Amundi to start trading in Euronext Paris in November

The European leading Asset Management company, Amundi Asset Management is to start its trading in Euronext Paris in November. The trading day is expected to be the 16th. The company announced today that the indicative price range would be 42-52,50 euros per share.

Societe Generale has said it will sell its 20 percent ownership (33,4 million shares) in Amundi in the IPO and Credit Agricole will reduce its ownership so that its stake will be between 74,6 – 77,6 percent. It also said it has agreed to sell 2 percent of Amundi shares to Agricultural Bank of China to expand their co-operation.

Amundi, which assets under management were 954 billion euros in June (51 percent fixed income, 13 percent equities and 17 percent treasury) said it is well positioned to benefit from the fundamentals of the assets management markets that favor sustainable growth.

Amundi provides diversified expertise across all major asset classes, offering full coverage of the investment management ecosystem.

The company is the biggest in Europe and the 8th biggest globally. The global AUM markets are estimated to be 61 trillion euros.

Business Finance

Nokia: Alcatel-Lucent merger is now closer – operating profit little down

Nokia (NOKIA), today published its third quarter interim report. According to the press release, the company says the merge with the French Alcatel-Lucent is now closer and they have received all the regulatory approvals to proceed with the public exchange offer. It is estimated to happen during the first quarter next year.

Nokia reported a turnover with 3036 million euros in July-September, declining 2 percent from the year earlier and increasing from the previous quarter. The operating profit was 475 million euros, up 4 percent from year earlier , but down 4 percent from the previous quarter. Earnings per share was 0,05 euros compared to 0,57 euros.

– I continue to believe that the acquisition of Alcatel-Lucent provides a very strong long-term value creation opportunity, the CEO Rajeev Suri said in the release.

The company also said it will raise the near term outlook. – The performance at Nokia Networks was the highlight of the quarter, and allowed us to raise our full-year outlook for that business, Suri said.

Nokia sold its HERE maps and location unit to German automakers Audi, BMW and Daimler in August 2015. According to Volkswagen (VOW:Xetra) press release yesterday, the company is expecting to close the deal during the next six months after the regulatory approvals. Audi´s share of the purchase price will be around 0,85 billion euros, according the release.

According to Nokia release today, HERE net sales amounted to 283 million euros in the third quarter 2015, compared to 236 million euros a year earlier. The operating profit was 20 million euros in the third quarter 2015, compared to an operating loss of 1 215 million euros in the third quarter 2014. On a non-IFRS basis and excluding the positive impact of stopping amortization and depreciation, HERE operating margin in the first nine months of 2015 was 10.1%, compared to 1.6% in the first nine months of 2014.

Nokia published also 7 billion euros program to optimize capital structure ahead of planned public exchange offer for Alcatel-Lucent securities. It also said that the 900 million euros synergies from the Alcatel-Lucent merge would be achieved in 2018, not in 2019 as earlier planned.

Business Tech

Apple to record levels on the last quarter of 2015 – Apple Store to all time record

Apple (AAPL:US) announced today its fourth quarter results ending September 2015. According to the press release, the company reported a new record level of iPhones sales and operating income. Apple´s sales were 51,5 billion dollars (42,1 billion in the year earlier or 49,6 billion dollars previous quarter). Operating income was 14,6 billion dollars, growth from the 11,2 billion dollars a year ago and diluted EPS was 1,97 dollars compared to 1,43 dollars. The gross margin was 39,9 (38) percent. The company sold 48 000 iPhones units compared to 47,534 units in the previous quarter.

– Fiscal 2015 was Apple´s most successfull year ever, with revenue growing 28 % to the nearly 234 billion dollars, said CEO Tim Cook in the press release.

According to the company, the near future stays positive with gross margin estimate to 39- 40 percent. Apple said its Apple Pay introduction has grown very well in the US and UK markets and Apple Store gained new record levels. The sales numbers of Apple Watch are not published but the company said it is head of expectations. The sales in China declined a little and were 12,5 billion dollars compared to 13,3 billion dollars in the previous quarter. On the other hand, the company is heading to have 40 stores in China by mid 2016 and has published a new programm for renewable energy in China.

The company annonced a new strategic partnership with Cicso in September and they are looking for the corproate markets with IBM as well.

The Apple shares were down a little, 0,63 percent to 114,55 dollars in the trading. The company market cap is huge, 653 billion dollars.

Business Finance

Ferrari to be listed in the New York Stock Exchange

The Italian luxury car manufacturer Ferrari is going to make its IPO in the New York Stock Exchange. According to Reuters, the sale will consist of 17,2 million shares (9 %) of the Dutch holding company Ferrari NV. The share price is exptected to be at 48-52 dollars. The ticker for the company will be RACE.

Investors are expected to be highly interested of this IPO and the lead coordinator is UBS altough the car industry has faced the recent Volkswagen´s emission testing scandal. The valuation of the company could rise to 9,8 billion dollars and the enterprise value would be around 12 billion dollars.

The parent company Fiat Chrysler Automobiles is exptexcted to cut the debt and to help finance a 48 billion euros investment programm of Jeep, Alfa Romeo and Maserati.

Ferrari´s chairman Piero Ferrari is said to keep a 10 percent stake in the company. He has said that Ferrari is not a traditional car manufacturer and its peer group should rather be Hermes and Prada than for example Porsche. – We don´t sell a car, we sell a dream, he said in an interview in Bloomberg.

Ferrari´s revenue last year was 2,8 billion euros and the company sold 7255 cars. The waiting list for a Ferrari is exptected to be one year. The company earnings before interests and taxes were 389 million euros.

Business Finance

AP4 Andersson: EU Directive for investors of carbon footprint?

The CEO of Swedish Pension Fund A4 Mats Andersson believes that it would be possible that EU countries will lead the carbon footprint reporting in the near future. He expects that there will be EU directive , at some point, for investors to report annually their carbon footprint. At the moment this carbon footprint is voluntarily among the institutional investors and there are initiatives like PRI´s Montreal pledge that is urging investors to report on it. The French Goverment maid an Act during the summer to make the carbon footprint reporting obligatory for institutional investors and pension funds.

– I think that Sweden will follow the French steps to make the reporting an obligatory element for institutional investors. And my guess is that this will happen at the end of this year. And later on there might also be this EU directive on this matter, Mr Andersson said before the PRI meeting in London yesterday.

If this kind of EU directive would come into force, it would mean that all the pension funds and Sovereign Wealth Funds have to report on the carbon footprint in their portfolios. This would also mean that companies in the portfolios are urged to act to report on their carbon emissions.

Business Finance

Microsoft sold 8,4 million Lumia smartphones – loss after writeoffs

Microsoft (MSFT) revenue was stable during the three months period ending in June 2015. The company made 22,2 billion dollars revenue compared to 23,4 billion dollars a year ago.

On the other hand the company made 8,4 billion dollars writeoffs and the operating loss was 2 billion dollars compared to 6,4 billion dollar profit year ago. Loss per share was 0,40 dollars. The biggest impairment test was done in the former Nokia Devices Unit with the amount of 7,5 billion dollars plus restructuring charge of 780 million dollars.

Research and Development stayed at the same level and was 3 billion dollars during that quarter.

The company sold 8,4 million Lumia smartphones during that period. The growth was over 10 percent over prior year full quarter sales, 5,8 million units post-acquisition and 1,7 million units pre-acquisition. On the other hand revenue from Lumia smartphones declined.

The company is not making any forward looking financial statement.

Microsoft share closed to 47,28 dollars, up 0,77 percent in New York.

Business Tech