RNO.PA - Renault SA

Paris - Paris Delayed price. Currency in EUR
56.44
0.00 (0.00%)
As of 5:35PM CEST. Market open.
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Previous close56.44
Open56.79
Bid0.00 x 0
Ask0.00 x 0
Day's range56.19 - 56.93
52-week range47.58 - 78.96
Volume865,893
Avg. volume1,096,643
Market cap16.432B
Beta (3Y monthly)1.07
PE ratio (TTM)6.64
EPS (TTM)8.50
Earnings date14 Feb 2019 - 18 Feb 2019
Forward dividend & yield3.55 (6.24%)
Ex-dividend date2019-06-18
1y target est84.17
  • Globe Newswire

    Groupe Renault : Availability of sales figures for July and August 2019

    Communication about availability – Renault sales figures for July and August 2019Boulogne, September 18, 2019Renault announces that its sales figures report for July and August 2019 is now available on Renault website www.group.renault.com, tab Finance, in the ‘Regulated information’, ‘Monthly sales’.As of May 2019, please note that the scope of the Regions has changed: the Africa Middle-East India Region becomes Africa Middle-East India Pacific Region, including the former Asia Pacific Region without China, Hong Kong and Taiwan which become now a separated Region. Sales for 2018 and the first four months of 2019 have been restated accordingly. Attachment * Availability RENAULT Sales

  • Nissan China head, turnaround executive among top candidates for CEO - sources
    Reuters

    Nissan China head, turnaround executive among top candidates for CEO - sources

    SEATTLE/PARIS (Reuters) - The head of Nissan Motor Co's China business and an executive tasked with leading its revival have emerged as two of the top candidates to take over as the next CEO of the troubled Japanese automaker, four people familiar with the matter said. There is also a possibility that another candidate could still be successful, with temporary Chief Executive Yasuhiro Yamauchi seen as one possibility, according to two sources. The appointment of Nissan's next CEO in October will have vast implications for both the future of Japan's second-largest automaker and its strained alliance with top shareholder Renault SA .

  • Nissan China head, turnaround executive among top candidates for CEO: sources
    Reuters

    Nissan China head, turnaround executive among top candidates for CEO: sources

    SEATTLE/PARIS (Reuters) - The head of Nissan Motor Co's China business and an executive tasked with leading its revival have emerged as two of the top candidates to take over as the next CEO of the troubled Japanese automaker, four people familiar with the matter said. There is also a possibility that another candidate could still be successful, with temporary Chief Executive Yasuhiro Yamauchi seen as one possibility, according to two sources. The appointment of Nissan's next CEO in October will have vast implications for both the future of Japan's second-largest automaker and its strained alliance with top shareholder Renault SA .

  • Recovery first: for next Nissan CEO, priority is profit before Renault partnership
    Reuters

    Recovery first: for next Nissan CEO, priority is profit before Renault partnership

    The next head of Nissan Motor Co will need to prioritise a recovery in profits at the troubled Japanese firm ahead of trying to fix its relationship with top shareholder Renault SA, executives and analysts say. Reviving earnings would strengthen the carmaker's hand in negotiations with its French partner, and is something Renault itself would welcome as the owner of a 43.4% stake in Nissan. Japan's second-largest automaker said on Monday CEO Hiroto Saikawa would step down on Sept. 16 after he admitted to being overpaid in breach of company rules.

  • Reuters - UK Focus

    UPDATE 4-Carmakers near CO2 cliff-edge in electrification race

    PARIS/FRANKFURT, Sept 10 (Reuters) - Time is running out for European carmakers, which have waited until the last minute to try to meet ambitious EU emissions targets and face billions in fines if they fail to comply. Manufacturers from PSA Group to Volkswagen are using this week's Frankfurt auto show to reveal the new models and strategies they hope can slash carbon dioxide emissions within months. By next year, CO2 must be cut to 95 grammes per kilometre for 95% of cars from the current 120.5g average - a figure that has risen of late as consumers spurn fuel-efficient diesels and embrace SUVs.

