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☆ Sanofi CEO under pressure to woo investors after spending shock
▼ + stars: | 2023-12-05 | by ( Ludwig Burger | ) www.reuters.com time to read: +5 min

[1/2] Paul Hudson, chief executive officer of Sanofi, speaks during the annual results news conference at the company's headquarters in Paris, France, February 4, 2022. The market's shock reaction, compounded by a lack of details of the spending push, overshadowed Sanofi's plan to list its consumer unit, in line with an industry trend. David Song, a portfolio manager and investment partner at Tema ETF, said: "The narrative of Sanofi has been a margin expansion, earnings-driven story for a lot of investors." "Shouldn't investors give credit to managements who care about long-term shareholder value creation?," said Song. ($1 = 0.9206 euros)Reporting by Ludwig Burger; Editing by Josephine Mason and Emelia Sithole-MatariseOur Standards: The Thomson Reuters Trust Principles.

Persons: Paul Hudson, Sanofi, Benoit Tessier, Hudson, Dan Lyons, Janus Henderson, Markus Manns, David Song, Fabian Wenner, Julius Baer, Union's Manns, Janus Henderson's Lyons, Johnson, Song, Ludwig Burger, Josephine Mason, Emelia Organizations: REUTERS, Reuters, Janus Henderson Investors, Germany's Union Investment, Tema, Thomson Locations: Paris, France, British, Hudson, Denver, Swiss, Tema

☆ Bayer ordered to pay $1.56 billion in latest US trial loss over Roundup weedkiller
▼ + stars: | 2023-11-19 | by ( Tom Hals | Thomson Reuters | Tom Hals Is An Award-Winning Reporter With Years Of Experience Working In Asia | ) www.reuters.com time to read: +3 min

Logo of Bayer AG is pictured at the annual results news conference of the German drugmaker in Leverkusen, Germany February 27, 2019. Each was diagnosed with non-Hodgkin lymphoma that they alleged was caused by using Roundup on their family property. Bayer has said that decades of studies have shown Roundup and its active ingredient, glyphosate, are safe for human use. The verdict is the fourth straight loss in court for Bayer, after the company had been found not liable to plaintiffs in nine consecutive trials. In 2020, Bayer settled most of the then-pending Roundup cases for up to $10.9 billion.

Persons: Wolfgang Rattay, Bayer, Valorie Gunther, Jimmy Draeger of, Daniel Anderson of, Draeger's, Brenda, Bart Rankin, Forrest Weldon, Tom Hals, Bill Berkrot Organizations: Bayer AG, REUTERS, Bayer, Monsanto, Union Investment, U.S . Environmental Protection Agency, EU Commission, European Food Agency, European Chemicals Agency, Thomson Locations: Leverkusen, Germany, Missouri, Cole County , Missouri, New York, Jimmy Draeger of Missouri, Daniel Anderson of California, Wilmington , Delaware

☆ German economy, auto sector face risks from exposure to China, fund manager says
▼ + stars: | 2023-11-15 | by ( Christoph Steitz | ) www.reuters.com time to read: +2 min

[1/2] A view shows the flags of China and Germany at a booth of a German automaker at the Auto Shanghai show, in Shanghai, China, April 19, 2023. That poses a dilemma for the German government, which is actively trying to get companies to derisk from China, the world's second-largest economy. The fund manager said it was striking that German companies are also increasingly relocating research and development activities to China, while others did the opposite for security reasons. Union Investment holds stakes in virtually all German blue-chip companies, including German carmakers Volkswagen (VOWG_p.DE), BMW (BMWG.DE) and Mercedes-Benz (MBGn.DE) as well as BASF (BASFn.DE), which all have major ties and exposure to the Chinese economy. The exposure means that German carmakers are facing risks such as being squeezed out of the Chinese market as well as seeing increased Asian competition in Europe, the fund manager said.

