GLOBAL MARKETS LIVE: Walt Disney, Bayer and BP’s results

08/04/2020 | 09:44am

New series of corporate results today, with a few heavyweights such as Walt Disney, Bayer and BP. There some new developments in the B737 Max saga and Donald Trump wants the US Treasury to be paid for facilitating the potential takeover of TikTok's assets by Microsoft.

Earnings season. Walt Disney, Sony Corporation, Fidelity National, Diageo, BP Plc, BMW, Activision Blizzard, Softbank, Intesa Sanpaolo, Infineon, Evonik and Accor are among companies reporting their results today.

Publication of results:

AIG: the US insurer incurs a loss of $7.9bn in Q2, to include coronavirus risks and US outbreaks, but the CEO considers the situation "manageable". The stock fell by 2.7% after the session.

Bayer: the German agrochemical company announced that its Ebitda had reached €2.88bn in Q2 2020, slightly more than expected.

Diageo: the British spirits specialist reported annual sales slightly below expectations, and organic decline slightly higher than expected. It is forecasting annual sales of between €43 and €44 billion.

Evonik: the chemist published quarterly results that were better than expected, and confirmed its 2020 forecast.

GAM Holding: the asset manager had a loss of CHF 2 million in the first half of 2020, with commissions and services down 28% to CHF 123.8 million. Assets under management amounted to CHF 119.4 billion as at 30 June.

Infineon: the group lost €128 million in its 3rd fiscal quarter due to the integration of Cypress Semiconductors. For the current quarter, it anticipates revenues of €2.3 to 2.6 billion and a margin of 14%.

Sony: operating results are below expectations. The company will buy back 1.6% of its own shares for JPY100 billion.

Take-Two: the video game publisher benefited well from the containment, with figures above expectations. Jefferies remains on the buy side with a price target raised to USD 180. The share gains 5% post-trade.

Trump brings in business. Donald Trump declared yesterday, not as a joke, that a part of the acquisition price of the American assets of TikTok by Microsoft, in the hypothesis that it would be carried out, should go to the American administration, for its role of matchmaker in the operation. Microsoft is negotiating with the parent company of the app, ByteDance, a takeover of TikTok's activities in the United States, Canada, New Zealand and Australia. The White House has warned that it will ban TikTok in the United States in the absence of an agreement by mid-September.

The B737 MAX saga continues. The FAA has issued a directive requesting four modifications to Boeing to fly the B737 MAX again, formalizing the final step in the process of returning the aircraft to service. But regulators in other parts of the world, particularly in Europe, have yet to be convinced. The latest rumors suggest that the single-aisle aircraft may not return to service before 2021. This will raise the question of passenger confidence in the aircraft, which could be an important determinant of future sales dynamics.

Alphabet / Google is growing. Google has introduced a new entry-level smartphone, the Pixel 4a, and plans to launch 5G models. In addition, ADT jumped 56.56% after a rumor of Alphabet taking a stake in the company, which could acquire 7% of the home security specialist for $450 million.

In other news. General Motors is trying to revive its bribery complaint against Fiat Chrysler. The von Finck family is selling its remaining 2.96% stake in SGS at CHF 2,345. Intesa Sanpaolo increases its stake in UBI Banca to 91%. Exor and Covéa sign a framework cooperation agreement which should lead to the establishment of partnerships in the field of investment and reinsurance. Relief Therapeutics obtained positive clinical results with RLF-100 (Aviptadil) on patients contaminated by Covid-19. Twitter may have to pay at least $150 million to the FTC in a privacy breach case dating back to 2011. Servier expands its production agreements with Lonza. Commerzbank sits on the recommendations of its second shareholder, Cerberus Capital, and appoints Hans-Jörg Vetter as its president.

Romain Fournier
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