|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||21.47 - 21.47|
|52 Week Range||20.60 - 29.34|
|Beta (5Y Monthly)||N/A|
|PE Ratio (TTM)||8.19|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
General Motors Co is retreating from more markets outside the United States and China, saying on Sunday that it will wind down its Australian and New Zealand operations, while selling a plant in Thailand. * Announces that it would wind down sales, design and engineering operations in Australia and New Zealand and retire the Holden brand by 2021. * Signs a deal to sell its Thailand manufacturing plant to China's Great Wall Motor Co Ltd.
It hasn't been the best quarter for Peugeot S.A. (EPA:UG) shareholders, since the share price has fallen 15% in that...
(Bloomberg Opinion) -- An infection typically hits the vulnerable hardest — and in the new coronavirus outbreak this might apply economically too. For all the geographical distance between Europe and China, the euro zone has much to fear from its spread.The disease is another challenge to the export-driven model of the monetary union, which was already struggling with the global lurch towards protectionism. It could be the first big test for Christine Lagarde, the European Central Bank’s new president, who has been a tad too optimistic about the euro area’s prospects.Coronavirus will affect Europe’s economy in three ways. First, there’s demand: China is the third-largest importer of goods and services from the euro zone, after the U.S. and the U.K. The bloc’s exports to China nearly trebled between 2007 and 2018, to 170.3 billion euros ($185.8 billion) from 60.5 billion. Over the same period, sales to the U.S. increased by about 63%. These figures matter because Europe relies extensively on global demand to drive its prosperity, as shown by its large external surplus. A slowdown in China sales will cause trouble in a number of industries such as luxury.Then there’s supply. Europe's manufacturing supply chains are less exposed to China than is the case for other regions of the world, according to a report by Oxford Economics, a consultancy. However, it notes that some industries might be more exposed: The Wuhan area, where the virus originated, is a major automobile hub and home to production sites of carmakers including Peugeot SA and Renault SA.Finally, there’s the effect of the outbreak on confidence. Europe’s financial markets have been resilient so far: The Stoxx Europe 600 index is still marginally up since the start of the year. It’s possible some companies will benefit from the disruptions, as producers have to look for alternative suppliers. However, coronavirus could weigh on investment decisions in the euro zone. An investment slowdown would create long-term economic damage, even if supply and demand in China rebounded quickly.These factors matter for every economy in the world, not just the euro zone. But the monetary union’s economy is already very weak. Growth slowed to just 0.1% in the last three months of 2019, the worst quarterly performance since 2013. From Germany to Italy, the industrial sector had a terrible end to the year. Unemployment continues to fall and wage growth remains solid, which should support internal demand. However, the euro area has been exposed to a succession of external shocks. The longer the coronavirus episode lasts, the higher the risk it spills into the domestic economy.The ECB is yet to react, and is still in wait-and-see mode after cutting rates and relaunching quantitative easing in September. Lagarde had even dropped some hints of optimism over inflation, which has stubbornly stayed well below the central bank's target of close to but below 2%.The waiting game may not last for long. As well as holding back growth, the virus may also force inflation down too. Oil prices have plummeted because of the slump in demand from China. The OPEC+ group of oil-producing countries is struggling to agree a new cut in production to help support prices.The euro zone mostly imports crude, so in theory any fall in its price should be good for its economy: Consumers would have more cash to spend on other goods, and companies would see their energy bills fall. In any case, central banks usually prefer to look through changes in energy prices and concentrate on “core” inflation.Yet the memories of 2014-2015 linger in the mind of policymakers. A sharp fall in oil prices at the time contributed to a bout of deflation, which threatened to turn the euro zone into Japan. In response, the ECB launched — for the first time — a program of massive and unconditional bond purchases.Unfortunately, this time around the ECB has already used several of its weapons to combat deflation. The balance sheet of the Eurosystem — made up of the ECB and national central banks — has hit nearly 4.7 trillion euros. The ECB has pushed its main refinancing rate to zero, and its deposit rate to -0.5%. “This low interest rate and low inflation environment has significantly reduced the scope for the ECB and other central banks worldwide to ease monetary policy,” Lagarde said last week.This slightly defeatist language contrasts with Lagarde's more pugnacious predecessor, Mario Draghi, who left the ECB with the words “never give up.” It’s also as worry that the euro zone governments with low debts, including Germany, seem to feel no pressure to relax fiscal policy sufficiently to combat the slowdown.It’s still possible that the economic threat from the coronavirus will fade. A strong policy response in China could create additional demand, which would help foreign companies. But the euro zone’s poor state doesn’t leave room for error. After a quiet start for Lagarde, the difficult decisions could be fast-approaching.To contact the author of this story: Ferdinando Giugliano 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.Ferdinando Giugliano writes columns on European economics for Bloomberg Opinion. He is also an economics columnist for La Repubblica and was a member of the editorial board of 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.