  • Nissan Ousts CEO Over Pay Scandal as Turmoil Deepens
    Bloomberg

    Nissan Ousts CEO Over Pay Scandal as Turmoil Deepens

    (Bloomberg) -- Less than a year since the dramatic downfall of Carlos Ghosn, Nissan Motor Co. is losing another leader.Chief Executive Officer Hiroto Saikawa was asked by the board on Monday to step down by Sept. 16. He’ll be replaced by Chief Operating Officer Yasuhiro Yamauchi until a permanent replacement is named by the end of October.With Saikawa felled by a scandal over excess pay, the Japanese automaker finds itself in familiar territory, facing questions over its corporate governance and an uncertain future. In the months since Ghosn — the auto titan who ruled over Nissan for two decades — was arrested for allegedly under-reporting his own compensation and misappropriating funds, Nissan has struggled to bounce back.Under Saikawa’s reign, Nissan distanced itself from his larger-than-life predecessor, while earnings deteriorated and relations with top shareholder Renault SA soured to the point that a mega-merger with Fiat Chrysler Automobiles NV collapsed. Nissan’s next CEO will face the challenge of righting a ship in disarray at a crucial moment, with global automakers rushing to position themselves for the coming age of electric vehicles and robocars.Pressure on Saikawa intensified following reports last week that he and other Nissan executives were paid more than they were entitled, dealing a final blow to the under-siege CEO. Amid the fallout from losing Ghosn, a leader who loomed large over the company for a generation, Nissan has also been grappling with decade-low profits and job cuts as car sales slow around the world.“I should have clarified, ironed out everything and handed my baton over to a successor, but I couldn’t finish everything,” Saikawa said to reporters late Monday, dressed in his usual white shirt and jacket without a tie.“Nissan needed a leader with deft political skills who embodied a clean break with the Ghosn era. Saikawa wasn’t it.”\--Chris Bryant, Bloomberg Opinion columnistTo read the column, click hereThe Nissan lifer, 65, betrayed few emotions as he sat alone, taking questions after the board had finished explaining his departure. “I wanted to set things right and resign.”Ten CandidatesNissan shares rose as much as 3.3% on Tuesday, a day after the announcement.The board’s nomination committee will select the next CEO from a pool of about 10 candidates, said lead director Masakazu Toyoda. The prospects include non-Japanese, women and people from Renault, Nissan’s partner in a global auto-making alliance that also includes Mitsubishi Motors Corp.Renault and its largest investor, the French government, declined to comment on Saikawa’s resignation.An internal investigation by Nissan found Saikawa had been overpaid by 96.5 million yen ($901,000) via stock appreciation rights, or 47 million yen after tax. The probe also estimated that the sum of paid and unpaid amounts related to misconduct by Ghosn and Greg Kelly, a former senior executive who was arrested along with Nissan’s ex-chairman in November, is about 35 billion yen. Ghosn’s defense counsel responded with a statement calling Nissan’s position inconsistent, contradictory and incoherent, adding that Ghosn will continue to fight claims he believes are baseless.Nissan Overpaid Ghosn Whistle-Blower Hari Nada Along With CEOAlthough Saikawa’s leadership has come under scrutiny since Ghosn’s arrest, he was reappointed as CEO by Nissan’s shareholders earlier this year. In June, Saikawa said that he should be held responsible for the instability unleashed by Ghosn’s downfall and that he wanted the company to accelerate the search for his replacement.The issue over excess pay first came to light after Kelly accused Saikawa in a magazine interview of improperly receiving compensation. Nissan doesn’t consider the excess payment to have violated any laws, and Saikawa has denied he ordered the payments, saying the matter was mishandled by staff.It’s an ironic turn of events for Saikawa, who went from being Ghosn’s protege to the public face of the accusations against him. Nissan’s CEO appeared before the world’s media just hours after the former chairman’s Nov. 19 arrest to denounce his behavior, describing his “indignation” and “despair” at the conduct of his former boss.Like Saikawa now, some of the allegations against Ghosn related to pay. The former chairman is out of jail on bail and due to face trial in Tokyo next year on charges that he failed to disclose compensation from Nissan, passed on trading losses to the carmaker and redirected company money into his own accounts. Ghosn denies all the allegations.Rocky TenureSaikawa’s tenure as the CEO of one of Japan’s auto-making icons was marked by a series of missteps.Just months after he took charge in April, 2017, Saikawa was criticized for not having bowed enough when apologizing for having used un-certified workers to sign off on inspections of newly built cars. Calls for him to resign by Japanese media were amplified after he didn’t show up at a press conference to address the falsification of emissions data.The deterioration of Nissan’s business in the U.S. -- a source of tension between Ghosn and Saikawa before the chairman’s downfall -- has continued into this year. Saikawa has blamed Ghosn’s quest to grow market share in the U.S. at all costs, including by hiking incentives and boosting fleet sales.The deterioration in relations between Nissan and Renault since Ghosn’s arrest and an aborted merger with Fiat Chrysler also added to pressure. Long-held tensions between the two carmakers over control of their alliance broke into the open after Ghosn was arrested and worsened when Renault’s new chairman, Jean-Dominique Senard, pursued the Fiat deal without telling Nissan.French PressureSaikawa started at Nissan after graduating from the University of Tokyo in 1977. Much of his career was spent in the purchasing department, a critical function in any company but especially so for an automaker, since procurement can account for as much as two-thirds of the cost of sales.He served on the board of Renault, Nissan’s biggest shareholder, between 2006 and 2016. During that period the alliance came under pressure from the French state, which had increased its stake in Renault without informing Ghosn.Saikawa led Nissan’s negotiations with Renault and the French government in 2015 to address an imbalance that left the Japanese carmaker with no voting rights for its stake in the French carmaker. A crisis was averted after the French government pledged not to interfere in Nissan’s governance.Since Ghosn’s arrest and ouster as chairman, Saikawa has led a companywide overhaul of Nissan’s corporate governance, including by bringing in more outside directors. He continued to lead negotiations on re-balancing the capital ties with Renault before his resignation.Saikawa will remain a Nissan director despite his resignation, with a meeting of shareholders required to remove him from the board.(Updates with Saikawa remaining on board in last paragraph.)\--With assistance from Chester Dawson and Kae Inoue.To contact the reporters on this story: Ma Jie in Tokyo at jma124@bloomberg.net;Tsuyoshi Inajima in Tokyo at tinajima@bloomberg.netTo contact the editors responsible for this story: Young-Sam Cho at ycho2@bloomberg.net, Reed Stevenson, Craig TrudellFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Bloomberg

