|Bid||81.70 x 100000|
|Ask||82.00 x 100000|
|Day's Range||80.50 - 83.66|
|52 Week Range||58.95 - 119.88|
|Beta (5Y Monthly)||1.15|
|PE Ratio (TTM)||12.83|
|Forward Dividend & Yield||3.90 (4.75%)|
|Ex-Dividend Date||Feb 06, 2020|
|1y Target Est||125.70|
German utility Uniper has signed a cooperation deal with Siemens to look at using hydrogen at its gas-fired power plants and producing the carbon-free gas with power from its wind turbines. "We are also thinking about hydrolysis plants, for example near wind turbine sites, which we could operate to produce hydrogen." Uniper could use hydrogen-ready turbines to replace CO2-emitting natural gas, and could derive and market hydrogen made by running excess wind power through water in a process known as power-to-gas, Schierenbeck said.
EU industry chief Thierry Breton on Wednesday said he did not see any ulterior motive behind Huawei's donations of face masks to the bloc and that solidarity was the best way to tackle the global coronavirus outbreak. Chinese network equipment maker Huawei, the world's No. 1, has drawn criticism from some quarters in recent days after giving millions of protective masks and gloves to Italy, Spain, the Netherlands, Lithuania, Poland, Greece and Switzerland. Chinese online retailer Alibaba and other Chinese companies have also given face masks and medical supplies to coronavirus-hit EU countries while the Chinese government has provided protective gear.
The city of Helsinki had the right to scrap its contract with Siemens over the failed automation of the Finnish capital's metro, but both sides broke agreements, a Helsinki district court ruled on Tuesday in a long-running legal dispute. The dispute dates back to Helsinki's decision in 2008 to pick the German technology firm to automate its existing metro network, in order to make it faster and driverless by the time a new westward line to neighboring Espoo was added in 2017.
With software and a computer, anyone, anywhere, has the tools they need to address the world’s greatest challenges. This spirit of innovation is at the heart of Innovate for Impact: Siemens Design Challenge. And as students worldwide pursue distance learning amidst the COVID-19 pandemic, organizers have extended the Innovate for Impact application deadline to Monday, May 4, to create more opportunities to explore digital innovation.
After looking at Siemens Aktiengesellschaft's (XTRA:SIE) latest earnings announcement (31 December 2019), I found it...
(Bloomberg Opinion) -- I’m just going to nip this line of thought in the bud right now: The Federal Reserve should not provide any sort of outright backstop to the U.S. high-yield bond market, no matter how bad things may get for lower-rated companies.I bring this up not because there’s any reason to believe the central bank is on the brink of enacting such a facility but rather because credit-rating companies are updating their projections of just how many speculative-grade companies might fold because of the economic standstill brought about by the coronavirus outbreak. Moody’s Investors Service released a report on Friday that said a sharp but short-lived downturn would increase the global default rate among junk-rated borrowers to 6.8%. A recession on par with the previous one would mean a 16.1% default rate in a year, and something even worse would bring about a whopping 20.8% rate of failure.Even the first scenario would be a shock to high-yield investors who for a decade have become accustomed to defaults in the low single digits and largely confined to an obviously distressed industry such as energy and retail. The wide range of outcomes is one of the reasons that I deemed junk bonds and leveraged loans “losers” among fixed-income assets in a column last week, in contrast to U.S. Treasuries, agency mortgage-backed securities and investment-grade corporate bonds.Of course, one trait shared by the winners is that the Fed has signaled outright support for them. In the case of Treasuries and mortgage securities, it’s typical quantitative easing. But high-grade corporate bonds represent an entirely unprecedented endeavor. It’s so novel, in fact, that Jim Bianco, president and founder of Bianco Research, wrote a Bloomberg Opinion column arguing that the federal government is effectively nationalizing large swaths of the financial markets.On the other hand, buying corporate bonds is old hat for the European Central Bank. While the Fed has set limits that allow its facilities only to add debt maturing in four or five years, the ECB can purchase securities that are due in up to 30 years. That’s an entirely different ballgame as far as projecting default risk. The ECB has no issue with adding negative-yielding debt, either. For those who might have missed it stateside, Siemens AG issued two-year euro bonds in August that priced to yield -0.3%, the most negative-yielding corporate debt sale of all time. It’s rated single-A.