|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's range||17.91 - 18.37|
|52-week range||17.32 - 27.06|
|Beta (5Y monthly)||N/A|
|PE ratio (TTM)||5.36|
|Earnings date||26 Feb 2020|
|Forward dividend & yield||N/A (N/A)|
|1y target est||24.75|
(Bloomberg) -- European shares closed flat on Wednesday following a roller-coaster session, trimming an earlier sharp slide fueled by worries about the spread of the coronavirus outside of China.The Stoxx Europe 600 Index ended the day little changed as a rise in carmakers and utilities tempered losses in travel shares, and as U.S. stocks rallied. The European benchmark earlier tumbled as much as 2.9%, at one point wiping out all the gains made since late October.European equities slumped in the past four sessions as the spread of the virus outside of China revived worries over the potential impact on economic growth and corporate earnings. Just last week, the Stoxx 600 index had jumped to a fresh record high, making it vulnerable to sudden negative news.“European indices have a higher sensitivity to global growth,” said Edward Park, deputy chief investment officer at Brooks Macdonald Asset Management. “The Italian outbreak makes the virus a local issue and there are concerns over whether European fiscal stimulus will be forthcoming.”The sell-off in the Stoxx 600 wiped out as much as $1.2 trillion in market capitalization versus the record high the benchmark hit on Feb. 19.Italy reported more infections from the Lombardy region on Wednesday, while guests were still confined to a hotel in Tenerife and Greece reported its first case.Greece’s ASE Index slid 2.7%, on track for the worst performance among global equity benchmarks in February. Italy’s FTSE MIB Index halted a sharp four-day slump and rose 1.4%, led by Enel SpA and Fiat Chrysler Automobiles N.V.“The coronavirus outbreak is challenging as it is both a supply side and a demand side shock,” said Mark Phelps, chief investment officer of global concentrated equities at AllianceBernstein in London. “Clearly China is much more integrated into the global economy that during previous outbreaks, particularly in Europe. This means the virus is likely to have a greater impact on Europe than the U.S.”Most Stoxx 600 industry groups were still in the red on Wednesday. Carmakers were up 1.3%, buoyed by PSA Group as the Peugeot maker rallied after raising its dividend and offering assurances to investors it can withstand a deepening slump.Iberdrola SA rallied 5.1% after saying it expects sharp growth in profit this year, driven by rising power output after earlier investments in renewable energy and transmission assets ramped up.Travel stocks plunged the most, with Ryanair Holdings Plc and InterContinental Hotels Group Plc dropping 1.8% and 1.1% respectively. The Stoxx 600 Travel & Leisure Index has tumbled 10% since Feb. 19, the most among industry groups.“Investors don’t like unpredictable things and the virus is very unpredictable,” Raphael Pitoun, an equities fund manager at CQS, said by phone. “If the virus doesn’t stop and there are new epicenters emerging that are critical to the world economy, I don’t think anyone is going to say that this was a healthy market correction.”\--With assistance from Filipe Pacheco and Anooja Debnath.To contact the reporters on this story: Ksenia Galouchko in London at firstname.lastname@example.org;Namitha Jagadeesh in London at email@example.comTo contact the editor responsible for this story: Blaise Robinson at firstname.lastname@example.orgFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Peugeot maker PSA Group defied mounting pessimism in the car industry by raising its dividend and offering assurances to investors that it can withstand a deepening slump.While the French carmaker expects the European auto market to shrink in 2020, it posted better-than-expected profit for last year and said it has taken measures to protect the company from a decline. The results lifted shares both of Peugeot and merger partner Fiat Chrysler Automobiles NV.“Plants are running full speed, the order book is stellar,” Chief Executive Officer Carlos Tavares said at a press conference Wednesday. “We are facing this turmoil in a more robust situation” than a few years ago.PSA earnings contrast with a rapid souring of the global car industry in recent weeks, with China grappling to contain the coronavirus epidemic that has shuttered factories and hobbled supply chains across continents. The company. which aims to complete its merger with Fiat Chrysler by next year, depends heavily on Europe for its sales, which fell 10% overall to 3.5 million vehicles in 2019.Read more: Auto Sales Outlook Darkens as Industry Assesses Virus ImpactDespite the volume drop, PSA’s profit margin widened to 8.5% as Tavares focused on lowering costs and selling more expensive models. The 2019 adjusted operating income rose a better-than-expected 11% to 6.32 billion euros ($6.87 billion). Since arriving in 2014, the CEO has turned around the manufacturer by removing overhead and adding scale.The results confirm PSA’s “best-in-class” status, Oddo BHF analyst Michael Foundoukidis wrote in a note.Peugeot shares rose as much as 7.8%, pacing gains for the STOXX Europe 600 Automobiles & Parts Index. Fiat Chrysler’s U.S.