French automaker Renault SA dragged European shares lower on Friday, while the sharpest contraction in the Chinese economy in nearly three decades exacerbated worries about slowing global growth.
Renault slumped 12.7 percent to lowest since 2013 after the company cut its full-year revenue and profit forecast amid a broad-based slump in auto sales.
That led to the wider auto and auto parts index posting its biggest percentage drop in two-and-a-half weeks, while the French CAC 40 fell 0.7 percent, lagging its European peers.
Adding to the gloom in the auto sector, Sweden’s Volvo AB said demand for trucks would fall on both sides of the North Atlantic next year.
The pan-European STOXX 600 was marginally lower, ending its third day of losses at 391.84 points, but still managed to squeeze out a 0.05 weekly gain, dominated by Brexit headlines.
British Prime Minister Boris Johnson on Thursday struck a Brexit deal with the EU, sending the benchmark index to its highest in more than a year, but concerns remain about the deal getting through the British Parliament.
“Everyone is very tired of Brexit. People just want to get this done and look forward to other things, like negotiating a free-trade deal,” Rabobank NV senior market economist Stefan Koopman said.
Uncertainty about the UK’s orderly exit from the EU and other geopolitical tensions, combined with slowing global growth, have rankled financial markets this year.
After a solid increase in the first quarter, gains in the STOXX 600 have tapered off in the second and third.
Fresh data on Friday showed China’s economic growth slowed more than expected in the third quarter.
Investor focus turns to the third-quarter earnings season, which starts in earnest next week.
An earnings recession in Europe is expected to deepen in the third quarter, according to IBES data from Refinitiv.
However, early earnings reports were a mixed bag, with weak results from the defense and retail sectors, but a strong report from Swedish medical technology group Getinge AB.
Its shares jumped 16.3 percent to the top of STOXX 600 after reporting a better-than-expected quarterly core profit.
Thales Group, the largest European defense electronics company, dropped 3.5 percent after lowering its revenue growth forecast for this year, while yogurt maker Danone SA tumbled 6.2 percent after narrowing its sales growth outlook for this year.
London Stock Exchange rose 2.4 percent after reporting a higher-than-expected third-quarter income ahead of the planned shareholder vote on its deal to buy data provider Refinitiv.
Germany’s DAX ticked higher, with help from Deutsche Post AG after Berenberg upgraded the stock to “buy,” while gains in banks propped up Spanish and Italian bourses.
Just a few years ago, the millennial generation — generally defined as those born from the early 1980s through the mid-1990s — was synonymous with youthful rebellion. However, now, as the millennials ease into early middle age, they are finding their path out of their parents’ basement to be a lot harder than it was for earlier generations. The fundamental problem is that millennials are not building wealth. The wealth of the median US household headed by someone 35 or younger has actually shrunk in inflation-adjusted terms since the mid-2000s, even as the wealth of older Americans has continued to grow. An
Gogoro Inc (睿能創意) yesterday launched its first electric bicycle, the Gogoro Eeyo 1, in Taiwan, after unveiling the bike in New York in late May and in France on Tuesday. The company said it would also introduce the series in other European countries such as Germany and the Netherlands. The “Eeyo project” is the fourth of Gogoro’s eight projects that concentrate on smart transportation, which includes Gogoro’s electric scooter, battery swap system and electric scooter sharing service, company founder and chief executive officer Horace Luke (陸學森) told a media briefing in Taipei. “There are various types of city commuters. We will not
EXPERIMENTAL DRUG: While news about a COVID-19 vaccine is more eye-catching, developing a treatment would be more viable, the Senhwa boss said Senhwa Biosciences Inc (生華科) aims to raise NT$1.5 billion (US$50.57 million) by issuing 15 million new common shares in the third quarter of this year to fund the research of new drugs, including the experimental drug Silmitasertib for the treatment of COVID-19, the company said on Monday. That would be the firm’s largest fundraising effort after it raised more than NT$1.4 billion from an initial public offering on the Taipei Exchange (TPEX) in April 2017, chief financial officer Sarah Chang (張小萍) told the Taipei Times by telephone. The price of the new shares would depend on the firm’s average share price
NOT A PANACEA: Offering 5G services would not solve the problem of declining telecom incomes, chairman Sheih Chi-mau said, expecting a flat 5G telecom revenue Chunghwa Telecom Co (中華電信) yesterday became the nation’s first telecom to debut its 5G services, offering tiered tariffs that include a threshold of NT$599 and flat rates, as it aims to switch half of its subscribers to the 5G network within three years. Subscribers would have unlimited data transmission for monthly fees starting at NT$1,399 — the same flat rate as when the company launched its 4G service in 2014 — and they can subscribe to the highest-rate plan for NT$2,699 per month for faster data transmission speeds and larger bandwidth, the company said. Data transmission speeds would be within the range