Decline on Walmart and rise in interest rate drag down the US Stock Market | Calamatta Cuschieri

The Dow Jones fell sharply on Tuesday closing 254 points lower, pressured by a steep decline in Walmart shares and a rise in interest rates

Qatar's flagship airline is embarking on a strategy of expansion in part to counter losses borne by the regional embargo imposed on it in 2017 by several neighboring states
Qatar's flagship airline is embarking on a strategy of expansion in part to counter losses borne by the regional embargo imposed on it in 2017 by several neighboring states

The Dow Jones fell sharply on Tuesday closing 254 points lower, pressured by a steep decline in Walmart shares and a rise in interest rates. S&P 500 pulled back 0.6% to 2,716.26, with consumer staples declining more than 2%. The Nasdaq composite fell 0.1% to 7,234.31 as a rally in tech stocks evaporated in afternoon trading.

Higher rates have kept Wall Street on edge recently as investors fear higher inflation could lead the Federal Reserve to tighten monetary policy faster than expected.

Qatar Airways’ next goal is to defeat the blockage with expansion strategy

Qatar's flagship airline is embarking on a strategy of expansion in part to counter losses borne by the regional embargo imposed on it in 2017 by several neighboring states.

As said by the Qatar Airways CEO Akbar Al-Baker,  “We are focusing everywhere in the world, we've been increasing frequencies into Eastern Europe, Southeast Asia, increasing our network into the sub-continent, so we are going all over the place,". "We are very determined to make sure that this illegal blockade is defeated in a very, very strong way."

Since last summer due to the blockage and the ban to fly to neighboring countries like Saudi Arabia, United Arab Emirates, Bahrain and Egypt , Qatar airways has been forced it to fly longer routes through Turkey and Iran, and has hit the company's bottom line, but not its expansion plans.

Akbar al-Baker said that Qatar's flagship airline has seen an increase in maintenance costs because they need to fly longer routes. As a consequence, the cost to the airline is rising and the company will face a loss this year that will be softer than first anticipated.

The company's annual financial results will not be out until late March.

Airbus delivered its first A350-1000 jet to Qatar Airways on Tuesday.

The aircraft, which will make its first commercial flight Saturday between Doha and London Heathrow, has the longest fuselage of any of the A350 family and can fly further than the previous -800 and -900 models.

The delivery was delayed from late last year; Qatar Airways first placed an order for the A350-1000 in 2005 and has 42 of the aircraft on order.

Qatar airways announced that some orders may be upgraded to A350-1000 planes and Al-Baker said that "The features of this airplane is that is has improved wings, improved performance and, at the same time, the first A350-1000 that has our Q-Suite (business class), which is the industry leader in passenger comfort".

General Motors plans to restructure South Korea Unit with $2.8 billion fresh investment

General Motors (GM), the carmaker based in Detroit, has proposed a $2.8 billion fresh investment in South Korea over the next 10 years, as part of its plan to restructure its embattled Korean unit.

In addition, the company had requested South Korea to inject funds into GM Korea, in which the country's state bank also holds a stake.

According to a South Korean Government, a close look into GM's proposal was necessary to determine whether the investment plan was sufficient to rescue the unit, which directly employs some 16,000 workers.

South Korea's trade minister Paik Un-gyu had said on Wednesday that the government has asked for an audit into General Motors "opaque" management in the country in the wake of the car maker's decision to shut down a factory in a city southwest of Seoul.

GM's decision was the latest in a series of steps it has made to put profitability and innovation ahead of sales and volume. Since 2015, GM has exited unprofitable markets including Europe, Australia, South Africa and Russia.

A GM Korea spokesman said the company would continue to work with the government and labour union to secure support for its viability plan.

The company has also announced that its factory in Gunsan will be closed by May, and it is mulling the fate of its three remaining plants in South Korea.

 

Disclaimer

This article was issued by Linda De Luca, 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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