    Nissan, Ghosn and Japan's Legal Double Standards

    (Bloomberg Opinion) -- In Japan, is there one standard of justice for Japanese executives and another for non-Japanese executives? The forced resignation on Monday of Nissan Motor Co.’s chief executive officer, Hiroto Saikawa, certainly seems to suggest as much.When Nissan wanted to get rid of its then-chairman Carlos Ghosn, it conducted an internal investigation that was kept from Ghosn, found some examples of allegedly inflated compensation, sent the evidence to prosecutors — again without its chairman knowing — and patiently waited for a surprise arrest when Ghosn landed in Toyko last November.Ghosn then spent the next four months in a small jail cell, under dire conditions that were designed to break him and force a confession. “Hostage justice,” Ghosn criminal defense lawyer Takashi Takano calls it.Although Ghosn was released on bail in March, he remains essentially under house arrest. One of the conditions of his bail is that he is not allowed to communicate with his wife, Carole. “Ridiculous and inhumane,” fumed Takano in a conversation I had with him a few weeks ago. (In a statement issued Monday afternoon, Takano described Nissan’s allegations as “baseless,” and described the company’s actions against him as “their orchestrated coup.”)Now consider Saikawa’s situation.A fierce opponent of Ghosn’s plan to merge Nissan with its smaller alliance partner, Renault SA, Saikawa took charge once Ghosn landed in prison. He was, by most accounts, a terrible CEO, unable to heal the rift with Renault, while his tenure, as Bloomberg News put it, was “marked by a series of missteps.” (He skipped a news conference in which he was supposed to talk about the company’s falsification of emissions data, for instance.) He also failed to stem a steep profit decline: Earnings were down 94 percent in the quarter that ended in June. Over the last year, Nissan’s stock price has dropped nearly in half.Last week, the results of an internal investigation revealed that Saikawa had received compensation that was … well, whaddya know? … inflated. According to Bloomberg News, he was overpaid by $841,000 via stock appreciation rights. Three other executives were also overpaid — including, irony of ironies, Hari Nada, the former head of Nissan’s CEO office, who was the first to raise questions about Ghosn’s compensation.In response to all of that, did a whistle-blower inside Nissan launch a secret investigation? Did anyone turn over evidence to prosecutors? Were Saikawa and the others arrested, tossed in jail and interrogated endlessly? You know the answer to that: Of course not.Instead, the Nissan board unanimously voted to demand Saikawa’s resignation. That’s no doubt humiliating. But it’s not even remotely on par with what happened — and is still happening — to Ghosn.Who did blow the whistle on Saikawa? That would be Greg Kelly, Ghosn’s former deputy. Kelly and his family say Hari Nada lured Kelly back to Japan so that he too could be thrown in jail and charged with crimes related to Ghosn’s compensation. In June, Kelly gave an incendiary interview to a Japanese magazine in which he also said that Saikawa had signed off on Ghosn’s allegedly hidden compensation.I don’t have a problem with how Nissan handled the Saikawa scandal. A whistle-blower’s allegation led to an internal investigation — one that everyone in the company knew about — which in turn led to the CEO’s ouster. Saikawa has also promised to return his excess compensation. That seems like the right solution.The better question is: Why couldn’t Nissan have acted in the same manner in dealing with l’affaire Ghosn?Yes, it was more complicated in that Ghosn was also Renault’s CEO and the mastermind of an automotive alliance that included Mitsubishi. Surely, though, Nissan’s Japanese executives could have found another way to oust him without scheming to have him arrested. If, after they’d pushed him out, prosecutors felt he had committed crimes, then fine. Arrest him. And if that’s the right path, then do the same with Saikawa.Nissan said that in searching for a new CEO, the company will look at “non-Japanese, women and people from Renault,” according to Bloomberg News. But would any non-Japanese manager really be interested in taking the helm at Nissan given what happened to Ghosn? It’s a little hard to envision.An American I know with years of experience with a Japanese multinational told me once that the Japanese criminal justice system makes a distinction between two kinds of corporate crime. If the wrongdoing is part of an effort to help the company, the culprit will usually get off with a slap on the wrist. But if its purpose is to enrich oneself, the system comes down hard on the wrongdoer.Based on what we’ve seen with Nissan over these past months, I’d say there is another distinction the Japanese criminal justice system makes: Regardless of the severity or nature of a crime, if you’re a non-Japanese executive accused of wrongdoing you’re at risk of getting tossed into prison.To contact the author of this story: Joe Nocera at jnocera3@bloomberg.netTo contact the editor responsible for this story: Timothy L. O'Brien at tobrien46@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Joe Nocera is a Bloomberg Opinion columnist covering business. He has written business columns for Esquire, GQ and the New York Times, and is the former editorial director of Fortune. His latest project is the Bloomberg-Wondery podcast "The Shrink Next Door."For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • Bloomberg