-listed stock surged as much as 7.9%.PSA maintained a target for automotive adjusted operating margin to be more than 4.5% through next year, a level Chief Financial Officer Philippe de Rovira called a “floor” and very conservative. “Our internal target is always to improve performance, so let’s not be misled by this indicator,” he said on a call with reporters.What Bloomberg Intelligence Says“PSA reiterated modest guidance of a recurring auto operating margin of more than 4.5% on average for 2019-21 despite reporting 8.5% in 2019. That reflects the burden of emissions compliance and the transition to EVs from 2020.”\-- Michael Dean, automotive analystThe results benefited from 1.5 billion euros of restructuring costs that were excluded from operating income and boosted the auto margin, Dean said. In the past, the company has reported charges for cost cutting at Opel, Vauxhall, Peugeot, Citroen and DS. Last month it unveiled job reductions at Opel.The planned merger with Fiat Chrysler shouldn’t lead to increased restructuring costs in 2021, Tavares said, adding that the two companies are in good financial health. The CEO estimates the merger process will take 12 to 15 months, and said there’s “no reason to believe” there will be regulatory hurdles.The French manufacturer sees the European car market shrinking 3% in 2020 and Russia declining 2%. That’s more than the 2% decline in Europe expected by the main lobby group, a forecast published before the extent of the virus epidemic became known.Tavares said he’s “absolutely sure” PSA will meet European CO2 emission targets in 2020. He said costs of technology to deal with emissions “severely impacted” the carmaker in 2019, and that won’t be repeated this year.Read More: Emissions Clampdown Sends Europe Car Sales to January SlideOther European carmakers have so far signaled a mixed year at best. While Daimler AG has forecast an earnings rebound following several profit warnings and a dividend cut, it has also warned of more possible regulatory costs in coming months and “significant adverse effects” from the virus outbreak in China.German luxury-car rival BMW AG is sticking to its sales growth target for China, even as it acknowledged uncertainty about when the situation will return to normal. PSA’s French rival Renault SA earlier this month posted its first annual loss in a decade and indicated operating margins are set to shrink.Key Earnings HighlightsPSA proposes to pay a dividend of 1.23 euros a share vs. 0.78 euros.Group adjusted operating income of 6.32 billion euros beating an average forecast of 6.14 billion euros of analysts surveyed by Bloomberg.Automaker reports record net income of 3.2 billion euros vs. 2.83 billion euros a year earlierTo contact the reporter on this story: Rudy Ruitenberg in Paris at email@example.comTo contact the editors responsible for this story: Katerina Petroff at firstname.lastname@example.org, Tara Patel, Craig TrudellFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg Opinion) -- The word that Peugeot SA boss Carlos Tavares comes back to time and again to describe the daunting challenges facing the auto industry is a deliberately frightening one. Carmakers face a “Darwinian” period, he reminded investors on Wednesday, implying that some of the French group’s less robust peers won’t survive the epochal shift from combustion to electric vehicles.That battle for survival has just been made even more difficult by the spread of coronavirus, which threatens to shutter plants and sap demand for new vehicles across the industry. The shares of auto companies — even very profitable ones like Peugeot — have been hammered this week. But if anyone can steer a safe path across this vertiginous chasm, surely Tavares can.For various reasons the big European carmakers have all changed their CEOs recently, but Peugeot has clung to its leader since 2014, and he’ll be in the driving seat when the company merges with Fiat Chrysler Automobiles NV. The strong full-year results that Tavares unveiled on Wednesday show why his services are in such demand; the contrast with struggling French rival Renault SA is telling. Peugeot’s car operations achieved an 8.5% adjusted operating margin in 2019, whereas Renault managed just 2.6%.(1)While Renault’s net cash is dwindling, forcing it to slash its dividend, Peugeot’s has swelled to more than 10 billion euros ($10.9 billion), allowing it to pay shareholders more.The cost-conscious Tavares has made a virtue of doing more with less and he’s been willing to make unpopular decisions to turn around under-performing businesses. Under General Motors Co.’s ownership, the European carmaker Opel/Vauxhall consistently lost money, but having joined the Peugeot stable it now boasts a 6.5% adjusted operating margin. That’s better than Mercedes-Benz.Wages costs as a percentage of sales have improved — a big achievement considering the workforce is heavily unionized — and Tavares has been ruthless about unlocking cash from inventories and invoices. Reassuringly, he thinks Peugeot could still break even if revenues fell by half.He’s achieved this without neglecting the urgent task of cutting vehicle emissions. Thanks to new electrified products, he’s confident Peugeot will meet the European Union’s tough pollution targets this year and thus avoid regulatory fines.Peugeot isn’t perfect. The company is struggling in