The week ahead | Calamatta Cuschieri

Last week saw several stories capture the headlines – geopolitics took a backseat as Trump’s proposed tax reshuffle boosted markets and corporate news from all major markets took turns at grabbing the limelight.

Toshiba had another torrid week after rating agency S&P said any attempts at debt restructuring by the embattled Japanese firm would force it to cut its – already low – credit rating. Shares fell 9% on the day the S&P news release, but are down 24% on the week.

Samsung Group top dog Jay Y. Lee was arrested on Friday, allegedly due to his role in a deepening corruption scandal in South Korea. The prosecution said it will indict Lee on charges of bribery, embezzlement, and perjury – amongst others (!). Both Samsung and Lee have denied any wrongdoing.

Samsung chief Jay Y. Lee

The week was also characterised by two possible mergers. Peugeot and GM are mulling the possibility of buying Opel (aka Vauxhall) and Kraft Heinz Co. saw their offer for Unilever rejected. The US group said it was not giving up just yet on buying the Unilever. A deal would create a consumer good mammoth – put lightly. The combined companies would be second only to Nestle in combined sales terms.

Busy data calendar

If you have financial calendar it’s probably covered in notes as this week is quite data-heavy. The higher impact data will be coming from Europe, with several PMI and HICP figures due, the IFO in Germany and some GDP numbers from the UK and Germany. Keep an eye out for the HICP – the ECB’s favourite inflation statistic can cause some wild swings in sovereign bond prices.

The minutes of the latest Fed meeting will also be released on Wednesday. At this juncture of the economy it’s no surprise that investors will be poring over the minutes to try and glean when Janet Yellen will deliver the next, much-anticipated rate hike.

This article was issued by Andrew Martinelli, 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.