Habemus Trump!! | Calamatta Cuschieri

White smoke appeared and therefore the US voters made their decision. The world awaited anxiously for the election of a new president with all eyes fixed on the Western Hemisphere. The never-ending campaign, with all its perquisites, finally can see the winner in a very tight race until the finish line. The mud throwing statements from the two last standing candidates, being the sexist comments or criminal emails, will be outdated now. The new President of the United States is Donald Trump. Financial markets hoped for a Clinton win. In fact, when FBI investigations announced no new findings of fraudulent activities, it has sparked a global market relief with a rally in financial markets.

On Wednesday morning, Asian markets and oil traded lower together with futures on Wall Street tumbled as markets reacted to results and predictions showing Donald Trump unexpected gain in crucial states. This also contributed to sharp gains in Gold and Japanese Yen and other safe-haven assets. On the Currency side, the U.S. Dollar extended losses against all major currencies. The Mexican Peso, which was directly correlated to the presidential election, showed a record low dip, as a Trump Victory weighed heavily on the currency. With results out, Donald Trump winning the key battleground states of Ohio, North Carolina, Florida, Georgia, Wisconsin and Pennsylvania, beating odds to become the 45th President of the US.

Banks in focus …

Credit Agricole Bank reported a net income of €1.86 billion for the third quarter, which is above expectations of €1.7 billion. This will allow the bank to set a minimum dividend level for next year and expand its asset management arm Amundi. The French Bank turned a new page by selling assets and pulled out of markets such as Greece to recover from losses and arm itself for tougher regulations in the wake of a financial crisis. The bank shares ended the session in positive territory, closing at EUR 10.28, higher by 5.64%.

Meanwhile, the American Private investment Bank Blackstone Group L.P. is to buy OfficeFirst Immobilien from IVG Immobilien AG. Neither side disclosed the price. However, according to rumours, the deal should be valued around €3.3 billion. IVG had previously tried to offer the stock to the market. This move failed due to unsatisfactory demand for shares with a €21 to €23 asking price. BlackStone Group Shares traded higher by around 0.5%.

On the drive …

The American car rental company Hertz posted its earnings missing market expectations. The company reported $1.58 Earnings per Share (EPS) for the quarter, missing analysts’ consensus of $2.75 EPS. The business’s revenue was down 1.3% year-over-year basis. The company stated that the depreciation adjustment on the customary vehicle had a substantial impact on the results together with a weaker rental demand. Shares in the company lost around half of its value.

On a positive note, Tesla Motors Inc. announced it entered into an agreement to acquire Grohman Engineering, a German company that will become Tesla Grohmann Automation. Following the increase of its output outlook to 500,000 vehicles per year by 2018, the electric car manufacturer commenced a search for an automated manufacturing systems takeover target. Tesla believes such a move will help it boost production output, efficiency and quality while reducing costs through exploiting economies of scale. Shares in Tesla Motors Traded in the green, up around 1.60%.

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 Investments Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.