Apple admitting and oil in the red | Calamatta Cuschieri

Markets roundup, Apple investigations and oil trading in the red

Apple Inc confirmed it is being questioned over the company's practice to slow down older iPhones with software updates
Apple Inc confirmed it is being questioned over the company's practice to slow down older iPhones with software updates

Roundup

European Markets closed mixed on Wednesday after a series of companies released their earnings reports before the bell, including Siemens, Santander, ArcelorMittal and ING. German statistical office Destatis reported a 1.9% fall in retail sales, while Eurostat reported euro inflation was down to 1.3% in January and unemployment rate stood at 8.7% in December.

The Dax ended the trading day 0.12% in the red. Steel producer Thyssenkrupp AG led the losses with a 1.40% decline. The FTSE 100 went down 0.81% at the close. The CAC 40 finished 0.10% higher, with Airbus SE rising 3.00%.

Apple admits

Apple Inc confirmed on Wednesday that it's currently under investigation by the United States Department of Justice and Securities and Exchange Commission over the company's practice to slow down older iPhones with software updates. The company admitted receiving questions from government agencies. However, the tech giant reiterated that it has never, "and would never do anything to intentionally shorten the life of any Apple product, or degrade the user experience to drive customer upgrades."

This can be viewed in contrast to the statement the company issued late in December, where it apologized and acknowledged that slowing down older phones was done to lengthen their battery life. Following the controversy, Apple cut prices of out-of-warranty batteries for its iPhone 6 models and announced a software feature that would allow users more battery management options.

Oily corner

Crude prices traded in the red on Wednesday after investor confidence was shaken following the release of the worse-than-expected data published by the Energy Information Administration. The report stated that the United States oil inventories increased by 6.8 million barrels, signifying a strong rise in American crude production. The figure marked the biggest growth in US oil stocks in five years.

However, OPEC and other major oil producers’ efforts continued to offset the negative effects on oil prices amid continuous compliance with the output cut deal. The organization and other non-OPEC members led by Russia agreed to cap the global production by 1.8 million barrels per day until the end of 2018.

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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