Takeway.com and Just Eat in merger talks

The Dutch food-delivery company Takeway.com (TKWY) and the London-based Just Eat (JE) are in merger talks. The companies have confirmed the talks and if they decide to merge, they would create together a group worth of 9 billion euros.

The share price of Takeway.com closed up 1,15 % to 83,55 euros on Friday in Amsterdam, while Just Eats share price closed up 2,06 % to 635,60 pounds in London.

The new company would be bigger rival to Deliveroo and Uber Eats.

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Trump taking actions against France related tech tax

The US President Donald Trump said on Friday that the US is taking action against France and its decision to tax the US tech companies. According to his Twitter feed, the US will announce a substantial reciprocal shortly.

According to Wall Street Journal, France approved a new tax on large tech companies related on digital services. This 3 % tax of revenue will mean that companies like Google and Amazon would need to pay tax in France.

This tax issue will be discussed also in the coming G7 meeting in Biarritz, France in the beginning of August.


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LSE confirms the Refinitiv talks

The London Stock Exchange (LSE) confirms the merger talks with Refinitiv. According to the company press release on Saturday, the LSE says that it is in talks with Refinitiv Shareholders about the possible acquisition of Refinitiv.

There can be no certainty that discussions between the parties will progress or that a transaction will be forthcoming, the LSE says.

The Stock Exchange says that the total enterprise value of the deal would be about 27 billion dollars and it would mean that new LSE shares would be issued. The parties estimate that the transaction would mean that Refinitiv Shareholders would get less of 30 % of the total voting rights of LSEG.

– LSEG believes that a potential transaction would offer significant customer benefits across the full range of LSEG’s businesses. The combined business would create a leading, UK headquartered, global financial market infrastructure provider with significant multi-asset capital markets capabilities, a leading data and analytics business and a broad post-trade offering, well positioned for future growth in an evolving landscape, the stock exchange says.

The Stock Exchanges reminds that the transaction remain a subject to the LSEG Board and that there is no certainty that the transaction would happen.

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The London Stock Exchange and Refinitiv in merger talks – FT

The London Stock Exchange Group is in merger talks with Refinitiv, writes Financial Times today. According to the newspaper, the deal would create a global exchanges and data powerhouse.

According to FT, the deal is to be announced as soon as next week. Refinitiv, former part of Thomson Reuters, is 55 % owned by private equity company Blackstone. The deal in January 2018 valued the total Financial & Risk Unit (now called Refinitiv) at 20 billion dollars.

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Apple and Intel confirmed the chips deal

The US Apple (AAPL) and Intel (INTC) have confirmed and agreed the deal that Apple is buying the smartphone chip asset from Intel for 1 billion dollars. It means that Apple gets 2200 new employees and a portfolio of patents.

The deal was announced at the same time as Intel announced its quarterly figures. According to Intel, its sales declined 3 % to 16,5 billion dollars from year ago, but earnings fell 17 % to 4,2 billion dollars due to the changes in the US China trade situations. From April guidance, the revenue was 900 million dollars higher.

For Apple this means a new power in its supply chain and development of new products for 5G wireless network. At the moment, iPhones do not support the 5G but according to market estimates this situation is expected to change next year.

Intel retains the right to develop 5G chips to non-smartphone products like for internet of things. According to the new guidance for the third quarter, the revenue is expected to be 18 billion dollars with operating margins 33 %. The third quarter report is going to be announced on October 24th after the market close.

Intel´s share closed down 1,4 % to 52,16 dollars and Apple´shares were also down, 0,79 % to 207,02 dollars in New York.

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Kering: Revenue to 7,6 billion euros, +18,8 %

20190324_1538516782124581227451604.jpgThe French luxury group Kering (KER) announced its half year figures, which showed the revenue growth of 18,8 % to 7,6 billion euros. Sales in Asia-Pacific area rose 21 %, in Japan 10%, in Western Europe +14,8 % and in North America +7,3 %.

The sales of the Gucci brand was nearly 20 % reaching to 4,6 billion euros during the first six months 2019. The sales of Yves Saint Laurent rose 20,4 % to 973 million euros and Bottega Venetta´s sales decreased 0, 6 % to 549 million euros. Others, which include also jewellery, rose 23 % to 1,2 billion euros. Online-sales rose 16 %.

According to Kering press release, the gross margin was 5,6 billion euros in the group and ebitda rose 19,6 % to 2,8 billion euros.

The company’s share price declined 2,04 % to 508,90 euros in Paris today. The market cap of the Kering Group is 64,2 billion euros.

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Draghi: ECB rates unchanged – stimulus needed

The European Central Bank (ECB) kept its key interest rates unchanged in today’s Governing Council meeting. According to President Mario Draghi, the central bank is determined to keep the rates at least at the present or even lower level until the first half of 2020.

The tone of voice about the slow economic growth and the needed stimulus package has become more serious. The bank is now also considering the asset purchase program (APP) again.

-This outlook is getting worse and worse, and it is getting worse and worse in manufacturing and getting worse and worse in countries where manufacturing is very important, Mr Draghi said in the press conference.

He reminded about the geopolitical situation, trade tensions, lower manufacturing figures, hard Brexit and the low growth rate of Chinese economy as the main reasons for the low economic outlook. And he also said many times: We do not like what we see (referring to the low inflation figures).

The central bank said already in the previous press conference that it has helped banks to boost the financing and liquidity of corporate lending as part of the financial stimulus.

-Teltra 3 will help bank lending and access to finance especially for small and medium size companies in the euro-zone, Draghi reminded.

The financial markets are expecting that the ECB would lower its rates in September meeting, while the Federal Reserve is expected to do it already next week.

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