Markets take a break | Calamatta Cuschieri

U.S. stocks fell on Wednesday, putting at least two major indexes on track for their first negative session of the new year after a string of all-time highs, allowing gold prices to touch their highest levels in nearly four months as the dollar tumbled. After the recent record runs in the stock markets, Wednesday’s pullback was seen as merely a pause in the rally and as traders took the chance to take some profits.

European stocks also fell, following a five-day rally that pushed the market to its highest level in more than two years. Bucking the trend, shares of banks tracked a rise in U.S. bond yields. Meanwhile, U.K. blue-chip stocks advanced to a fresh record on Wednesday, as bank shares rose while those of home builders lost ground.

Ferrero – Nestle acquisition

Italian chocolate maker Ferrero SpA is nearing a deal to acquire Nestle SA’s U.S. confectionery business for about $2.8 billion. Ferrero, which has traditionally shed away from acquisitions, is making a rare purchase to expand its portfolio. An agreement could be signed as early as Sunday, the person said, asking not to be identified as the information is private.

For Nestle, the world’s largest food company, this deal marks Chief Executive Officer Mark Schneider’s first major divestment and an initial step away from chocolate. Nestle plans to focus on categories like coffee and pet food as the food industry grapples with a drop in demand for sugary products. While the Swiss company has been moving toward healthier food, it’s holding on to its prepared-dishes, ice cream and global confectionery businesses.

Kodak announces move to blockchain

Eastman Kodak Co. became the latest to announce plans on introducing blockchain into its business, when the company said it would begin a “major blockchain initiative.” Kodak intends to use digital ledgers to help photographers license their work and get paid for usage. Kodak added that distributed-ledger technology, which is the backbone of cryptographic currencies, will also help spot unlicensed usage of photos.

Shares in Kodak more than doubled on the news, rocketing $3.70, or 119%, to $6.80 in very active trading, after being down as much as 1.6% before the news. Trading volume spiked to 64.9 million shares from a full-day average volume of about 264,000 shares. After closing at a record low of $3.05 as recently as January 4, the Tuesday move was the biggest gain and saw the most shares traded in a day since the stock began trading in its current form in September 2013.

Disclaimer:

This article was issued by Peter Petrov, Junior 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.