European markets finished a day of trading in the green as investors remained focused on the unfolding budget crisis in Italy. The country’s Deputy Prime Minister Matteo Salvini described President of the European Commission Jean-Claude Juncker and European Commissioner for Economic and Financial Affairs Pierre Moscovici as "the real enemies of Europe" after the two officials criticized Rome’s new budget plans.
In Germany, the DAX closed 0.31% higher, led by Wirecard stocks as they were up 9.57%. Wirecard shares shoot up after the firm forecasted a steep growth over the next ten years. French CAC 40 added 0.47% at the end of the trading session. Air France-KLM was among the main advancers, up 5.31%. London’s FTSE 100 rose 0.11% at the close.
HSBC in US to pay over mortgage misconduct
HSBC North America Holdings Inc. reached an agreement with the United States Department of Justice (DoJ) to pay $765 million in settlement following an investigation into the bank’s practices regarding residential mortgage-backed securities (RMBS) ahead of the 2008 financial crisis. The bank added it agreed to pay the DoJ the penalty without admitting liability or wrongdoing.
"Since the financial crisis, HSBC has been strengthening our culture, processes and internal controls to ensure fair outcomes for our clients. The US management team is focused on putting historical matters into the rear view mirror and completing the turn-around of HSBC’s US operations," HSBC CEO Patrick Burke stated.
The settlement follows a several-years-long probe into the bank’s mortgage practices. HSBC already paid fines in 2013 and 2016 related to similar allegations in the US.
Brexit deal expected next week
The United Kingdom and the European Union are close to reaching a deal on most of the terms of Britain’s departure from the bloc and the agreement could be announced as soon as next Monday.
According to some reports, the UK and the EU are set to define their post-Brexit relationship in all areas except trade next week, with the trade agreement expected in November. It seems that the two sides have narrowed their disagreements regarding the Irish border issue but there are still some differences on the matter.
Earlier in the day, Downing Street insisted the UK will not accept any Brexit agreement which does not include a precise framework for a future relationship between London and Brussels. Meanwhile, Democratic Unionist Party (DUP) leader Arlene Foster said her party would never accept customs checks in the Irish Sea for goods coming into Northern Ireland from the rest of the UK.
The Calamatta Cuschieri Traders Blog is available daily on CC WebTrader. Other market coverage including coverage of the International Bond Markets is also available.
The information provided on this website 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. Similarly any views or opinions expressed on this website are not intended and should not be construed as being investment, tax or legal advice or recommendations. Investment advice should always be based on the particular circumstances of the person to whom it is directed, which circumstances have not been taken into consideration by the persons expressing the views or opinions appearing on this website. Calamatta Cuschieri & Co. Ltd. (CC) has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website. You should always take professional investment advice in connection with, or independently research and verify, any information that you find or views or opinions which you read on our website and wish to rely upon, whether for the purpose of making an investment decision or otherwise. CC does not accept liability for losses suffered by persons as a result of information, views or opinions appearing on this website.
This website is owned and operated by Calamatta Cuschieri & Co. Ltd (Co. Reg. No. C13729) of 5th Floor, Valletta Buildings, South Street, Valletta VLT 1103, Malta. CC is licensed to conduct Investment Services in Malta by the Malta Financial Services Authority.