Persons: Aly, Christoph Steitz, Paul Simao Organizations: Auto, REUTERS, Rights, Union Investment, Reuters, Investment, Volkswagen, BMW, Mercedes, Benz, BASF, Thomson Locations: China, Germany, Auto Shanghai, Shanghai, Japan, South Korea, United States, derisk, German, Europe, Berlin, Beijing

☆ Novo Nordisk shares rise as Wegovy shows heart benefits beyond weight loss
▼ + stars: | 2023-11-13 | by ( Maggie Fick | ) www.reuters.com time to read: +3 min

LONDON, Nov 13 (Reuters) - Novo Nordisk (NOVOb.CO) shares rose 3% on Monday as the market reacted to data the drugmaker presented over the weekend showing that the heart protective benefits of its popular obesity drug Wegovy are not solely due to weight loss. Wegovy is part of a class of drugs that mimic a gut hormone that helps regulate blood sugar and appetite. U.S. companies across sectors such as food and beverage makers have addressed investor concerns on the potential impact to their businesses from the growing popularity of the promising weight-loss drugs. Novo was first to market with its highly effective weight loss drugs. At the close of markets on Friday, Novo's shares were up 47.5% this year.

Persons: Markus Manns, Jefferies, Wegovy, Novo, Eli Lilly's, Lilly, Novo's, Maggie Fick, Boleslaw Lasocki, Medha Singh, Louise Heavens Organizations: Novo Nordisk, Novo, Union Investment, Reuters, Pfizer, Jefferies, U.S, Thomson Locations: United, Germany, Novo, U.S, Bengaluru

LONDON, Nov 12 (Reuters) - Foreign investors pulled a record amount of money from U.S. equity funds tracking Saudi Arabia in October as the Middle East's worst violence in decades shook the region's business-friendly narrative. The iShares MSCI Saudi Arabia ETF saw record net outflows in October of more than $200 million, LSEG data shows, cutting 20% from what it held at the beginning of the month. "Capital flight can be quite indiscriminate," said Torbjorn Soltvedt, principal analyst for the Middle East and North Africa with Verisk Maplecroft. The iShares MSCI Qatar ETF (QAT.O) lost $7.7 million in funds in October, while the iShares MSCI UAE ETF (UAE.O) suffered outflows of $2.75 million. Nearly all the region's main economies are strong enough to weather some turmoil, investors say.

Persons: Torbjorn Soltvedt, Verisk, Natalia Gurushina, Israel, Gurushina, Bonds, Sergey Dergachev, Maplecroft, Dergachev, Libby George, Alexander Smith Organizations: Saudi Arabia ETF, . Exchange, Exchange, ARK Israel Innovative Technology, BlueStar, BlueStar Israel Technology, Hamas, Union Investment, Saudi Arabia's Public Investment Fund, Thomson Locations: Saudi Arabia, Qatar, UAE, Israel, East, North Africa, BlueStar Israel, outflows, Saudi, London, Bengaluru

LONDON/COPENHAGEN, Nov 2 (Reuters) - Global brewers AB InBev (ABI.BR) and Carlsberg (CARLb.CO) this week played down concerns among some investors that demand for weight-loss drugs may lead to a sharp drop in beer drinking. But AB InBev Chief Executive Michel Doukeris likened the concerns to others, such as how cannabis could disrupt various sectors, which he said were often short-lived. Some clinical trials on rodents have found treatment with GLP-1 agonists reduces alcohol consumption, eases symptoms of alcohol withdrawal and more. AB InBev has a big U.S. business, but earns more revenue in the Middle Americas and has a large footprint in countries like Brazil. Such emerging markets often have lower obesity rates, while weight-loss drugs are unlikely to be available or affordable there any time soon.