inflation-hit Argentina and its performance in China has been poor. But its negligible China market share is an advantage right now. The company has less to lose from coronavirus shockwaves than many peers.What Peugeot lacks in economies of scale — its 3.5 million yearly car sales are one-third of what Volkswagen sells — it makes up for by being more agile. It’s almost a pity that Tavares is about to complicate the “small is beautiful” story by merging with Fiat. Peugeot’s shares have declined by almost 30% since the deal terms (highly favorable to Fiat and its Agnelli family owners) were announced in October. In fairness, Fiat is also performing well. Together, the two companies generated about 5 billion euros in free cash flow last year and the tie-up should bring substantial cost savings. Yet Peugeot’s shareholders aren’t willing to credit those benefits just yet. Antitrust official might raise objections and history shows there’s plenty else that can go wrong in complicated cross-border mergers.A generation of celebrated auto executives, such as Daimler’s Dieter Zetsche and Renault’s Carlos Ghosn, have departed the stage just as conditions became difficult. (Fiat’s Sergio Marchionne tragically died before he could complete the job). Tavares, who’s 61, isn’t the retiring type. He still has much to prove. (1) Peugeot's profit margins are adjusted for large restructuring costs.To contact the author of this story: Chris Bryant at email@example.comTo contact the editor responsible for this story: James Boxell at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of 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/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Peugeot maker PSA Group said on Wednesday profitability reached a record high in 2019, results that contrasted with those of many rivals and boosted the group's shares as it beds down a merger with Italy's Fiat Chrysler. The French firm, which also produces cars under the Citroen and DS brands, offset a slump in vehicle sales by selling pricier SUV models, helping to lift revenues. The rating agency maintained its investment grade view on the company, citing healthy liquidity, and said the merger with Fiat Chrysler (FCA) was positive.
It hasn't been the best quarter for Peugeot S.A. (EPA:UG) shareholders, since the share price has fallen 15% in that...
(Bloomberg Opinion) -- An infection typically hits the vulnerable hardest — and in the new coronavirus outbreak this might apply economically too. For all the geographical distance between Europe and China, the euro zone has much to fear from its spread.The disease is another challenge to the export-driven model of the monetary union, which was already struggling with the global lurch towards protectionism. It could be the first big test for Christine Lagarde, the European Central Bank’s new president, who has been a tad too optimistic about the euro area’s prospects.Coronavirus will affect Europe’s economy in three ways. First, there’s demand: China is the third-largest importer of goods and services from the euro zone, after the U.S. and the U.K. The bloc’s exports to China nearly trebled between 2007 and 2018, to 170.3 billion euros ($185.8 billion) from 60.5 billion. Over the same period, sales to the U.S. increased by about 63%. These figures matter because Europe relies extensively on global demand to drive its prosperity, as shown by its large external surplus. A slowdown in China sales will cause trouble in a number of industries such as luxury.Then there’s supply. Europe's manufacturing supply chains are less exposed to China than is the case for other regions of the world, according to a report by Oxford Economics, a consultancy. However, it notes that some industries might be more exposed: The Wuhan area, where the virus originated, is a major automobile hub and home to production sites of carmakers including Peugeot SA and Renault SA.Finally, there’s the effect of the outbreak on confidence. Europe’s financial markets have been resilient so far: The Stoxx Europe 600 index is still marginally up since the start of the year. It’s possible some companies will benefit from the disruptions, as producers have to look for alternative suppliers. However, coronavirus could weigh on investment decisions in the euro zone. An investment slowdown would create long-term economic damage, even if supply and demand in China rebounded quickly.These factors matter for every economy in the world, not just the euro zone. But the monetary union’s economy is already very weak. Growth slowed to just 0.1% in the last three months of 2019, the worst quarterly performance since 2013. From Germany to Italy, the industrial sector had a terrible end to the year. Unemployment continues to fall and wage growth remains solid, which should support internal demand. However, the euro area has been exposed to a succession of external shocks. The longer the coronavirus episode lasts, the higher the risk it spills into the domestic economy.The ECB is yet to react, and is still in wait-and-see mode after cutting rates and relaunching quantitative easing in September. Lagarde had even dropped some hints of optimism over inflation, which has stubbornly stayed well below the central bank's target of close to but below 2%.The waiting game may not last for long. As well as