|Bid||25.17 x 3100|
|Ask||25.46 x 800|
|Day's Range||25.04 - 25.10|
|52 Week Range||22.44 - 28.92|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||8.69%|
|Beta (3Y Monthly)||1.39|
|Expense Ratio (net)||0.80%|
Investors poured a bucket of cold water on Peugeot Thursday, sinking the French carmaker’s share 13% after digesting the first details of the group’s planned merger with Italian-American rival Fiat Chrysler. The day before news of the merger plan surfaced, Fiat’s (IT:FCA) market capitalisation stood at under €19 billion and Peugeot (FR:UG) was worth 22.5 billion. When both companies had initiated their first talks around the beginning of the year, even before Fiat decided to try a merger with Renault, (FR:RNO) Fiat was worth roughly the same amount but Peugeot was then only valued at €16 billion.
The formal announcement that the companies have agreed “to work towards a full combination of their respective entities by way of a 50/50 merger” came early Thursday.
President Donald Trump thanked General Motors and other automakers on Wednesday for supporting him in a legal fight over emissions regulations in California.
Fiat Chrysler Automobiles N.V. and Peugeot parent PSA have agreed to merge in a deal that would crate a $50 billion car company, the Wall Street Journal reported Wednesday, citing unnamed sources. The companies had confirmed merger talks earlier in the day and reached a deal following board meetings, the Journal reported. Peugeot Chief Executive Carlos Tavares will become chief executive of the merged company, while Fiat Chrysler's Chairman John Elkann will take the role of chairman. Peugeot will have six seats on the new board, while Fiat Chrysler will have five. The shares of the two companies rose sharply in Europe earlier.
Earlier this year a proposed merger between Fiat Chrysler and Renault failed because of the French government’s clumsiness and its last-minute fears that the deal would further complicate the French carmaker’s delicate “alliance” with Nissan. Now Fiat (IT:FCA) has predictably turned to another French carmaker, Peugeot (FR:UG) , and the two companies have confirmed The Wall Street Journal’s scoop that they have engaged in talks. The merger, which would be based on an all-share transaction, looks simpler to achieve than the Renault deal because Peugeot is not saddled with a contentious imbrication with another carmaker.
“There are ongoing discussions aimed at creating one of the world’s leading mobility groups,” Fiat Chrysler said in a short statement.
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President Trump's expanding trade wars have inflicted heavy damage on U.S. and global automakers. Trade tensions with China helped push 24 global auto stocks down an average of 12% in May through Thursday, including General Motors Co. (GM) and Ford Motor Co. Now, the group is suffering more declines in Friday trading after Trump announced plans to impose tariffs on all Mexican goods by June 10. If the Mexico tensions continue, auto stocks could drop an additional 5% to 10% in the second half of 2019, wrote Evercore ISI analyst Chris McNally in a note, per a detailed Bloomberg report.
First Trust Advisors L.P. announces the declaration of distributions for 125 exchange-traded funds advised by FTA.
Recent escalations in the trade war between the U.S. and China have confirmed investors' fears that the spat is far from over. Emerging markets exchange-traded funds (ETFs) had been solid performers this year and Chinese ETFs were leaders in that group, but the emerging markets bull thesis is dealt a significant blow if Chinese stocks are struggling. Remember this: Chinese equities represent approximately a third of the MSCI Emerging Markets Index.Over the near-term, these are potentially tenuous times for Chinese ETFs, especially with the G20 summit about five weeks away. * 7 Stocks to Buy that Lost 10% Last Week Investors that currently own China ETFs do not need to respond to negative price action by immediately dumping their positions, but for investors not currently holding Chinese ETFs, some of the following funds may be worth avoiding until trade tensions cool.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Global X MSCI China Information Technology ETF (CHIK) Expense Ratio: 0.65%, or $65 annually per $10,000 investedIn more sanguine market environments, there is definitely something to be said for China sector investing, particularly in the country's sprawling consumer discretionary, internet and technology sectors. The other side of that coin is that Chinese technology stocks are vulnerable to the trade spat. Specifically, the Global X MSCI China Information Technology ETF (NYSEARCA:CHIK) has taken a major hit after news of continued tariffs hit the headlines.CHIK, which debuted last December, holds 42 stocks, including electronic components makers, hardware and software providers and semiconductor manufacturers. Each of those industries has some vulnerability in the current trade spat.As highlighted by its still strong year-to-date performance, this China ETF has plenty of potential to deliver strong returns. Investors considering CHIK are not off base with that thesis, but they should wait for macro risk to diminish before embracing this China ETF. First Trust China AlphaDEX Fund (FCA)Expense Ratio: 0.80%The First Trust China AlphaDEX Fund (NASDAQ:FCA) is not the most well-known China ETF. FCA is over eight years old and has just $11 million in assets under management, but that is not the primary reason to avoid this China ETF amid trade tensions.FCA was one of nearly 20 U.S.-listed China ETFs that lost 3% or more on Monday, May 6, when news of the now implemented tariffs first broke. In fact, just two Chinese ETFs notched bigger one-day losses than the 5.22% shed by FCA. Interestingly, FCA's struggles amid heightened trade risk are not attributable to large weights to growth sectors, such as communication services, consumer discretionary and technology. * 10 Stocks to Sell Before They Tank Your Portfolio Those sectors combine for just over 18% of FCA's weight. This China ETF allocates almost 35% of its combined weight to the defensive real estate and utilities sectors. FCA's recent weak price action suggests even defensive sectors with small export exposure can be punished by trade fears. Invesco Golden Dragon China ETF (PGJ)Expense Ratio: 0.70%The Invesco Golden Dragon China ETF (NASDAQ:PGJ) is an example of a "not right now" China ETF. PGJ is up 30.50% year-to-date, but it has be in the red recently. The problem is the fund's recent decline puts PGJ in danger of falling below its 50-day moving average, an area the China ETF has not closed below since early January.PGJ holds 64 stocks, but this China ETF features significant sector-level concentration risk as the consumer discretionary and communication services sectors combine for over 84% of the fund's weight. That means this portfolio is heavy on growth stocks, a trait that could increase PGJ's volatility and downside pressure if Chinese stocks falter for an extended period.A best-case scenario for Chinese stocks "would mean the recent pullback is a buying opportunity, but if trade talks are canceled or go astray, it would force analysts and economists to revisit their forecasts. It would also mean China would look to more stimulus to help stabilize its economy," reports Barron's.As of this writing, Todd Shriber did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 10 Retirement Stocks That Won't Wilt in a Bear Market * 5 Consumer Stocks Ready to Push Higher * 3 of the Best ETFs to Buy for a Play on Gold Stocks Compare Brokers The post 3 Chinese ETFs to Avoid Until Trade Tensions Thaw appeared first on InvestorPlace.
With the MSCI China Index lower by 9.56 percent this month and residing 18.5 percent below its 52-week high, some aggressive traders and investors may be thinking Chinese equities are starting to look ...
Yesterday, Seth Klarman (Trades, Portfolio)'s Baupost Group and Mohnish Pabrai (Trades, Portfolio)'s Pabrai Investments both filed their 13F documents with the SEC, detailing equity positions held at the end of 2018. Warning! GuruFocus has detected 6 Warning Signs with GOLD.