Santander will take an accounting charge of €1.5 billion on its British subsidiary. Banco Santander will take a 1.5 billion-euro ($1.7 billion) charge over its U.K. business, which is facing increased competition in its key mortgage market and “ring-fencing” rules that force banks to separate their retail and investment banking operations, according to Bloomberg. It is also impacted by weakness across the bank’s European businesses.
Renault Fiat Chrysler is a no no. A new twist in the saga between Renault and Fiat Chrysler: Jean Dominique Senard, the French manufacturer's president, said that the scenario of a rapprochement with the Italian company is no longer relevant. However, during a hearing before the Senate's Economic Affairs Committee, the leader said he would be delighted if the project emerged again "under conditions that would be acceptable to all". But he immediately stated that this is not on the agenda.
Michelin in trouble. For several weeks now, we have been hearing about the delicate conditions that some of Michelin's European sites are going through. The group has announced the closure of the Bamberg plant in Germany by early 2021, which employs 858 people. Specializing in 16-inch passenger tires, the site faces "both a sharp drop in global demand" and "extremely strong competition from Asian manufacturers". In parallel, competitor Continental has unveiled a long-term plan (until 2030), which involves reducing the workforce by around 20,000 out of 244,000 people in 10 years, including 15,000 by 2023. The German group believes he can reduce his costs by €500 million per year by 2023.
Trade war. The United States could impose rotating surcharges on several EU products rather than on a fixed list in retaliation for the aid received by Airbus, to create more uncertainty and therefore impact. This is certainly reflected in the corridor noises obtained by the Bloomberg agency in well-informed environments. The WTO, which acknowledged earlier this year that the aircraft manufacturer has received undue support, must quantify next week the amount of retaliation that Washington will be able to take. Until now, the main targets of the American authorities have been luxury products or wines and spirits.
Tax evasion. Kering may not have finished with the Italian courts: despite the tax agreement reached on Gucci, leaders of the Italian brand could be worried about their emoluments, Bloomberg learned. The agency has learned that the tax authorities are now interested in senior executives who would have been paid by a Swiss structure while working in Milan, which would have allowed them to avoid taxes. Kering had paid €1.25 billion in May to settle the initial dispute, covering the years 2011 to 2017. The group also announces the launch of a €500 million bond convertible into Puma shares.
Kerkhoff is leaving. The Executive Committee and Supervisory Board of ThyssenKrupp AG will separate from President Guido Kerkhoff. They recommend that negotiations be opened with the manager for his departure. Martina Herz will be in charge of the interim. Kerkhoff pays for the Tata Steel fiasco, a rapprochement aborted by the EU veto. The conglomerate is planning to split up and bounce back.
Tesla China. Elon Musk announces that Tesla Inc. is building a large team of engineers in China, "with a particular focus on software and firmware for the factory and cars". The group hopes to produce cars by the end of the year in China in its new factory, which will eventually have a production capacity of 500,000 cars per year.
Don't get tired. Nike's results exceed expectations, the title progresses after the session. The American group does not seem to be experiencing any turmoil in China, where its sales jumped by 22% and its profits by 33%. "Despite the particularly volatile macroeconomic and geopolitical environment, we believe that by focusing more on consumers we will continue to drive and strengthen growth across our entire portfolio," said the CFO. The share gained 5.5% not far from the USD 92 out of session.
El Condor pasa. Condor, Thomas Cook's German subsidiary, will continue to fly thanks to the support of Berlin, which has granted a €380 million loan. This bridge loan should make it possible to meet short-term obligations in order to find a solution to the problem of the disappearance of the parent company. Condor operates 58 aircraft.
In other news. Bain Capital and Advent have warned Osram that they will offer a higher offer than AMS. A senior executive of Fiat Chrysler is the group's first victim in the US polluting emissions investigation. Adam Neumann, the founder of WeWork, lets two co-leaders take over the company in preparation for its initial public offering. TeamViewer's IPO price will be EUR 26.25, rather at the top of the initial range. Clariant, Merck and Sabic are working to improve the recyclability of packaging films.
Two public interventions by Fed bankers are expected today: Charles Evans and Esther George, as well as the announcement of weekly oil stocks.