Google set to offer banking current accounts | Calamatta Cuschieri

Market summary

Maltese market closed in green on Thursday, with MSE total index ending the session 0.117% higher to 9,857.015 points. Best performer was Lombard Bank Malta plc by adding 1.79% to close at 2.28, followed by 1.56% gain of HSBC Bank Malta plc and 0.67% move of Trident Estates plc which closed at 1.30 and 1.51 respectively. Biggest fall was seen from Grand Harbour Marina plc, it slid 9.09% to close at 0.50. Followed by 2.82% shed of Midi plc and 1.62% fall of Malita Investment plc, which closed at 0.69 and 0.91 respectively.

European stocks were slightly lower on Thursday, as trade negotiations between Beijing and Washington appeared to hit a snag, although the latest data revealed that Germany narrowly avoided falling into a technical recession in the third quarter. By the end of trading, the Stoxx 600 was 0.36% lower at 404.41, as the German DAX dropped by 0.38% to 13,180.23 and France's CAC 40 dipped 0.1% to 5,901.08. Meanwhile, London's FTSE 100 fell by 0.80% to 7,292.76.

U.S. stock indexes were mixed and bonds advanced as the risk rally stalled below all-time highs amid mixed economic data and mounting concern over a partial trade deal. The yen gained along with gold. The Dow Jones Industrial Average slipped 0.01%, to 27,781.96, while the S&P 500 index ended up 0.08%, at 3,096.63. The Nasdaq Composite index declined 0.04%, to 8,479.02.

Google has become the latest big tech firm to move into banking by offering current accounts:

The firm said it plans to partner with banks and credit unions in the US to offer the "smart checking" accounts. It said the service, to be launched via Google Pay, will allow users to add Google's analytic tools to traditional banking products. The move follows offerings of credit cards, payment systems and loans by Facebook, Uber, Apple and Amazon.

Amazon's credit card and business loans are aimed at boosting its e-commerce business, while Uber Money is providing credit cards, debit accounts and money tracking tools to serve the company's taxi operations. And both Google and Apple, which has teamed up with Goldman Sachs' new consumer arm, Marcus, on a credit card as part of its Apple Pay and Wallet service, want to make iPhones and Androids essential.

The moves into banking are likely to add to the debates over the tech giants, which are already facing probes related to competition, data protection and privacy. Some officials have also expressed worry about gaps in financial oversight as growing activity occurs outside of traditional banking. And in recent days, New York announced it would investigate Apple, after accusations that its credit card relied on "sexist" algorithms.

 

This article was issued by Nadiia Grech, Junior Trader at Calamatta Cuschieri. For more information visit, www.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,

More in Business Comment
Markets creep higher | Calamatta Cuschieri
Business Comment
Calamatta Cuschieri
T-Mobile and Sprint head to court | Calamatta Cuschieri
Business Comment
Calamatta Cuschieri
Markets retreat from highs | Calamatta Cuschieri
Business Comment
Calamatta Cuschieri
Kering mulls Moncler takeover | Calamatta Cuschieri
Business Comment
Calamatta Cuschieri