    Nissan Finally Breaks With the Carlos Ghosn Era

    (Bloomberg Opinion) -- The resignation of Hiroto Saikawa, chief executive of Nissan Motor Co. gives the embattled Japanese carmaker a much needed opportunity to clean decks and move on.Ever since the shock arrest of the company’s chairman Carlos Ghosn almost a year ago, the Japanese auto giant has been in permanent crisis mode and ties with its French alliance partner Renault SA have frayed. To steer it through that period Nissan needed a leader with deft political skills who embodied a clean break with the Ghosn era. Saikawa – a Ghosn appointee – wasn’t it.The report that Nissan published concurrently on Monday, detailing allegations of financial misconduct by Ghosn, makes for grim reading (Ghosn denies wrongdoing). Yet Saikawa could never distance himself fully from an era during which Nissan paid lip service to principles of good corporate governance.Revelations that Saikawa too was overpaid improperly were an unacceptable reminder of the allegations that led to Ghosn’s downfall, even if the amounts were smaller and Saikawa says he was unaware of the payments. He isn’t accused of misconduct.That the Nissan CEO seemed to revel in Ghosn’s ousting – so much so that it sparked claims of a palace coup – made it much harder to restore a basis of trust with Renault. In fairness, Renault didn’t help by pushing subsequently for a full-blown merger with Nissan that was unwanted by the Japanese, and then secretly discussed a tie-up with Italy’s Fiat Chrysler Automobiles NV.Meanwhile, Nissan’s recent financial performance under Saikawa has been nothing short of disastrous. Profit is in free fall, the company has lost ground in the vital U.S. market and it has been forced to slash production and jobs.His departure will spark hopes that Nissan can finally mend ties with Renault and do something about the destruction of shareholder value at both companies in recent months. In time perhaps the French side will be able to revive merger talks with Fiat; that deal has strategic and financial merit even if it remains dicey politically. Renault agreeing to cut its 43% Nissan stake might be a good place to start. Nissan holds only 15% of Renault, an imbalance that has fueled the tensions between them. First things first, though. Saikawa’s successor, whose identity Renault will have a say in, must put Nissan’s own house in order. That’s a sentiment Renault chairman Jean-Dominique Senard appears to share.At a time of unprecedented upheaval in the car industry, Nissan can’t afford to be distracted by in-house politics. If change at the top lets executives focus on the business of making and selling cars, so much the better.To contact the author of this story: Chris Bryant at cbryant32@bloomberg.netTo contact the editor responsible for this story: James Boxell at jboxell@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • Nissan's Saikawa bows to pressure, to quit as CEO on September 16
    Reuters

    Nissan's Saikawa bows to pressure, to quit as CEO on September 16

    Nissan Motor Co CEO Hiroto Saikawa will resign on Sept. 16, the automaker said on Monday, bowing to pressure after he admitted to being improperly overpaid and marking further upheaval at a company battered by scandal and plunging profit. Saikawa, who admitted to the overpayment of around $440,000 last week, will be temporarily replaced by Chief Operating Officer Yasuhiro Yamauchi, with a permanent replacement expected by the end of October, Japan's second-largest automaker said. Saikawa, a protege of Ghosn, took over as Nissan CEO from his mentor in 2017, leaving Ghosn as chairman.

  • Reuters - UK Focus

    UPDATE 8-Nissan's Saikawa bows to pressure, to quit as CEO on Sept. 16

    Nissan Motor Co CEO Hiroto Saikawa will resign on Sept. 16, the automaker said on Monday, bowing to pressure after he admitted to being improperly overpaid and marking further upheaval at a company battered by scandal and plunging profit. Saikawa, who admitted to the overpayment of around $440,000 last week, will be temporarily replaced by Chief Operating Officer Yasuhiro Yamauchi, with a permanent replacement expected by the end of October, Japan's second-largest automaker said. Saikawa, a protege of Ghosn, took over as Nissan CEO from his mentor in 2017, leaving Ghosn as chairman.