“Investors may try to push back on some of the initial deals, but within a few months they will be considered relatively normal structures,” JPMorgan Chase & Co. strategists wrote at the time.The backdrop of finding it normal to effectively pay companies to own their debt is important context for my Bloomberg Opinion colleague Marcus Ashworth’s column last week, titled “Junk Bond Investors Need a Little Love Too.” He rightly points out that the ECB’s measures to support bank lending don’t always reach where they’re needed — like speculative-grade companies that might fold without market access. That, in turn, could lead to widespread job losses and inhibit an economic recovery. The conclusion: “The central bank should think seriously about widening the remit of its corporate sector purchasing program to include junk bonds.” The ECB might very well consider it. Nothing would surprise me at this point. For the Fed, though, it should be an easy decision: hard pass.Credit ratings still need to mean something. I wrote last week about how the impending wave of fallen angels — those companies downgraded to double-B from triple-B — won’t be propped up by the Fed’s new credit-market facilities. Since that column, Ford Motor Co. became the largest such fallen angel of this cycle, with its $35.8 billion of debt headed into the high-yield index this week. I could almost hear the outcry: “Ford was investment grade before the coronavirus outbreak, which was totally out of its control. Why should the company be punished like this?”It likely won’t be the last household name to drop into speculative grade, given how many of them gradually descended into the triple-B tier during the economic expansion. If this shock forces some finance officers to reconsider whether triple-B ratings are optimal, that’s not such a bad outcome.Similarly, reaching for yield needs to have consequences. Investors at one point in December demanded just 38 basis points of extra yield to own double-B bonds instead of those rated triple-B. That spread reached 400 basis points last week. The difference between triple-C and single-B yields climbed to 819 basis points on March 24, from 426 basis points in early February.Those kinds of moves are painful for U.S. high-yield funds, no question. But I’d wager that money managers would rather deal with these repricing episodes than to be in the shoes of their European counterparts, some of whom bought euro junk bonds from French packaging company Crown European Holdings SA at a 0.75% yield in October. That was a record low, as Ashworth pointed out.Simply put, the Fed shouldn’t save every company, nor every investor’s position. In an ideal world, Chair Jerome Powell would most likely have preferred to go no further than the 2008 playbook of purchasing a vast amount of securities that have government guarantees. When that didn’t work, he dipped into short-term commercial paper, as was done before. And when that was insufficient, the central bank launched its new credit facilities. That unfroze the investment-grade market.Whether that thaw makes its way to junk bonds is up to private investors. In hindsight, some securities will seem like bargains. Bank of America Corp. strategists, for their part, see spreads of 1,000 basis points as generally good value, while “at 1,200 bps it would be great value, and at 1,500 bps it would be an extremely rare opportunity.”These types of evaluations are a crucial element of well-functioning capital markets. Unfortunately, when the going gets tough, some investors would rather have central banks provide a cheat sheet than do their own homework on which companies will survive and which will falter. The Fed should resist any temptation to lend a hand. This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Brian Chappatta is a Bloomberg Opinion columnist covering debt markets. He previously covered bonds for Bloomberg News. He is also a CFA charterholder.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The coronavirus pandemic is increasingly affecting supply chains of German engineering companies, a poll by industry association VDMA showed on Monday. "The proportion of companies whose operations are affected rose from 60% to 84% within two weeks," VDMA said in a statement, adding that supply chains are particularly disrupted in Italy and Germany.
ZURICH/FRANKFURT (Reuters) - Siemens managing board member Michael Sen will no longer take charge of the new energy business which the German engineering group wants to spin off later this year, it said on Thursday, after he agreed to leave the company. Siemens also announced that longstanding Chief Executive Joe Kaeser would leave the company and be replaced by deputy Chief Executive Roland Busch by early next year at the latest, making official a move that was expected. Sen had been one of the favourites to succeed 62-year-old Kaeser before he was named CEO designate of the 27 billion euro ($28.84 billion) Siemens Energy business last September.