Investment group Exor will have around $13 billion in cash provided it closes a deal to sell its reinsurance unit PartnerRe and it would spend most of that on acquisitions, a source close to the matter told Reuters. The holding group of Italy's Agnelli family, which also controls Fiat Chrysler, said on Sunday it was in exclusive talks to sell PartnerRe to France's Covea. The deal could be worth around $9 billion in cash and drove shares in Exor up by more than 5% on Monday to an all-time high.
Chinese auto dealers, who have seen traffic through their showrooms slow to a trickle due to the fast-spreading coronavirus, have sought temporary financial support to see them through. The coronavirus has killed more than 560 people in mainland China and more than 28,000 are confirmed to be infected, prompting local governments to extend holidays and introduce travel curbs to halt its spread. In a letter publicly addressed to China's Banking and Insurance Regulatory Commission, China's Automobile Dealers Association (CADA) asked banks to extend loans to dealers and offer more temporary liquidity support such as credit lines to help dealers who are "facing extreme liquidity pressure".
GENEVA/BEIJING, Feb 5 (Reuters) - Thousands of passengers and crew on two cruise ships in Asian waters were placed in quarantine for China's coronavirus on Wednesday as airlines, carmakers and other global companies counted the cost of the fast-spreading outbreak. A multinational WHO-led team would go to China "very soon", it added. China said another 65 people had died in the previous 24 hours, in the highest daily total yet, taking the overall toll on the mainland to 490, most in and around the locked-down central city of Wuhan, where the new virus emerged late last year.
SHANGHAI/WASHINGTON, Jan 31 (Reuters) - The United States ramped up its response to the coronavirus epidemic on Friday, declaring a public health emergency and saying it would halt entry to foreign nationals who had been to China within the 14-day incubation period. Originating in the Chinese city of Wuhan, the flu-like virus first identified earlier in January has resulted in 213 deaths in China, according to local health authorities.
British car output dropped last year at the fastest rate since the 2008-9 recession, hit by slumping exports and diesel demand, as an industry body called for an ambitious post-Brexit trade deal to protect the sector. Production fell by an annual 14.2% to 1.3 million cars in 2019, the third consecutive fall, also hit by some automakers closing factories for additional days in case of Brexit-related disruption, according to the Society of Motor Manufacturers and Traders (SMMT). "It is essential we re-establish our global competitiveness and that starts with an ambitious free trade agreement with Europe," said SMMT Chief Executive Mike Hawes.
Renault's engineering boss will meet his counterpart at Nissan in Japan this week, two sources close to Renault said, as the carmakers seek to revive projects crucial to an alliance left reeling by the Carlos Ghosn affair. Analysts say that in order to turn investor sentiment around, the firms need to make good on cost-saving joint engineering projects that have slowed since Ghosn's departure. According to the two sources, Gilles Le Borgne, who was hired on Jan. 6 from rival automaker PSA, will meet Nissan's Tsuyoshi Yamaguchi, the Nissan executive in charge of delivering the joint engineering projects.
A new viral illness being watched with a wary eye around the globe accelerated its spread in China with 80 deaths so far, while the U.S. Consulate in the city at the epicenter announced it will evacuate its personnel and some other Americans aboard a charter flight.
