Issue link: https://maltatoday.uberflip.com/i/343370
10 Business Today maltatoday, WEDNESDAY, 9 JULY 2014 Europe's stocks, bonds dip as bank fines mount 230 exhibitors at Il-Fiera l-Kbira Europe's main stock indices and bond benchmarks dipped on Tuesday amid reports of new U.S. fines on banks and dimming prospects for an asset purchase programme from the European Central Bank. Bank shares weighed on European equity indexes, compounding losses after a two-session drop, as Germany's largest lenders were said to be negotiating a settlement with U.S. authorities over their dealings with countries blacklisted by Washington following a huge fine for French lender BNP Paribas. At 0740GMT, the pan-European FTSEurofirst 300 index .FTEU3 was down 0.1 percent at 1,380.33. Germany's Dax .FDXc1 was down 0.3 percent, France's CAC .FCHI was down 0.1 percent and the UK's FTSE 100 .FTSE was down 0.1 percent. .EU Shares in German lender Commerzbank CBKG.DE fell 3.5 percent as the New York Times reported it could pay at least $500 million in penalties. Its larger competitor Deutsche Bank DBKGn. DE saw its shares slip down 0.5 percent. "I think Commerzbank's stock will suffer a bit but unless they get a very big fine like BNP, I don't think it will suffer like the other banks (hit by U.S. investigations)," said Mike Reuter, a broker at Tradition. ECB Executive Board member Sabine Lautenschlaeger said late on Monday that an asset-buying programme should be a last resort - showing the strength of opposition in some quarters at the ECB to such a policy. Yields on all euro zone government bonds edged up by around 1 basis points, while German Bund futures - the most traded fixed income security in the currency bloc - dropped 15 ticks to a day's low of 146.81 FGBc1. GVD/EUR The euro hit a plateau, paring some of the gains it made against the U.S. dollar on Monday EUR as markets stayed on guard for minutes from the Federal Reserve's last meeting due to be released on Wednesday. The minutes will be scoured for hints on when the policy committee might consider raising interest rates, especially with strong U.S. labour data last week underlining the steady recovery in the world's largest economy. It was a quiet session in Asia overnight, with the region's stocks tracking sideways as the earnings season kicked off with disappointing guidance from regional tech heavyweight Samsung. MSCI's broadest index of Asia- Pacific shares outside Japan .MIAPJ0000PUS was a fraction firmer, touching a three-year high of 502.27 during the session. Samsung Electronics Co Ltd 005930.KS said its operating profit probably fell 24.5 percent in April- June to 7.2 trillion won ($7.12 billion), under the 8.3 trillion mean estimate from 38 analysts polled by Thomson Reuters. However, its shares still managed to edge up 0.2 percent, perhaps because they have been falling for most of the past month as the market priced in a poor result. The earnings season kicks off with Alcoa .AA later on Tuesday and dozens of major companies are scheduled to report next week, including numerous Dow components. Profits are forecast to grow 6.2 percent for the quarter, according to Thomson Reuters data, but investors see a slight chance of a return to double-digit growth for the first time in nearly three years. In commodity markets, gold edged a fraction lower to $1,317.70 an ounce XAU=, having held to a relatively tight $1,305.90 to $1,332.10 range for the past two weeks. Oil prices extended their recent decline, as events in Iraq and Ukraine have so far not led to any serious disruption in flows. Brent LCOc1 dipped 46 cents to $109.78 a barrel and U.S. oil CLc1 lost 12 cents to $103.41 a barrel. Final preparations are underway as the first edition of il-Fiera l-Kbira will open its doors to the general public this Thursday. During a press conference held at Montekristo Estates, the venue of il- Fiera l-Kbira, it was announced that the trade fair will feature 230 exhibitors who booked their space soon after a public call was issued. The fair, being organised by Expo Events, will be officially inaugurated by Her Excellency the President of the Republic on Thursday afternoon. Addressing the press, Pierre Fenech, General Manager of MKIC Ltd, who is managing Montekristo Estates said that arrangements have been made to create 6,000 parking spaces to be used by visitors to il-Fiera l-Kbira. Fenech also announced that the board of directors unanimously agreed to donate all proceeds generated from the parking to the Malta Community Chest Fund. Luke Gatt, Director of Expo Events said that the fair is attracting a lot of interest, and the fact that all exhibitors spaces were booked within weeks strengthens the fair itself. He said that the general public will have a vast choice of products and special offers to take advantage of. Expo Events had conducted a research that showed that the vast majority of the respondents preferred having an open-air trade fair. With this scenario in mind Expo Events decided to hold the event at Montekristo Estates. Gatt said that the fair will also serve as a family outing, and in view of the increased interest shown by families, it was decided to create a children's park within the fair. Entrance tickets, which will be sold at €2.50 at the doors will entitle the holder to participate in a lottery through which one can win a brand new Skoda Rapid Spaceback. Various other prizes will be given out on all days of the fair. There will also be seven different restaurants, all professionally managed, at various parts of the fair. Fenech referred to a special traffic management plan that was drafted in collaboration with Malta Police Force. Just like with any other major event in the area, the flow of traffic in Ħal- Farruġ Road will be managed by the Police, and will only be one way. This will help in avoiding traffic jams around the trade fair grounds. John Camilleri, on behalf of the Malta Community Chest Fund thanked the organisers for the donation they will be making through the parking spaces. He said that this money will be of great help to the MCCF as they help people in difficult moments in their life. The general public is encouraged to follow the latest developments through the Fiera l-Kbira facebook page (fierakbira) and website www. fierakbira.com