  • TomTom Maps Out Revamp With Bet on Self-Driving Cars
    Bloomberg

    TomTom Maps Out Revamp With Bet on Self-Driving Cars

    (Bloomberg) -- Once a household name for its satellite navigation for cars, TomTom NV has taken a backseat in recent years as smartphones, loaded with apps like Google maps, surged in popularity.Now the Dutch digital mapping company is betting that your car needs directions more than you do. Over the past few years, TomTom has been building high-definition or “dynamic” maps for self-driving cars. It’s a decision that could help it challenge tech platforms, like Alphabet Inc.’s Google, as cars are increasingly sold with more autonomous capabilities.“We used to make maps for humans, but now we make maps for robots,” Alain De Taeye, member of TomTom’s management board, said at a journalist briefing in Amsterdam.TomTom’s share price peaked in 2007 at around 100 euros a share. But this summit coincided with the launch of the iPhone. A year later, TomTom reported sales of more than 12 million personal navigation devices, it’s record high. By 2011, it announced a restructuring program that included forced lay-offs to counter lower sales and in 2017, TomTom took a 169 million-euro write down on its consumer unit. It’s share price has since hovered at around 20 euros.TomTom now finds itself with several deep-pocketed rivals battling for the future of car navigation, including Apple Inc., Google and HERE Technologies, the digital mapping company controlled by BMW AG and other German car makers. In a blow for TomTom, longtime partner Renault SA and associates Nissan Motor Co. and Mitsubishi Motors Corp. last year signed on with Google’s Android operating system to supply standard-definition maps.On a quest to claw its way back, TomTom is ditching unwanted business lines, like the Telematics fleet-management business, and doubling down on HD maps. TomTom says it’s been able to differentiate itself from competitors on HD maps by being independent and not having an advertising-based business model like Google’s.In addition to sensors and other features, HD maps are an important part of autonomous driving, which can incorporate different levels of human assistance – from very little to none whatsoever in even the harshest weather conditions.HD maps, stored on a car’s computer system, replicate every lane, guard-rail, road edge and pole that a vehicle sees, helping cars locate their positions within centimeters. Those features are critical to avoid crashing into nearby cars, but they also help the car discern which traffic light at a busy cross-section it should obey or identify a speed sign hidden by a truck.So far, TomTom has publicly announced HD partnerships with Baidu Inc. on its Apollo driverless project, and with Renault on the carmaker’s SYMBIOZ autonomous driving program. It announced in March that it had won multiple deals to provide HD maps to major car makers, but declined to say which ones. Those contracts, which typically last more than 10 years because of ongoing service needs, have so far resulted in a roughly 60% market share in HD maps for TomTom, according to Willem Strijbosch, the company’s head of autonomous driving.“Not every car maker has made their decision yet on who will support them on HD maps,” said Strijbosch. “But out of all the car makers that have made a decision, we see that the big ones – the top 10 – are picking TomTom.”TomTom collects traffic and road data on more than 67 million kilometers around the world using 600 million different devices – including its mobile mapping cars, sat navs, and mobile phones. Of those roads, TomTom has so far covered only 400,000 kilometers in HD. Its HD maps are currently only available on highways in the U.S., Canada, Europe, South Korea and Japan but it is working to add more side roads as the technology advances.The mapping firm doesn’t disclose revenue from HD maps but in July it boosted its full-year guidance, saying it now expects sales from its location technology to grow 17% to 435 million euros, up from 430 million euros forecast in April. That amounts to around two-thirds of the group’s overall expected revenue.“The single biggest risk to the TomTom investment case is costs,” said Wim Gille, head of equity research at ABN AMRO. He said the company still has lots of ground to cover on HD maps compared to its standard definition maps and clients will want reassurance that the company can continue to serve them in a decade from now.While HERE is out-earning TomTom in revenues, Gille said, it’s also spending around 1 billion euros a year in operating expenses, about twice as much as TomTom. Still, he said both companies have what it takes to build and maintain an HD map.“The market is big enough for both of them,” he said.To contact the reporter on this story: Natalia Drozdiak in Brussels at ndrozdiak1@bloomberg.netTo contact the editors responsible for this story: Giles Turner at gturner35@bloomberg.net, Molly SchuetzFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Indonesia’s Nickel Ban Shows Resource Nationalism on the March
    Bloomberg

    Indonesia’s Nickel Ban Shows Resource Nationalism on the March

    (Bloomberg) -- Indonesia will enforce a complete ban on the export of raw nickel ore from Jan. 1, two years earlier than planned, as the nation seeks to lock in supplies for dozens of smelters that are under construction and buttress a drive to build out local processing capacity, an official said.The suspension is also in line with a plan to preserve low-grade nickel ore containing cobalt and lithium for use in electric batteries, Bambang Gatot Ariyono, director general for mineral and coal at the Energy and Mineral Resources Ministry, told reporters on Monday. Miners with outstanding permits to export nickel ore may ship the mineral until the year-end, he said.“The government decided -- after weighing all the pros and cons -- that we want to expedite smelter building,” Ariyono said at the briefing in Jakarta. “So we took the initiative to stop exports of nickel ores of all quality.”Indonesia has been at the forefront of efforts in emerging markets to extend its sway over local commodity riches by boosting control of top mines, including the copper trove that’s been developed by Freeport-McMoran Inc., and insisting more processing is done at home. In nickel, the rule changes -- which had been the subject of extended speculation -- will choke off the flow of raw material overseas. The shift has been endorsed by President Joko Widodo, who’s about to embark on a second, final five-year term.While Indonesia has an estimated nickel ore reserves of 2.8 billion metric tons, proven stockpiles are only about 600 million to 700 million tons, Ariyono said. With the country soon set to be home to about 36 smelters, annual nickel ore demand will soar to 81 million tons from about 24 million tons now, he said.‘Technology Is Advancing’“If we continue free exports, the proven reserves will be enough only for seven to eight years,” Ariyono said. “The technology is advancing, so smelters can process low-grade nickel ores and they can be used for batteries to help Indonesia meet its electric-vehicle goals.”Nickel prices rallied for a second day after Indonesia first said on Friday that it will bring forward the ban. The earlier than initially planned ban will apply only to nickel ore, allowing bauxite and copper concentrates to be shipped with permits until 2022, Ariyono said.This isn’t the first time that Indonesia has shifted a planned timeline for curbs on ore exports. The government imposed a blanket ban on shipments in 2014 only to relax it in 2017, allowing overseas sales of surplus, lower-grade nickel ore of below 1.7% to finance smelter construction.With exports linked to construction of smelters, miners have rushed to set up processing units, mainly in the country’s Sulawesi region. Several overseas firms are planning battery-grade nickel facilities in Indonesia, including China’s Tsingshan Holding Group Co. and PT Vale Indonesia, a unit of the Brazilian mining giant.Exports of nickel ore totaled 13.3 million tons in the seven months through July out of 23.6 million tons of ore cleared for shipment, official data showed. Shipments were 20 million tons in 2018, with the government issuing recommendations for a total of 76.3 million tons since the ban on exports was relaxed in 2017.The amendment to bring forward the ban, signed by Energy and Mineral Resources Minister Ignasius Jonan, is expected to be cleared by the Ministry of Law and Human Rights on Monday, Ariyono said.To contact the reporter on this story: Eko Listiyorini in Jakarta at elistiyorini@bloomberg.netTo contact the editors responsible for this story: Thomas Kutty Abraham at tabraham4@bloomberg.net, Jake Lloyd-SmithFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • European Economic Confidence Unexpectedly Rose in August
    Bloomberg

