COMPANY NEWS IN BRIEF
Hyundai, Kia not in talks with Apple
South Korea's Hyundai Motor Co said it is not now in talks with Apple Inc on autonomous electric vehicles, sending the automaker's shares skidding a month after it said it was in early-stage talks on cars with the tech giant.
Shares in Hyundai and its affiliate Kia Corp slumped 6.6% and 14% respectively as of 0204 GMT while the broader market KOSPI benchmark dropped 1%.
In early January, shares in both automakers surged after Hyundai said, "Apple and Hyundai are in discussion, but as it is at early stage, nothing has been decided."
So far this year, Hyundai shares have surged more than 20%, while Kia has rocketed 40%.
The comment came in response to a local media report that Apple and Hyundai were in discussions to develop self-driving electric vehicles by 2027 and develop batteries at US factories operated by either Hyundai or Kia. – Nampa/Reuters
Airbnb to tighten control of short-term lets
Airbnb announced plans to tighten control of short-term rentals advertised on its site in several French cities including Paris, by throwing out those without formal registration numbers.
France is one of Airbnb's top destinations but the online letting marketplace has faced criticism in Paris and other cities, including Amsterdam and New York, over concerns that its short-term rentals make housing shortages worse.
Airbnb said it would take extra measures against people who let out properties in France for short-term stays without registering with authorities.
Listings without a registration number in Paris, Lyon and Bordeaux would be blocked from taking reservations as of this year, Airbnb said, adding the plan would be rolled out to other cities too.
Under existing rules in Paris, people are not allowed to rent out their entire homes on Airbnb for more than 120 days and are obliged to declare the rentals. -Nampa/Reuters
G4S to hold talks for takeover
British security group G4S will hold talks with the City’s takeover panel, the Telegraph reported on Saturday, which could lead to a head-to-head auction between North American peers GardaWorld and Allied Universal for the company’s buyout.
Canada’s GardaWorld and US-based Allied last month extended their buyout offer periods for G4S’s shareholders to accept their individual offers, even as the British company’s board had already accepted Allied’s takeover bid.
GardaWorld was in talks to raise more money to sweeten its last bid of 235 pence a share for G4S, the Telegraph reported here, citing City sources. Allied's offer is 10 pence higher.
However, the Telegraph reported that the City expected GardaWorld to return well above Allied’s offer, with G4S shares having closed at 261.1 pence on Friday on the London Stock Exchange.
G4S has restructured its business following a series of setbacks, and the bidding war between the US and Canadian companies for the firm began when GardaWorld made its offer for G4S public on Sept. 14.- Nampa/Reuters
S&P 500, Nasdaq post biggest weekly gains
US stocks extended their recent rally on Friday and the S&P 500 and Nasdaq indexes scored their biggest weekly percentage gains since the US elections in early November, boosted by optimism over earnings, stimulus talks and progress on vaccine rollouts.
Both the Dow Jones industrial average and S&P 500 rose for a fifth straight session in their longest streak of gains since August, while the S&P 500 and Nasdaq posted record closing highs for a second day in a row.
A smaller-than-expected rebound in the US labour market last month highlighted the need for more government aid to shore up the economy. The Labour Department on Friday reported a 49 000 increase in nonfarm payrolls last month, but job losses in manufacturing and construction.
US President Joe Biden and his Democratic allies in Congress moved ahead with their US$1.9 trillion Covid-19 relief package as lawmakers approved a budget plan that will allow them to muscle Biden’s plan through in the coming weeks without Republican support.
“The upcoming package of stimulus is going to be big,” said Alan Lancz, president of Alan B. Lancz & Associates Inc, an investment advisory firm based in Toledo. - Nampa/Reuters
GameStop reveals potential for market stress
As the trading frenzy in GameStop Corp shares and other social media favourites recedes, investors are eyeing signs of potential market stress that could weigh on broader stock performance in coming weeks.
For now, US equities appear to be looking past last week’s surge in volatility that led the S&P 500 to its biggest weekly decline since October. Solid earnings, fiscal stimulus expectations and progress in country-wide vaccination efforts are leading stocks back to all-time highs.
Some investors, however, worry that the wild swings in GameStop and other “meme stocks” may have exacerbated concerns over market volatility and elevated valuations that could make market participants more risk-averse.
The S&P 500 stands near its highest forward price-to-earnings ratio in about two decades after rallying 74% from its March lows.
