Company news
Pearson exits consumer publishing
British education company Pearson said on Wednesday it would sell its remaining 25% stake in publisher Penguin Random House to German partner Bertelsmann, generating net proceeds of about US$675 million.
The deal will end Pearson's association with consumer publishing that stretches back nearly 50 years to 1970 when it bought the company that had published "Lady Chatterley's Lover" a decade earlier.
The sale values the joint venture, created in 2013, at US$3.67 billion, Pearson said, adding it would return US$350 million to investors through a share buyback.
The group also said Chief Executive John Fallon would retire in 2020 once a successor had been appointed.
"For almost 50 years, Pearson has been proud to play our part in the publishing and commercial success of first Penguin and then more recently Penguin Random House," Fallon said in a statement.
He said the disposal would enable Pearson to focus on its digital learning operations.
Penguin Random House reported revenue of US$3.7 billion and operating profit of US$467 million in 2018, and 68 million pounds (US$87.24 million) after tax to Pearson's adjusted operating profit. – Nampa/Reuters
Shanghai aluminium scales 3-month high on demand hopes
Shanghai aluminium hit its highest level in three months on Wednesday, as easing
U.S.-China trade conflict fuelled demand optimism.
"Demand is good and China's output has not increased, so the price is relatively high. It is expected that demand will be better next year," said a source with a major aluminium smelter in China, the world's biggest user and producer of the metal.
Global investor confidence has improved since the United States and China last week said they reached a "phase-one" trade pact to cool their trade war that has hurt global economic growth and the demand for most base metals, including aluminium.
Aluminium, used in construction, packaging and transportation, is one of the metals most heavily targeted with U.S. tariffs in the 17-month-long trade war.
"Everyone has become optimistic," after news about the interim U.S.-China trade deal, the source added.
The most traded aluminium contract on the Shanghai Futures Exchange (ShFE) climbed as much as 1.2% to 14,130 yuan (US$2,007.42) a tonne, a level not seen since Sept. 18. It closed up 0.9% at 14,100 yuan a tonne. – Nampa/Reuters
TV and stereo maker B&O warns of sales decline and lower profit margin
Danish luxury TV and stereo maker Bang & Olufsen cut its revenue and operating
margin outlook late on Tuesday in the fourth such profit warning for the struggling firm in a year.
B&O now expects revenue to drop 13-18% in its 2019-2020 financial year compared to previously single-digit growth. It cut its EBIT margin forecast to minus 4-9% against a previous forecast of margin better than the 2.1% achieved last year.
Nordnet analyst Per Hansen called the profit warning "catastrophic" and said that the stock could fall at least 25% when the Copenhagen stock exchange opens at 0800 GMT. – Nampa/Reuters
Tesla considers cutting China-built Model 3 sedan prices next year
U.S. electric vehicle maker Tesla Inc is considering cutting the prices of its China-built Model 3 sedans by 20% or more next year, Bloomberg reported on
Wednesday, citing people familiar with the plans.
Prices of the cars, which will be manufactured in Tesla's new Shanghai factory, will stand at 355,800 yuan (US$50,547.67) and are likely to be lowered from the second half of 2020, the report said.
The scale and timing of price cuts could change based on market situations, the report said.
The U.S. carmaker aims to lower costs by using more local components, allowing it to import fewer parts and avoid tariffs, according to Bloomberg.
Tesla declined to comment when contacted by Reuters. – Nampa/Reuters
Australia's biggest banks reel from string of scandals
Australia's banking industry is reeling from a series of regulatory scandals. Here is a broad summary of the issues:
Australian banks are still feeling the fallout from a year long government-led inquiry into the sector, which wrapped up in February. That revealed rampant wrongdoing across the industry, including fees charged to the accounts of dead people and bribes paid to win mortgage business.
The inquiry also found regulators had been too lenient in their oversight of banks, with reported misconduct often met with light penalties or left completely unpunished.
The government recommended overhauling how the nation's banks are regulated and executives are paid, and referred two dozen cases for possible legal action.
The nation's four largest banks - Commonwealth Bank of Australia, Westpac Banking Corp, Australia and New Zealand Banking Group and National Australia Bank - have set aside over A$8 billion (US$5.4 billion) to refund customers for overcharged fees, miss-sold products and non-compliant financial advice stemming from the probe. – Nampa/Reuters
BHP plans 'baby steps' return to commodities trading
Global miner BHP Group is feeling its way back into commodities trading, making a dedicated hire to help it manage a base metals book in Singapore as it seeks to boost returns and manage transaction risk, two people with knowledge of the matter said.
The return to trading at the world's biggest listed miner for the first time since the mid-2000s will see it add trading capacity across copper, energy and iron ore divisions in what one of the people described as "baby steps".
The move comes several years after peer Anglo American moved into trading of concentrates including third party material, which industry sources say has met with some success.
BHP has hired Yuna Chang, formerly with mid-sized base metals trading house Concord Resources, to execute London Metal Exchange business, according to another person with direct knowledge of the matter. Chang did not respond to a request for comment made via LinkedIn.
BHP will not be launching a proprietary trading desk, said the sources, who declined to be identified because discussions on the matter were private. It wasn't immediately clear if BHP would extend credit to customers as part of the new trading arrangements.
A BHP spokesman said the miner remained focused on creating value with its customers and that it would "constantly assess the commercial options that support their requirements and helps us achieve our objectives".It said it would continue to leverage its physical copperbook which is set to grow as it brings its Spence expansion in Chile online.
