(Alliance News) - The following is a summary of top news stories Wednesday.
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COMPANIES
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Stellantis said sales grew in the first three months of 2021 as it continues to gain market share in Europe and South America. The Amsterdam, Netherlands-headquartered automotive manufacturer - which was created from the merger of Fiat Chrysler Automobiles and Peugeot back in January - said net revenue was EUR34.3 billion, or EUR37.0 billion on a pro forma basis for the three months to the end of March, up 14% on a year prior. Consolidated shipments of 1.5 million units, or 1.6 million units on a pro forma basis were 11% higher year-on-year in the first quarter of 2021. Market share in Europe improved by 150 basis points to 23.6%, Stellantis noted, while market share in South America grew by 530 basis points to 22.2%. "In our first quarter since the merger, Stellantis posted strong revenue with the diverse brand portfolio driving increased volumes, positive pricing and improved product mix, despite the headwinds from the global semiconductor crisis," said Chief Financial Officer Richard Palmer.
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Veolia Environnement reported "strong" sales and profit growth in the first quarter of 2021 and maintained its guidance for the year. First-quarter revenue was up 2.0% year-on-year to EUR6.81 billion from EUR6.68 billion, while earnings before interest, tax, depreciation and amortisation were up 11% to EUR1.08 billion from EUR970 million. The energy business was the strongest performer, with sales up 15% year-on-year thanks to favourable weather and higher prices. But revenue from the water division fell 5.4%. The Paris-based utilities firm maintained its guidance for revenue this year to be above the 2019 level, and for Ebitda to grow more than 10% to over EUR4 billion. It expects to finalise the acquisition of Suez Group by the end of the year.
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Deutsche Post said it had a record first quarter, thanks to continued high shipment volumes. The Bonn, Germany-based package delivery company said net profit jumped to EUR1.19 billion in the three months to the end of March compared to EUR301 million a year earlier, on a revenue that grew 22% to EUR18.86 billion from EUR15.46 billion. Deutsche Post highlighted that it has registered growth of 18% in air freight volumes in the first quarter due mainly to increased demand from Asia and the US.
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Australia & New Zealand Banking Group lifted its interim payout and said it is well-placed to continue to support the ongoing economic recovery. The Melbourne, Australia-based banking and financial services company said profit after tax for the six months to the end of March rose by 45% on a year prior to AUD2.94 billion, about USD2.27 billion. Profit growth was driven by a net credit provision release of AUD491 million. Cash profit for continuing operations, before credit impairments and tax, however, came in at AUD3.94 billion, down 10% year-on-year. As a result, pretax profit before credit impairment slipped to AUD4.87 billion in the first half from AUD5.05 billion a year earlier. ANZ said it will pay an interim dividend of 70 Australian cents per share, doubled from 35 cents paid a year ago.
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Speciality chemical firm Croda International said it is launching a strategic review of its Performance Technologies and Industrial Chemicals units. Croda said the main objective will be to establish what ownership structure best serves this part of the business going forward, to create a stronger platform for its future growth. The review is consistent with Croda's prioritisation of investments in the faster-growth life science and consumer markets, which now represent over 80% of company's profit, it noted. These are represented by its Personal Care and Life Sciences divisions. Croda said the review will consider whether the company is "the best future owner of all the PTIC businesses within the context of opportunities to deploy more capital and resources within PTIC, as well as in Consumer Care and Life Sciences". The review is expected to conclude by the end of 2021, Croda added.
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ITV said it made a positive start to 2021 with total revenue and total television viewing both up, despite the continuing pressures from the Covid-19 pandemic. The broadcaster said it finished the quarter strongly with a majority of shows back in production and a recovery in the advertising market. For the first quarter to March 31, total external revenue was up 2% at GBP709 million from GBP694 million in the first quarter of 2020. ITV Studios revenue was up 9% at GBP372 million from GBP342 million. In the Media & Entertainment division, revenue was down 3% at GBP484 million from GBP500 million, hurt by the national lockdown in the UK. ITV total advertising revenue was down 6%, but online revenue was up 14%. ITV total viewing was up 1% in the first quarter. Online view was down 11%, due to the absence of the winter episodes of popular reality dating show Love Island in January and February. Excluding Love Island, online viewing was up 23%.
