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maltatoday, WEDNESDAY, 30 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 It was a quiet start to the last week of the first quarter of 2016, as Easter Monday meant that European markets re- mained closed. Nevertheless, it was business as usual in Asia and America, where markets remained little changed. Gains in consumer stocks were off- set by losses in the energy and technology sectors, and inves- tors digested the February con- sumer spending data. Monday's round of economic data mostly clouded the picture for the rate-setting Fed. A report showed that consumer spending rose by a smaller- than-expected 0.1% during last month. Also, the Fed's preferred measure of inflation – personal consumption expenditure – was at 1% in the 12 months ended in February. This isn't exactly very good news, as the Fed considerers 2% inflation to be a healthy level. One of the biggest movers on the market was Starwood Hotels, which enjoyed a 2.5% rise during Monday's session after news of a potential bidding war for the hotel group helped boost sentiment in early trading. Starwood, owner of the Westin, Le Méridien, Sheraton, St Regis and The Luxury Collection, among other brands, is said to have received a higher buyout offer of $15 billion from China's Anbang Insurance Group, which is superior to the $14.41 billion bid it received from Marriott International Inc. This news comes as the Chinese company is reportedly searching for solid international investments to make up for slowing growth at home. Anbang's buying spree reflects its desire to diversify its holdings by adding valuable real estate in the United States and Europe. Pandora Media's stock tumbled over 9% to trade at $9.91 after the Internet music service said that its chief executive officer, Brian McAndrews, will be leaving the company, effective immediately, after two and a half years in the position. His post will be taken up by company founder Tim Westergren. In the metals industry, gold futures had a hard day on Monday, falling to their lowest levels in a month as investors speculate that a speech by Fed Chair Janet Yellen and jobs data this week could help make a case for higher interest rates. After sinking to $1,211.80, the precious metal managed to recover some of its losses, ending the day at $1,218.70. Meanwhile, in the battle of Batman vs. Superman, the winner appears to be Warner Bros. As one of the company's latest films, "Batman vs Superman: Dawn of Justice" hit screens for the very first time during the Easter weekend. The results were record breaking, enjoying the fourth-biggest global opening in box office history. In its debut weekend, Warner Bros earned an estimate $424.1 million worldwide thanks to its superhero team-up and despite some tough reviews from the critics. In other company news, Yahoo! Inc. was also trading in the green, after it was reported that Microsoft Corporation executives were in talks with other potential investors to buy the internet portal. This article was issued by Rebecca Naudi, Analyst at Calamatta Cuschieri. For more information visit, www.cc.com. mt .Theinformation, views 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 Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this newspaper. Market commentary: A case for higher interest rates? Wall Street rises on consumer spending Wall Street rose slightly on Mon- day, as a report showed a slight increase in consumer spending in February. The Dow Jones rose 19.6 points to 17,535.3, while the S&P 500 gained 1.1 points to 2,037. The technology-based Nasdaq index fell 6.7 points to 4,766.7. The Commerce Department reported on Monday that consumer spending, which makes up two- thirds of the US economy, rose 0.1% in February. On Friday, the Commerce Department revised its estimates of US economic growth in the fourth quarter to 1.4% - up from 1.1%. On Tuesday, Federal Reserve Chair Janet Yellen will speak before the Economic Club of New York. Investors are waiting to hear hints about when the Fed might next raise interest rates. Starwood shares rose 2% after Anbang increased its offer for the hotel chain to $14bn. Shares in Marriott, which made a $13.4bn offer for the hotel chain last week, rose 3.9%. Shares in troubled drug company Valeant fell 7% after its chief executive was called to testify before a US Senate committee. Music streaming company Pandora fell 12% after it said its founder Tim Westergren, would return as head of the company. Videogame seller GameStop dropped 2.4% after it projected a slide in store sales for the first quarter. Pandora brings back founder after CEO's departure Shares in Pandora have fallen more than 10% after the US music streaming service said chief execu- tive Brian McAndrews had left the company. He has been replaced by co- founder Tim Westergren, who led the business from 2002 to 2004. The online radio service has been struggling amid growing competition from Spotify and Apple Music. It reported disappointing fourth quarter profits even though the number of active users fell by less than 1%. The management changes would "accelerate the company's growth strategy", Pandora said. It did not say why McAndrews had left. However, the company's shares had fallen by a third in the past 12 months before Monday's slide. Wedbush Securities analyst Michael Pachter said: "I'm sure the stock performance was a factor in McAndrews' departure." In a statement, McAndrews said he had been honoured to lead Pandora for the past two and a half years. "I wish the company all the best as it continues on its next phase of growth." Pandora also said that chief strategy officer, Sara Clemens, would become chief operating officer to help expand the businesses and develop new ventures.