Hedge fund behemoth Bridgewater has shown its hand in Europe with roughly $15 billion in bets against companies on the continent and in Great Britain, filings reviewed by Reuters show. The world's biggest hedge fund manager's short positions amount to more than $5.3 billion in France and $4.7 billion in Germany, while in Spain its shorts add up to almost $1.4 billion and $821 million in three Italian companies. Hedge funds engage in the practice of 'shorting' by borrowing a stock from an institutional investor, such as a pension plan, and selling it back at a profit when the price drops.
Germany on Friday promised half a trillion euros in guarantees for business - and more if needed - in a four-point plan to tackle the economic impact of the coronavirus epidemic, winning a thumbs up from economists. "We have the financial strength to overcome this crisis," said Finance Minister Olaf Scholz. Economy Minister Peter Altmaier said he hoped the coronavirus outbreak would only cause a blip in growth rather than the crisis of the decade.
(Bloomberg) -- A quiet Huawei Technologies Co.-led 5G revolution is unfolding at the heart of Europe -- in the bucolic Swiss hamlet of Taenikon.Far from President Donald Trump’s campaign to stop the world from using the Chinese company’s technology, cows in this northern Swiss village -- with its white-washed cottages and manicured fields -- wear Huawei’s 5G-connected neck-straps instead of traditional flat bells. And in the village’s Cistercian abbey, converted into a test farm, Switzerland’s second-biggest telecommunications operator, Sunrise Communications Group AG, and Huawei test the next-generation 5G wireless network.“You could call it a Fitbit for cows,” said Alexander Lehrmann, Sunrise’s chief of new business development and internet of things, referring to Fitbit Inc.’s fitness device. “It allows farmers to get complete control and insight into their health conditions at any time and from any place.”While countries in Europe are grappling with U.S. claims that Huawei’s gear could open them up to Chinese spying, Switzerland is quietly building a network with the company. Flying under the radar, the Swiss have become world leaders in the rollout of 5G technology with the early sprouting of private and public networks. Entities from the Zurich airport, the national mail service and railways to food giant Nestle SA and Zurich Insurance Group AG either have or envisage private networks with Sunrise, whose exclusive supplier is Huawei.“The Swiss government has done a very neutral and objective evaluation of Huawei and they have come to the conclusion that there is no significant other risks included in the technology and in Huawei as a company,” Sunrise Chief Executive Officer Andre Krause said in an interview. “(But) if the reputation of Huawei is continuously under pressure, that could also have an impact on us at some stage.”The stakes are high as networks move toward the new-generation technology that promises faster connections, enabling uses such as autonomous vehicles, remote surgery and the transfer of data over a network without human-to-human or human-to-computer interaction.For now, much of what’s happening with Huawei in Switzerland is the industrial use of 5G, or private networks, that draws less attention. But Switzerland is also the first country in Europe to start using a commercial 5G network for individuals in a limited way, amid opposition from environmental and health activists fighting antenna emissions.Read: Health Scares Slow the Rollout of 5G Cell Towers in EuropeThe U.S. has been frustrated by Europe’s refusal to accede to Trump’s demands to keep Chinese tech companies out of advanced 5G networks. The U.K., France, and Germany are all looking to keep the door open to the Chinese telecom giant in some way, snubbing the U.S. view that Huawei could be a security risk. Italy, Croatia and Hungary, like Switzerland, have signed partnerships with Huawei.The Chinese company in February touted as many as 47 commercial contracts for 5G in Europe, more than in Asia. It claims to have 91 contracts, but did not respond to queries seeking details.Still, the European Union may force member states to eventually change some of the deals after the bloc published a series of security recommendations in its “5G toolbox” that could keep non-European gear makers out of the network core, towers and towers bases.Switzerland, which is not a member of the European Union, doesn’t face those constraints. Swiss insurers and pharmaceutical companies are testing Huawei’s 5G networks. Huawei has also built a partnership with the Swiss engineering company ABB Ltd., which is seeking to offer industrial partners competitive 5G platforms.Sunrise’s Lehrmann said banks haven’t yet signed up. He said Sunrise is present in Swiss hospitals, where “the use case is what can you do in order to improve the patient experience by connecting data.”Swisscom, the former monopoly is also testing the industrial technology but won’t disclose its gear maker. Salt, the Iliad SA-owned Swiss operator, is working with Nokia.