Strong end to August | Calamatta Cuschieri

U.S. stocks rose, while both the dollar and the 10-year Treasury weakened. The S&P index surged by 0.6% registering a five day positive momentum. The Nasdaq 100 index closed the month of August with an all-time high. The Dow Jones followed this positive trend and rose by 0.3%.

On Thursday the euro continued its rally and increased by 0.2% to a value of $1.1903 against the dollar, showing the positive economic outlook in the Eurozone area. This past week proved to be beneficial for the Stoxx Europe 600 Index which surged by 0.8% hence reducing the negative outlook for the month of August which registered a loss of 1.1%. Both the sterling and the Japanese Yen rose by 0.1% to the value of $1.2931 and $110.09 respectively.

Snapchat

Snapchat is set to focus on digital video network to create original content and is ready to challenge top TV networks such as Comedy Central and Nickelodeon. Such an approach may be fruitful in the long run considering the difficulty faced by the company to keep up with the likes of Facebook and Instagram. This can be an opportunity for Snapchat to increase its market share and the number of users.

Volkswagen

Volkswagen a well-known established automotive company, is set to increase its global stance by increasing the U.S. market share from 1.9% to a target of 5%. The increase in SUV models will help to achieve the 5% target and to boost the total sales volume by 40%. Considering the recent scandals about diesel emissions, the company was able to recover and is planning to become a volume player on a global level.

Carrefour SA

The warning stated earlier this year by the company itself has materialized into reality, as the share price decreased by 15%. Carrefour SA are concerned for this year figures and are more than aware that the heavy competition by online retailers is taking a toll on the company’s performance. Bruno Monteyne an analyst at Sanford C. Bernstein stated that Carrefour has lost track and focus of what are truly the customer needs and this is being reflected in the figures.  As stated earlier further pressure is coming from the fierce competition and promotional adverts used in the industry itself, and to regain its status as a food chain, Carrefour has acquired several online retailers to surge sales figures and cut costs hence increasing its profit margin.

Disclaimer: This article was issued by Andre Cauchi, Junior Investment Advisor 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.