The Malta Independent 24 September 2018, Monday

Emerging Markets leave their mark

Thursday, 6 September 2018, 13:29 Last update: about 17 days ago

US stocks closed mostly lower on Wednesday, with the technology sector recording its worst single-day decline since late July, triggering a drop in the Nasdaq. The weakness in tech stocks occurred as Facebook Inc. and Twitter Inc. executives testified about online misinformation. Trade-related concerns also had their effect, as the US and Canada set to restart efforts to resolve differences in the NAFTA agreement. The S&P 500 index lost 0.3 percent to 2,888.60; the Nasdaq Composite Index fell 1.2 percent to 7,995.17, finishing below the 8,000 mark; and the Dow Jones Industrial Average edged up to 25,974.99.

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European shares fell amid new losses within emerging markets and further worries that Washington will follow through with plans to levy an extra $200 billion of Chinese imports. The STOXX 600 benchmark hit its lowest level since early April, down 0.3 percent, while Germany’s DAX and UK’s FTSE fell 0.3 and 0.2 percent respectively. A consultation period on the proposal to slap fresh tariffs on China ends on Thursday, paving the way for a decision.

Starbucks opens its first store in Italy

With more than 25,000 worldwide stores, Italy had been uncharted territory for coffee giant Starbucks. It opened its first foray in Milan. It has been designed primarily around the customer experience, rather than a place to get a quick fix. Along with its coffee-roasting facility in the store, customers are able to choose from alcoholic beverages to pizza.

The Starbucks Reserve Roastery in Milan is the third of its kind, after Seattle and Shanghai, and Starbucks plans to open additional Roastery locations in New York, Chicago, and Tokyo through 2019. 

Uber on track for 2019 IPO

CEO Dara Khosrowshahi stated in an interview that Uber Technologies Inc. is on track to launch an initial public offering next year, and is unlikely to sell its self-driving car unit anytime soon. After closing its self-driving truck unit in July to focus on cars, Khosrowshahi hopes to resume testing the self-driving cars before the end of the year. Following a $500 million investment from Toyota Motor Co. last week to jointly work on autonomous vehicles, Uber aims to enter into more joint projects. Toyota’s investment valued Uber at around $72 billion; its public offering could be one of the biggest ever for a tech company.

Uber Technologies also announced its launch of a taxi-hailing app for taxis operating in Nagoya, as the US firm tries to establish its presence in a country where it has been restricted from offering its own ridesharing service. The US firm is working with Fuji Taxi Group, which has been operating for more than 60 years in the Nagoya area. This deal expands further an existing relationship and reflects Khosrowshahi’s strategy of developing autonomous vehicles through partnerships.

Disclaimer: This article was issued by Peter Petrov, 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.

 

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