Labour Day holiday in the markets | Camalatta Cuschieri

Closed markets, rough waters for Gibson & Government to decide on Fox-Sky

European equities closed mixed on Tuesday as most bourses across the continent were closed for the Labor Day
European equities closed mixed on Tuesday as most bourses across the continent were closed for the Labor Day

U.S. stocks closed mostly higher on Tuesday, as a sharp rally in technology stocks helped the S&P 500 and the Nasdaq shake off an early decline. However, the Dow Jones Industrial Average fell for a third straight session and lost 64.1 points or 0.3%, to end at 24,099.05 as caution remained high ahead of the conclusion of a Federal Reserve policy meeting and fresh developments in global trade.

European equities closed mixed on Tuesday as most bourses across the continent were closed for the Labor Day public holiday including France, Germany, Spain and Italy. The Stoxx Europe 600 index snapped a three-day win streak and ended marginally lower, down about 0.1% at 385.03, after finishing Monday trade up 0.2%. The U.K.'s FTSE 100 index rose by 0.2% to 7,520.36, and marked its highest close since January 31.

Gibson facing bankruptcy

Gibson Brands Inc. filed for bankruptcy with a turnaround plan that gives some of the company’s lenders equity ownership of the iconic American business that’s supplied guitars to B.B. King, Elvis Presley and Pete Townshend. Gibson, founded in 1894, sells over 170,000 guitars annually in 80 countries. Its guitars are U.S.-made. Its Gibson Innovations business, acquired in June 2014 from Koninklijke Philips NV, was the source of its financial woes, according to a court statement.

According to papers filed Tuesday with its Chapter 11 bankruptcy in Delaware, the company owes as much as $500 million and lenders will provide a new loan of up to $135 million to keep Gibson in business. Support from senior secured noteholders will help Gibson repay bank loans while going through a "change of control" transaction, giving them equity in a new company replacing current shareholders, such as Chief Executive Officer Henry Juszkiewicz.

Government to give verdict on Fox-Sky deal

The British government will give its verdict on Rupert Murdoch’s 18-month pursuit of Sky by June 13, potentially paving the way for the mogul’s Fox to take on Comcast in the battle for the British TV group. Fox said it had offered a range of undertakings that would fund and protect the editorial independence of Sky News. It said this underscored its “long-standing commitment to the excellence and complete editorial independence of the news service we created 28 years ago”.

Twenty-First Century Fox agreed on a deal to buy the 61 percent of Sky it did not already own in December 2016, but the takeover has been repeatedly held up by politicians and regulators who fear it will give Murdoch too much influence in Britain, including a surprise off made by rival US media group, Comcast. The Competition and Markets Authority (CMA) has been investigating whether the deal will give Murdoch, who owns the Times and Sun newspapers, too much influence in Britain’s news media.

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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