Cautious investors | Calamatta Cuschieri

US cable TV giant Comcast has made a £22.1bn bid for Sky, challenging an existing offer from 21st Century Fox

US cable TV giant Comcast has made a £22.1bn bid for Sky, challenging an existing offer from 21st Century Fox
US cable TV giant Comcast has made a £22.1bn bid for Sky, challenging an existing offer from 21st Century Fox

U.S. markets closed sharply lower Tuesday after Federal Reserve Chairman Jerome Powell highlighted the strengthening economy during his congressional testimony. The Dow Jones Industrial tumbled 299.24 points, or 1.2%, to 25,410.03 with the biggest move coming from Walt Disney Company which fell 4.5%. Powell’s comments appeared to turn investors cautious as they considered the possibility of faster pace of interest rate increases.

European markets also traded lower, declining alongside U.S. stocks as investors were also swayed by concerns that the Fed may raise interest rates four times this year. European indexes wilted early in the session as investors moved with caution before falling later into the afternoon. Germany’s DAX 30 index slipped 0.3% to 12,490.73, and France’s CAC 40 closed 0.01% lower at 5,343.93. The U.K.’s FTSE 100 edged down 0.1% to 7,282.45.

Comcast bid for Sky

US cable TV giant Comcast has made a £22.1bn bid for Sky, challenging an existing offer from 21st Century Fox. Comcast is the biggest US cable TV firm. It also owns the broadcast TV network NBC and Universal Pictures. Rupert Murdoch’s 21st Century Fox had already agreed an £18.5bn deal to buy the 61% of Sky it does not already own. Comcast said its bid of £12.50 a share was 16% higher than the 21st Century Fox offer.

In making its offer, Comcast said Sky News was "an invaluable part of the UK news landscape", and it intended to "maintain Sky News' existing brand and culture". Comcast chief executive Brian Roberts called Sky "an outstanding company" and said he was "confident" the offer would be cleared by regulators. Sky's shares were up more than 21% at above £13 in afternoon trading on the London Stock Exchange.

Amazon takes up doorbell manufacturer

Amazon has bought Ring, a US firm that makes high-tech doorbells in a move expected to help the online retailer improve how it delivers parcels. The doorbell could help Amazon customers trust its new service which lets couriers open people's front doors and put deliveries inside. An Amazon spokesman said it bought Ring to help customers keep their homes "safe and secure."

Ring makes doorbells that record live videos of customers' doorsteps, then sends the videos to their smartphones. Founded in 2012, Ring has more than 2,000 employees, about one million customers and estimated sales in 2016 of $155m. The company has said that working with Amazon will allow it to "achieve even more" as it develops home security products.

 

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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