Research Market strategy
By Swissquote Analysts
Morning News

Nokia Is Cutting Up to 10,000 Jobs to Boost 5G Investment.

Nokia has unveiled plans to ax up to 10,000 jobs as part of a EUR600 million cost-cutting program aimed at boosting investment in 5G. The telecom-equipment maker said resetting its cost base would allow it to invest in research and development and long-term growth areas, including 5G, cloud technologies and digital infrastructure. The stock, which has been a favorite among retail investors and Reddit users in recent months, edged 0.5% higher in premarket trading, while the Finnish-listed shares rose 0.6% on Tuesday. The company said it expects to lower its cost base by around EUR600 million by the end of 2023.

By
Vincent MIVELAZ
Morning News

Volkswagen to Invest in Six EV Battery Gigafactories in Europe by 2030

Volkswagen AG said it would invest in six large battery factories and build out charging infrastructure, the latest global auto company hustling to take control of battery making amid an electric-vehicle boom. The world's automotive industry is pivoting to electric vehicles to meet new emission requirements and rushing to establish the vast infrastructure - from battery factories to charging networks - needed to sustain the growing market. Demand for electric vehicles has soared in Europe thanks to generous government incentives for buyers, making it the world's largest market for the battery-powered vehicles. In the U.S., General Motors Co. is building a $2.3 billion battery plant in Ohio with Korea's LG Chem Ltd. and recently said it is exploring building a second plant.

By
Vincent MIVELAZ
Morning News

Roche Signs Merger Agreement to Acquire GenMark Diagnostics

Roche Holding AG said Monday that it signed a definitive merger agreement with GenMark Diagnostics Inc. in a deal valued at approximately $1.8 billion on a fully diluted basis. The Swiss pharmaceutical major said it will commence a tender offer to acquire all outstanding shares of the diagnostic solutions provider at a price of $24.05 a share in an all-cash transaction. The deal, which has been approved by Roche and GenMark's boards of directors, is expected to close in the second quarter of the year. "Acquiring GenMark Diagnostics will broaden our molecular diagnostics portfolio to include solutions that can provide life-saving information quickly to patients and their healthcare providers in the fight against infectious diseases," Thomas Schinecker, chief executive officer of Roche Diagnostics, said.

By
Vincent MIVELAZ
Morning News

Generali with Good Dividend and Solvency II Ratio

Generali Assicurazioni closed 2020 with a record operating result for the second consecutive year, reaching €5.208 billion, up from €5.192 billion in 2019, considering that the impact of Covid-19 is estimated at 123 million. The Group's gross premiums amounted to €70.704 billion, showing a slight growth compared to the previous year (+0.5%), thanks to the contribution of the life segment. Net income was €1.744 billion (€2.670 billion in 2019), impacted by €332 million in liability management, the contribution to the extraordinary international fund for Covid-19 and divestments, and €287 million in investment write-offs, mainly in the first half of 2020.

By
Vincent MIVELAZ
Morning News

Oracle Beats Expectations in 3Q and Increases Share Buyback

Oracle turned over and earned more than expected in the third business quarter. In addition, the board of the SAP competitor increased the share buyback programme by 20 billion dollars. Investors are to participate in the company's success with an increased quarterly dividend of 32 from 24 US cents. Oracle's share price slumped by more than 6 per cent after trading hours, although it had risen by a good 60 per cent in the past year. As the software company announced on Wednesday after the close of the US stock exchange, turnover in the quarter rose to 10.09 billion dollars from 9.8 billion dollars in the comparable period of the previous year. This development was not least due to the pandemic, it said. Demand for the second-generation cloud infrastructure (Gen2) exceeded the company's own expectations.

By
Vincent MIVELAZ
Morning News

Bouygues Sells 12 Million Alstom Shares for EUR 41.65 each

The construction, media and telecoms conglomerate Bouygues announced Tuesday its intention to sell 12 million shares of rail equipment maker Alstom as part of a placement to qualified investors through an accelerated bookbuilding process. On completion of the placement, Bouygues will retain 3.12% of Alstom's share capital, compared with its current stake of 6.35%. "Bouygues has given an undertaking to the banks in charge of the placement to retain the balance of its stake in Alstom for a period of 60 days from the settlement-delivery date," the group said in a press release. The order book will be set up "immediately" and will be managed by BNP Paribas and JPMorgan, acting as global coordinators and associated bookrunners, and by BofA Securities, Crédit Agricole CIB and Société Générale, acting as associated bookrunners, Bouygues said.

By
Vincent MIVELAZ
Morning News

Dupont Buys Laird Performance Materials for $2.3 Billion

Chemical company Dupont de Nemours is buying heat transfer components supplier Laird Performance Materials from Advent International for US$2.3 billion. Dupont said on Monday that it expects the acquisition to be completed in the third quarter. By the end of 2024, the Wilmington, Delaware-based company expects cost synergies of $60 million before taxes. Laird, which has more than 4,300 employees and 11 manufacturing sites around the world, turned over $465 million last year. Dupont also said it had approved a $1.5 billion share buyback programme that will run until 30 June 2022.

By
Vincent MIVELAZ
Morning News

Brent over 70 Dollars after Attack on Oil Facility

On the oil market prices rise, Brent oil now costs over 70 dollars, after Saudi Arabia confirmed an attack on an oil facility in the east of the kingdom. Yemeni Huthi rebels claimed responsibility for the attacks, which were aimed at military targets as well as the plant belonging to energy giant Aramco. Oil on the futures market is rising sharply. While a barrel of Brent crude cost 63.50 dollars on Thursday afternoon, the current price is 70.75 dollars. In the previous week, the price was initially driven up by the confirmation of the Opec+ production cut, and now by confirmed reports of an attack on an oil facility in eastern Saudi Arabia. The Yemeni Huthi rebels claimed responsibility for the attacks on Twitter, which they said were aimed at military targets in the town of Damman near Dharhan as well as the plant of energy giant Aramco. On the stock exchanges, it is to be expected that the sector of European oil stocks will benefit from the rising prices and perform better than the overall market.

By
Vincent MIVELAZ
Morning News

U.S. suspends tariffs on these U.K. goods and eases Airbus— Boeing trade tensions

The U.S. will temporarily suspend retaliatory tariffs on goods imported from the U.K., in a major easing of trade tensions from a long-running dispute over subsidies to aircraft manufacturers Boeing and Airbus. Announced on Thursday, the U.S. and U.K. will suspend tariffs for four months "to ease the burden on industry and take a bold, joint step towards resolving the longest running disputes at the World Trade Organization," the two countries said in a joint statement. The suspension of U.S. tariffs on U.K. goods, including whisky, will come into force on Mar. 8. The U.S. decision matches the U.K.'s unilateral move to cease applying retaliatory tariffs in January, which was a bid to de-escalate the conflict.

By
Vincent MIVELAZ
Morning News

Siemens Energy Joins Germany's DAX Index

Deutsche Boerse AG said late Wednesday that German energy company Siemens Energy AG has joined its blue-chip DAX index, while Porsche Automobil Holding SE was admitted to the lower-ranking MDAX in a reshuffle. The German stock-exchange operator said Siemens Energy will replace Beiersdorf AG, which will join the MDAX. Porsche is replacing Aeral Bank AG in the MDAX, Deutsche Boerse said. Encavis AG will replace Metro AG and Nordex SE will replace Osram Licht AG in the same index, according to Deutsche Boerse. The companies exiting the MDAX will be joining the SDAX, Germany's smallcap index, Deutsche Boerse said.

By
Vincent MIVELAZ