Italian American automaker Fiat Chrysler and Taiwan's Hon Hai plan to set up a joint venture to manufacture electric vehicles and to engage in the business of wirelessly connected vehicles, Hon Hai said on Thursday. Fiat Chrysler (FCA) and Hon Hai are negotiating to set up a 50-50 joint venture, Hon Hai said in a statement.
(Bloomberg Opinion) -- Renault SA pledged back in February to make its 20-year-old Alliance with Nissan Motor Co. “irreversible,” after the shocking arrest of the French carmaker’s boss Carlos Ghosn on charges of financial misconduct exposed deep rifts on both sides.That goal now looks further away than ever, with Ghosn’s dramatic escape to Lebanon and his repeated denials of the charges reopening old wounds, and neither firm succeeding in bridging the political and governance divide between France and Japan.The Financial Times reports that Nissan is ramping up contingency plans in case of a breakup — which, while financially painful and costly for both sides, shouldn’t be ruled out. With both Renault and Nissan under new management, and advocates of closer integration on the wane, time is running out to prove that this isn’t an alliance in name only.The spectacle of Ghosn holding court for several hours in Beirut last week was a grim reminder of the Alliance’s fragility. Whether you believe in his conspiracy narrative or not, the political meddling clearly ran deep: Ghosn pointed to France’s doubling of its voting rights in 2015 as the seed of Japanese resentment against Paris’s out-sized influence within the partnership. The fact that Paris was dreaming of a full-blown merger, while the Japanese wanted nothing of the sort, shows that the fundamental issues around control and governance go well beyond Ghosn.Renault Chairman Jean-Dominique Senard’s efforts to show that the Alliance is bigger than the man who forged it haven’t really paid off, either. Conversations about how to save the partnership have failed to get past the question of whether it should become more equitable: Renault, in which the French state has a 15% stake, owns 43% of Nissan, while Nissan owns 15% of its partner. Nissan has sought more sway in the alliance, including a reduction in Renault’s stake, given the Japanese company’s bigger size and superior earnings performance in recent years (though the latter has started to tail off). Meanwhile, Renault’s bungled attempt last year to strike a deal with Fiat Chrysler Automobiles NV managed to both annoy the Japanese and benefit its French arch-rival Peugeot SA, the company that Fiat is now set to merge with.Politics and governance are one side of the equation — but what about money? It seems strange to let a corporate partnership fall apart after 20 years when it’s clearly been a financial success. Renault and Nissan’s Alliance sells over 10 million cars a year, almost on par with industry leaders Volkswagen AG and Toyota Motor Corp., and they’ve been avidly working together to find more synergies. The companies said in 2018 that their annual cost savings would exceed 10 billion euros ($11.1 billion) by 2022. In an industry that’s facing growing spending requirements amid the shift to electric cars, that’s an obvious advantage.But even the financial benefits of the Alliance require a harmonious partnership. To achieve those savings, Renault and Nissan need to ramp up common manufacturing platforms and roll out more jointly-developed projects. The companies have pledged to build two-thirds of all cars sold on common platforms and three-quarters of all cars sold using common power-trains (up from one-third) by 2022. That looks hard in an environment where, according to the FT, the view inside Nissan is that the relationship is “toxic.” And the fact that both Renault and Nissan have recently moved to replace their CEOs shows how tough the post-Ghosn era has been.Today, the best argument for keeping the Renault-Nissan Alliance together, like many an unhappy marriage, is the cost of breaking it up. At a time when national pride is trumping economic self-interest, that’s not good enough. Until those in charge can prove there is an incentive in closer cooperation, it will be hard to convince stakeholders on both sides that this is an irreversible alliance.To contact the author of this story: Lionel Laurent at email@example.comTo contact the editor responsible for this story: Melissa Pozsgay at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Lionel Laurent is a Bloomberg Opinion columnist covering Brussels. He previously worked at Reuters and Forbes.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 Peugeot family, which will own a 6.2% stake in the new carmaker resulting from PSA and Fiat Chrysler's merger, aims to increase its holding as soon as possible, a representative said in a newspaper interview. PSA and Fiat Chrysler reached a binding agreement last month on a $50 billion tie-up that will create the world's No. 4 carmaker after the deal is completed in 12-15 months. Under the terms of the deal, the Peugeot family can increase its shareholding by up to 2.5% only by acquiring shares from French state investment bank Bpifrance Participations and China's Dongfeng Motors, which are both also PSA shareholders.