    European Economic Confidence Unexpectedly Rose in August

    (Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. Sentiment among euro-area businesses and consumers unexpectedly rose in August, respite from an almost non-stop string of disappointing numbers and recession concerns.The European Commission’s index rose to 103.1 from 102.7, defying expectations for a decline. But the surprise move still only lifts the measure to a two-month high, and there have been false dawns before. A jump in May was more than wiped out over the following two months.The increase may not be enough to shift European Central Bank policy makers from their path toward more stimulus, particularly after a month that saw Germany’s economy drift closer to a recession, a slump in manufacturing deepen, trade tensions escalate and the possibility of a no-deal Brexit rise.German bonds fell, but 10-year yields remained well below zero, where they’ve been for months. European stocks are down more than 2% in August, after President Donald Trump escalated his China trade war at the start of the month.The uptick in sentiment came from “markedly higher confidence” in industry and retail trade, the commission said, which outweighed a deterioration in services and construction. Managers in industry were more optimistic about production expectations and order books, a view somewhat out of line with pessimism seen in August’s Purchasing Managers Index.Services CracksThe decline in services confidence -- the third in a row -- is an unwelcome development. The sector has so far remained resilient in the face of an imploding manufacturing sector, beset by trade tensions and automotive woes.That’s helped to support overall euro-area growth, and a continued downward trajectory would be a troubling sign of a deepening malaise.Companies across the continent have expressed concern about the deteriorating global economic backdrop along and trade uncertainty. Henkel AG and Renault SA cut their forecasts in recent weeks.A slowdown in German manufacturing, which is heavily reliant on foreign demand, has already put Europe’s largest economy on the brink of recession. The closely watched Ifo business expectations gauge has fallen every month bar one this year.In the services sector, managers’ expectations for employment during the next three months fell noticeably. Signs of weakness in Germany’s robust labor market are already starting to show: the number of people out of work increased in August, data published Thursday show, although the unemployment rate remained near a record low 5%.Exporters around Europe have felt the pinch of a slowing German economy, which could shrink by 0.2% in the third quarter, DIW economist institute said on Wednesday. Spanish exporters, for instance, have seen weaker demand since the end of last year and they are worried about how the likely recession in Europe’s economic powerhouse will continue to drag on their sales.Still, Antonio Bonet, head of a Spanish association of major exporters and investors, says the executives he represents are optimistic that Germany’s downturn will be a “small recession” rather than an economic upheaval.(Updates with markets, German unemployment from fourth paragraph.)\--With assistance from Kristian Siedenburg and Harumi Ichikura.To contact the reporter on this story: Jeannette Neumann in Madrid at jneumann25@bloomberg.netTo contact the editors responsible for this story: Fergal O'Brien at fobrien@bloomberg.net, Brian SwintFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Reuters - UK Focus

    LIVE MARKETS-Closing snapshot: bonhomie sweeps Europe

    CAC40 has best day since Aug. 8 * Fresh Renault, Fiat tie-up hopes boost shares Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Thyagaraju Adinarayan. Reach him on Messenger to share your thoughts on market moves: thyagaraju.adinarayan.thomsonreuters.com@reuters.net CLOSING SNAPSHOT: BONHOMIE SWEEPS EUROPE (1613 GMT) Bonhomie has swept across European markets today, pushing the major bourses to multi-week highs at the close ahead of a critical speech from the Fed chief on Friday and amid improving sentiment around Italy. Paris' CAC 40 had its best day since Aug. 8, up 1.7%, "Markets are still in a mood to rally it seems, perhaps in hope that Jerome Powell will deliver a more accommodative outlook when he speaks on Friday," says Chris Beauchamp, chief market analyst at IG.

  • Reuters - UK Focus

    GLOBAL MARKETS-European stocks recover before Fed minutes, Jackson Hole gathering

    European stocks rallied on Wednesday as hopes for more monetary and fiscal stimulus helped assuage worries about global recession, political turmoil in Italy and endless trade wars. Traders are waiting for the Federal Reserve's annual Jackson Hole symposium later this week and a Group of Seven summit this weekend for clues on what steps policymakers will take to boost economic growth. "People are looking ahead to Jackson Hole later this week and the message that [Fed Chairman] Jerome Powell may or may not give us on the direction of monetary policy.

  • Reuters - UK Focus

    LIVE MARKETS-Diverging fortunes in Europe and U.S.

    CAC40 set for best day since Aug. 8 * Fresh Renault, Fiat tie-up hopes boost shares Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Thyagaraju Adinarayan. Reach him on Messenger to share your thoughts on market moves: thyagaraju.adinarayan.thomsonreuters.com@reuters.net DIVERGING FORTUNES IN EUROPE AND U.S. (1142 GMT) The divergence in fortunes between euro-zone stocks and their U.S. peers on the other side of the pond has widened markedly over the past week, the latest sign that investors are getting increasingly jittery about the bloc's economic outlook. There's a growing list of reasons to steer clear of the region: Italy's deepening political crisis, Germany's economic slowdown, Europe Inc's corporate recession and Brexit.

