Credit Suisse sells Stake in Energy Infrastructure Partners
Credit Suisse has divested itself of another asset. The bank's asset management division has sold its 30% stake in Energy Infrastructure Partners AG (EIP) to its co-founder and managing partner, EIP announced on Friday evening. EIP is an infrastructure investor with a focus on the energy transition sector and, according to its own records, manages more than five billion Swiss francs, particularly for Swiss pension funds.
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Philip Morris Raises Offer for Swedish Match
Philip Morris International Inc. raised its offer for Swedish Match AB by 9.4% and has agreed to pay $2.7 billion to regain the U.S. rights for its IQOS heated tobacco products from Altria Group Inc. Philip Morris said it is now offering 116 Swedish kronor, equivalent to $10.34, for each Swedish Match share, up from the original offer in May of 106 Swedish kronor. The total value of that deal, though in dollar terms, is roughly unchanged from the original offer because of the appreciation in the U.S. currency against the Swedish krona. That made it easier for the company to raise its offer.
Tesla Reports Near-Record Profit; Sales Miss Estimates
Tesla Inc. cut its full-year growth expectations as it adjusts vehicle-shipping patterns, but Chief Executive Elon Musk brushed off worries about weakening demand amid recession fears. The company expects to "sell every car that we make for as far into the future as we can see," Mr. Musk said as Tesla reported near-record quarterly profit. Strong vehicle pricing helped Tesla generate nearly $3.3 billion in quarterly profit for the three months ended in September, ahead of expectations of analysts surveyed by FactSet.
Lafarge Pleads Guilty to Conspiring to Support Islamic State
French cement firm Lafarge SA pleaded guilty Tuesday in a New York federal court to paying Islamic State and an al Qaeda affiliate to protect its Syrian cement plant, marking what the Justice Department said was the first time it has charged a company with supporting terrorist organizations. Lafarge agreed to pay about $778 million in financial penalties and serve a term of three years probation. The company and its defunct subsidiary, Lafarge Cement Syria, pleaded guilty to conspiracy to provide material support to foreign terrorist organizations.
BP Buys Renewable Natural-Gas Company in $4.1 Billion Deal
BP PLC said it had agreed to buy U.S. biogas producer Archaea Energy Inc. for $3.3 billion plus debt in a bet on growing demand from customers for renewable fuel. The British oil major said Monday that the acquisition of Houston-based Archaea - its biggest deal since its 2018 acquisition of U.S. shale assets - would expand the company's clean-energy portfolio. BP, like other big oil companies, is shifting more resources into lower-carbon energy, even as it continues with its core business of producing oil and gas.
Morgan Stanley Earnings Fall for Third Consecutive Quarter
A deal-making drought dinged Morgan Stanley's third-quarter results, sending profit down 29%. The bank said Friday it posted a profit of $2.63 billion, or $1.47 a share. Analysts had expected $1.52 a share, according to estimates compiled by FactSet. Revenue fell 12% to about $13 billion in the quarter, which also missed expectations of $13.3 billion. It was Morgan Stanley's third consecutive year-over-year profit decline. Investment banking revenue, including fees from mergers and acquisitions, declined 55%.
BlackRock Profit Falls 16%
A souring market weighed on investing giant BlackRock Inc. (+6.7%) in the third quarter, pushing profit down 16%. The world's largest asset manager reported net income of $1.41 billion, down from $1.68 billion in the same period a year earlier. Earnings amounted to $9.25 a share. That exceeded the $7.06 expected by analysts polled by FactSet. Revenue dipped 15% to $4.31 billion, above analysts' estimates of $4.2 billion. BlackRock is a top provider of exchange-traded funds and other low-cost alternatives that track market indexes, and demand for passive investing has helped fuel the firm's growth.
PepsiCo Raises Guidance After Earnings Beat
PepsiCo on Wednesday again lifted its sales outlook for the year as it continues to push through price increases on its snacks and drinks, sending shares up $6.80, or 4.2%, to $169.39. The beverage and snacks giant posted better-than-expected quarterly earnings and raised its full-year guidance for sales and profits. It now expects organic sales to rise 12% this year, double the original forecast at the outset of the year, and forecast per-share earnings growth of 10% when excluding the effects of currency translation, up from 8% previously.
Givaudan loses momentum despite solid growth
Givaudan, the Geneva-based fragrance and flavour giant, closed the first nine months of 2022 with significantly higher sales, despite a challenging environment. However, revenue growth was below analysts' expectations. Turnover reached 5.46 billion francs, 7.7% higher than a year earlier. Adjusted for currency effects, growth was 6.1% on an annual basis. In the third quarter alone, sales increased by 6.7% to CHF 1.69 billion.
Credit Suisse Ramps Up Efforts to Strengthen Finances
Credit Suisse surged 5.4% on Friday, after the embattled Swiss lender said it would buy back up to 3 billion Swiss francs ($3 billion) of senior debt securities. Credit Suisse Group AG has intensified efforts to sell or shrink holdings in key businesses in recent days, part of a planned restructuring to remake the bank, people familiar with the matter said. Around 10 bidders have submitted offers for the bank's securitized products group, some of the people said. The Swiss bank put the business, one of its most profitable, on the block in July, saying it wanted to find an outside investor to conserve capital.