Markets roundup with a recall and a white flag | Calamatta Cuschieri

Car manufacturer Ford Motor Co is recalling almost 1.4 million vehicles in North America, most of them in the United States as a result of a steering wheel issue

European markets digested data and minutes release with Mario Draghi stating the bond purchase program continues if inflation remains subdued
European markets digested data and minutes release with Mario Draghi stating the bond purchase program continues if inflation remains subdued

Europe

European stocks latched onto small gains Wednesday, as investors digested data released earlier in the day and minutes from the European Central Bank President Mario Draghi's speech. President Mario Draghi said its bond-buying program will likely continue if underlying inflation in the region remains subdued.

Eurostat reported a decrease in industrial production both in the Eurozone and the whole EU, down 1% and 0.7%, respectively. The number of employed persons in the euro area was up 0.3% in the last quarter of 2017, Eurostat said. Meanwhile, Angela Merkel was re-elected to serve her fourth term as the Chancellor of Germany.

The DAX was flat at the closing bell. Adidas AG surged 11.18%, marking the biggest gain by far. The FTSE 100 rose 0.09% at the end of the trading session. The CAC 40 was unchanged at 5:23 pm CET. Electric utility company Engie gained 1.37% at the close.

U.S

The Dow Jones Industrial Index erased modest gains made at Wednesday’s opening, losing around 330 points amid fears of a broader trade war with China reported the day before. The Seattle-based giant Boeing was again trading in the red, as investors feared retaliatory measures by China that would affect the US aero industry.

Moreover, according to media reports, President Donald Trump is planning to impose tariffs on Chinese goods, ranging from electronics and telecommunications equipment to furniture and toys. The projected value of products to be hit is reported to measure in tens of billions of dollars. Investment restrictions directed at Chinese companies are being considered as well.

Recall for Ford

Car manufacturer Ford Motor Co is recalling almost 1.4 million vehicles in North America, most of them in the United States as a result of a steering wheel issue.

According to the automaker, approximately 1,378,637 Ford Fusion and Lincoln MKZ cars manufactured between 2014 and 2018 were equipped with potentially loose steering wheel bolts which could cause the steering wheel to detach. The company noted the issue has caused two accidents and one injury of which Ford is aware.

Ford is also recalling another 6,000 Ford Focus and Ford Fusion vehicles over a potential clutch plate fracture which could result in a fire. The company noted dealers will fix the vehicles affected by either of the issues at no cost to customers.

White Flag for Broadcom Ltd bid on Qualcomm

After its hostile takeover bid was blocked by a rare move of the United States government.  President Donald Trump has issued an order this week to forbid the transaction, as recommended by the Committee on Foreign Investment in the US. Broadcom Ltd. said that the cash and stock offer of $117 billion for rival Qualcomm Inc. has been withdrawn, the chipmaker announced and added the management is "disappointed with this outcome." However, the company still intends to move the official seat to Delaware.

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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