond on Tuesday, raising €3.5 billion in what analysts say is the largest ever debt deal of century-long maturity. The offering was priced at a yield of 1.612%, while bids from potential investors surpassed €11 billion.

Austria's century bond is the first syndicated paper of that kind in the Eurozone and, as such, it represents an open market offering. By contrast, Belgium and Ireland each raised €100 million in 100-year bonds last year through private placements. Underwriters that worked on the deal include Bank of America Merrill Lynch, Erste Group, Societe Generale and Goldman Sachs. Austria's debt is set to mature in September 2117 and it accompanies the issuance of five-year bonds worth €4 billion and priced at a yield of -0.139%.

Apple launches new products

Apple just launched the new iPhone 8, iPhone X with new FaceID, Watch Series 3 with inbuilt cellular and Apple TV 4K. The event was held yesterday at the ‘Steve Jobs Theater’ on its new Apple Park campus in Cupertino for the first time since it became the company's headquarters. Some features of the new iPhone X include a new 5.8-inch OLED display, no home button; the phone will now be unlocked through FaceID. The iPhone X will be available in space grey and silver. Models with 64 GB and 256 GB will be available, starting at $999. Orders start October 27 and shipments begin November 3.

 

Disclaimer

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.

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