Daimler Drops on Trade War Talk Worries, Dixons Net Tumbles

Sarla Buch
21 Jun, 2018
New York City

BP abandoned to acquire Australia-based Woolworths fuel retail station deal. Daimler said profits may be hit by the U.S. and China trade war fears. Dixons Carphone profit tumbled. JCDecaux proposed to acquire Australia-based rival.

[R]4:00 PM Frankfurt – BP abandoned to acquire Australia-based Woolworths fuel retail station deal. Daimler said profits may be hit by the U.S. and China trade war fears. Dixons Carphone profit tumbled. JCDecaux proposed to acquire Australia-based rival.[/R]

In London trading, FTSE 100 index slumped 64.25 or 0.8% to 7,563.11 and in Frankfurt the DAX index dropped 211.18 or 1.7% to 12,483.98.

In Paris, CAC 40 index declined 69.73 or 1.3% to 5,302.60.

BP Plc dropped 1% to 558.70 pence after the U.K.-based oil and gas producer cancelled proposed takeover offer of petrol stations and convenience store business of Australia-based supermarket operator Woolworths Group Ltd worth about £1 billion or A$1.8 billion.

In December, Australian Competition and Consumer Commission had blocked the deal concerning it may lead to higher fuel prices.

Separately, chief operating officer of BP’s Asia–Pacific fuels business Andy Holmes said BP plans to operate 1,000 more gas stations in China.

Daimler AG plunged 4.1% to €57.99 after Germany-based automaker made an unexpected new assessment that the trade war between the U.S. and China may affect SUV from its Alabama based plant.

Daimler added sales jumped 5% to 594,300 vehicles on strong demand in China and estimated fiscal profits to be “slightly below the previous year’s level.”

Dixons Carphone Plc jumped 3.2% to 196.80 pence after the U.K.-based consumer electronics retailer reported revenues in the year ending in April advanced 3% from a year ago to £10.5 billion.

Net income in the year tumbled 43.7% to £166 million from £295 million in a year ago period and diluted earnings per share declined to 20.3 pence from 26.6 pence.

The retailer forecasted smart phone sales may decline in the post-paid market.

JCDecaux SA rose 0.2% to €29.24 after France-based outdoor advertising provider made conditional takeover offer to Australia-based APN Outdoor Group Ltd for about A$1.1 billion or $812 million.