Markets climb higher | Calamatta Cuschieri

Markets continue their advance, Audi cuts jobs and LSE approves Refinitiv takeover

US markets reached further into record territory on Tuesday with an upbeat assessment of the US economy from Federal Reserve Chairman Jerome Powell pushing indexes closing at new all-time highs. The Dow Jones Industrial Average gained 55.21 points, or 0.2 percent to 28,121.68, while the S&P 500 added 6.88 points, or 0.2 percent to 3,140.52 The Nasdaq Composite Index rose 15.44 points, or 0.2 percent, to end the session at 8,647.93.

European markets meanwhile slipped as investors awaited fresh news from the US-China trade talks. The pan-European STOXX 600 index was mostly unchanged, closing just below the flatline whilst the German Dax lost 0.3 percent. The UK’s FTSE 100 meanwhile climbed 0.6 percent to break past the 20,800 mark as a weaker pound helped lift stocks.

Maltese markets also retreated with the MSE Equity Total Return Index closing down 0.26 percent at 9,709.132 points. RS2 Software Plc was the only stock to end with gains with shares closing up 1.9 percent at €2.14. HSBC Bank Malta Plc meanwhile led the losses with shares down 2.34 percent at €1.25.

Audi cuts job for electric shift

Volkswagen’s luxury car unit Audi announced on Tuesday that it would cut one in ten jobs, freeing up billions of euros to fund its shift towards electric vehicle production. The carmaker said it would cut 9,500 jobs, or 10.6% of its total staff by 2025, saving 6 billion euros, but will also create up to 2,000 new positions in the areas of electric mobility and digitalisation.

Carmakers are struggling with an auto industry downturn, particularly in key market China, and the need to increase investment in electric vehicles as several countries move to eventually ban conventional combustion engines. “The company must become lean and fit for the future, which means that some job profiles will no longer be needed and new ones will be created,” Audi said in a statement.

LSE shareholders approve Refinitiv takeover

London Stock Exchange shareholders overwhelmingly backed the exchange’s $27 billion (£21 billion) takeover of data and analytics company Refinitiv, a deal designed to broaden LSE’s trading business and make it a major distributor of market data. “We feel very strongly this is in the long-term strategic interest of the London Stock Exchange. It will give us an opportunity to have a truly global business,” LSE Chief Executive David Schwimmer said.

LSE Chairman Don Robert told a shareholders meeting in London that the exchange’s board was unanimous in recommending the Refinitiv deal because it was a “compelling opportunity” in the best interests of shareholders and the company.
 

This article was issued by Peter Petrov, 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