Issue link: https://maltatoday.uberflip.com/i/653685
maltatoday, WEDNESDAY, 16 MARCH 2016 11 Business Today www.creditinfo.com.mt info@creditinfo.com.mt Tel: 2131 2344 Your Local Partner for Credit Risk Management Solutions Supporting you all the way Market commentary: Positive ripples after Draghi bazooka move European markets enjoyed a good start to the week on Monday, af- ter mining stocks led the way with gains, and the broader market was still buzzing after last week's boost in stimulus from the Euro- pean Central Bank. On the other hand though, Wall Street was slightly lower on Monday, as a fall in oil prices weighed on energy stocks, which saw investors pause ahead of what looks to be a busy week. Following Draghi's bazooka move on Friday, all eyes will now turn on the UK, Japan and US central banks to see what moves – if any – they announce. Among the top movers, Glencore saw its shares leap 4.45%, with Anglo American also enjoying a good start to the week, rising 6.15%. These increases were the result of speculation in the market over a slowdown in China's industrial production, which is a key buyer of Europe's industrial and precious metals, and could serve as motivation for more stimulus from Beijing. In other industries, carmakers also featured among the top movers in Europe, helped by a weakening euro. Fiat Chrysler Automobiles, BMW and Peugeot all climbed around 2%, while Volkswagen managed to recover an early morning slip to end the day trading in the green. Among stocks moving on corporate news, Italy's Banca Monte dei Paschi rose the most in six weeks, after Italian newspaper La Repubblica reported that Prime Minister Matteo Renzi is pressing other lenders to consider a takeover of the country's third largest bank. Shares climbed as much as 13% in early morning trading in Milan. Staying with big banks, Royal Bank of Scotland was down after news reports that the bank plans to cut 550 jobs as it shifts toward greater use of automated investment advice systems. In other movers, London Stock Exchange Group shares were trading in the green after a report in the Telegraph said that Deutsche Boerse may raise its takeover offer for the exchange operator. Meanwhile, crude prices, which have heavily dictated the direction of the stock market this year, fell around 3% as oil went back to trading below $40. This came after Iran squashed hopes of a co-ordinated production freeze any time soon, sending bearish sentiment over a supply glut that has sent prices crashing. Fed ahead The Fed's policy meeting comes just days after the ECB took easing measures that exceeded expectations on Thursday. As a result, speculation lingers towards the Fed keeping interest rates on hold at the two-day meeting starting on Tuesday. Central bank intervention has been at the forefront of efforts by major economies to calm financial markets and spark growth at a time when demand and inflation remain low. Investors will be on the lookout for the Fed's comments on the economy and its plan to hike rates amid global economic weakness. The Fed raised interest rates in December for the first time in almost a decade, amid expectations that more tightening would come in 2016. The turmoil in financial markets at the beginning of the year, however, has pushed out forecasts for the next rate rise. Meanwhile, the Bank of Japan began its two-day meeting on Monday and is expected to keep policy unchanged after adopting negative interest rates in late January. This article was issued by Rebecca Naudi, Trader at Calamatta Cuschieri. For more information visit, www.cc.com. mt. The information, view and opinions provided in this article are 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 & Co. Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing in this article. Lobbying group survey indicates most businesses want UK to remain in Europe Britain's biggest business lobbying group says 80% of members ques- tioned in a survey want to stay in the EU. The Confederation of British Industry (CBI) said the majority of nearly 800 firms taking part felt Britain remaining in Europe was "better for business, jobs and prosperity". But the group said it would not align itself with either side of the debate. Vote Leave chief executive Matthew Elliott said: "It's welcome news that the CBI has seen sense and won't be seeking to campaign in the referendum." Carolyn Fairbairn, director- general of the CBI, said: "The message from our members is resounding - most want the UK to stay in the EU because it is better for their business, jobs and prosperity. "Walking away makes little economic sense and risks throwing away the many benefits we gain from being part of the EU." The survey of 773 companies questioned by polling company ComRes found that large organisations within the CBI were more likely than small and medium-sized companies to want to remain in the EU. Overall, 5% of businesses that took part in the survey thought that it would be in their company's best interests for Britain to leave Europe while 15% were unsure. Fairbairn said the CBI would now set out the economic case for the UK remaining in Europe ahead of the referendum on 23 June but said that it would not align itself with any side in the campaign, adding: "It is not our place to tell people how to vote." She added: "A minority of members want to leave the EU. We will continue to respect and reflect their views and campaign for EU reform to get a better deal for all businesses. "However, most CBI members are unconvinced that alternatives to full membership would offer the same opportunities. We have yet to see those who seek to leave the EU present a compelling vision of what this would mean for jobs and growth." John Longworth, director general of the British Chambers of Commerce (BCC), recently resigned after being suspended for saying the UK's long-term prospects could be "brighter" outside the EU. Sony buys out Michael Jackson music venture stake Sony is paying Michael Jackson's estate $750 million for the late pop star's share of a joint music publish- ing venture that it does not already own. Jackson held a 50% stake in Sony ATV Music Publishing as part of a business partnership that began in 1995. The purchase will give Sony the rights to about three million songs, including works by the Beatles, Bob Dylan and Taylor Swift. However, the deal does not include Jackson's master recordings. His estate will maintain its holdings in Mijac Music, which owns all the songs written by Jackson, as well as EMI Music Publishing. The agreement will reportedly help reduce the Jackson estate's remaining $250m debt and give the late musician's three children more financial flexibility. The purchase of Jackson's stake also strengthens Sony's US entertainment business, which includes a film studio and music recording company. "The entertainment businesses have long been a core part of Sony and are a key driver of our future growth," Kazuo Hirai, Sony's president and chief executive, said in a statement. "These businesses will continue to contribute to our success for years to come." John Branca and John McClain, co-executors of the Jackson estate, said the deal "further validates Michael's foresight and genius in investing in music publishing". "His ATV catalogue, purchased in 1985 for a net acquisition cost of $41.5m, was the cornerstone of the joint venture and, as evidenced by the value of this transaction, is considered one of the smartest investments in music history."