“Radio Network Antennas (the technical name for private networks) are inside offices, factory, hospitals, whatever it is,” Duncan Stewart, Deloitte’s director of research in telecommunications, told reporters in Paris Feb. 4. “The machinery in your factory, the robots, the sensors, the cameras, the turbines, all these IoT devices, will only work on the private 5G networks.”Stewart forecast that by 2030 almost all companies with more than 10,000 employees may have private 5G networks.Some other European countries are also testing private networks.The Port of Rotterdam, Europe’s biggest, has tested the technology starting 2018 with the national telecom operator KPN in partnership with Huawei, according to KPN’s website. Germany has prioritized the expansion of its industrial 5G application too, allowing companies to apply for private networks with gear makers, without necessarily going through a telecom operator. Companies including Bosh in partnership with Nokia, Siemens with Qualcomm Inc. and Volkswagen are building such networks.To Sunrise’s Lehrmann, the situation is simple.Customers “are looking at 5G as a technology that allows them to drive new uses and new business cases,” he said.On the test farm in Taenikon, meanwhile, cows eat, sleep and stroll under surveillance cameras. Their milk production, health and other data are transmitted at speeds about 100 times faster than current networks and processed in real-time. The test is meant to see how remote farms can function, information Sunrise and Huawei can use for other applications to boost factory output, enable big data usage in the finance sector or take health care in hospitals to a newer level.“The Swiss population and economy depend on high-performance mobile communications,” Sunrise’s Chief Administrative officer Marcel Huber said on his LinkedIn account in February.\--With assistance from Angelina Rascouet.To contact the reporters on this story: Helene Fouquet in Paris at firstname.lastname@example.org;Albertina Torsoli in Geneva at email@example.comTo contact the editors responsible for this story: Giles Turner at firstname.lastname@example.org, Vidya RootFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
In an exclusive Barron’s interview, the boss of the German engineering giant talks about the Siemens Energy demerger, the health of global markets and fears on sanctions.
(Bloomberg Opinion) -- In 2014 the French manufacturer Alstom SA was burning cash, its debt was rising and it was under investigation in the U.S. for alleged bribery. By selling its sprawling energy division to its better capitalized rival General Electric Co. the following year, Alstom shed 70% of its revenue, paid down borrowings, and refocused on its remaining business: building trains. In hindsight, it played a blinder.Five years later Alstom is involved in another transformational deal, only this time it’s in the driving seat, while Canadian manufacturer Bombardier Inc. is the one in need of emergency balance sheet help, having burned through cash because of delayed aircraft projects and mismanaged rail contracts.On Monday the Canadian conglomerate completed a downsizing that’s every bit as drastic as Alstom’s was. The French manufacturer has agreed to pay about 6 billion euros ($6.5 billion) for Bombardier’s rail activities, which account for about half of the Canadian company’s sales. Alstom will own a globe-spanning rail business with 15.5 billion euros of combined sales and a 75 billion-euro order backlog. Having already announced an exit from commercial aviation, Bombardier will be left to focus on making private jets.The fossil-power assets that Alstom parted with in 2015 were hurt not long afterward by the rise of solar and wind power, forcing GE to book billions of dollars of impairments. GE is now mulling a sale of the steam turbine business. There’s reason to think Alstom’s trains acquisition will be a better deal than the one secured by the Americans.Unlike gas turbines, rail demand is booming because of urbanization and climate fears. Germany, where Bombardier’s train unit has its headquarters, plans to invest an astonishing 86 billion euros ($93 billion) in expanding and modernizing its railways by 2030. As long as Bombardier’s rail contracts aren’t in a worse state than is known publicly, and competition authorities agree to the takeover, Alstom should do fine.At first glance, it’s surprising that these two big train companies are stitching together a deal so soon after the European Commission blocked Alstom’s attempt to join with Siemens AG’s rail unit. Alstom’s willingness to endure the approval process again attests to the new deal’s attractions and the more limited risk of it being blocked. While Alstom and Bombardier both have large European businesses, Bombardier isn’t a big player in European signalling or very high-speed trains, where the Commission’s antitrust worries are most acute. While getting bigger will help Alstom compete against Chinese