holding back growth, the virus may also force inflation down too. Oil prices have plummeted because of the slump in demand from China. The OPEC+ group of oil-producing countries is struggling to agree a new cut in production to help support prices.The euro zone mostly imports crude, so in theory any fall in its price should be good for its economy: Consumers would have more cash to spend on other goods, and companies would see their energy bills fall. In any case, central banks usually prefer to look through changes in energy prices and concentrate on “core” inflation.Yet the memories of 2014-2015 linger in the mind of policymakers. A sharp fall in oil prices at the time contributed to a bout of deflation, which threatened to turn the euro zone into Japan. In response, the ECB launched — for the first time — a program of massive and unconditional bond purchases.Unfortunately, this time around the ECB has already used several of its weapons to combat deflation. The balance sheet of the Eurosystem — made up of the ECB and national central banks — has hit nearly 4.7 trillion euros. The ECB has pushed its main refinancing rate to zero, and its deposit rate to -0.5%. “This low interest rate and low inflation environment has significantly reduced the scope for the ECB and other central banks worldwide to ease monetary policy,” Lagarde said last week.This slightly defeatist language contrasts with Lagarde's more pugnacious predecessor, Mario Draghi, who left the ECB with the words “never give up.” It’s also as worry that the euro zone governments with low debts, including Germany, seem to feel no pressure to relax fiscal policy sufficiently to combat the slowdown.It’s still possible that the economic threat from the coronavirus will fade. A strong policy response in China could create additional demand, which would help foreign companies. But the euro zone’s poor state doesn’t leave room for error. After a quiet start for Lagarde, the difficult decisions could be fast-approaching.To contact the author of this story: Ferdinando Giugliano at email@example.comTo contact the editor responsible for this story: James Boxell at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Ferdinando Giugliano writes columns on European economics for Bloomberg Opinion. He is also an economics columnist for La Repubblica and was a member of the editorial board of the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
GENEVA/BEIJING, Feb 5 (Reuters) - Thousands of passengers and crew on two cruise ships in Asian waters were placed in quarantine for China's coronavirus on Wednesday as airlines, carmakers and other global companies counted the cost of the fast-spreading outbreak. A multinational WHO-led team would go to China "very soon", it added. China said another 65 people had died in the previous 24 hours, in the highest daily total yet, taking the overall toll on the mainland to 490, most in and around the locked-down central city of Wuhan, where the new virus emerged late last year.
* Futures point to lower Wall Street open Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Danilo Masoni. As the number of cases from new coronavirus outbreak exceeds 8,100 globally, surpassing the 2002/2003 SARS outbreak, street analysts are looking into the ripple effects from the outbreak and the lockdown in Wuhan. The ongoing lockdown of Wuhan -- home to more than 11 million people -- is likely to have a global impact on supply chain, Credit Suisse says, given its importance as Central China's main industrial and commercial center and an important transport hub.
British car output dropped last year at the fastest rate since the 2008-9 recession, hit by slumping exports and diesel demand, as an industry body called for an ambitious post-Brexit trade deal to protect the sector. Production fell by an annual 14.2% to 1.3 million cars in 2019, the third consecutive fall, also hit by some automakers closing factories for additional days in case of Brexit-related disruption, according to the Society of Motor Manufacturers and Traders (SMMT). "It is essential we re-establish our global competitiveness and that starts with an ambitious free trade agreement with Europe," said SMMT Chief Executive Mike Hawes.
Reach him on Messenger to share your thoughts on market moves: email@example.com CLOSING SNAPSHOT: IT'S NOT FOMO (1641 GMT) That's right, it's not Fear Of Missing Out, it's actually a Habit Of Missing Out for the STOXX 600, which ends the session up 0.19%, just one point from its record of 421.43 hit on January 9. YTD, the U.S. index is comfortably ahead of its European cousin with a rise of 2.3% versus 1.1% for the STOXX 600. The Dow Jones decided to keep celebrating the signing of the US-China ‘phase one’ trade deal, with momentum firmly on the index’s side.
* European shares little changed * Wall Street posts new records * Results drive top movers: Pearson tanks, Hellofresh rallies * Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Danilo Masoni. Reach him on Messenger to share your thoughts on market moves: firstname.lastname@example.org STOXX 600 MISSING OUT AGAIN (1604 GMT) There's a party and the STOXX 600 isn't invited. While Wall Street is celebrating the trade deal, Morgan Stanley's fresh earnings and positive retail data with new record highs, the STOXX 600 is missing out again.