Monday was a positive day for European equities as they strengthened with gold tumbling to the weakest point in five weeks – maybe a result of a “fat finger” error. The news that Italy is bailing out two ailing banks led the way for a strong market performance.
The FTSE 100 added 0.4%, with Whitbread surging 2.37%. Royal Bank of Scotland was among the best performers, jumping 1.83%, while HSBC was also in the winner's pack, rallying 1.4%. The DAX closed 0.29% in the green in Frankfurt, where Lufthansa's jump of 3.06% outpaced only Commerzbank, which increased 2.16%. The CAC 40 strengthened 0.56% and Italian FTSE MIB ended the session up 0.87%. Gold traded 1.08% down, at $1,243.2 per ounce, after dipping to $1,237.07, the lowest since May 17.
BMW adding Workforce in the USA
The giant German automaker revealed the third generation of its X3 sports utility vehicle and said 1,000 people will be hired by 2021 to work in the plant, to bring headcount "well above 10,000." The Chairman and Chief Executive of BMW AG Herald Krueger stated, "Free trade makes this success in the USA possible".
The event in the production facility in South Carolina marked the 25th anniversary and current expansion is worth $600 million. The Chief executive also stated that the plan for the new round of employment dates from before the election of President Donald Trump. At the same time, the company has a project for another plant in Mexico for the 3 series.
US travel ban enforced until further notice
The Supreme Court of the United States has decided to hear the challenge of rulings blocking President Donald Trump's executive order that bans immigration from six mostly Muslim countries. The high court will allow enforcement of most instances of the travel ban while it hears the case.
The today's court decision represents Trump's victory, as, according to the US president, thetravel ban is crucial for preventing terrorist attacks in his country. The justices will hear arguments in the case in the court's next term, which starts in October.
Rio Tinto Rejects Glencore
Rio Tinto refused the second offer from its mining competitor Glencore for its Australian coal assets and chose Yancoal Australia's improved bid instead. Last week, Switzerland-based Glencore said it made an all-cash bid of $2.68 billion for Coal & Allied Industries as Rio turned down the first offer.
Rio Tinto recommended shareholders vote for revised offer by Chinese Yancoal. As the London-based Rio explained, Yancoal's sweetened offer of $2.69 billion has "greater transaction certainty" and is likely to be completed through the third quarter "whereas any transaction with Glencore is unlikely to complete until the first half of 2018 at the earliest." Both Rio Tinto and Glencore shares were on the upside.
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This article was issued by Rodrick Duca, 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.