Persons: Nordisk's Wegovy, Michel Doukeris, Jacob Aarup, Andersen, Moritz Kronenberger, Janus Henderson, Tom O'Hara, O'Hara, Wegovy, Emma Rumney, Jacob Gronholt, Matthew Scuffham, Alexander Smith Organizations: Global, AB InBev, Carlsberg, Nordisk's, InBev, Reuters, Budweiser, World Health Organization, WHO, Germany's Union Investment, Brewers, Pedersen, Thomson Locations: COPENHAGEN, United States, Brazil, Asia, China, Danish, U.S, London, Copenhagen

A 0.25 mg injection pen of Novo Nordisk's weight-loss drug Wegovy is shown in this photo illustration in Oslo, Norway, September 1, 2023. "Supply of Wegovy is the most important thing for specialist healthcare investors covering Novo right now," said Barclays analyst Emily Field. Some analysts said a firm date would ease concerns that Novo's supply constraints could allow rival Eli Lilly (LLY.N) to get ahead, when it launches its Mounjaro weight-loss drug. Eli Lilly, the world's most valuable drug company ahead of Novo, has said it expects U.S. approval for the drug, currently licensed for diabetes, to be used for weight loss by the end of the year. Novo is spending billions to increase Wegovy output and hiring more contract manufacturers to fill the pens.

Persons: Victoria Klesty, Wegovy, Novo, Emily Field, Eli Lilly, Markus Manns, Manns, Catalent, Jefferies, Jacob Gronholt, Pedersen, Maggie Fick, Josephine Mason, Jane Merriman Organizations: REUTERS, Novo Nordisk, Wegovy, Barclays, U.S . Food, Drug Administration, Union Investment, Thomson Locations: Oslo, Norway, Victoria, COPENHAGEN, United States, Danish, Germany, Novo, U.S, Brussels, London

A 0.25 mg injection pen of Novo Nordisk's weight-loss drug Wegovy is shown in this photo illustration in Oslo, Norway, September 1, 2023. REUTERS/Victoria Klesty/Illustration/File Photo Acquire Licensing RightsLONDON/NEW YORK, Oct 23 (Reuters) - The growth in demand for appetite suppressing anti-obesity drugs like Novo Nordisk's (NOVOb.CO) Wegovy presents opportunities for food manufacturers and the market's initially downbeat reaction may be overdone, investors say. Still, the stock market impact left some food manufacturers "trembling," said John Plassard, senior investment specialist at Nestle investor Mirabaud Group. The uptake in appetite suppressing drugs seems to be a U.S.-led dynamic, said My Nguyen, research analyst at Legal & General Investment Management America. "Elsewhere, trends such as wealthier, more mobile middle classes in emerging countries can support shifts towards snacking and convenience foods."

Persons: Victoria Klesty, Richard Saldanha, Wegovy, Kiran Aziz, Mark Schneider, John Plassard, Brian Frank, Frank, Nguyen, Richa Naidu, Matt Scuffham, Kirsten Donovan Organizations: REUTERS, Walmart, Nestle, Aviva, Novo Nordisk, EY, Industry, Health Sciences, Wellness, Mirabaud, Tyson Foods, Arcos Dorados, Legal, General Investment Management America, Germany's, Investments, Unilever, Coca Cola, Thomson Locations: Oslo, Norway, Victoria, United States, Denmark, Germany, Arda, Ural, U.S

German Chancellor Olaf Scholz's coalition unveiled in July a strategy toward de-risking Germany's economic relationship with China, calling Beijing a "partner, competitor and systemic rival". German investment in Asia excluding China is rising as a share of overall investment. "No company is going to say that it will leave China," said Sandra Ebner, senior economist at Union Investment, Germany's second-largest fund manager. "But what companies are increasingly doing is to produce in China for China and to position themselves around China for the remaining Asian or global market." In July, German Economy Minister Robert Habeck travelled to India with a delegation of executives to discuss opportunities for German companies.

