The Malta Independent 20 February 2019, Wednesday

Markets overview with corporate news

Tuesday, 8 January 2019, 09:40 Last update: about 2 months ago

Europe ends in the red

Markets in Europe ended the trading session on Monday with losses as investors focused on latest developments regarding Britain's withdrawal from the European Union. United Kingdom Prime Minister Theresa May's spokesman confirmed earlier that the meaningful vote on her Brexit divorce deal in Parliament would take place next week.

The FTSE 100 closed 0.39% lower, dragged down by the consumer goods shares. The CAC 40 declined 0.38% at the end of the session. Sanofi, Danone and Airbus were the biggest losers, dropping 1.99%, 1.84% and 1.83%, respectively. The German DAX fell 0.18% at the closing bell. Bayer declined 1.59%, followed by Siemens, which decreased 1.31%.

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Huawei sues US Company in China

Huawei Technologies sued the United States-based company InterDigital in Shenzhen, China, alleging wrongdoing regarding intellectual property use terms.

According to the regulatory document, filed at the Shenzhen Intermediate People’s Court last Wednesday, the lawsuit alleges InterDigital for infringing an obligation to license patents crucial to 3G, 4G and 5G wireless telecommunication standards, on non-discriminatory terms and conditions.

Shares of the Delaware-based wireless tech solutions company were down 6.55% in the last thirty days, declining over 20% in the last six months

Bristol Mayer Squibb takeover on the Fitch radar

The deal reached by Bristol-Myers Squibb Co. to purchase Celgene Corp. for $74 billion prompted Fitch Ratings to place the pharmaceutical firm under negative watch. Fitch said, the transaction, which includes $32 billion in debt and another $20 billion in assumed liabilities, compares to the $7.2 billion outstanding that was registered as of the end of September and is graded A-.

The acquisition, projected to be executed in the third quarter, brings "additional breadth and depth in the oncology and immunology markets" in the late-stage project portfolio, the credit appraiser acknowledged and added six product launches are possible. It also highlighted the potential benefits from diversification.

Bristol-Myers Squibb depends on the implementation of the takeover plan's nominal $2.5 billion in synergies. The new entity's operating profile places it in a higher league, the agency said and named Pfizer and Merck, but it added "the breadth, depth, and patent risk of a combined Bristol-Celgene would compare less favourably." The short-term issuer default rating was held at F2.

Amazon becomes most valuable US Company

Amazon.com Inc. emerged as the biggest listed entity in the United States by market capitalization in intraday trading, following turbulence which has cost Apple its long-lasting first place. The online retail giant has attempted and failed to close at the top valuation last month. Today it overtook Microsoft for the best position, reaching $1,626.5 per share, the highest mark since December 14 and eyeing $800 billion. Amazon has briefly topped $1 trillion in September, the only company after Apple to achieve the milestone.

Disclaimer: 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 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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