(Bloomberg) –
European stocks are nearing a correction and the company’s many negative news on Thursday are partly to blame as investors worry about the impact of the coronavirus on businesses.
A series of warnings from the large-cap brewer Anheuser-Busch InBev NV and the UK small-cap advertising giant WPP Plc Topps Tiles Plc contributed to the market downturn. An enormously reduced rights offering by sports car maker Aston Martin Lagonda Global Holdings Plc and the disappointment over divestment by G4S Plc only added to the dismal sentiment.
The European benchmark Stoxx 600 fell 2.6% on Thursday, wiping out around 280 billion euros ($ 306 billion) from the value of the gauge.
It was not entirely bleak, the French retailer Carrefour SA increasing its cost reduction and divestment objectives and Drax Group Plc winning a plan for total coal exit. However, only 28 of the Stoxx 600 companies were operating at 11:20 a.m. in London.
Here is a list of companies whose ads scare investors.
WPP (down 14%)
The company said it expects a fourth year without sales growth, missing analyst estimates and unlike more optimistic comments from competitors such as Omnicom Group Inc..
G4S (down 14%)
The company has agreed to sell most of its cash management operations to Brink’s Co. for $ 860 million, a price that RBC called “slightly disappointing.” The broker noted that while the sale will help G4S ‘debt position, it is “not clean” since the company will retain parts of the unit.
Aston Martin (down 13%)
The besieged luxury automaker said a long-awaited rights issue would cost 47% below Wednesday’s closing level. Citigroup analysts said the rebate was deeper than expected, adding that the company’s profit forecast for 2020 was “loose” because no indication of total volume was given.
Playtech (12% decrease)
The gaming company said its 2020 results would likely be below market expectations, citing headwinds, including “changes in normal customer habits” due to the coronavirus. Shore Capital lowered its rating to stop buying, noting the weakening of trading conditions in Asia and the changes in behavior of Italian customers.
Anheuser-Busch InBev (-9.2%)
Brewer Budweiser predicts the largest drop in quarterly profits in at least a decade due to the coronavirus. Figures suggest that the disease in China cuts the company’s revenue in half, according to analysts at Bryan Garnier.
Zalando (down 9.1%)
The German online retailer’s profit outlook fell short of expectations, even without considering the potential impact of the coronavirus. CFO David Schroeder told Bloomberg TV that the company is preparing for all scenarios related to the epidemic.
Aalberts (down 7.5%)
The manufacturer of fittings used in valves and radiators posted an annual profit which ING described as “slightly lower than expected”. Organic sales growth of 1.1% compared to 1.4% for ING.
John Menzies (-4.9%)
The aviation services industry has warned that the coronavirus is impacting operations in Macau and other regions where it works with Chinese carriers. Peel Hunt analysts said the short-term headwind was disappointing, but the company remains well positioned to exploit significant growth opportunities.
Standard Chartered (-3.5%)
The lender said fourth quarter sales were affected by the virus epidemic. The disease, along with an ongoing recession in Hong Kong, will see the bank reach profit targets later than expected. The comments were “naturally conservative,” wrote analysts for Shore Capital.
(Updates stock prices, adds chart and news from Aalberts.)
– With the help of Erin Roman and Ksenia Galouchko.
To contact journalists on this story: Paul Jarvis in London at [email protected]; Joe Easton in London at [email protected]; Morwenna Coniam in Dublin at [email protected]
To contact the editors responsible for this story: Celeste Perri at [email protected], Beth Mellor
bloomberg.com“data-reactid =” 56 “> For more articles like this, visit us on bloomberg.com
Subscribe now to stay one step ahead of the most trusted source of business information. “data-reactid =” 57 “> Subscribe now to stay ahead with the most trusted source of business information.
© 2020 Bloomberg L.P.
(Bloomberg) –
European stocks are nearing a correction and the company’s many negative news on Thursday are partly to blame as investors worry about the impact of the coronavirus on businesses.
A series of warnings from the large-cap brewer Anheuser-Busch InBev NV and the UK small-cap advertising giant WPP Plc Topps Tiles Plc contributed to the market downturn. An enormously reduced rights offering by sports car maker Aston Martin Lagonda Global Holdings Plc and the disappointment over divestment by G4S Plc only added to the dismal sentiment.
The European benchmark Stoxx 600 fell 2.6% on Thursday, wiping out around 280 billion euros ($ 306 billion) from the value of the gauge.
It was not entirely bleak, the French retailer Carrefour SA increasing its cost reduction and divestment objectives and Drax Group Plc winning a plan for total coal exit. However, only 28 of the Stoxx 600 companies were operating at 11:20 a.m. in London.
Here is a list of companies whose ads scare investors.
WPP (down 14%)
The company said it expects a fourth year without sales growth, missing analyst estimates and unlike more optimistic comments from competitors such as Omnicom Group Inc..
G4S (down 14%)
The company has agreed to sell most of its cash management operations to Brink’s Co. for $ 860 million, a price that RBC called “slightly disappointing.” The broker noted that while the sale will help G4S ‘debt position, it is “not clean” since the company will retain parts of the unit.
Aston Martin (down 13%)
The besieged luxury automaker said a long-awaited rights issue would cost 47% below Wednesday’s closing level. Citigroup analysts said the rebate was deeper than expected, adding that the company’s profit forecast for 2020 was “loose” because no indication of total volume was given.
Playtech (12% decrease)
The gaming company said its 2020 results would likely be below market expectations, citing headwinds, including “changes in normal customer habits” due to the coronavirus. Shore Capital lowered its rating to stop buying, noting the weakening of trading conditions in Asia and the changes in behavior of Italian customers.
Anheuser-Busch InBev (-9.2%)
Brewer Budweiser predicts the largest drop in quarterly profits in at least a decade due to the coronavirus. Figures suggest that the disease in China cuts the company’s revenue in half, according to analysts at Bryan Garnier.
Zalando (down 9.1%)
The German online retailer’s profit outlook fell short of expectations, even without considering the potential impact of the coronavirus. CFO David Schroeder told Bloomberg TV that the company is preparing for all scenarios related to the epidemic.
Aalberts (down 7.5%)
The manufacturer of fittings used in valves and radiators posted an annual profit which ING described as “slightly lower than expected”. Organic sales growth of 1.1% compared to 1.4% for ING.
John Menzies (-4.9%)
The aviation services industry has warned that the coronavirus is impacting operations in Macau and other regions where it works with Chinese carriers. Peel Hunt analysts said the short-term headwind was disappointing, but the company remains well positioned to exploit significant growth opportunities.
Standard Chartered (-3.5%)
The lender said fourth quarter sales were affected by the virus epidemic. The disease, along with an ongoing recession in Hong Kong, will see the bank reach profit targets later than expected. The comments were “naturally conservative,” wrote analysts for Shore Capital.
(Updates stock prices, adds chart and news from Aalberts.)
– With the help of Erin Roman and Ksenia Galouchko.
To contact journalists on this story: Paul Jarvis in London at [email protected]; Joe Easton in London at [email protected]; Morwenna Coniam in Dublin at [email protected]
To contact the editors responsible for this story: Celeste Perri at [email protected], Beth Mellor
bloomberg.com“data-reactid =” 56 “> For more articles like this, visit us on bloomberg.com
Subscribe now to stay one step ahead of the most trusted source of business information. “data-reactid =” 57 “> Subscribe now to stay ahead with the most trusted source of business information.
© 2020 Bloomberg L.P.