BHP's previous commodities trading stretches back to when it merged with British peer Billiton in 2001, setting up a centralised marketing model across its operations in Singapore and The Hague. – Nampa/Reuters
British education company Pearson said on Wednesday it would sell its remaining 25% stake in publisher Penguin Random House to German partner Bertelsmann, generating net proceeds of about US$675 million.
The deal will end Pearson's association with consumer publishing that stretches back nearly 50 years to 1970 when it bought the company that had published "Lady Chatterley's Lover" a decade earlier.
The sale values the joint venture, created in 2013, at US$3.67 billion, Pearson said, adding it would return US$350 million to investors through a share buyback.
The group also said Chief Executive John Fallon would retire in 2020 once a successor had been appointed.
"For almost 50 years, Pearson has been proud to play our part in the publishing and commercial success of first Penguin and then more recently Penguin Random House," Fallon said in a statement.
He said the disposal would enable Pearson to focus on its digital learning operations.
Penguin Random House reported revenue of US$3.7 billion and operating profit of US$467 million in 2018, and 68 million pounds (US$87.24 million) after tax to Pearson's adjusted operating profit. – Nampa/Reuters
Shanghai aluminium scales 3-month high on demand hopes
Shanghai aluminium hit its highest level in three months on Wednesday, as easing
U.S.-China trade conflict fuelled demand optimism.
"Demand is good and China's output has not increased, so the price is relatively high. It is expected that demand will be better next year," said a source with a major aluminium smelter in China, the world's biggest user and producer of the metal.
Global investor confidence has improved since the United States and China last week said they reached a "phase-one" trade pact to cool their trade war that has hurt global economic growth and the demand for most base metals, including aluminium.
Aluminium, used in construction, packaging and transportation, is one of the metals most heavily targeted with U.S. tariffs in the 17-month-long trade war.
"Everyone has become optimistic," after news about the interim U.S.-China trade deal, the source added.
The most traded aluminium contract on the Shanghai Futures Exchange (ShFE) climbed as much as 1.2% to 14,130 yuan (US$2,007.42) a tonne, a level not seen since Sept. 18. It closed up 0.9% at 14,100 yuan a tonne. – Nampa/Reuters
TV and stereo maker B&O warns of sales decline and lower profit margin
Danish luxury TV and stereo maker Bang & Olufsen cut its revenue and operating
margin outlook late on Tuesday in the fourth such profit warning for the struggling firm in a year.
B&O now expects revenue to drop 13-18% in its 2019-2020 financial year compared to previously single-digit growth. It cut its EBIT margin forecast to minus 4-9% against a previous forecast of margin better than the 2.1% achieved last year.
Nordnet analyst Per Hansen called the profit warning "catastrophic" and said that the stock could fall at least 25% when the Copenhagen stock exchange opens at 0800 GMT. – Nampa/Reuters
Tesla considers cutting China-built Model 3 sedan prices next year
U.S. electric vehicle maker Tesla Inc is considering cutting the prices of its China-built Model 3 sedans by 20% or more next year, Bloomberg reported on
Wednesday, citing people familiar with the plans.
Prices of the cars, which will be manufactured in Tesla's new Shanghai factory, will stand at 355,800 yuan (US$50,547.67) and are likely to be lowered from the second half of 2020, the report said.
The scale and timing of price cuts could change based on market situations, the report said.
The U.S. carmaker aims to lower costs by using more local components, allowing it to import fewer parts and avoid tariffs, according to Bloomberg.
Tesla declined to comment when contacted by Reuters. – Nampa/Reuters
Australia's biggest banks reel from string of scandals
Australia's banking industry is reeling from a series of regulatory scandals. Here is a broad summary of the issues:
Australian banks are still feeling the fallout from a year long government-led inquiry into the sector, which wrapped up in February. That revealed rampant wrongdoing across the industry, including fees charged to the accounts of dead people and bribes paid to win mortgage business.
The inquiry also found regulators had been too lenient in their oversight of banks, with reported misconduct often met with light penalties or left completely unpunished.
The government recommended overhauling how the nation's banks are regulated and executives are paid, and referred two dozen cases for possible legal action.
The nation's four largest banks - Commonwealth Bank of Australia, Westpac Banking Corp, Australia and New Zealand Banking Group and National Australia Bank - have set aside over A$8 billion (US$5.4 billion) to refund customers for overcharged fees, miss-sold products and non-compliant financial advice stemming from the probe. – Nampa/Reuters
BHP plans 'baby steps' return to commodities trading
Global miner BHP Group is feeling its way back into commodities trading, making a dedicated hire to help it manage a base metals book in Singapore as it seeks to boost returns and manage transaction risk, two people with knowledge of the matter said.
The return to trading at the world's biggest listed miner for the first time since the mid-2000s will see it add trading capacity across copper, energy and iron ore divisions in what one of the people described as "baby steps".
The move comes several years after peer Anglo American moved into trading of concentrates including third party material, which industry sources say has met with some success.
BHP has hired Yuna Chang, formerly with mid-sized base metals trading house Concord Resources, to execute London Metal Exchange business, according to another person with direct knowledge of the matter. Chang did not respond to a request for comment made via LinkedIn.
BHP will not be launching a proprietary trading desk, said the sources, who declined to be identified because discussions on the matter were private. It wasn't immediately clear if BHP would extend credit to customers as part of the new trading arrangements.
A BHP spokesman said the miner remained focused on creating value with its customers and that it would "constantly assess the commercial options that support their requirements and helps us achieve our objectives".It said it would continue to leverage its physical copperbook which is set to grow as it brings its Spence expansion in Chile online.
BHP's previous commodities trading stretches back to when it merged with British peer Billiton in 2001, setting up a centralised marketing model across its operations in Singapore and The Hague. – Nampa/Reuters
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