(Bloomberg Opinion) -- Instead of a show trial in Tokyo we got the Ghosn show in Beirut. Neither offered the chance of a satisfactory outcome.One of the most hotly anticipated press conferences in corporate history didn’t disappoint. Carlos Ghosn has lost none of his vim following his arrest, imprisonment and flight from Japan. Speaking in multiple languages, and often visibly enjoying the occasion, he forcefully argued his case for why he’s innocent of charges of undeclared income and misuse of corporate funds and why his arrest was really part of a conspiracy to stop him deepening the giant Renault-Nissan carmaking alliance. (Ghosn was previously boss of both the French and Japanese companies).His confidence in his own abilities as a corporate leader remains undimmed. He couldn’t resist bringing up how General Motors Motor Co. tried to hire him in 2009 for double what he earned at Nissan Motor Co.; that business schools have written case studies about how he revived the near bankrupt Nissan after arriving there in 1999; and how the Renault-Nissan alliance has fallen apart and the two companies’ share prices have hit the skids since he departed.To really stick the boot in, he even assailed Renault’s new leadership for missing out on a merger with Fiat Chrysler Automobiles NV that Ghosn had sought prior to his defenestration. Fiat is now getting hitched to Peugeot SA instead.But a press conference — just the start of what’s sure to be a bitterly fought public relations battle — won’t suffice to clear his name. Indeed, the spectacle of him settling scores with Japanese prosecutors and his former employers, effectively trying himself before a baying press pack (and sporadically interrupted by applause from his acolytes) was unedifying.Ghosn’s treatment by Japan was undeniably shabby. Weeks of solitary confinement, being interrogated for hours on end without a lawyer present, and being barred from seeing his wife, was deplorable. Japan’s 99%-plus conviction rate is questionable, to put it mildly. Other Nissan executives were subsequently revealed to have received excess income, but only Ghosn and his American colleague Greg Kelly were arrested.Even so, Ghosn is now a fugitive from Japanese justice and it isn’t the only country to accuse him of wrongdoing. Renault also published concerns about financial relationships with third parties and various corporate expenses, including an infamous Marie Antoinette-themed party at Versailles. Ghosn settled charges brought by the U.S. Securities and Exchange Commission about his failure to declare $140 million of post-retirement income and benefits. Ghosn didn’t admit wrongdoing but he paid a $1 million fine and is banned from serving as a director in America for a decade.Ghosn says he doesn’t think he’s above the law and insists he’s willing to stand trial anywhere provided he receives a fair trial. Of course, a just hearing is essential but it shouldn’t be up to Ghosn to determine the forum or the manner in which these claims are examined. (Ghosn dodged a question about whether he would go to France). It’s now going to be very difficult to arrange a trial anywhere. It will depend on the cooperation of Japan, which would naturally have reservations about assisting a wanted fugitive or undermining its own legal system.Ghosn is vexed that he’s been portrayed in Tokyo as a “cold, greedy, dictator.” He sees himself as a victim and is determined to restore his reputation. But his flight from Japan, which relied on expensive hired help and private jets, showed how he operates by different rules to most people. He seemed to think that walking the streets of Tokyo during his release on bail without a bodyguard was in some way unusual. In one particularly ill-advised and vain comment he compared his failure to foresee his arrest to the U.S. not anticipating the Japanese attack on Pearl Harbor. Even now, he’s living in a house paid for by Nissan.In fairness, at least Ghosn didn’t use the press conference to provide dramatic details about his escape from justice (perhaps he’s keeping them for the Netflix movie). Because, however exciting, that’s really not the story here. Ultimately Ghosn still has questions to answer and holding court in front of the world’s media doesn’t cut it.One way or another, justice must still be served.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 the editorial board or 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/opinion©2020 Bloomberg L.P.