rail colossus CRRC, that’s not the main appeal.Bombardier’s rail unit generated a derisory 0.8% operating return on sales in 2019 after it screwed up several large contracts. But Alstom is confident things will improve with better management; until recently Bombardier’s profit margins were superior to Alstom’s. Meanwhile, Bombardier’s installed fleet of about 100,000 vehicles will provide lucrative servicing work.Including assumed liabilities, Alstom is paying about 12 times Bombardier’s historic adjusted operating profit, in line with similar transactions. Alstom’s own shares trade on more than 17 times operating profit, according to Bloomberg data. It is acquiring a business with similar revenue, while paying a lot less than its own 11 billion-euro market capitalization.Alstom’s share price has more than doubled since 2016 thanks to strong orders and those better margins. That explains why it’s funding most of the transaction with equity, rather than debt. Alstom’s shareholders will be asked to contribute 2 billion euros via a rights issue, with a bigger chunk coming from Canadian pension fund Caisse de Depot et Placement du Quebec (CDPQ), which will have an 18% stake in the combined company.About 400 million euros in promised yearly cost savings — worth about 3 billion euros to Alstom shareholders — won’t depend much on plant closures, which can be politically difficult and expensive. That’s reassuring for investors and employees.For Bombardier, the benefits don’t look as impressive, reflecting the pressure to sell. The transaction lets it shift about $1 billion of pension liabilities to Alstom but Bombardier must pay to retire some convertible stock that it sold to CDPQ back in 2015. This means it will receive only about $4.5 billion of net proceeds to help pay down its $9 billion debt pile. Net indebtedness should decline to about $2.5 billion, or about 2.5 times the Ebitda it expects to generate from its remaining business aviation activities.Such leverage is still ample for an aerospace company, albeit one with a refreshed lineup of private jets and a $14 billion order backlog. Unlike trains, corporate aircraft have a more uncertain future in an era of climate-related flight shame. Still, the lesson of Alstom’s recent history is that it’s possible to shrink and thrive. On an investor call this week, Alstom’s senior managers sounded like they couldn’t believe their luck in getting hold of Bombardier trains given such a rosy demand outlook. They shouldn’t celebrate just yet. When GE announced its takeover of Alstom’s energy business in 2014, Siemens AG prepared a counterbid. Siemens also has history with Bombardier, having held talks about a possible combination of their rail businesses in 2017. For now, there’s no sign of a rerun — the antitrust hurdles are off-putting — but the Germans will be watching closely.To contact the author of this story: Chris Bryant at email@example.comTo contact the editor responsible for this story: James Boxell at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
French transport infrastructure company Alstom is in talks over a potential $7 billion acquisition of Canada's Bombardier’s train business, marking the latest attempt by Western rail companies to bulk up in the face of Chinese competition. Bombardier and Alstom have both attempted to merge with German engineering company Siemens. Alstom has sites in 60 countries, including manufacturing facilities in France, Canada, the United States, Australia, Brazil, Poland, Italy and India and its rail and e-bus division reported over 6 billion euros ($6.50 billion)in orders in the fiscal year to March 2019.
Europe's future must be based on fair competition rules, EU antitrust regulators said on Monday, after Germany and France reiterated calls for a speedy overhaul of the bloc's rules to help EU companies better compete with U.S. and Chinese rivals. French Finance Minister Bruno Le Maire, German Economy Minister Peter Altmaier, Italian Industry Minister Stefano Patuanelli and Poland's Development Minister Jadwiga Emilewicz in a joint letter to EU competition and digital chief Margrethe Vestager called for proposals by the end of June. Le Maire and Altmaier kicked off the debate more than a year ago after Vestager vetoed Siemens and Alstom's bid to merge their rail operations to face off Chinese competitors.
BlackRock, the giant fund manager, has publicly scolded German engineering group Siemens for an Australian project criticized by environment activists.
A leading electric vehicle charging network and a trade group that represents America's travel plazas and truck stops said on Thursday they plan to leverage $1 billion through public and private funding sources over the next decade to encourage the broader adoption of EVs. Automakers Volkswagen AG, General Motors Co and Ford Motor Co have announced plans to spend billions of dollars over the next several years launching EVs in a bid to directly challenge electric carmaker Tesla Inc, which has its own network of charging stations.