Persons: Thomas Nuernberger, Nuernberger, Olaf Scholz's, Volker Treier, Munk, Ferdinand Munk, Scholz, Angela Merkel's, Martin Brudermueller, Max Zenglein, Juergen Matthes, Markus Horn, Matthias Bianchi, Joe Biden, Wolfgang Niedermark, Jan Roennfeld, Roennfeld, Sandra Ebner, BDI's Niedermark, Robert Habeck, Christoph Steitz, Sarah Marsh, Maria Martinez, Aditya Kalra, Sarita Chaganti Singh, Xinghui, Orathai, Brenda Goh Organizations: Reuters, Commerce and Industry, Volkswagen, Mercedes, Benz, BASF, IW Institute, Big, Mercator Institute for China Studies, Economic Institute, Horn, German Association of, Indonesian Chamber of Commerce, Union Investment, Thomson Locations: FRANKFURT, BERLIN, Berlin, Beijing, China, Taiwan, India, Asia, Germany, Europe, Vietnam, South Korea, Indonesia, South China, European, Thailand, United States, Mexico, Indonesian, Eastern Germany, Malaysia, Frankfurt, New Delhi, Xinghui Kok, Singapore, Bangkok, Shanghai

☆ H&M blames warm weather for September sales slide
▼ + stars: | 2023-09-27 | by ( Helen Reid | トムソンロイター | London-Based Reporter Covering The European Retail Sector Through A Global Lens. Focusing On Companies Including Adidas | ) www.reuters.com time to read: +3 min

H&M, whose biggest rival is Zara owner Inditex (ITX.MC), said September sales would be down 10% year-on-year measured in local currencies. That compares with Inditex reporting sales between Aug. 1 and Sept. 11 that were up 14%. Operating profit in the Swedish group's third quarter jumped to 4.74 billion crowns ($431 million) from a year-earlier 902 million. The year-ago figure included a one-off cost of 2.1 billion crowns for the group's exit from Russia, which also accounted for four percentage points of the 10% September sales decline. H&M announced a share buyback programme starting on Wednesday, planning to buy back up to 3 billion crowns of stock by March 31 next year.

Persons: サマリー, Inditex, Vera Diehl, Nicolas Champ, LSEG, Richard Chamberlain, Anna Ringstrom, Helen Reid, Jan Harvey, Mark Potter Organizations: Union Investment, Barclays, RBC, HK, Tmall Locations: STOCKHOLM, Zara, Swedish, Russia, JD.com, China's Xinjiang, Alibaba's

☆ Counting the cost of contagion fears from Africa coups
▼ + stars: | 2023-09-21 | by ( Libgeorge Marc Jones | Marc Jones | ) www.reuters.com time to read: +5 min

Gabon coup leader General Brice Oligui Nguema is sworn in as interim president during his swearing-in ceremony, in Libreville, Gabon, September 4, 2023. The putsch not only sent Gabon's bonds tumbling 10%, but also hit those issued by a number of other countries including neighbouring Cameroon, as jittery investors scanned for who might be next. The apparent coup trend is adding to other major concerns deterring many investors from Africa - a wave of debt crises, tense geopolitics and an extreme vulnerability to climate change. "Nearly all markets in that region are paying some price in terms of rising cost of debt," said Sergey Dergachev, portfolio manager at Union Investment. There have been scores of coups and attempted coups in recent decades including in Thailand, Ecuador, Egypt and Turkey.

Persons: General Brice Oligui Nguema, Stringer, Sergey Dergachev, Paul Biya, Macky Sall, Denis Sassou Nguesso, Eamon Aghdasi, Fitch, Moody's, Thailand's, Ravi Bhatia, Bongo, Simon Quijano, Evans, Libby George, Marc Jones, Karin Strohecker, Emelia Sithole Organizations: REUTERS, UNDP, Union Investment, Investors, Reuters, General Assembly, Burkina, P Global, Reuters Graphics, Monetary Fund, Central, CFA, Peace, Thomson Locations: Gabon, Libreville, Africa Mali, Guinea, Africa, Cameroon, Mali, Thailand, Ecuador, Egypt, Turkey, crackdowns, Senegal, Congo Republic, New York, Niger, Burkina Faso, Kenya

"Increasingly we are going to turn used clothes into raw material from Europe for fashion companies." Also in Spain, rivals including H&M, Mango and Inditex have created a non-profit association to manage clothing waste, responding to an EU law requiring member states to separate textiles from other waste from January 2025. OBSTACLESThe obstacles to significantly reducing clothing waste are formidable, despite the EU crackdown, industry sustainability commitments and initiatives like the Moda Re expansion. Adidas (ADSGn.DE), Bestseller, and H&M (HMb.ST) have invested in Finnish start-up Infinited Fiber Company, which manufactures fibre out of textile waste, cardboard and paper. As in Spain, textile waste associations would be set up in each country.