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MARKETS
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European market were rebounding on Wednesday, with Frankfurt staging a particularly strong recovery from its underperformance on Tuesday. Stellantis was up 3.1% in Milan. PMI scores from the continent were mostly positive. "The updated services PMIs for April confirmed that the worst for the eurozone economy should be over," Oxford Economics said.
There was a weak lead from Asia, as Shanghai and Tokyo remained closed for holidays, but Wall Street was pointed higher after being hit on Tuesday by a comment from US Treasury Secretary Janet Yellen that interest rates may need to rise.
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CAC 40: up 0.9% at 6,310.46
DAX 30: up 1.3% at 15,053.31
FTSE 100: up 1.2% at 7,004.84
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Hang Seng: closed down 0.5% at 28,417.98
Nikkei 225: Tokyo market closed for holiday.
S&P/ASX 200: closed up 0.4% at 7,095.80
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DJIA: called up 0.2%
S&P 500: called up 0.4%
Nasdaq Composite: called up 0.5%
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EUR: down at USD1.1997 (USD1.2015)
GBP: up at USD1.3890 (USD1.3871)
USD: up at JPY109.40 (JPY109.33)
Gold: down at USD1,777.20 per ounce (USD1,782.51)
Oil (Brent): up at USD69.75 a barrel (USD68.46)
(currency and commodities changes since previous London equities close)
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ECONOMICS AND GENERAL
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US interest rates may have to increase "somewhat" to keep a lid on the economy if President Joe Biden's latest spending proposals are enacted, Treasury Secretary Yellen said on Tuesday. However, Yellen said the proposed investments in infrastructure and families over the coming decade are needed to keep the US competitive and boost growth. After winning approval for a USD1.9 trillion pandemic rescue plan in March, Biden has made two more proposals totally nearly USD4 trillion over a decade and partially paid for with tax increases on corporations and the wealthy. The goal is to revamp the US economy after the Covid-19 pandemic caused a severe downturn in 2020. While those investments are over a longer term, "It may be that interest rates will have to rise somewhat to make sure that our economy doesn't overheat," Yellen said in a pre-recorded conversation with The Atlantic.
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Eurozone service sector activity returned to growth in April after seven months of contraction, survey results from IHS Markit showed. The eurozone purchasing services business activity index registered 50.5 points in April, up from 49.6 in March, and back above the 50.0 mark which separates expansion from contraction. April's reading signalled the first expansion of business activity since last August. The eurozone composite PMI index print was 53.8 points in April, up from 53.2 in March. It is a combination of the services and manufacturing sector readings. On Monday, the manufacturing PMI had been reported at 62.9 points in April, down from the flash score of 63.3 but still up from 62.5 in March. Markit noted that there were some notable divergences in performance by countries. Spain registered a marked rise in activity, while Germany and Italy experienced contractions. Marginal growth was seen in France.
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Eurozone producer prices rose in March, driven by higher energy costs, the latest figures from Eurostat showed. On an annual basis, producer prices in the euro area jumped 4.3% in March, accelerating sharply from a rise of 1.5% in February. The latest reading just beat the consensus forecast, cited by FXStreet, for a 4.2% increase. Producer prices rose 1.1% in March month-on-month following a 0.5% increase in February and was in-line with estimates.
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US President Biden said he expects to hold a summit with his Russian counterpart Vladimir Putin during a June trip to Europe. "That is my hope and expectation," Biden said. Biden in April offered a meeting in a third country to discuss rising tensions over Russian sabre rattling around Ukraine, the treatment of jailed Putin opponent Alexei Navalny, and other flashpoints. A summit has not been confirmed but a Putin advisor, Yury Ushakov, has said planning is underway. Biden is scheduled to attend a G7 summit in Britain in mid-June, followed by NATO and EU summits in Brussels, which would open the door to the logistics of a separate Putin meeting. Austria and Finland have expressed interest in hosting the summit.
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The group of seven wealthy democracies will discuss coronavirus vaccines Wednesday as they face growing pressure to share stockpiles and know-how with poor nations trailing far behind on fighting the pandemic. Foreign ministers of Britain, Canada, France, Germany, Italy, Japan and the US are wrapping up three days of talks in central London that will set the agenda for a G7 leaders' summit next month in Cornwall, southern England. After a day focused on showing a common front of democracies towards China, the final sessions will also bring in development chiefs and address global challenges including the Covid-19 pandemic and climate change.
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By Tom Waite; thomaslwaite@alliancenews.com
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