  • Reuters - UK Focus

    UPDATE 2-Italy leads bounce in European shares, Fiat-Renault talks in focus

    European stock markets ended at a two-week high on Wednesday, led by a rebound in Italian shares and as investors bet more concrete signals of stimulus from central bankers may help allay global slowdown fears. The pan-European STOXX 600 index ended 1.2% higher with Milan's blue-chip index rising 1.8%, bouncing back from a political crisis-driven sell-off. The resignation of Italian prime minister Giuseppe Conte on Tuesday, had made investors nervous about Rome's continuing lack of political stability, but also signaled that a new coalition arrangement may be in works.

  • Italy leads bounce in European shares, Fiat-Renault talks in focus
    Reuters

    Italy leads bounce in European shares, Fiat-Renault talks in focus

    The pan-European STOXX 600 index ended 1.2% higher with Milan's blue-chip index rising 1.8%, bouncing back from a political crisis-driven sell-off. The resignation of Italian prime minister Giuseppe Conte on Tuesday, had made investors nervous about Rome's continuing lack of political stability, but also signalled that a new coalition arrangement may be in works. Italy's main opposition party, Democratic Party (PD), said on Wednesday it was ready to hold talks with the anti-establishment 5-Star Movement over forming a government following the collapse of the previous, populist coalition.

  • Reuters - UK Focus

    LIVE MARKETS-Futures point to small gains on eerily quiet day

    Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Thyagaraju Adinarayan. Reach him on Messenger to share your thoughts on market moves: thyagaraju.adinarayan.thomsonreuters.com@reuters.net FUTURES POINT TO SMALL GAINS ON EERILY QUIET DAY (0658 GMT) European stock futures point to a slightly higher open today in a small relief as endless trade war worries, fresh political turmoil in Italy, Brexit and slowing economic growth have kept investors away from making risky bets. In the trade war, U.S. President Trump again showed no signs of backing down in his tussle with China, declaring on Tuesday a confrontation was necessary even if it caused short-term harm to the U.S. economy.

  • Peugeot Sale Makes Sense for Dongfeng
    Bloomberg

    Peugeot Sale Makes Sense for Dongfeng

    (Bloomberg Opinion) -- France SA’s romance with the Chinese car industry could be nearing its end.Dongfeng Motor Corp., a state-owned giant that runs joint ventures with PSA Group, Nissan Motor Co. and Honda Motor Co., is looking at options for its 12.2% stake in PSA including a sale or bond issuance backed by the stock, people familiar with the matter told Bloomberg News on Thursday.On purely financial terms, such a move makes a great deal of sense. Dongfeng bought the shares as part of a 2014 bailout of the maker of Peugeot and Citroen cars, brokered by the French government. That investment has done rather well: PSA has seen the third-best share performance in Bloomberg’s Global Automobile Valuation peer group over the past five years, after Geely Automobile Holdings Ltd. and Fiat Chrysler Automobiles NV. The 800 million euros ($897 million) Dongfeng spent at the time is now worth around 2.2 billion euros. On top of that, the operational ventures that underpinned the shareholding have seen better days. Listed subsidiary Dongfeng Motor Group Co.’s sales of Peugeot- and Citroen-branded cars fell by about half in the first six months from a year earlier and are running at less than a quarter of their level in 2015. In the key crossover SUV market, models like Citroen’s C5 Aircross and Peugeot’s 4008 have simply failed to catch fire against competition from Asian and domestic rivals.Unless there’s a serious pick-up in the second half, Dongfeng’s PSA production lines, dedicated to turning out as many as 600,000 vehicles a year, will be running at little better than 25% utilization – levels at which it should be hard for the business to make money. Losses at Dongfeng’s PSA venture were already running at the equivalent of $251 million in 2018; it would hardly be surprising if they were worse this year.Management in China clearly see little sign that sales are about to pick up. Dongfeng’s dealer network for PSA-branded cars shrank by almost 80% between 2015 and 2018, and now stands at just 666 outlets compared with 1,186 for Renault-Nissan marques. The showrooms that remain suffer low productivity, shifting an average of 400 PSA vehicles each in 2018 compared with 1,431 at Nissan outlets and 761 at Honda-branded locations. (For what it’s worth, Renault does even worse, on just 204 vehicles).There’s a more proximate issue, too. Cash has been looking a little tight for Dongfeng’s listed subsidiary of late, owing largely to a huge increase in working capital, two years of negative Ebit, and net debt of 2.15 billion euros that was running at 8.1 times Ebitda at the end of December. In the 2018 fiscal year, operating cash flows actually turned negative to the tune of about 1.25 billion euros, a relatively rare event for carmakers that aren’t in the grip of a financial crisis or corporate scandal.Dongfeng still has ample liquidity. Its ratio of short-term assets to short-term liabilities was 1.36 at the end of December, above the industry average. But China’s auto market is grim, with sales declining from a year earlier for 12 straight months even as the government ratchets up pressure to spend money on the switch to electric vehicles. Faced with such headwinds, 2.2 billion euros could come in handy.At present there’s no word that Dongfeng is planning to unwind the JV to manufacture PSA cars in China – but it would probably welcome such an outcome, especially if it could persuade its European affiliate to pay to take more control of the partnership in the manner of the deal last year between BMW AG and Brilliance China Automotive Holdings Ltd.Dongfeng’s partnerships with Nissan and Honda are clearly the better performers, and PSA may feel it needs more of a free hand to turn around its Chinese operation. If a sale of a strategic stake can help ease the path toward that happier outcome, both sides stand to benefit.To contact the author of this story: David Fickling at dfickling@bloomberg.netTo contact the editor responsible for this story: Matthew Brooker at mbrooker1@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.David Fickling is a Bloomberg Opinion columnist covering commodities, as well as industrial and consumer companies. He has been a reporter for Bloomberg News, Dow Jones, the Wall Street Journal, the Financial Times and the Guardian.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • Nissan's Loveless Renault Marriage Is Laid Bare
    Bloomberg