“The recent retail activity was concerning for the broader market,” said Benjamin Bowler, head of global equity derivatives research at BofA Global Research. - Nampa/Reuters
South Korea's Hyundai Motor Co said it is not now in talks with Apple Inc on autonomous electric vehicles, sending the automaker's shares skidding a month after it said it was in early-stage talks on cars with the tech giant.
Shares in Hyundai and its affiliate Kia Corp slumped 6.6% and 14% respectively as of 0204 GMT while the broader market KOSPI benchmark dropped 1%.
In early January, shares in both automakers surged after Hyundai said, "Apple and Hyundai are in discussion, but as it is at early stage, nothing has been decided."
So far this year, Hyundai shares have surged more than 20%, while Kia has rocketed 40%.
The comment came in response to a local media report that Apple and Hyundai were in discussions to develop self-driving electric vehicles by 2027 and develop batteries at US factories operated by either Hyundai or Kia. – Nampa/Reuters
Airbnb to tighten control of short-term lets
Airbnb announced plans to tighten control of short-term rentals advertised on its site in several French cities including Paris, by throwing out those without formal registration numbers.
France is one of Airbnb's top destinations but the online letting marketplace has faced criticism in Paris and other cities, including Amsterdam and New York, over concerns that its short-term rentals make housing shortages worse.
Airbnb said it would take extra measures against people who let out properties in France for short-term stays without registering with authorities.
Listings without a registration number in Paris, Lyon and Bordeaux would be blocked from taking reservations as of this year, Airbnb said, adding the plan would be rolled out to other cities too.
Under existing rules in Paris, people are not allowed to rent out their entire homes on Airbnb for more than 120 days and are obliged to declare the rentals. -Nampa/Reuters
G4S to hold talks for takeover
British security group G4S will hold talks with the City’s takeover panel, the Telegraph reported on Saturday, which could lead to a head-to-head auction between North American peers GardaWorld and Allied Universal for the company’s buyout.
Canada’s GardaWorld and US-based Allied last month extended their buyout offer periods for G4S’s shareholders to accept their individual offers, even as the British company’s board had already accepted Allied’s takeover bid.
GardaWorld was in talks to raise more money to sweeten its last bid of 235 pence a share for G4S, the Telegraph reported here, citing City sources. Allied's offer is 10 pence higher.
However, the Telegraph reported that the City expected GardaWorld to return well above Allied’s offer, with G4S shares having closed at 261.1 pence on Friday on the London Stock Exchange.
G4S has restructured its business following a series of setbacks, and the bidding war between the US and Canadian companies for the firm began when GardaWorld made its offer for G4S public on Sept. 14.- Nampa/Reuters
S&P 500, Nasdaq post biggest weekly gains
US stocks extended their recent rally on Friday and the S&P 500 and Nasdaq indexes scored their biggest weekly percentage gains since the US elections in early November, boosted by optimism over earnings, stimulus talks and progress on vaccine rollouts.
Both the Dow Jones industrial average and S&P 500 rose for a fifth straight session in their longest streak of gains since August, while the S&P 500 and Nasdaq posted record closing highs for a second day in a row.
A smaller-than-expected rebound in the US labour market last month highlighted the need for more government aid to shore up the economy. The Labour Department on Friday reported a 49 000 increase in nonfarm payrolls last month, but job losses in manufacturing and construction.
US President Joe Biden and his Democratic allies in Congress moved ahead with their US$1.9 trillion Covid-19 relief package as lawmakers approved a budget plan that will allow them to muscle Biden’s plan through in the coming weeks without Republican support.
“The upcoming package of stimulus is going to be big,” said Alan Lancz, president of Alan B. Lancz & Associates Inc, an investment advisory firm based in Toledo. - Nampa/Reuters
GameStop reveals potential for market stress
As the trading frenzy in GameStop Corp shares and other social media favourites recedes, investors are eyeing signs of potential market stress that could weigh on broader stock performance in coming weeks.
For now, US equities appear to be looking past last week’s surge in volatility that led the S&P 500 to its biggest weekly decline since October. Solid earnings, fiscal stimulus expectations and progress in country-wide vaccination efforts are leading stocks back to all-time highs.
Some investors, however, worry that the wild swings in GameStop and other “meme stocks” may have exacerbated concerns over market volatility and elevated valuations that could make market participants more risk-averse.
The S&P 500 stands near its highest forward price-to-earnings ratio in about two decades after rallying 74% from its March lows.
“The recent retail activity was concerning for the broader market,” said Benjamin Bowler, head of global equity derivatives research at BofA Global Research. - Nampa/Reuters
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