10th Nov 2021 10:53
(Alliance News) - The following is a summary of top news stories Wednesday.
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COMPANIES
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The EU's second-highest court upheld a EUR2.4 billion fine on Alphabet's Google by anti-trust authorities in Brussels for search engine dominance. The fine was handed down in 2017 by the European Commission. It rejected an appeal by the US technology firm against a European Commission position that it "abused its dominant position" by favouring its own Google Shopping service in search results. Wednesday's ruling - a boost for EU ambitions to rein in Google's market dominance - can still be challenged at the bloc's highest court, the European Court of Justice. Additionally Wednesday, Britain's highest court blocked a class action against Google, accused of illegally tracking millions of Apple iPhone users. The Supreme Court said in a statement that it "unanimously dismisses" the legal action brought by campaigners against the US-based tech giant on behalf of 4.4 million people in England and Wales.
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Allianz said it delivered a strong operating performance across all business segments in the third quarter of 2021. The Munich, Germany-based insurance and asset management firm said total revenue increased 9.5% in the three months to September 30 to EUR34.4 billion from EUR31.4 billion recorded a year ago. Revenue for the nine months to the end of September increased to EUR110.1 billion from EUR104.9 billion. Operating profit grew 11% year-on-year to EUR3.24 billion, driven by the company's Asset Management and Life-Health business segments. However, the strong growth in operating profit was offset to a major extent by a decrease in the non-operating investment losses. As a result, net income attributable to shareholders increased just 2.3% to EUR2.11 billion in the third quarter of 2021.
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Adidas affirmed its annual guidance despite income suffering from higher operating costs in the third quarter of 2021. The Nuremberg, Germany-based sports apparel maker said revenue for the three months to September 30 grew 3.4% to EUR5.75 billion from EUR5.56 billion a year prior. Adidas said e-commerce revenue experienced a significant increase in full-price sales during the quarter and grew 8% year-on-year. This reflects an increase of 64% compared to the level of 2019. Net income from continuing operations reached EUR479 million in the quarter, down from EUR535 million a year ago, as operating expenses increased to EUR2.24 billion from EUR2.09 billion during the quarter.
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Ahold Delhaize said its performance improved in the third quarter of 2021 as it continues to adjust its business to new consumer habits. The Zaandam, Netherlands-based grocer said net sales in the three months to September 30 rose by 4.0% year-on-year to EUR18.55 billion. On a constant currency basis, sales were up 4.6%. On a two-year comparable sales stack basis, sales growth was 12%. Net consumer online sales grew 29% in the quarter at constant exchange rates, due to significant growth at bol.com, continued strong performance across the rest of the online business, and the FreshDirect acquisition.
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Television broadcaster ITV said it had an "outstanding" nine months with strong performances from its Studios and Media & Entertainment businesses driving revenue growth. For the nine months to September 30, revenue was GBP2.79 billion, up 29% from GBP2.17 billion at the same time last year. Total advertising revenue came in at GBP1.36 billion, rising 31% from GBP1.04 billion. As previously guided, ITV expects to propose a final dividend of 3.3p at the full year stage. Looking ahead, ITV said total advertising revenue for 2021 is expected to be the highest in the company's history.
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Industrial software provider Aveva Group said it saw a good first half performance, delivering a "solid set of results" and laying foundations for future growth. For the six months to September 30, revenue rose to GBP480.9 million from GBP332.6 million last year, but its pretax loss widened to GBP80.3 million from a GBP24.2 million loss. Aveva said the loss was due to the amortisation of intangible assets relating to its combination with the Schneider Electric industrial software business and its OSIsoft acquisition. Aveva declared an interim dividend of 13.0 pence, up 4.8% from 12.4p paid out last year.
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Vodacom said it will acquire a 55% stake in Vodafone Egypt Telecommunications from parent Vodafone for USD2.74 billion, around ZAR41.31 billion, in cash and shares. Vodafone Egypt is 55% held by Vodafone and provides telecommunication services in Egypt, including mobile and fixed voice, SMS and data to around 43 million customers. The remaining 45% is held by Telecom Egypt. The payment price of USD2.74 billion gives Vodafone Egypt an enterprise value of USD3.15 billion. Vodacom will satisfy 80% of the consideration through the issue of 242.0 million new shares at a price of ZAR135.75 each, which will increase Vodafone's shareholding in Midrand-based Vodacom from 61% to 65%. The remaining USD548 million is to be settled through cash.
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Marks & Spencer raised its annual profit outlook for the second time in less than three months after a sales rebound, but it warned over surging costs and disruption due to supply chain issues. The food, clothing and homewares retailer reported pretax profit of GBP187.3 million in the six months to October 2, swung from a loss of GBP87.6 million a year earlier at the height of the pandemic, and up 18% on two years ago before Covid-19 struck. M&S said it expects full-year underlying profit to beat expectations, now guiding for around GBP500 million – having already upgraded its guidance in late August to above GBP350 million. The company declared no interim dividend, unchanged from a year ago. Two years ago, M&S paid a 3.9p interim dividend. Food sales rose 10% in the first half of the year, but clothing and home sales continued to trail, slipping by 1%.
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Johnson & Johnson said the Oklahoma State Supreme Court ruled in favour of its subsidiary Janssen Pharmaceutical in overturning the trial court's USD465 million judgment in 2019. In August 2019, Johnson & Johnson appealed the civil judgment in Cleveland County District Court in the State of Oklahoma's lawsuit against opioid manufacturers. At the time, the company said the judgment disregarded its compliance with federal and state laws. "Janssen did not cause the opioid crisis in Oklahoma, and neither the facts nor the law support this outcome," said Michael Ullmann, general counsel at Johnson & Johnson.