    Nissan's Loveless Renault Marriage Is Laid Bare

    (Bloomberg Opinion) -- Even after a relationship is dead, couples often go through the motions of remaining in a marriage. That’s the best way to characterize what’s left of the alliance between Renault SA and Nissan Motor Co. Renault must sell down its 43.4% stake in its Japanese partner to 5%-10% and both sides should “invest in new ventures,” Nissan’s Senior Vice President Hari Nada wrote in an e-mail to colleagues, saying this was the view of independent director Masakazu Toyoda, the Wall Street Journal reported at the weekend. In Toyoda’s view, the two sides should come up with some sort of joint venture in order to show that the alliance isn’t dead, giving Renault Chairman Jean-Dominique Senard the room to unwind the cross-shareholdings that underpin the relationship, the Journal reported.To judge by the picture this paints of internal discussions within Nissan, the Japanese company is only interested in maintaining the appearance of an alliance with Renault and its 15% shareholder, the French government. Making a joint commitment to reaffirm a bond isn’t uncommon for people in a failing relationship, but it’s no way to run a business.If Nissan is sincerely committed to a joint venture, the first thing it should do is identify a strategic opportunity, work out what synergies it would bring, and find a way to operate it. Forming a JV just to get your partner to agree to the terms of a divorce puts your employees’ careers at the mercy of these corporate maneuverings.For those at Renault most committed to the logic of the merger with Fiat Chrysler Automobiles NV that was declared dead in June, this might count as good news. Senard has publicly talked down the prospect of the tie-up being renewed, but this suggests that Renault has been looking for ways to revive the alliance behind the scenes.A tie-up between European giants, in the manner of the mergers that created Airbus SE, Air France-KLM, and IAG SA, seems a far more congenial outcome than the bitter remains of the Renault-Nissan marriage. Fiat Chrysler’s strong business in SUVs and North America would also complement one of the most obvious shortcomings that Renault would suffer if it lost its alliance with Nissan.At the same time, the writing is on the wall for any further integration between France and Japan. Nissan seems committed to preventing any further convergence. Whether or not a Potemkin village JV is agreed to, the sort of ambitious activities pushed in the Carlos Ghosn era – development of modular designs shared between Renault and Nissan vehicles, or moving the manufacturing of the Nissan Micra from the Japanese company’s Chennai plant to a Renault factory north of Paris – are unlikely to see the light of day again. The more likely outcome would be something eventually resembling the far more limited cooperation between Daimler AG and the alliance.Does it matter whether Renault and Nissan are married, or merely cohabiting? In many ways, the alliance has been dead since Ghosn and his deputy Greg Kelly were arrested by Japanese authorities last November. As my colleague Anjani Trivedi has written, Nissan in particular may be better off resolving its substantial problems on its own rather than getting involved in the complexity of another multi-billion dollar cross-border merger.Still, the risk for Nissan is that by turning away from its European partnership it will leave itself too small to manage the vast capital expenditures and research and development costs necessary as the global car industry seeks to reverse slumping sales and manage the transition to electric vehicles and greater automation. Ghosn’s pursuit of volume growth at any cost is one reason why Nissan is now plagued with overcapacity and facing drastic job cuts. But the vision he was pursuing before his arrest – of a company as transnational as he is, headquartered in the Netherlands and with operations all over the world, and not especially beholden to either the Japanese or French governments – is now unlikely ever to materialize.That’s a tragedy. A Renault-Nissan alliance free to pursue profitable growth in the interests of the business as a whole, rather than being turned into the plaything of nationalist interests, is the likeliest way for the two companies and their workforces to prosper. If management in Paris and Yokohama are quietly giving up on that future, both companies may live to regret it.A marriage where neither partner is committed is the worst of all worlds. If separation is out of the question, Nissan and Renault need to find a way to make this relationship work.To contact the author of this story: David Fickling at dfickling@bloomberg.netTo contact the editor responsible for this story: Matthew Brooker at mbrooker1@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.David Fickling is a Bloomberg Opinion columnist covering commodities, as well as industrial and consumer companies. He has been a reporter for Bloomberg News, Dow Jones, the Wall Street Journal, the Financial Times and the Guardian.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • Fiat Chrysler CEO - We'll talk alliances, but we can go it alone
    Reuters

    Fiat Chrysler CEO - We'll talk alliances, but we can go it alone

    Fiat Chrysler Automobiles Chief Executive has a message for Renault SA and other would-be partners: We are happy to talk, but we can go it alone. "Strategically, we have a solid future and clear plans that are being invested in and are underway now," Mike Manley said during a session with reporters the day after the company released better than expected second-quarter results. Fiat Chrysler is open to re-starting merger negotiations with French automaker Renault, Manley said, but added the French car maker is not the only potential partner to gain scale or plug gaps in Fiat Chrysler's technology or vehicle lineup.

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