Persons: Albert Alberich, Inditex, Dijana Lind, Hugo Boss, Lind, Moda, Aissatou Boukoum, Mauro Scalia, Corina Pons, Helen Reid, Horaci Garcia, Nacho, Frank Jack Daniel Our Organizations: BARCELONA, Moda, Caritas, Union, European Commission, Union Investment, Adidas, McKinsey, Reuters, EU, ReHubs, Moda Re, United Nations, Inditex, Puma, Infinited Fiber Company, Thomson Locations: Spain, Barcelona, Spanish, Europe, Zara, Bilbao, Valencia, EU, Frankfurt, ReHubs Europe, Mali, Sant, AFRICA, Cameroon, Ghana, Senegal, Africa, Senegalese, Germany, Texaid, Switzerland, Vestisolidale, Italy, France, EURATEX, Madrid, London, Nacho Doce

A general view of the drug product manufacturing laboratory in biologics and sterile injectables, Catalent, in Brussels, Belgium June 27, 2023. Spokespeople for Catalent and Elliott declined to comment. The U.S.-based contract drugmaker is also Danish company Novo Nordisk's (NOVOb.CO) main manufacturing partner for its popular weight-loss drug Wegovy. The volatility at Catalent could increase scrutiny on the relationship between Novo and its partner. Reuters reported last week that a second Catalent factory will begin filling Wegovy injection pens for Novo as part of an expanded supply agreement.

Persons: Yves Herman Acquire, Elliott, drugmaker, Markus Manns, Catalent, Elliott isn't, Keith Meister's, Scott Ferguson's, Mauricio Gutierrez, Svea Herbst, Bayliss, Maggie Fick, Amanda Cooper, Shri Navaratnam, Bernadette Baum, Catherine Evans Organizations: REUTERS, Elliott Investment Management, Catalent, Novo, Reuters, Union Investment, AstraZeneca, Johnson, Moderna, eBay, Inc, Deutsche Bank, Management, Capital Management, NRG, Svea, Thomson Locations: Brussels, Belgium, U.S, Danish, Novo, United States, Germany, Boston, London

The logo of German chemicals maker Covestro is pictured outside its headquarters in Leverkusen, Germany, July 26, 2019. REUTERS/Wolfgang Rattay/File Photo Acquire Licensing RightsFRANKFURT, Aug 24 (Reuters) - Germany's Covestro (1COV.DE) should engage in formal takeover talks with Abu Dhabi National Oil Co (ADNOC) in the interest of its shareholders, two top-15 investors of the plastics and chemicals maker told Reuters. ADNOC, which is trying to diversify and develop its downstream and renewable energy operations, made a non-binding offer for Covestro of 55 euros per share in June, which was rejected, according to press reports. Rautenberg declined to comment on the price at which he would recommend Covestro accept an offer. Covestro this week appointed Christian Baier as chief financial officer, with Rautenberg noting his past dealmaking experience at private equity firm Permira.

Persons: Wolfgang Rattay, ADNOC, Arne Rautenberg, Covestro, Rautenberg, Christian Baier, Emma, Victoria Farr, Elisa Martinuzzi, Kirsten Donovan Organizations: REUTERS, Rights, Abu, Abu Dhabi National Oil Co, Reuters, Union Investment, Thomson Locations: Leverkusen, Germany, Abu Dhabi

☆ US loss of AAA badge a reminder of 'regime shift' for government debt
▼ + stars: | 2023-08-14 | by ( Yoruk Bahceli | ) www.reuters.com time to read: +6 min

"I think it really brings home that shift being a regime shift rather than a cyclical one," Katimbo-Mugwanya said. S&P said the assumption that governments would prioritise servicing debt over spending promises had rarely been tested at such high debt levels. For now, despite the steepest increases in borrowing costs in decades, investors still see little risk in holding governments' longer-term debt. POLICY WATCHGreater focus on longer-term risks should bring scrutiny of government policies. Still, with higher debt an economic reality, few governments are left with the coveted AAA rating.

