GLOBAL MARKETS LIVE: ArcelorMittal, Airbus, Vestas, ENI…

09/27/2019 | 08:56am

The transaction market is still active in the fall: Exxon Mobil is divesting its assets in the North Sea and ArcelorMittal could reduce the sail in the iron mines. In the United States, Tesla may reach a delivery record and Delta is looking at the southern part of the continent. US stock-index futures and European shares rise, while Asian equities dip.

US MARKETS:

S&P 500 futures up 0.2% to 2,986.75

Brent futures down 0.1% to $62.67/bbl

Gold spot down 0.5% to $1,497.54

U.S. Dollar Index up 0.1% to 99.22

 

GLOBAL NEWS:

Iron is no longer popular. ArcelorMittal is reportedly considering the sale of certain mining assets in Canada, Brazil and Liberia, according to information obtained by Bloomberg. Of the three entities, Canada could bring in the most, about $2 billion, according to the same source. Faced with a complicated context, the group could sell non-strategic assets to reduce its balance sheet. However, a formal transfer process has not yet been implemented.

Irreconcilable? Guillaume Faury, Airbus' CEO, still hopes that a compromise will be reached between Europe and the United States on subsidies to Airbus and Boeing, to avoid a "lose-lose game" for aviation. The latest rumors suggest that the WTO will allow Washington to impose annual tariffs worth $7.5 billion on European products, on aeronautics but also on other key sectors of the old continent's economy.

The battle continues. AMS made a final offer on Osram, denominated at EUR 41 and ending on October 1, compared to EUR 38.50 for the previous offer. Yesterday, rumors spread that Advent and Bain were using their weapons to bid higher on the offer at EUR 38.50.

Headwinds. Vestas will cut 590 jobs in Germany and Denmark to strengthen its competitiveness in a struggling wind industry, particularly in Germany, where there are no longer many projects.

ENI, set a course north. Exxon Mobil has signed an agreement to sell its upstream operations in Norway to ENI for $4.5 billion, representing production of 150,000 barrels of oil equivalent per day on fields operated by Equinor. The transaction will be completed in the fourth quarter. It will enable the Italian subsidiary, Var Energi, to become the second largest oil company in Norway after the national operator.

Set a course for the 100,000. Tesla closed up 6% yesterday on Wall Street after an internal message from Elon Musk suggesting that the manufacturer could deliver 100,000 vehicles in the third quarter, which would be a record. However, the share price has been declining by 27% since January 1. In truth, the group does not have much choice to achieve its ambitious 2019 objectives, i.e. a delivery range between 360,000 and 400,000 vehicles.

Delta Latina. Delta Air Lines will take a 20% stake in Latin America's largest airline, Latam Airlines, for $2.25 billion. The transaction is divided into $1.9 billion for securities and $350 million in investment to deploy the partnership. Latam will leave the Oneworld network as part of this operation.

BMW does not compromise. The German manufacturer has told WiWo magazine that it has no intention of seeking a compromise to stop European Union action in the German manufacturers' cartel case. In April, the Commission started investigations into a collusion between BMW AG, Daimler AG and Volkswagen for delaying the introduction of cleaner propulsion technologies between 2006 and 2014.

In other news. The president of Telecom Italia is throwing in the towel. La Compagnie Financière Richemont acquires the jeweller Buccellati under financial conditions that are kept secret. Commerzbank AG has decided not to increase its revenues this year due to a deterioration in the global environment. Nestlé is tightening its controls on the coffee it buys, following recent tests showing that beans from some countries were close to the regulatory limit for glyphosate. Toyota is expected to increase from 17 to more than 20% of Subaru's capital, Nikkei learned. Las Vegas Sands will replace Nektar Therapeutics in the S&P500. General Motors is making a concession to end the two-week laborArce dispute by offering to cover strikers' health insurance, but discussions remain tense. Logitech buys the American Streamlabs for $118 million.

Romain Fournier
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