Today’s article gives an overview of the Maltese, European and U.S. markets on Tuesday, together with Apple talks to acquire part of Intel’s smartphone modem business.
The Maltese market closed in the red on Tuesday, with MSE Equity Total Return Index ending the session 0.02% lower, to 9,769.394 points. Best performer was GO plc, as it added 1.33% to close at 4.56, followed by Bank of Valletta plc which gained 0.40% to 1.265. Biggest faller was Main Street Complex plc, it shed 3.17% to close at 0.61, followed by RS2 Software plc and Malta International Airport plc which fell 0.71% and 0.97% to close at 1.39 and 7.45 respectively. HSBC Bank Malta plc slid 0.61% to close at 1.62. MaltaPost plc, Malita Investments plc, Tigne Mall plc, Trident Estates plc and BMIT Technologies plc were active but closed unchanged.
European stocks finished higher for a third day on Tuesday, as German shares caught up with a global stock rally after a holiday on easing trade tensions, while fresh stimulus for China’s slowing economy boosted the basic resources sector. The pan-European STOXX 600 index closed at its highest level since May 17, with miners, auto stocks and chemical companies tacking on biggest gains after reports that Beijing was opening the door to more spending by local governments.
U.S. stocks came off intraday highs to close lower Tuesday, with the Dow snapping a six-day win streak, as investors digested a new round of posturing on the U.S.-China trade standoff even amid more signs of global economic stimulus. The Dow Jones Industrial Average fell less than 0.01% 26,048.51, coming off its longest string of gains since May 2018. The S&P 500 index lost 0.03% to 2,885.72 and the Nasdaq Composite Index COMP, -0.01% shed to 7,822.57.
Apple is in talks to buy Intel’s German modem unit, which could help Apple develop its own modem chips more quickly.
Apple is in talks to buy a key part of Intel’s smartphone modem business—its German operations—in a deal that could boost the iPhone maker’s plans to internally develop a modem for its devices.
The talks come as Intel considers selling its struggling modem business in pieces. Apple is focusing on one of the strongest pieces of the modem business. While Intel’s modem group is spread across the world, its foundation is in Germany, where the chip maker Infineon, whose modem operations Intel bought in 2011 for $1.4 billion, is based. Any deal with Intel for the business would likely send hundreds of modem engineers to Apple.
Intel in April publicly announced its plans to exit the 5G modem business, saying that it saw little opportunity to turn a profit in the business. The announcement came hours after Apple, the biggest customer for Intel’s modem chips, said that it had settled a legal dispute with Intel’s biggest competitor in the cellular modem business, Qualcomm. As part of that settlement, Apple said it struck a multiyear agreement to buy modem chips from Qualcomm.
But Apple has also been assembling an internal team with the goal of eventually building its own cellular modem, a technically daunting task that could take years to complete.
This article was issued by Nadiia Grech, junior 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 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.