WeWork valuation below 8 billion dollars – Bloomberg

 

 

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VW in talks with electric cars R&D sharing – Bloomberg

 

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Hong Kong Exchange is not proceeding with LSE

The Hong Kong Exchanges and Clearings (HKEX) has today informed that they will not proceed with the London Stock Exchange Group (LSEG) offer.  The company says it is disappointed about the feedback of the suggested merger, while Hong Kong still sees the merge would have offered the world-leading exchange services and products.

The stocks of the Hong Kong Exchanges and Clearings were up 2,92 % to 232,60 dollars in Hong Kong today.

 

 

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Volvo Cars and Geely to combine R&D and engine operations in electric cars

The new Volvo XC60

The Swedish Volvo Cars and its Chinese owner, Geely have announced a plan to combine their electric cars R&D and engine operations. The aim is also that the new unit will offer the services to other customers in the future. The change is part of the Volvo Car´s focus in electrification of its whole production.

This means that the companies intend to merge their existing combustion engine operations into a stand-alone business that will seek to develop next generation combustion engines and hybrid powertrains.

– The proposed new business would clear the way for Volvo Cars to focus on the development of its all-electric range of premium cars. Volvo Cars is building an entirely electrified product range, as part of the company’s ambition to put sustainability at the core of its operations. By the middle of the next decade it expects half its global sales to be fully electric and the other half hybrid, supplied by the new unit, Volvo said in its press release.

– For Geely, the planned new entity means technologically-advanced and efficient combustion engines and hybrid powertrains would be available to Geely Auto, Proton, Lotus, LEVC and LYNK & CO. The planned new stand-alone business can also supply third party manufacturers, providing possible growth opportunities, companies say.

The new entity will have 3000 employees from Volvo Cars and around 5000 employees from Geely´s combustion engine operations.

Volvo Cars believes the electrification of the automotive industry will be a gradual process, meaning there will be significant ongoing demand for efficient hybrid powertrains alongside fully-electric offerings.

-Hybrid cars need the best internal combustion engines. This new unit will have the resources, scale and expertise to develop these powertrains cost efficiently, said Håkan Samuelsson, Volvo Cars’ president and chief executive.

The detailed plans of the new business are under development and subject to union negotiations as well as board and relevant authority approvals, companies say.

Volvo Cars is about to launch its first fully electric XC40 in October 16th. Later in October Volvo will also publish its Q3 report.

Picture: The new Volvo XC60 T8 R-Design in Crystal White

Business Finance

Brexit: PM does not have to ask for extension – Court

The Scottish judge has today announced that the UK Prime Minister Boris Johnson does not have to ask for the extension to the Brexit-deal if there is no deal ready by 19 October.

The EU leaders summit is taking place 17-18 October and some MPs have asked that the UK Government should ask extension to Brexit if the leaders are not able to reach an agreement in order to avoid the no-deal scenario.

This positive sign for possible Brexit deal was welcomed in the markets and FTSE 100 -index closed up 0,59% to 7197 points in London. In Germany the markets closed also up and Dax-index rose 0,70 % to 12097 points. In France the CAC 40 -index closed up 0,61 % to 5521 points.

 

 

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WeWork´s layoffs and credit rating cut

The US office-rental company WeWork has said it is in the process of laying some of its employees after the abandoned IPO process. According to Bloomberg, the size of the layoffs will be published later this month.
The company faced also a credit rating cut from Fitch. According to Fitch, the office provider is now in the CCC+ category, which means a junk bond rating. The credit outlook is now negative.
WeWork was planning a 20 billion dollar IPO deal for this autumn, but the largest owner Softbank decided to postpone the IPO related to market conditions.
After the decision the company also announced changes in the top management. The company has now two co-CEOs Artie Minson and Sebastian Gunningham after the former CEO Adam Neumann decided to step back from operating role and focus on the board work.

 

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US stocks down – manufacturing data and trade tariffs

The US equity markets were clearly down in New York on Wednesday. The global growth concerns related to recent manufacturing and car sales data were the primary reasons. Dow Jones lost 1,86 % to 26078 points, the S&P 500 -index 1,79 % to 2887 points and the technology Nasdaq-index declined 1,56 % to 7785 points.

The US manufacturing data showed the global growth concern is having impact on the US economy. The US China trade talks have put pressures on the US manufacturing and for example the Ford Motor Company released its car sales figures, which were showing a decline in the third quarter.  Also the declining figures in German manufacturing is one part of the global concern.

Tesla (TSLA) also announced its third quarter deliveries, which were approximately 97,000 vehicles, according to the company release. According to Tesla the total deliveries were at record level, but according to Reuters the deliveries were down to Wall Street expectations and the share fell over 6 % after the bell. Last week the CEO Elon Musk was quoting that the company may reach a six-figures deliveries.

The US also announced a new trade tariffs to the EU related to the WTO Airbus decision. The new tariffs would include 7,5 billion dollars worth of goods. According to Bloomberg this would mean a new 10 % tariffs to aircraft goods and 25 % tariffs on farming and other industrial items. The new tariffs would be effective by October the 18th.

In the UK the FTSE -index also declined 3,23 % to 7122 points. The UK Prime Minister Boris Johnson delivered the new Brexit proposal to the EU. The country is aiming the EU leaders summit on the October 17th in order to seek the deal with the EU.

In Germany the DAX-index closed down 2,76  % to 11925 points and in France the CAC 40-index declined 3,12 % to 5422 points.

 

 

 

 

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