GLOBAL MARKETS LIVE: Costco, Booking, CVS Health, Walt Disney….

08/07/2019 | 10:21am

The publication of corporate results continues in Europe and the United States. Despite a difficult period, financial transactions are emerging, notably the sale of Currenta by Bayer and Lanxess. US stock-index futures rise along with Asian and European stocks.


S&P 500 futures up 0.3% to 2,884.25
Brent futures down 0.4% to $58.68/bbl
Gold spot up 0.9% to $1,487.18
US Dollar Index little changed at 97.72


Earnings season. In the United States, Costco, Booking, CVS Health, American International Group and Monster Beverage. In Europe, Glencore, UniCredit, Ahold Delhaize, E.ON, and Wirecard.

Dongfeng tired of PSA? Peugeot’s share plunged sharply today, after Bloomberg's revelations that Dongfeng had begun to survey advisors on how to monetize its 12.2% in the French car manufacturer. Among the options considered, an outright sale or the issue of bonds convertible into PSA shares. The title, after having briefly declined, restored a small part of its earnings later in the session.

Rent a Car Europcar. Europcar acquires the American company Fox Rent a Car, with annual revenues of $280 million, for an unspecified amount but which will have a positive impact on earnings per share in 2021. As the leader in Europe, the French company will thus be able to develop across the country. Europcar's President, Caroline Parot, considers that the purchase price "is very reasonable".

Review of corporate results. Walt Disney disappointed with his quarterly results, which are hampered by the development in streaming, unlike Hertz or Match Group, which exceeded expectations. ABN Amro and Commerzbank have published figures close to expectations, but the German bank considers its 2019 targets complicated to achieve and the Dutch bank is struggling to convince. Ahold Delhaize's quarterly reports are affected by strikes in the United States. Toshiba's results are improving, but below expectations. UniCredit's profits rose sharply, but fell short of expectations. Wirecard slightly raised its forecasts. 

Consolidation in Specialty Chemicals. DuPont is considering divesting itself of its nutrition and biosciences businesses, Bloomberg learned, citing DSM, Kerry, Givaudan or International Flavors & Fragrances as contenders for these assets that could be worth $20 billion. The transaction could take the form of a merger.

Catch up with the patrol. The US drug agency accuses Novartis of falsifying data on "the world's most expensive drug", Zolgensma, but left the treatment in circulation. However, the FDA is considering legal action. The effectiveness of the drug is not in question. Novartis promises to cooperate in the investigation and take appropriate measures to ensure that this does not happen again.

A cobalt mine is closing. Glencore is expected to cease production at Mutanda in the DRC, the world's largest cobalt mine, by the end of the year, the Financial Times reported. The British business daily is based on a letter sent to the mine employees. The group considers that it is no longer economically viable.

Muddy Waters has struck again. This time, it is the British group specializing in legal and financial advice and operations, Burford Capital, that is targeted. Yesterday, rumors had caused the stock to fall. This morning, the decline resumes after an opening in green. The stock collapsed by 55%!

In other news. Twitter acknowledges that it has mistakenly allowed user data to be used for advertising purposes, and that it has corrected the problem. Bayer and Lanxess sold Currenta to Macquarie Infrastructure and Real Assets for an enterprise value of €3.5 billion. OAG Aviation estimates that the capital cost of the Boeing 737 MAX is approximately $4 billion. A new player in online payment, the Swedish Klarna, has reached an impressive level of valuation, $5.5 billion during a round table. In the same sector, MasterCard announced the acquisition of Nets' electronic invoicing and instant payment clearing divisions for €2.8 billion. Helios Towers has reportedly resumed its work with a view to an initial public offering. Not surprisingly, the Chinese COMAC is pushing back hopes of certification in China of its C919 to 2021. General Electric wants to sell its 25% stake in Wabtec.
Romain Fournier
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