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DoorDash has added Europe to its menu with the purchase of Finland-based food delivery firm Wolt in an all-stock deal valued at USD8.1 billion, the company announced Tuesday. The news came the same day DoorDash reported that its revenue grew 45% to USD1.3 billion in the recently ended quarter but that its loss more than doubled to USD101 million when compared with the same period last year. San Francisco-based DoorDash's shares surged 20% USD230.00, in after-market trade in New York following the announcement. Wolt has a team of more than 4,000 employees in an operation that spans 23 countries, according to the companies.
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India's only woman-led unicorn Nykaa made its market debut Wednesday, tripling founder Falguni Nayar's net worth and making her the country's newest self-made billionaire in an ongoing IPO boom. Nayar, 58, joined only six other Indian women dollar billionaires as her beauty and fashion retailer Nykaa's parent company FSN conducted an initial public offering on the Mumbai stock exchange, hitting a valuation of INR1 trillion, about USD13.5 billion, in the first five minutes of trade. Investment banker Nayar turned entrepreneur at 50 with the launch of the e-commerce platform in 2012, selling beauty and personal care products via its mobile app and website.
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MARKETS
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European and Asian stock markets were mostly lower on Wednesday after a negative close on Wall Street on Tuesday. Major US stock indices were called to open lower again on Wednesday. The FTSE 100 index in London was outperforming, led by ITV, up 12%.
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CAC 40: down 0.2% at 7,027.35
DAX 40: down 0.1% at 16,029.69
FTSE 100: up 0.5% at 7,311.88
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Hang Seng: closed up 0.7% at 24,996.14
Nikkei 225: closed down 0.6% at 29,106.78
S&P/ASX 200: closed down 0.1% at 7,423.90
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DJIA: called down 0.2%
S&P 500: called down 0.2%
Nasdaq Composite: called down 0.2%
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EUR: flat at USD1.1578 (USD1.1577)
GBP: firm at USD1.3540 (USD1.3530)
USD: up at JPY113.18 (JPY112.94)
Gold: firm at USD1,826.12 per ounce (USD1,825.74)
Oil (Brent): up at USD84.81 a barrel (USD84.08)
(currency and commodities changes since previous London equities close)
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ECONOMICS AND GENERAL
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China's factory-gate inflation hit a 26-year high in October while fresh virus outbreaks and soaring food and energy prices sent consumer prices up more than forecast, official figures showed. The producer price index has been rising for four straight months, putting pressure on authorities to stop costs from running out of control, just as officials battle to kickstart a recovery in the world's number two economy. The reopening from lockdowns around the world has ramped up energy demand just as stockpiles are low, with supply struggles made worse by China's drive to meet environmental targets. The PPI, which measures the cost of goods at the factory gate, jumped a bigger-than-expected 13.5% on-year in October, said the National Bureau of Statistics.
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Industrial production in Italy grew by more than expected on both a monthly and an annual basis in September, data from national statistics office Istat showed. Industrial output increased by 0.1% on a monthly basis in September after decreasing by 0.2% in August. The market had expected a 0.1% decline, according to FXStreet. On an annual basis, Italy's industrial output rose by 4.4% after the August flat figure, beating estimates of a 4.0% increase.
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US President Joe Biden hits the road Wednesday to show off the huge new infrastructure bill passed last week, hoping to reap its benefits politically even as he watches his approval ratings slump. The Democratic president chose Baltimore, a port city less than an hour's drive from Washington, to explain to the nation why and how the country will spend USD1.2 trillion on its sagging infrastructure. On Monday evening, in an interview on local television in Cincinnati, Ohio, the Democratic leader insisted it would only be a "matter of weeks" before the effects of the massive investment plan would start to be seen.
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A first draft of a pact that could be agreed at Cop26 urges countries to strengthen their emissions-cutting plans for the 2020s in the next year. A draft "cover decision" published on Wednesday morning also urges them to set out long-term strategies by the end of next year to reach net-zero emissions by around mid-century, to curb warming to 1.5C. The document, which was published by the UK Cop26 presidency around six hours later than expected, will have to be negotiated and agreed by countries attending the talks. It says that meeting the goal to limit global warming to 1.5C – which countries pledged to try to pursue under the Paris climate accord – needs meaningful and effective action in "this critical decade".
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Greenland's parliament voted Tuesday to ban uranium mining and exploration in the vast Danish territory, following through on a campaign promise from the ruling left-wing party which was elected earlier this year. The Inuit Ataqatigiit party won snap elections in April that were originally triggered by divisions over a controversial uranium and rare earth mining project. The IA won 12 seats in the 31-seat Greenlandic national assembly, beating its rival Siumut, a social democratic party that had dominated politics in the island territory since it gained autonomy in 1979. On Tuesday 12 MPs in the national assembly voted to ban uranium mining, with nine voting against. The IA had campaigned against exploiting the Kuannersuit deposit, which is located in fjords in the island's south and is considered one of the world's richest in uranium and rare earth minerals.
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Japan Prime Minister Fumio Kishida unveils his post-election cabinet Wednesday, with a new foreign minister but other posts unchanged as the government begins work on a new pandemic stimulus package. At a special parliament session, lawmakers voted Kishida in as prime minister after his victory in last month's general election. The soft-spoken moderate took leadership of the ruling Liberal Democratic Party in September after former premier Yoshihide Suga decided not to stand for re-election. Kishida's post-election cabinet, to be officially announced later Wednesday, is largely the same as the government he named after becoming LDP leader – with the exception of a new top diplomat, Yoshimasa Hayashi.
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By Tom Waite; [email protected]
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