Alle bleiben Sie ruhig | Calamatta Cuschieri

No, you’re not reading the Der Spiegel, that’s just what I hope is a correct German translation (Google Translate, I’m looking at you) for ‘Everybody, stay calm’ – the key message European Central Bank President Mario Draghi wanted to get out to his friends (and enemies) in Deutschland.

In its latest monetary policy meeting and ensuing press conference, ECB chief Mario Draghi refuted claims that Eurozone inflation had turned a corner, pointing to the recent uptick in oil prices as the main mover of headline inflation. The ECB’s favourite metric hit a three-year high of 1.1% in December, but that’ still substantially off the ECB’s stated target of “close, but below 2%”.

Responding to criticism that German savers are losing out in real terms by emphasising that the current zero interest rate policy is needed to underpin the as-yet fragile economic recovery, and that the current monetary stance will ultimately bring around higher rates for everyone.

Heaven and hell

Tesla and Toshiba were once again on the wires

Tesla and Toshiba were once again on the wires, but the news is only good for the electric automaker. After a fatal accident involving Tesla Motors Inc,’s Autopilot driver-assist system last May, US auto safety regulators opened an investigation to determine whether the issue warranted a recall.

In a statement on Thursday, authorities determined that “a safety-related defect trend has not been identified at this time”, adding they do not see the need for further investigation, thus closing the case. Tesla CEO Elon Musk called the report “very positive” on Twitter, welcoming the thoroughness and the conclusion of the investigation.

The day was not so kind to Toshiba though. Analysts have revised estimates of a potential write-down (which we talked briefly about here and here) to anywhere between $5 and $8 billion. Even if the official number, which is due by mid-February, is lower than the estimates it would still all but wipe out Toshiba’s approximately $3.2 billion worth of shareholder equity.

Toshiba has reportedly turned to state-owned banks to garner some financial support and buy itself some time as it seeks to spin off some non-core assets, in a bid to avoid having to sell off any of its major operations.

Oh, and tonight will also see Donald Trump officially become the President of the United States of America. Heaven or hell?

This article was issued by Andrew Martinelli, Investment Manager 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.