(Bloomberg Opinion) -- The shock arrest and defenestration in 2018 of Carlos Ghosn, a jet-setting polyglot who bestrode the car industry for decades as head of the Renault-Nissan alliance, always had a cinematic quality to it: There was his detention in Japan shortly after disembarking from a private aicraft; the allegations (strenuously denied by Ghosn) of undeclared income and misappropriated funds; the grim conditions in which he was held and monitored by Japanese prosecutors; and the speculation that his downfall was really a ploy to prevent him bringing about a deeper union between Nissan and Renault that Tokyo didn’t want.But even Netflix, which Ghosn has reportedly become fond of watching since his release on bail, wouldn’t have scripted a denouement as far-fetched as this. On Tuesday, the former boss of both Nissan Motor Co. and France’s Renault SA confirmed that he had fled Japan and was now in Lebanon — from where his grandparents hailed, and from where he’s unlikely to be extradited.How he managed to slip from the grip of the Japanese justice system is a mystery. Prosecutors there kept him under close surveillance and his local lawyers are still in possession of his various passports (he has French, Brazilian and Lebanese citizenship). With Ghosn’s trial set to overshadow the 2020 Tokyo Olympics, perhaps Japan simply wanted the embarrassment gone. Either that, or the country’s famously severe legal system has just suffered a most shocking reversal.Left marooned by Fiat Chrysler Automobiles NV’s decision to merge with Peugeot SA and battling falling sales and profitability, Renault and Nissan were already in crisis. Now the maligned architect of their alliance is free to settle scores with both companies. It was Nissan that immediately dismissed Ghosn from the chairman’s role after his arrest and an internal inquiry into his activities; he later resigned as chief executive officer and chairman of Renault, which subsequently outlined its own concerns about his expenses. Instead of hiding out in Lebanon, he should think seriously about returning to France to put the record straight if his prime fear really was a rigged Japanese legal system.An uncomfortably high number of criminal cases brought in Japan end in conviction and there’s plenty about Ghosn’s pre-trial treatment that warranted criticism: His solitary confinement, interrogation without a lawyer present and a ban on seeing his wife all cast a poor light on Japanese justice.Hence Ghosn’s claims on Tuesday that he isn’t fleeing from justice but rather from “injustice.” In Lebanon he’s sure to be welcomed as a returning hero (billboards there declared “We are all Carlos Ghosn” in the wake of his arrest) but it’s doubtful that Renault and France would respond similarly.Since Ghosn’s arrest a picture has emerged of a brilliant but autocratic leader who felt he was under-appreciated, even with a $17 million pay packet and Renault-Nissan footing the bill for various foreign homes. A Marie Antoinette-themed party thrown at Versailles for his wife (with Renault picking up the tab) was symptomatic of a corporate leader who made light of corporate governance norms. In September he settled charges brought by the U.S. Securities and Exchange Commission that he and Nissan had failed to disclose more than $140 million in compensation and benefits due to be paid to him in retirement. Ghosn neither admitted nor denied the charges but was fined $1 million and barred from serving as a director for 10 years.Indeed, Ghosn’s very escape underscores that he still operates by different rules to the average person.This all presents a very unwelcome problem to France’s President Emmanuel Macron, who’s facing a backlash at home over controversial pension reforms. Macron’s weak spot is a privileged banker background that critics say makes him too friendly toward the rich. That’s why the Ghosn affair is so sensitive politically. France had already distanced itself from Ghosn and is likely to maintain that position; a junior economy minister reiterated on Tuesday that he’s not above the law.Prior to Ghosn’s escape, his wife Carole told Bloomberg that the fallen auto boss should face trial in France because he wouldn’t be given a fair hearing in Japan — several French lawmakers said they supported his repatriation. Once he’s rested, Ghosn should do the honorable thing and hop on a jet to Paris.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 the editorial board or 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/opinion©2020 Bloomberg L.P.