Persons: Brendan McDermid, Fitch, David Katimbo, Mugwanya, Bill Ackman, Moritz Kraemer, Fichan, Kraemer, Kshitij Sinha, Martin Lenz, LBBW's Kraemer, Yoruk Bahceli, Davide Barbuscia, Tomasz Janowski Organizations: New York Stock Exchange, REUTERS, AAA, Financial, Fitch, EdenTree Investment Management, P Global, LBBW, European Union, European Commission, European Central Bank, Syz, New York Fed, Life Asset, Union Investment, Thomson Locations: New York City, U.S, United States, Japan

SummaryCompanies Q2 sales and earnings beat estimatesReiterates full-year guidanceNo revenue from COVID vaccine in Q2Shares up 3.1% in early tradeCompany is largest drugmaker in ChinaLONDON, July 28 (Reuters) - AstraZeneca (AZN.L) on Friday delivered better-than-expected profits and sales in the second quarter as a strong performance of its blockbuster cancer drugs helped offset the loss of COVID-19 vaccine sales. The Anglo-Swedish drugmaker posted an adjusted profit of $2.15 per share, up 25% and exceeding the $1.98 per share expected in company-compiled consensus estimates. Total revenue in the quarter was $11.4 billion, up 6% and beating company-compiled analyst estimates of $10.97 billion. Excluding COVID medicines, sales in China grew by 7% at constant exchange rates in the quarter, the fourth consecutive quarter of growth on that basis. AstraZeneca is the largest drugmaker in China, which accounted for 13% of last year's revenue.

Persons: Swedish drugmaker, Pascal Soriot, Markus Manns, Alexion, drugmaker, Maggie Fick, Radhika Anilkumar, Nivedita Bhattacharjee, Josephine Mason Organizations: AstraZeneca, UK's, Pfizer, Moderna, U.S, Union Investment, Thomson Locations: China LONDON, Swedish, China, London, Bengaluru

GSK reckons the spin-off has allowed the company to sharpen its focus on vaccines and infectious diseases and with $7 billion generated by the Haleon spin-off, it can fund deals to bolster a lacklustre drug pipeline. The company also reported an adjusted profit of 38.8 pence per share for the quarter, on sales of about 7.18 billion pounds ($9.26 billion). Analysts were expecting a profit of 34.7 pence per share on sales of about 6.77 billion pounds, according to company-compiled consensus estimates. Sales of Shingrix, the company's top-selling drug, generated 880 million pounds, beating analyst estimates of 872 million pounds. Sales of HIV treatments generated 1.58 billion in the quarter, ahead of the company-compiled consensus of about 1.5 billion pounds in the quarter.

Persons: Zantac, Emma Walmsley, Walmsley, Markus Manns, Dani Saurymper, Maggie Fick, Radhika Anilkumar, Janane Venkatraman, Savio D'Souza, Josephine Mason Organizations: GSK, British, Analysts, U.S, Union Investment, Pacific Asset Management, Thomson Locations: London, Bengaluru

July 25 (Reuters) - Further deterioration in demand for glyphosate-based weed killers led Bayer (BAYGn.DE) to cut its full-year earnings outlook and announce a 2.5 billion euro ($2.8 billion) write-down on glyphosate-related assets. That was lower than a previous 2023 outlook of 12.5 billion euros, or slightly higher. Free cash flow would come in at zero, down from a previous prediction of 3 billion euros, the company said. "Based on the anticipated market development, in particular with respect to the glyphosate business, Bayer also expects to record a goodwill impairment of approximately 2.5 billion euros," it said. That would result in a second-quarter net loss of 2 billion euros.

