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US to investigate French plan for tax

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The Maltese market closed in the green on Wednesday, with MSE Equity Total Return Index ending the session 0.158% higher, to 9,802.136 points. Best performer was Mapfre Middlesea plc, by jumping 6.73% to close at 2.22, followed by Lombard Bank Malta plc and RS2 Software plc which rose 4.55% and 3.55% to close at 2.30 and 1.75 respectively. Biggest fall was seen from Bank of Valletta plc which slid 2.99% to close at 1.135. Followed by 0.99% loss of Plaza Centres plc which closed at 1.00 and 0.70% loss of Malta International Airport plc which closed at 7.10.

European stocks traded lower Wednesday as investors await a testimony from U.S. Federal Reserve Chairman Jerome Powell in the hope for hints on imminent interest rate cuts from the central bank. The pan-European Stoxx 600 had slipped 0.3% midway through the morning session. Food and beverage stocks slipped 1% while banks were the strongest performers, the sector rising 0.7% on the back of a 4% jump for Commerzbank.

Stocks reached record highs Wednesday after testimony from Federal Reserve Chair Jerome Powell bolstered the case for easier monetary policy in the U.S. The S&P 500 briefly broke above 3,000 for the first time, while the Nasdaq Composite and Dow Jones Industrial Average also reached all-time highs.

U.S. announces inquiry of French digital tax that may end in tariffs.

The Trump administration said on Wednesday that it would investigate whether a French plan to impose a tax on American technology giants like Facebook and Google amounts to an unfair trade practice that could be punished with retaliatory tariffs, escalating its global trade fight.

The investigation, to be carried out by the United States trade representative, is the latest attempt by the Trump administration to shelter American companies, particularly in tech, by taking a more aggressive stance toward allies’ trading practices.

The American action announced on Wednesday is aimed at France, which has moved independently from the European Union to seek a tax on technology companies.

France has proposed a 3 percent tax on the revenues some companies earn from providing digital services to French users, a measure that will target Facebook, Google, Amazon and others whose businesses focus on digital advertising and e-commerce.

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.