Romain Fournier

Chief Editor
Having worked in the British, French and Swiss financial press, Romain is able to report on local and international issues, as comfortable in French as in the language of Shakespeare, Romain Fournier leads the editorial team at Marketscreener. Fine connoisseur of the English-speaking markets, Romain delivers an editorial every day on US and UK markets.

A flurry of news in the global auto industry

01/17/2020 | 08:36am EDT

Last session of the week with quite a few news in the automotive sector, with a new joint venture, the sale of a plant and a new acquisition.

 

Old Navy stays. Gap Inc. has decided not to part with its Old Navy brand, as the process would be too expensive and too complex. At the same time, it has raised its objectives. The American brand has specified that the evolution of its 2019 sales would rather be in the most favorable part of the "0 to -5%" range evoked until then. Earnings will be slightly higher than expected. The stock gained more than 5% post session.

Good profits. Schlumberger, the para-oil group, reported a 9.4% jump in its adjusted quarterly earnings, as strong international demand offset the slowdown in drilling in North America. The stock gained 2.4% in pre-exchange trading.

Catching up. Fiat Chrysler and Hon Hai, the parent company of Foxconn, want to create a joint venture to build electric vehicles and develop connected vehicles. They would be dedicated to the Chinese markets. The final agreement will take several more months to be negotiated. FCA is reputed to be the least advanced major manufacturer of electric vehicles.

GE sells Indian plant. General Motors will sell one of its Indian plants to Chinese automaker Great Wall Motor. According to sources quoted by Reuters, the deal reaches between 250 and 300 million dollars.

Going electric. Volkswagen will acquire 20% of Guoxuan High-tech, a Chinese manufacturer of electric batteries, according to Reuters.

Settling. Bayer is set to settle more than 75,000 complaints related to Roundup, Monsanto's herbicide accused of causing cancer, Bloomberg reports.

Central America in sights. H&M, the Swedish ready-to-wear group, announced today its expansion in Central America, starting with the opening of a first store in Panama at the end of 2020.

On target. Compagnie Financière Richemont's sales grew by 4% like-for-like in the last quarter of 2019, in line with analysts' expectations. The strongest growth was achieved in jewelry.

Third place finish. Alphabet joined yesterday, by a narrow margin, the closed club of companies whose capitalization reaches four figures in dollars, along with Microsoft and Apple. The next potential candidate is Amazon.com, which currently weighs $931 billion. Behind it, the step is higher for Facebook ($632bn).

In other news. Facebook has dismantled the team that was tasked with integrating ads on WhatsApp. CSX is expecting another lean year after an already mediocre 2019 financial year. E.ON will buy the Innogy shares at EUR 42.82 per share in a squeeze-out offer, which represents a bill of EUR 2.38 billion, while the shares are currently trading at EUR 44.75. General Electric will supply the wind substations for the Neart na Gaoithe Scottish offshore wind farm, an EDF Renewables project. Microsoft wants to achieve a negative carbon balance by 2030. Visa meets its target of 100% renewable electricity purchases. KLM (Air France-KLM) will buy the Dutch assets of the Indian Jet Airways. Ascom and GAM Holding issue warnings. The CEO of Autostrade (Atlantia) warns that the subsidiary is threatened with bankruptcy if the group's motorway concession is revoked in Italy.


© MarketScreener.com 2020
Stocks mentioned in the article
ChangeLast1st jan.
ALPHABET INC. -0.61% 117.47 Delayed Quote.-18.90%
AMAZON.COM, INC. -1.24% 140.8 Delayed Quote.-15.55%
APPLE INC. -0.28% 165.35 Delayed Quote.-6.88%
AUTOSTRADE MERIDIONALI S.P.A. 2.45% 37.6 Delayed Quote.34.77%
BAYER AG -2.25% 52.17 Delayed Quote.13.36%
COMPAGNIE FINANCIÈRE RICHEMONT SA 1.46% 114.25 Delayed Quote.-17.67%
CSX CORPORATION 0.85% 33.11 Delayed Quote.-11.94%
E.ON SE 2.82% 9.038 Delayed Quote.-27.85%
ELECTRICITÉ DE FRANCE -0.25% 11.915 Real-time Quote.20.89%
GAM HOLDING AG 5.15% 1.042 Delayed Quote.-27.13%
GENERAL ELECTRIC COMPANY 0.94% 74.36 Delayed Quote.-21.29%
GENERAL MOTORS COMPANY -0.47% 36.06 Delayed Quote.-38.50%
GOTION HIGH-TECH CO.,LTD. 1.57% 38.81 End-of-day quote.-24.27%
GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI -4.45% 30.73 End-of-day quote.-17.01%
HONEYWELL INTERNATIONAL INC. -0.09% 192.27 Delayed Quote.-7.79%
LONDON BRENT OIL 0.02% 94.01 Delayed Quote.21.13%
META PLATFORMS, INC. -2.03% 167.11 Delayed Quote.-50.32%
MICROSOFT CORPORATION -0.26% 282.91 Delayed Quote.-15.88%
ORASCOM CONSTRUCTION PLC 9.98% 4.96 End-of-day quote.-0.80%
SCHLUMBERGER LIMITED 2.09% 34.66 Delayed Quote.15.73%
SINGAPORE TELECOMMUNICATIONS LIMITED -1.51% 2.61 Delayed Quote.14.22%
STELLANTIS N.V. 1.47% 14.542 Delayed Quote.-14.11%
SUEZ CANAL COMPANY FOR TECHNOLOGY SETTLING (S.A.E) 0.00% 42.49 End-of-day quote.3.58%
VISA, INC. 1.12% 215.87 Delayed Quote.-0.39%
VOLKSWAGEN AG 1.00% 144.92 Delayed Quote.-19.18%