Research Market strategy
By Swissquote Analysts
Morning News

U.S. Stock Market Is Top-Heavy, but Carnage Is Widespread

Eight companies are to blame for nearly half the stock market’s decline this year—and the pain doesn’t end there. Apple Inc., Microsoft Corp. , Amazon. com Inc., Tesla Inc. and the parent companies of Google and Facebook swelled to be so big in recent years that they accounted for 25% of the S&P 500 heading into 2022. The benchmark U.S. stock index is weighted by market value, which means the biggest companies have the most influence. Just recently, those companies were powering the stock market ever higher. Now that they are faltering, the broader market is too. Together with Nvidia Corp. and Netflix Inc. , they are responsible for 49.6% of the benchmark’s 2022 losses through Tuesday on a total-return basis, according to S&P Dow Jones Indices.

By
Mathieu VILLARD
Morning News

Siemens Energy Considers Buyout for Siemens Gamesa

Power generation equipment maker Siemens Energy (+1% in Frankfurt) is considering a cash tender offer for all outstanding shares in its wind energy subsidiary Siemens Gamesa Renewable Energy (+12.7%) with a view to delisting - a long-awaited move after a series of profit warnings from the wind-turbine maker. Siemens Energy currently holds 67% of Siemens Gamesa's share capital.

By
Mathieu VILLARD
Morning News

Walmart Earnings Are Dented by Food Inflation, Staffing Costs

Walmart slumped $16.86 a share, or 11%, to $131.35—retreating to its lowest level in more than a year—after the retail giant reported that earnings fell sharply, hurt by higher supply-chain and labor costs. The country’s largest retailer by revenue said sales increased in the most recent quarter, but higher product, supply-chain and employee costs ate into profits, sending the retailer’s stock sharply lower Tuesday. Throughout the pandemic, Walmart and other big-box retailers have benefited from higher demand for a host of goods and while some costs have increased, profits have grown along with sales.

By
Mathieu VILLARD
Morning News

McDonald's to Exit From Russia After Three Decades

McDonald’s shares slipped $1, or 0.4%, to $244.04 after the company said it would quit Russia and sell its business there, ending more than three decades in the country over its invasion of Ukraine. In deciding to sell up, the fast-food giant joins a raft of Western companies, from auto makers to brewers, in exiting Russia having initially opted to pause its operations in the country. McDonald's had in March said it would temporarily close its 847 restaurants in Russia while continuing to pay the 62,000 people it employs there. Since then, pressure has mounted on Western companies -- particularly from the Ukrainian government -- to pull the plug on their Russian operations. Moscow has also pressured companies, threatening legislation to nationalize assets and compel executives to resist Western sanctions.

By
Mathieu VILLARD
Morning News

Adani Group to Buy Holcim’s India Cement Business in $10.5 Billion Deal

One of India’s largest business groups has agreed to buy Holcim Ltd. ’s cement business in India, in a $10.5 billion deal that is biggest ever acquisition in the country’s infrastructure and materials industry. The Adani Group will buy Switzerland-based Holcim’s stake in Indian listed companies Ambuja Cements Ltd. and ACC Ltd. , which will make Adani India’s second-largest cement maker.

By
Mathieu VILLARD
Morning News

Siemens to Wind Down Russia Business; Took EUR600 Mln Impairment in 2Q

Siemens AG said Thursday that it would exit its Russia business after 170 years, dragging its second-quarter profit below expectations. The German industrial company said second-quarter profit was affected by around 600 million euros ($630.9 million) due to impairments and other charges related to Russia, mainly at its mobility railway-technology segment. Siemens in March put on hold all new business in Russia, which in 2021 generated around 1% of the company's revenue.

By
Mathieu VILLARD
Morning News

Thyssenkrupp Working Toward Nucera IPO by Summer

Thyssenkrupp AG is working on listing its electrolysis subsidiary Nucera by the end of June, its finance chief said Wednesday. The German industrial company's goal remains an initial public offering as soon as possible.

By
Mathieu VILLARD
Morning News

Pfizer to acquire HBM portfolio company Biohaven Pharmaceuticals in USD 11.6 billion deal

HBM Healthcare Investments today announces that its portfolio company Biohaven Pharmaceuticals (NYSE: BHVN) will be acquired by Pfizer (NYSE: PFE) for USD 11.6 billion in cash. The acquisition price of USD 148.50 per Biohaven share represents a premium of approximately 78 percent to the closing share price on 9 May 2022.

By
Mathieu VILLARD
Morning News

Philip Morris International in Talks to Buy European Smokeless-Tobacco Rival

Philip Morris International Inc. is in advanced talks to acquire Swedish Match AB, according to people familiar with the matter, in a deal that could be valued at roughly $15 billion or more and bolster the tobacco giant’s exposure to the rapidly growing market for smoke-free brands. The talks between U.S.-based Philip Morris and Stockholm-based Swedish Match could yield a deal as soon as this week, the people said, cautioning that the talks could still fall apart.

By
Mathieu VILLARD
Morning News

Bausch Prices IPO at Low End Of Target

Bausch + Lomb Corp. priced its IPO at $18 a share Thursday, falling short of expectations as it became the first big company in months to try going public into a turbulent stock market Bausch Health Cos., the parent company, raised $630 million in the offering. It had been aiming to raise as much as $840 million and sell the stock at $21 to $24 a share, according to a regulatory filing.

By
Mathieu VILLARD