Volkswagen invests 2 billion euros in Chinese electric vehicle sector | Calamatta Cuschieri

Market summary

The Maltese market closed in the green on Friday, with the MSE total index ending the session 0.184% higher to 8,213.194 points. The best performer was Malta International Airport plc with a 5.45% surge to close at 5.80, followed by a 1.27% increase of BMIT Technologies plc and a 0.52% jump of PG plc with closing price 0.478 and 1.95 respectively. The biggest fall was seen from FIMBank plc, it dropped 4.76% to close at 0.40, followed by a 4.00% loss of Grand Harbour Marina plc and a 3.61% loss of Simonds Farsons Cisk plc with closing price of 0.72 and 8.00 respectively.

European stocks were still trading on their back foot come midday, but had come off their worst levels, as financial markets girded themselves for a White House press conference scheduled for later in the evening. By the end of trading, the benchmark Stoxx 600 was down 1.44% to 350.36, alongside a 1.65% drop for the German Dax to 11,586.85 while the FTSE Mibtel was off by 0.84% to 18,197.56.

Wall Street stocks turned in a mixed performance on Friday after Donald Trump said the White House was set to begin taking action to revoke Hong Kong's favoured trade status with the United States. At the close, the Dow Jones Industrial Average was down 0.07% at 25,383.11, while the S&P 500 was 0.48% stronger at 3,044.31 and the Nasdaq Composite saw out the session 1.29% firmer at 9,489.87.

Volkswagen pumps 2 billion euros into China electric vehicle bet

Volkswagen AG plans to boost its electric push in China, the world’s biggest auto market, by pumping 2.1 billion euros in two Chinese electric vehicle players.

The deals come as global rivals such as General Motors, Toyota and Tesla Inc seek to expand electric sales in the Chinese car market.

Volkswagen said it will invest 1 billion euros to take a 50% stake in the state-owned parent of Anhui Jianghuai Automobile Group, also taking full management control of the its existing electric vehicle joint venture with JAC by raising its stake to 75% from 50%.

The joint venture will launch five more electric models by 2025, when the German giant aims to sell 1.5 million new energy vehicles - including battery electric cars as well as plug-in hybrid and hydrogen fuel-cell vehicles - a year in China.

 

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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