GLOBAL MARKETS LIVE: Nikola, Oracle, Daimler…

09/15/2020 | 05:51am

Today, there are fewer financial transactions announcements than yesterday. Some transactions are even amended, such as PSA and Fiat Chrysler, which want to preserve their future balance sheet. Oracle reveals its intentions on TikTok and Uber is defending itself in court in London.

Earnings season.  Adobe, Fedex, The Charles Schwab, Ocado, Helvetia, Salvatore Ferragamo, FFP, Rothschild and Groupe Crit are among companies reporting their results today.

Priority to the balance sheet. Peugeot and Fiat Chrysler amend their merger agreement, notably with the payment of a more modest dividend and the distribution of Faurecia shares post-transaction, confirming implementation in the first quarter of 2021 and increasing their annual synergy projections to more than €5 billion, albeit at a higher cost. The payment of a large dividend to Transalpine shareholders prior to the transaction had been criticized by analysts. Message heard by the management of the future group, which would like to have a more robust balance sheet to start its cooperation. If conditions permit, a more modest dividend could be distributed once the merger is complete.

Fantasy? Speculation is still rife on Compagnie Financière Richemont, which some consider to be a target for LVMH after the French giant abandoned its purchase of Tiffany.

Oracle confirms. Oracle said that it is interested in TikTok. The federal government has confirmed the receipt of a proposal from Oracle on a partnership with the application. It will be reviewed by the relevant departments before they formulate a proposal to the White House. The deadline for the ByteDance ultimatum is September 20. In the absence of a satisfactory solution for the American authorities, TikTok will be banned in the US.

Citi gets a slap on the wrist. Citigroup fell on the stock market after revelations in the Wall Street Journal about the forthcoming announcement of a federal reprimand against the bank for its inability to bring its risk control procedures up to the required level. Work in perspective for Jane Fraser, who will take over the bank next February.

In court. Uber launches a legal battle to get its license back in London. Transport for London refused last November to grant the VTC company a new license, for security reasons. A first hearing is scheduled for Tuesday in the Westminster Magistrates' Court. The 45,000 drivers of Uber in London are allowed to continue their activity while the legal proceedings are underway.

On their own. The trial of former Nissan director Greg Kelly begins in Japan, without Carlos Ghosn. Kelly pleads not guilty. He is accused of having helped Carlos Ghosn to conceal more than 9 billion yen (about 72 M€) of his income in eight years. He obviously regrets the absence of the main interested party at the hearing, after his incredible flight to Lebanon.

Hefty fine. Daimler will pay an $875 million fine in the United States for violating air pollution laws as part of a more comprehensive $1.5 billion agreement on emissions from its diesel vehicles.

Nikola investigated. Nikola bounced back 11 percent yesterday after General Motors' chief executive showed confidence in the partnership between the two companies, while the SEC is expected to investigate suspicions of stock manipulation by short sellers.

In other news. CaixaBank could offer a premium of between 15% and 22% calculated on the average value of Bankia shares over the last three months to acquire the stake held by the Spanish state, a source close to the talks told Reuters on Monday. Sony is being heckled on the Tokyo Stock Exchange over rumors of reduced PS5 sales forecasts due to processor supply problems. Siegfried retained by BioNTech to package Covid-19 vaccines. Leclanché finalizes its reorganization. Dufry obtained a new 12-year concession in Istanbul. Lonza and Humanigen collaborate to increase production capacity for an anti-Covid-19.

Romain Fournier
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