Page 25 - ARUBA TODAY

BUSINESS Saturday 29 September 2018
A25

Chipmakers, energy companies led indexes higher; Tesla dives

By MARLEY JAY SEC launched an investiga-
Associated Press tion after Musk tweeted in
NEW YORK (AP) — U.S. early August that he had
stocks are slightly higher Fri- secured the funding for a
day as gains for chipmak- deal to take Tesla private.
ers give the technology It soon became clear that
sector a boost, and energy the company wasn't close
companies are rising with to a deal, and the SEC says
oil prices. Tesla is plung- Musk committed securities
ing after federal regulators fraud with his statements
moved to oust Elon Musk about plans to take the
as the electric car maker's company private.
CEO following his tweet last Musk called the action un-
month that he was close to justified. His tweet said the
a deal to take Tesla private. company would go private
European stocks are falling at $420 per share, and the
after Italy's new govern- stock jumped to almost
ment announced a big in- $380 that day. It's fallen 29
crease in spending. Italy's percent since then.
main stock index fell almost ANTISOCIAL: While inter-
4 percent and other Eu- net and communication
ropean indexes also took companies did well in the
sharp losses as investors This Dec. 21, 2016, file photo shows the New York Stock Exchange. The U.S. stock market opens third quarter, it was a brutal
at 9:30 a.m. EDT on Friday, Sept. 28, 2018.
worried that the govern- Associated Press three months for a few fa-
ment's plan will lead to a miliar names. Twitter is the
clash with European Union up 7.1 percent in since the EU country after Greece. percent to $9.03. U.S. banks worst-performing stock on
leaders who want Italy to end of June, its best show- Italy's FTSE MIB sank 3.7 also took losses. Citigroup the S&P 500 index over the
reduce its debt level. Banks ing since a gain of just un- percent while the German fell 1.2 percent to $72.02 last three months, down
are skidding. der 10 percent in the fourth DAX gave up 1.5 percent. and Goldman Sachs shed 33.5 percent. The stock was
KEEPING SCORE: The S&P quarter of 2013. Health France's CAC 40 lost 0.9 0.8 percent to $225.95. on a huge run until late
500 index gained 2 points, care stocks have done the percent and the FTSE 100 CHIPPING IN: Chipmak- July, when Twitter reported
or 0.1 percent, to 2,916 as best. index in Britain shed 0.5 per- ers rallied. Nvidia rose 4.2 weak user growth. Investors
of noon Eastern time. The ITALIAN SPENDING: The cent. percent to $278.66 and In- also worried about the pos-
Dow Jones Industrial Aver- new spending plans an- Yields on Italian govern- tel gained 3.6 percent to sibility of greater regulation
age added 44 points, or nounced by Italy's govern- ment bonds rose sharply, a $47.52 as technology com- following hearings in Con-
0.2 percent, to 26,484. The ment would push its bud- sign of lower investor confi- panies continued to fare gress.
Nasdaq composite picked get deficit to 2.4 percent dence in the government's better than the rest of the It's much the same for Face-
up 8 points, or 0.1 percent, of gross domestic product financial strength. The yield market. book, which has dropped
to 8,049. The Russell 2000 next year, a significant on Italy's 10-year bond HAIRPIN TURN: Tesla 14 percent this quarter, its
index of smaller-company jump from previous gov- jumped to 3.14 percent dropped 11.7 percent to worst three-month run in six
stocks jumped 7 points, or ernment's target of 1.6 per- from 2.89 percent, a huge $271.40 after the Securities years.
0.4 percent, to 1,697. cent this year. While that's move. and Exchange Commission ASIA'S DAY: Japan's Nikkei
It's been a down week for still within EU limits, it is likely Italian bank UniCredit sank said it has asked the U.S. 225 jumped 1.4 percent
U.S. indexes, but the third to set up a clash with lead- 7 percent to $12.93. Among District Court in Manhat- after the country agreed
quarter has been the stron- ers who want Italy to bring European banks, Credit Su- tan to bar Musk from serv- to open negotiations on a
gest for the U.S. market in down its debt level, which is isse fell 2.2 percent to $15.06 ing as an officer or director trade agreement with the
several years. The S&P is the second-highest of any and Barclays dipped 2.7 of a public company. The United States. q
Underlying inflation in eurozone remains stubbornly low

By PAN PYLAS ous month's 1.0 percent Though the headline rate tral bank was increasingly their wage bargaining
Associated Press and confounded expec- is above the ECB's goal of confident that the pick-up power," he said.
LONDON (AP) — Under- tations for a modest rise to just below 2 percent, rate- in wages would continue The fact that the headline
lying inflation across the 1.1 percent. setters want to see a pick- because wage agree- rate has increased has
19-country eurozone re- The fall provides further up in the underlying rate ments often last two years been enough for the ECB
mains stubbornly low, offi- evidence that recent pay to make sure inflation is or more. to rein in its stimulus poli-
cial figures showed Friday, increases, particularly in sustainable and not reliant Peter Vanden Houte, chief cies. In June, the ECB an-
in what is likely to be a countries like Germany, on external factors like the eurozone economist at nounced that its monthly
disappointment to policy- have yet to fully feed price of oil. ING, said there could be bond purchase program
makers at the European through the economy by This week, ECB President factors linked to the re- would come to a halt at
Central Bank who have encouraging companies Mario Draghi said he ex- cent slowdown in the eu- the end of the year. The
been predicting a pick-up. to raise prices. pected underlying infla- rozone's economic growth program effectively in-
Statistics agency Eurostat The headline inflation rate, tion to rise as a stronger job that may be offsetting the volves printing new money
said Friday that the core which includes all items, market pushes up wages. impact on inflation of high- to stoke lending and, ulti-
rate of consumer price in- rose to 2.1 percent from He cited annual growth er wages. mately, inflation.
flation, which strips out vol- 2 percent, but that was in negotiated wages of "European households' ex- But interest rates, including
atile items like energy and largely due to higher en- 2.2 percent in the second pectations regarding the the headline rate, which
food, fell to 0.9 percent in ergy prices on the back quarter, up from 1.7 per- labor market have dete- stands at zero, are not ex-
the year to September. of steadily increasing oil cent in the first quarter. riorated over the summer, pected to rise before well
That's down on the previ- prices. He added that the cen- which is unlikely to boost into next year.q