Persons: Bayer, Bill Anderson, Roche, Markus Manns, Anderson, Hurricane Ida, Werner Baumann, Thomas Escritt, Ludwig Burger, Jonathan Oatis, Susan Fenton, Kirsten Donovan Organizations: Union Investment, Barclays, FMC, BASF, Bayer, Thomson

Consumer goods makers say the price hikes are necessary, and that they have taken a hit to margins over the past two years. Some companies such as Clorox (CLX.N) have even begun to ease off the hikes to protect sales volumes as input costs fall. "In the U.S. in particular, these pressures are more acute than in Europe," Janus Henderson portfolio manager Luke Newman told Reuters. U.S. consumer strength has begun weakening, "and that's bad news for the consumer companies," Barclays analyst Iain Simpson said. Still, cost inflation has chipped away at margins, which have broadly fallen 2-4 percentage points over the past two years for the consumer goods industry.

Persons: Janus Henderson, Luke Newman, Newman, Richard Marwood, Robert Klaber, Parnassus, Iain Simpson, Alvarez, Marsal, David Chavern, Stephanie Niven, Niven, Irene Jensen, Jensen, Thomas Joekel, Richa Naidu, Jessica DiNapoli, Matt Scuffham, Deepa Babington Organizations: U.S, Consumer, Reuters, Royal London Asset Management, Investments, Biden, Barclays, Procter, Gamble, Consumer Brands Association, Sustainable Equity Fund, Norges Bank Investment Management, Unilever, Reckitt, Investment, Thomson Locations: Ukraine, U.S, Europe, San Francisco, United States

Siemens Energy CEO Christian Bruch said on Friday that the takeover of Siemens Gamesa had not been a mistake and that the price had seemed right at the time when the offer was made. 'SO MANY QUESTIONS'Top-20 investor Deka Investment said "significantly greater efforts" were now needed by Siemens Energy, chaired by Siemens veteran Joe Kaeser, to restore trust. Berenberg analysts pointed out that Siemens Energy had given a fairly upbeat view on Siemens Gamesa along with second-quarter results only a month ago, and that Thursday's announcement did not fit with the recent communication. Siemens Energy CEO Bruch also cited the need to fix Siemens Gamesa's corporate culture, hinting at the fact that the company's merger never fully worked and that major management mistakes were made. When asked earlier this month on whether Siemens Energy was doing well enough to master the challenges of the energy transition, Kaeser said the management team led by Bruch was strong.

Persons: Felix Schroeder, Schroeder, Christian Bruch, Siemens Gamesa, Jochen Eickholt, Spain's, Joe Kaeser, Bruch, Kaeser, Christoph Steitz, Christina Amann, Susan Fenton, Louise Heavens Organizations: Siemens Energy, Siemens, Siemens Gamesa, Union Investment, Deka Investment, Deutsche Bank, Thomson Locations: FRANKFURT, BERLIN, Bray, European

☆ Germany's Covestro rejects takeover proposal from ADNOC -Bloomberg News
▼ + stars: | 2023-06-22 | by ( ) www.reuters.com time to read: +1 min

FRANKFURT, June 22 (Reuters) - German plastics and chemicals maker Covestro AG (1COV.DE) has rejected an initial takeover proposal from Abu Dhabi National Oil Co (ADNOC) saying the offer was too low, Bloomberg News reported on Thursday citing people familiar with the matter. The stock jumped as much as 3.7% after the report was published, after trading down earlier in the day. Two people familiar with the matter told Reuters on Tuesday that ADNOC had approached Covestro with a takeover proposal worth more than 10 billion euros ($11.00 billion). It would probably only be a matter of price whether the existing shareholders would accept such a takeover offer," Arne Rautenberg, fund manager at Union Investment, told Reuters. Covestro, a maker of transparent polycarbonate plastics, as well as chemicals for insulation and upholstery foams, in April issued earnings guidance that reassured markets about its growth prospects.

