Amazon cutting jobs, Lloyds pulling the plug and Airbus reports | Calamatta Cuschieri

European markets closed higher on Thursday as investors digested corporate earnings and euro area trade balance figures. On the earnings front, Nestlé and Airbus reported their results yesterday, while Renault and Allianz are set to report today.

The FTSE 100 ended 0.29% in the green. Fresnillo recorded the largest gains as its stock surged 4.59%. The DAX was up 0.06%. The best performer was ProSiebenSat.1 which rose 1.58%, followed by Henkel, up 1.52%. The CAC 40 jumped 1.11%. Airbus contributed most to the gains as its shares surged 10.31% after the aerospace company reported a 188% jump in earnings per share.

Lloyds Bank pulls the plug

Tough times for Standard life and Aberdeen Asset management after their merger last year, becoming on the largest in Britain. The eleven billion pound merger triggered the right for Lloyds to review an agreement done with Aberdeen to manage its pension assets on behalf of Lloyds insurance and wealth units.

Billions of pounds were withdrawn in the six months since the merger, and to put you in the picture Lloyds represents 17% of the remaining 646 billion pounds under SLA’s management.

Amazon lay-offs

Amazon Inc. decided to cut hundreds of jobs as a result of plans to combine its Amazon Prime Now and Amazon Fresh businesses. The merger of the two delivery units is set to be completed before the end of the year. The company is said to have informed employees about the layoffs, and gave them a 60 day time window to find another position in the company.

Airbus with a jump in Earnings per Share

Airbus reported its earnings per share in the full year 2017 were €3.71, jumping 188% year on year on a net income of €2.87 billion in the same period. However, the release was marked by a fall of 6% in orders, which was mostly led by the defence and space sector. In the fourth quarter of 2017 EPS came in at €1.32, compared to a loss of €1.06 in the same period last year. Net income in the three months ended December was €1.02 billion, rising from a loss of 816 million a year ago.

Revenues remained insignificantly changed year on year. The aircraft producer had to adjust its A400M program, thus reporting a charge of €1.3 billion as it updated its loss making contract with seven countries which were due to buy the military transport aircraft. According to the company, this will reduce the remaining program risk which reflected in a substantial one-off charge. Overall, 2017 was a good year when considering a dividend proposal which is up 11% against the previous year.

Disclaimer

This article was issued by Rodrick Duca, Trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article is being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.