Research Market strategy
By Swissquote Analysts
Morning News

LG Chem Venture Plans Second $2.3 Billion Battery-Cell Plant

General Motors Co. and joint-venture partner LG Chem Ltd. said they plan to invest $2.3 billion to build a second battery-cell plant in Tennessee to support the Detroit auto maker's efforts to expand its electric-vehicles portfolio. The GM/LG venture, Ultium Cells LLC, will build the plant in Spring Hill on land leased from GM, creating 1,300 new jobs. GM and LG said construction on the roughly 2.8-million-square-foot facility will begin immediately, with the plant slated to open in late 2023. The facility will supply battery cells to GM's Spring Hill assembly plant. GM and LG formed Ultium in 2019 to mass produce battery cells at a new facility in Lordstown, Ohio. The companies on Friday said construction of that $2.3 billion plant is well underway.

By
Vincent MIVELAZ
Morning News

L'Oreal 1Q Sales Rose

L'Oreal SA said Thursday that sales rose in the first quarter of the year, with three divisions reporting double-digit growth despite the impact of the coronavirus. The French cosmetics and consumer-products company said quarterly sales came in at 7.61 billion euros ($9.11 billion), up from EUR7.23 billion in the previous year. On a like-for-like basis, sales increased 10.2%. L'Oreal's professional-products division reported a 21% organic sales rise, supported by new trends such as the digitalization of salons, independent stylists and the e-commerce boom. The active cosmetics business jumped 28.7% on a like-for-like basis, gaining market share across geographies, while the luxe division reported a sales increase of 14.6% like-for-like. L'Oreal said first-quarter results outperformed the market and it is confident it will be able to achieve growth in both sales and profits in the year.

By
Vincent MIVELAZ
Morning News

Goldman Profit Rises Sharply on Strong Trading, Deal Making

Goldman Sachs Group Inc. reported record profit and revenue in the first quarter, benefiting from a turbocharged market and an economic recovery. Goldman posted a quarterly profit of $6.84 billion, or $18.60 a share, on revenue of $17.7 billion. Both measures were up significantly from a year ago -- when the bank posted profit of $1.2 billion on revenue of $8.7 billion -- and exceeded the expectations of analysts polled by FactSet, who forecast profit of $10.22 a share on revenue of $12.56 billion. Trading revenue rose 47% from a year ago to $7.6 billion, thanks to a 31% increase in fixed-income, currency and commodity trading revenue and a 68% increase in stock-trading revenue.

By
Vincent MIVELAZ
Morning News

LVMH Beats Consensus with Strong 1Q Sales

LVMH Moet Hennessy Louis Vuitton SE said Tuesday that sales returned to strong growth in its first quarter, boosted by its core soft-luxury division and by the integration of jeweler Tiffany. Sales at the French luxury-goods conglomerate grew by 30% organically on year to 13.96 billion euros ($16.63 billion). The figure represents an 8% rise compared with the same period in 2019. Analysts had forecast quarterly sales of EUR12.58 billion, according to a FactSet-compiled consensus of seven estimates. The core fashion & leather goods division booked the largest increase at 52%, while the watches & jewelry division, with Tiffany integrated for the first time, posted growth of 35%.

By
Vincent MIVELAZ
Morning News

Microsoft to Buy Nuance Communications for $19.7 Billion

Microsoft Corp. has agreed to acquire speech-recognition firm Nuance Communications Inc. for $16 billion, pushing further into health technology and adding to a series of big deals that have widened the range of software tools it offers customers. The two companies said Microsoft agreed to pay $56 per Nuance share in the all-cash deal, a 23% premium over Friday's closing price. The companies put the deal value, including debt, at $19.7 billion. Meanwhile, Microsoft intends to continue its share buyback program. Microsoft shares closed virtually unchanged, while Nuance soared by almost 16 percent. The acquisition is Microsoft's second largest under Chief Executive Satya Nadella after the company spent about $26 billion for professional network LinkedIn Corp. in 2016.

By
Vincent MIVELAZ
Morning News

Alibaba Hit With Record $2.8 Billion Antitrust Fine in China

China's antitrust regulator imposed a fine equivalent to $2.8 billion against Alibaba Group Holding Ltd. for abusing its dominant position over rivals and merchants on its e-commerce platforms, a record penalty in the country that comes amid a wave of scrutiny on the business empire of Alibaba founder Jack Ma. China's State Administration for Market Regulation said Saturday in Beijing that Alibaba punished certain merchants who sold goods both on Alibaba and on rival platforms, a practice that it dubbed "er xuan yi"--literally, "choose one out of two." As part of the penalty, regulators will require that Alibaba carry out a comprehensive revamp of its operations and submit a "self-examination compliance report" within the next three years, they said.

By
Vincent MIVELAZ
Morning News

Netflix Inks Deal for Rights to Sony Movies, Including Upcoming 'Spider-Man' Films

Netflix Inc. has reached a multiyear agreement with Sony Pictures Entertainment for domestic streaming rights to the studio's theatrical movies, the companies said Thursday. The deal will start with Sony Pictures' 2022 movie slate. Among the releases that will land on Netflix after their theatrical runs are future "Spider-Man" movies and other films based on Marvel characters that Sony has the rights to, including Morbius and Venom. Netflix's need for acquired content is growing as it faces greater competition from newer streaming services including Disney+, AT&T Inc.'s HBO Max and NBCUniversal's Peacock. Once big sellers of their content to Netflix, those companies are now keeping more of their movies and TV shows in-house to feed their own streaming platforms.

By
Vincent MIVELAZ
Morning News

Biden Softens Tax Proposal Aimed at Profitable Companies That Pay Little

President Biden's proposed 15% minimum tax on profitable corporations would affect far fewer companies than the version he campaigned on, according to details the Treasury Department released Wednesday. The tax -- aimed at companies that report large profits to investors but low tax payments -- would apply only to companies with income exceeding $2 billion, up from the $100 million threshold used during the campaign. The Biden plan would now also let companies subject to the tax get the benefit for tax credits for research, renewable energy and low-income housing. The result is that just 180 companies would even meet the income threshold and just 45 would pay the tax, according to administration estimates that assume the rest of the administration's plan gets implemented. Nearly 1,100 U.S.-listed companies would meet the $100 million threshold, according to S&P Global Market Intelligence.

By
Vincent MIVELAZ
Morning News

Toshiba Receives Takeover Offer from CVC Capital Partners

Japanese technology group Toshiba has received a takeover offer from private equity firm CVC Capital Partners. Toshiba Corp said it would obtain further details on the offer and examine it carefully, confirming a report in the Nikkei business daily. The latter had reported that CVC wanted to acquire Toshiba for a good 20 billion U.S. dollars and take it off the stock exchange. CVC's offer comes after some of Toshiba's shareholders have questioned the group's corporate governance in recent months.

By
Arnaud Masset
Morning News

Softbank Acquires 40 Percent of Norwegian Autostore

Softbank Group Corp acquires a 40 percent stake in Norwegian warehouse technology company Autostore for $2.8 billion. The Japanese investment holding company is thus focusing on the use of robots and automation in warehouses. Autostore is controlled by private equity firm Thomas H. Lee Partners, with Sweden's EQT AB holding a minority stake. In total, the deal values Autostore at $7.7 billion, according to the companies involved.

By
Peter Rosenstreich