Renault and Nissan rule out merger | Calamatta Cuschieri

Markets summary

The Maltese market closed in the green on Wednesday, with the MSE total index ending the session 1.545% higher to 8,076.528 points. The best performer was FIMBank plc with a 20% surge, to close at 0.42, followed by 5.13% jump of MIDI plc and a 2.94% rise of Malta International Airport plc with a closing price of 0.41 and 5.25 respectively. The biggest and only fall on stock market was seen from Bank of Valletta plc with a drop of 0.96% to close at 1.03.

European tocks continued their advance on the back of the European Commission's proposal for a "revamped" €1.85trn long-term budget, including a €750bn reconstruction fund, and optimism around plans to gradually reopen economies across the Continent. By the end of trading, the benchmark Stoxx 600 was ahead by 0.24% to 349.75, alongside a 1.33% rise for the German Dax to 11,657.69 while the FTSE Mibtel had managed to reverse an early dip to finish up by 0.28% at 17,910.25.

US stocks finished in the green on Wednesday, as optimism regarding the reopening of the economy and a potential Covid-19 vaccine offset fears around a heightening of tensions between the world's two largest economies. The Dow Jones Industrial Average ended the session up 2.21% at 25,548,27, the S&P 500 added 1.48% to 3,036.13, and the Nasdaq Composite was ahead 0.77% at 9,412.36.

Renault and Nissan rule out merger as they unveil survival plan

Renault, Nissan Motor and Mitsubishi Motors Corp ruled out a merger on Wednesday and doubled down on a plan to cooperate more closely on car production to save costs and salvage their troubled alliance.

The companies have been hit hard by the coronavirus pandemic just as they were trying to rework their partnership following the arrest of its chief architect, Carlos Ghosn, who had been pushing for a merger despite stiff resistance from Nissan.

The new plan, which entails cutting the alliance’s vehicle ranges by a fifth, pooling manufacturing by region and capitalising on joint designs, is meant to serve as a peace treaty.

Renault and Nissan were among the weakest global automakers going into the coronavirus crisis and had lacked a clear plan for using their alliance to emerge from the slump and share the burden of investing in electric vehicles and other technology.

 

This article was issued by Nadiia Grech, Junior Trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article are 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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