TOP 5 STOCKS TO WATCHOUT:-
1.VOLKSWAGEN : Volkswagen AG and Porsche SE have negotiated a framework agreement to prepare for an IPO of Porsche AG, the companies said on Tuesday, in the first confirmation by the players involved that a listing could be on the table.
A final decision had not yet been taken and the conclusion of an agreement must be approved by the management and supervisory boards, Volkswagen said.
The statements paved the way for what could be on of the largest ever listings in European history, with reports estimating a valuation of 45-90 billion euros ($51-$102 billion) for the luxury carmaker.
“Whether a Framework Agreement is concluded… is currently open and depends on the approval of both parties’ boards,” Volkswagen said.
Porsche SE said a transaction could include the acquisition of ordinary shares – which bestow voting rights upon the holder – of Porsche AG.
Both Volkswagen and Porsche SE shares gained as much as 10% to 192.48 euros and 88.8 euros respectively after a slight drop in early trade.
Speculation about a Porsche listing has lifted hopes on the stock market several times over the past year – but no decision has been made due to a complex stakeholder set-up.
Sources told Reuters last year the Porsche and Piech families, who own 31.4% of Volkswagen shares and have 53.3% of voting rights via Porsche SE, were weighing taking a direct stake in Porsche AG.
2.COCA-COLA: Coca-Cola HBC said on Tuesday it had contingency plans to cope with the escalating Russia-Ukraine crisis, as the London-listed soft drinks bottler reported a surge in annual profit driven in part by its large Russian business.
It shares tumbled 7% in early trade.
The company, one of Coca-Cola’s many bottlers worldwide, said it was considering stockpiling ingredients to limit any disruption in Russia, after Western nations threatened new sanctions following Moscow’s recognition of two breakaway Ukrainian regions.
“We have contingencies in place for all scenarios, including alternative sourcing, so that we can act swiftly to whatever happens,” Chief Executive Zoran Bogdanovic told Reuters.
He said Coca-Cola HBC, which operates in 29 European and African countries and counts Russia and Nigeria as its two biggest markets, had learned lessons from its experience during the 2014 Russian-Ukrainian conflict.
“We ensure that we have the right level of stocks in our markets to avoid disruptions,” the CEO said.
3.AMAZON:- Amazon.com Inc has become the poster child of technology giants bucking the trend of major conglomerates breaking up, thanks to bright growth prospects shielding it from pressure to follow suit, investors and dealmakers said.
Investors have in recent years fallen out of love with conglomerates holding disparate businesses. Many companies have taken note, with General Electric Co, Johnson & Johnson and Toshiba Corp announcing plans to break up in recent months.
Some hedge funds have been arguing that Amazon’s $1.6 trillion market capitalization masks the true value of Amazon Web Services, its cloud business which could be worth almost as much as a separate entity.
They found ammunition in a letter sent last week by Daniel Loeb’s hedge fund Third Point to investors, arguing the company is undervalued with “significant sum-of-the-parts value” hidden away. Third Point has not urged Amazon to break up.
Investment bankers said Amazon was unlikely to part with its cloud business, a big cash cow. It helps fund Amazon’s expansion into new areas and compensates for less lucrative divisions that are showing strong revenue growth, such as its third-party merchant and advertising businesses.
“In contrast to industries where companies may have businesses that are either clearly unconnected or with very different financial profiles and capital needs, large tech companies have ample access to capital and businesses that have not hit maturity,” said Michael Kagan, Citigroup Inc’s North America head of shareholder advisory and structured solutions.
“As a result, opportunities to drive long-term shareholder value by separating into ‘pure plays’ may be less obvious, both financially and operationally.”
An Amazon spokesperson declined to comment.
Amazon has thrived largely on the back of its e-commerce business and highly profitably Amazon Web Services, even as it made inroads into new areas, building them or bulking up through large acquisitions in industries ranging from big-budget film-making to online groceries.
4.BOSCH:-Bosch is investing an additional 250 million euros ($282.50 million) in extending chip production facilities at its Reutlingen plant in Germany, the company said on Tuesday.
The Reutlingen site had previously been earmarked for 50 million euros of a total of 400 million that the supplier set aside last year for spending on chip production in 2022 across Reutlingen, Dresden and a testing facility in Penang, Malaysia.
The largest part of that budget was allocated to expanding its 1-billion-euro Dresden factory producing 300-millimeter wafers, which the group inaugurated in June.
The extra capacity at Reutlingen will come into force in 2025, Bosch said in a statement.
5.AIRBUS :-Airbus is poised to build a technology demonstrator for future hydrogen airplanes by mid-decade in co-operation with engine maker CFM International, industry sources said.
The planemaker has scheduled a news conference with “key engine partners” for 1400 GMT on Tuesday on the latest milestone in its plans to develop a zero-emission aircraft.
Airbus declined to comment. CFM, jointly owned by General Electric and Safran and the world’s largest jet engine maker by number of units sold, also declined to comment.
The project is expected to feature a specially adapted version of current-generation engines in order to advance research on the project, which is part of global efforts to curb emissions in aviation, the sources said.
Airbus has said it will produce a small “ZEROe” passenger aircraft powered by hydrogen to enter service in 2035.
It told the European Union a year ago that most airliners will rely on traditional jet engines until at least 2050, according to a briefing made public last June.
Even so, Airbus officials say the research will seed disruptive technology likely to play a role in the next generation of larger airplanes, as well as offering radically new technology for small planes holding some 50-100 people.
Boeing has so far been cooler towards hydrogen and placed greater emphasis on sustainable aviation fuels (SAF).
In a sign of growing alignment with Airbus on alternative technologies, CFM said last year a separate next-generation jet engine called RISE, which it hopes to offer for larger jets from 2035, would be capable of running on fuels including hydrogen.
Airbus has said it will choose the final type of product for the “ZEROe” decarbonised plane project in 2025. It expects to narrow down the choice of concept as early as mid-2022.
Chief Executive Guillaume Faury was quoted earlier this month by Welt am Sonntag as saying Airbus could go it alone and make engines for its future hydrogen-fuelled planes.
But Faury played down the prospect of Airbus moving into engine-making at a results presentation last week, telling reporters it “would require a change of strategy, and I have not indicated that we have changed our strategy on that one”.
He said working with partners on the next generation of technology is theoretically possible “and it’s not something we would rule out completely, but more looking at it case by case”.