The week ahead | Calamatta Cuschieri

The first two weeks of 2018 have been overloaded with records. The Dow Jones Industrial Average has climbed 4.4% and the S&P 500 has rallied 4.2% through Friday for their best start to the year since 2003. Also, the NASDAQ reached 5.2%, the best result since 2004, according to Analysts. Stock markets were driven by the euphoria over the Tax cut and the positive outlook on the economy.

The week ahead will start with the Trade Market Data for the Eurozone, UK House Price Index and Inflation data in most of the important economies in the world. Data on Chinese GDP, industrial output and retail sales figures are expected to confirm a slowdown in the world’s second largest economy. Yuan has gained nearly 7% against the dollar and according to some analysts, both currencies are now close to the fair value.

Some of the top emerging market central banks will meet on Thursday. The Bank of Canada is likely to raise interest once again. On the corporate side, Acacia Mining, Citigroup, IBM, Goldman Sacks, Bank of America and Morgan Stanley will release their earnings data later this week.

Ford unveils Ranger, a new midsize pickup truck

Ford Motor Co. on Sunday officially unveiled its long-awaited Ranger, the midsize pickup truck a year ahead of its arrival in showrooms. More than two years ago Ford declared its decision to re-launch the Ranger midsize truck in North America after killing the model in 2011.

In late 2014, GM launched the new Chevrolet Colorado and GMC Sierra pickups, and Japanese automakers Toyota Motor Corp and Nissan Motor Co reinvigorated their midsize pickup trucks after abandoning the segment in 2011.

As gasoline prices stabilized, more customers turned to the new, smaller pickups. In 2017, GM sold more than 145,000 Colorado and Canyon trucks. Toyota, the segment leader, sold more than 198,000 Tacoma trucks in 2017.

Ford executives said that the North American Ranger will share engineering and some design elements with a work-oriented pickup the company builds and sells in Southeast Asia and other markets.

The new Ranger will start arriving in North American dealerships in early 2019 and be assembled at its Wayne, Michigan, factory in suburban Detroit. Ford’s decision to invest $850 million in the Wayne plant to build the Ranger and a new Bronco SUV won praise last year from U.S. President Donald Trump.

Fiat CEO plans to double profit by 2022

Fiat Chrysler Automobiles NV CEO Sergio Marchionne, one of the longest-serving bosses in the auto industry, said the company can double profit within five years by exploiting the potential of the Jeep brand.

It will be his successor though to carry out the strategy to expand Jeep’s global market. Marchionne is confident that Fiat can reach 5 million deliveries a year.

Should Jeep reach these targets, it would mean that the profitability of the company will double by 2022.

Fiat’s new five-year strategy will be presented on 1st June; the same day he was hired as CEO in 2004. Fiat’s value has climbed to 29.5 billion euros after soaring 28 percent in the first two weeks of 2018.

Disclaimer:

This article was issued by Linda De Luca, 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.