A Recall, a fine and a surge

Markets

European markets closed lower on Wednesday ahead of a final vote on the Republican tax overhaul in the United States House of Representatives. The bill, which is expected to be passed later today after a revote in the lower chamber of Congress, will mark the first major legislative victory for President Donald Trump.

The DAX closed 1.11% in the red led by a decline of 2.35% in SAP SE. The CAC 40 fell 0.56% as hotel group Accor SA decreased 1.55%, while the FTSE 100 lost 0.25% at the close.

Brexit

The Prime Minister of the United Kingdom Theresa May promised to the Brexit-supporting Members of the Parliament that she will not delay the official date of the UK leaving the European Union, unless there are "exceptional circumstances" and "for the shortest possible time."

May was questioned by the MPs in the House of Commons after she confirmed that the Government has accepted an amendment to key Brexit withdrawal bill, which allows flexibility in extending the Brexit date beyond March 29, 2019.

However, the prime minister stressed that the date when the country officially departs from the bloc will not change. "We are very clear that we will be leaving the EU on 29, March 2019 at 11 pm", she said.

Audi Recall

Luxury car maker Audi AG announced it’s recalling 330,000 diesel vehicles in Germany due to a potential heater problem that could result in fires.

The problem relates to an electrical connection for the vehicles' auxiliary heater, a spokesman said. The models affected are the A4, A5, A5 cabriolet and Q5 produced between April 2011 and May 2015.

Johnson & Johnson

French competition authority fined Janssen-Cilag laboratory and its parent company Johnson & Johnson with €25 million for limiting the development of generic copies of its drug Durogesic. The penalty comes after German firm Ratiopharm reported the case to the regulator. According to the watchdog, Janssen laboratory interfered multiple times in order to halt the approval processes of Durogesic's generic copies in France.

The drug, which comes in a form of a skin patch containing fentanyl, is used to treat severe chronic pain. Fentanyl has a rapid effect that lasts less than an hour or two. However, this opioid can have serious side effects such as decreased breathing rate and addiction.

Bitcoin Cash

The third-largest cryptocurrency by market capitalization hit another all-time high on Wednesday, breaking through $4,000 mark. Bitcoin Cash has been skyrocketing in value over the last several days as crypto insiders consider bitcoin cash to be more true to the original vision of Bitcoin founder Satoshi Nakamoto due to larger block sizes in its blockchain, which enable faster transactions that are almost free of charge at only a few cents.

The spin-off currency also managed to successfully separate from Bitcoin and keep all of the existing transaction records. Meanwhile, this led to Bitcoin Cash being accepted by more and more exchanges, increasing the new cryptocurrency's credibility and value.

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 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.