Markets summary and Toyota’s & Suzuki’s alliance | Calamatta Cuschieri

Yesterday’s markets performance, a new alliance between Toyota & Suzuki and Tesla to offer an insurance service.

Markets closed in the red on Wednesday, with the MSE Equity Total Return Index ending the session 0.02% lower to 9,797.44. The best performer was Malta Properties Company P.l.c, jumping 1.49% and closing at €0.68, followed by International Hotel Investments P.l.c’s gain of 0.67%, which closed at €0.76. Meanwhile, Malta International Airport P.l.c fell by 0.67% together with RS2 Software P.l.c’s fall of 0.52%, both closing at €7.45 and €1.91, respectively.

Wall Street stocks closed higher than previous session, but still remain low due to the volatility induced by the political uncertainty. The S&P500 ended the day 0.65%, or 18.78 points, higher whilst the Dow Jones Industrial Average gained 1%, or 258.20 points, with Dow Inc and Pfizer being amongst the strongest performers. The Nasdaq Composite closed 0.38% firmer at 7,856.88.

European markets experienced declines as worries of a looming recessions are still clouding investors’ sentiment. The pan-European Stoxx600 closed 0.20% lower, whilst the London FTSE100 ended 0.35% higher following odds of a ‘no-deal’ Brexit.

Toyota and Suzuki’s alliance

Toyota Motor Corporation announced that it will be signing a deal to buy 4.9% stake in Suzuki, as way to expand its list of partners. Toyota, Japan’s largest car manufacturer, is forecasting to spend $908 million to acquire the shares in Suzuki.

Toyota wants to partner up with Japanese car maker with the aim to sustain a presence in India and Africa, where before it used to struggle due to the low prices of the vehicles. Suzuki is also planning to sell its own versions of the Corolla and RAV4, claimed to be Toyota’s most popular vehicles, in turn allowing Suzuki to widen its base in Europe and reduce its reliance on India.

Tesla’s insurance service

Tesla will be offering an insurance service, exclusively to its drivers in California, as an added safety feature to its electric vehicle. The company advertised the availability of ‘’competitively priced insurance offering’’ which may be 30% less than other insurance plans.

Tesla wants to offer this product as a way to lower premiums for the vehicle owners and a way to attract sales. Although the service will only be offered in California, CEO Elon Musk stated that the company is planning to ‘’expand to additional U.S. states in the future.’’
 

This article was issued by Nadiia Grech, junior trader at Calamatta Cuschieri. For more information visit, https://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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