Engagement complicated by the virus. Rumors circulate on a possible questioning of the merger between Peugeot and Fiat Chrysler, at least from the initial financial terms. The original information was obtained by AFP, based on credible financial sources. However, preparatory work continues. “The two groups need this marriage in view of the heavy investments that must be made in the electric car but it must be recognized that, taking into account the economic situation, for the merger to take place it is necessary to review the initial financial terms “, an informant told AFP.
Common sense ? The Engie unions propose to allocate the dividend to the post-crisis restart. The five unions of the energy company have sent a letter to the Minister of the Economy so that the 2019 dividend is fully allocated to investment. The State holds 24% of the capital of Engie. The 2019 dividend represents an outflow of around € 2 billion for the group, i.e. 200% of its last net profit. The unions are not opposed to a shareholder compensation policy, but they propose that in the future, the dividend be limited to half of the group share of net profit.
Brake in South America. Renault ceases production at its Latin American sites and until further notice, depending on health developments. The group employs around 9,000 people in seven factories in Argentina, Brazil, Chile and Colombia. Production will resume as soon as economic and health conditions allow.
Capgemini grows in Asia-Pacific. The consulting group has announced the acquisition of WhiteSky Labs, a consulting firm present in Australia, New Zealand, the Philippines and Singapore. This 150-person company specializes in MuleSoft solutions. The financial conditions of the transaction were not communicated by Capgemini.
In brief in France. Sanofi issues € 1.5 billion in 2025 and 2030 bonds. Valeo postpones its general meeting to June 25. Eiffage appointed concessionaire of the future A79 motorway in the Allier. Rémy Cointreau participates in the health effort through financial and alcohol donations to make hydroalcoholic gel. Biophytis announces the end of recruitment in the Phase 2b SARA-INT study, evaluating the efficacy of Sarconeos in the treatment of sarcopenia. Ipsen, M6 Métropole Télévision, Nexans, Microwave Vision, Lumibird, Delfingen, Mauna Kea, Engie EPS have announced the expected impact of Covid-19 on their financial performance. Drone Volt is able to produce in the United States thanks to its partner Robotic Skies. Altice Europe, CBo Territoria, SMCP, Tivoly, Orapi, ADA, Agta Record, HighCo, Sqli, Groupe Crit and Navya have published their accounts.
A slight lull in the turbulence. Boeing plans to resume production of the 737Max by May, according to information obtained by Reuters. Yesterday, the action of the American group rebounded by nearly 21% at the close, contributing to an historic performance of the Dow Jones. The new CEO, Dave Calhoun, was confident that the 737Max would return to operation in mid-2020.
Extended status quo. US automakers Ford, General Motors and Fiat Chrysler are likely to maintain their production freeze for part of April. Initially, a first date had been set for March 30, but it will probably not be respected under the circumstances. The three groups were not able to set a date for resumption at this stage. Along with the tourism and petroleum industries, the automobile is one of the sectors of the economy most affected by the current crisis.
Traffic, not revenue. Facebook in turn caught up with the coronavirus, which weighs on advertising sales. “We do not monetize most of the services for which we are seeing an increase in consultations, and we have seen a drop in our advertising revenues in countries that are taking radical measures to combat COVID-19”, all is said, or almost with this sentence from the press release, which sums up the current context well. The company’s courier service activity jumped 50% in February. Twitter had announced identical conclusions the day before.
Nike solid until the end of February. Nike surprised by the robustness of its quarterly results, particularly thanks to online sales. The American group, which reopened 80% of its stores in China, reported a 5% increase in turnover to $ 10.1 billion for the quarter ended February 29, the third of its fiscal year. 2019/2020. Online sales jumped 36% over the period. However, the quarter of Nike does not include the month of March, the most severely affected by the crisis.
Western dry diet. According to information from the Wall Street Journal, Occidental Petroleum has reduced the salaries of its employees and staff by up to 30% in an attempt to reduce its charges. The American group, heavily indebted since the expensive acquisition of Anadarko in 2019, has to face a fall of more than 60% in oil prices since the beginning of the year. CEO Vicki Hollub set an example by accepting an 81% drop in his compensation.
In short elsewhere. Uber has taken legal action against the Los Angeles Department of Transportation over data sharing. The Federal Reserve has called on BlackRock to buy bonds on behalf of the authorities. Partners Therapeutics is testing Leukine against the coronavirus. Softbank would have thought for a time of an exit from the stock market and discussed this project with Elliott or Mubadala, reveals the Financial Times, before opting for sales and a repurchase of shares. Delta Air Lines’ debt falls into the speculative category.