Persons: ADNOC, Covestro, Arne Rautenberg, Gursimran Kaur, Victoria Farr, Jason Neely, Conor Humphries Organizations: Covestro, Abu Dhabi National Oil Co, Bloomberg, Reuters, Union Investment, Thomson Locations: FRANKFURT, Abu Dhabi, Bengaluru, Emma, Frankfurt

☆ The biggest threat to a major pullback in stocks is a hard landing for the economy
▼ + stars: | 2023-06-20 | by ( Bob Pisani | ) www.cnbc.com time to read: +4 min

The S & P 500 is up 15% this year. History shows just the opposite happening: In years when the S & P 500 has a particularly strong first half, it tends to close strong as well. Here's an example: The S & P 500 has been up 15% or more in the first half of the year 10 times since 1980. The S & P 500 is where most of the money is Regardless: the simple fact is the vast majority of the investing public is invested in the stocks in the S & P 500, and particularly the S & P 100. A slightly different measure of a market advance: 61% of the S & P 500 are above their 200-day moving average.

Persons: You've, Ari Wald, Oppenheimer, what's, Christian Kopf Organizations: Tech, Nasdaq, Financial Times, Union Investment

An internal Union Investment document seen by Reuters shows that the firm received just 30 responses to its outreach. Although consumer goods manufacturers are particularly exposed, other sectors that import goods associated with deforestation, including commodities houses and industrials companies, will also face scrutiny. Consumer goods makers are counting on technology such as satellites and artificial intelligence to help eradicate deforestation from their supply chains. Several large consumer goods companies say they are close to meeting their ambitious zero-deforestation goals. "The EU rules make deforestation a financial risk as well as an environmental risk."

Persons: Ueslei Marcelino, Henrik Pontzen, Pontzen, Janus Henderson, Jonathan Toub, haven't, Snorre Gjerde, Christophe Hansen, Magdi Batato, Kit Kat, Nestlé, David Croft, Reckitt's, Arild Skedsmo, Richa Naidu, Kate Abnett, Matt Scuffham, David Evans Organizations: REUTERS, Reuters, EU, Germany's, Investment, Unilever, ESG, Union Investment, Nestle, Pepsico, Danone, L'Oreal, KLP, Aviva, Fidelity International, Reckitt, UN Food and Agriculture Organization, Consumer, Thomson Locations: Uruara, Para State, Brazil, NBIM, Nescafe, London, Brussels

FRANKFURT, May 17 (Reuters) - Deutsche Bank (DBKGn.DE) investors on Wednesday questioned the sustainability of the lender's growth plans and called for a shift of resources from the investment bank, even as they praised CEO Christian Sewing for stabilising the bank. Andreas Thomae of the Deutsche Bank investor Deka said that the bank's targets require a "tailwind" from the markets to be achievable, and rising interest rates have been "pure adrenaline" for the bank. Reuters GraphicsShe called on the bank to shift capital from its investment bank to other areas in the bank that yield higher returns. "Deutsche Bank is one of the European banks most dependent on investment banking, a poorly predictable, opaque business that is driving down its stock valuation," she said. Sewing, who won kudos from some of the investors for restoring profitability, responded that the bank was "robustly and sustainably profitable".

☆ Deutsche Bank investors raise questions, call for tweaks amid praise at AGM
▼ + stars: | 2023-05-17 | by ( ) www.reuters.com time to read: +1 min

FRANKFURT, May 17 (Reuters) - Deutsche Bank (DBKGn.DE) investors on Wednesday questioned the sustainability of the lender's growth plans and called for a shift of resources from the investment bank, even as they praised CEO Christian Sewing for stabilising the bank. The statements, to be made at Deutsche Bank's annual general meeting, come after the bank booked 11 consecutive quarters of profit after years of losses, but also amid bank rescues on both sides of the Atlantic that have shaken confidence in the sector. Andreas Thomae of the Deutsche Bank investor Deka said that the bank's targets require a "strong tailwind" from the markets to achieve them, and rising interest rates have been "pure adrenaline" for the bank. Reuters GraphicsShe called on the bank to shift capital from its investment bank to other areas in the bank that yield higher returns. "Deutsche Bank is one of the European banks most dependent on investment banking, a poorly predictable, opaque business that is driving down its stock valuation," she said.

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