Leading automotive supplier Brose coming to Pancevo
German automotive supplier Brose will invest over 180 mln euros in a Pancevo plant that will manufacture power steering motors, electric oil pumps and cooling fan motors and hire 1,100 people. An agreement on the investment in the northern Serbian city was signed late Tuesday in Belgrade by Serbian Minister of Economy Goran Knezevic and Brose representative Thomas Spangler, with Serbian President Aleksandar Vucic and German Federal Minister for Economic Affairs and Energy Peter Altmeier in attendance.
Battle for VW investment heating up in southeastern Europe
A major Volkswagen investment - a carmaking plant in southeastern Europe - has once again become a hot topic in the region after the company suspended the finalisation of a deal with Turkey. Serbian President Aleksandar Vucic has said he would make every effort to ensure the German automaking giant came to Serbia. Romania and Bulgaria are also hoping to land the investment and Croatia has now joined the race as well, following reports of a meeting between Croatian Minister of Economy Darko Horvat with German Federal Minister for Economic Affairs and Energy Peter Altmeier, who visited Croatia on Monday.
Gazprom Neft waiting for tendering procedure for Petrohemija – Facility modernization necessary
We are ready to consider the possibility of taking part in the tendering procedure for Petrohemija, if the Government of Serbia opens it, but the decision also depends on the conditions offered, said Vadim Jakovljev, the first deputy of the CEO of Gazprom Neft and the chairman of the Board of Directors of NIS. He pointed out that it was a serious decision, which should be a joint decision of both NIS shareholders – Gazprom Neft and the Republic of Serbia. We could consider new investments, primarily in the construction of a polypropylene facility. This is a large project that would cost around EUR 150 million, making a decision on that investment a serious one. If NIS takes on all the obligations for investments in that amount, the company should be able to realize this project, to be responsible for it and to get adequate income from the investment.
Stocks rise despite weak earnings from Caterpillar and Boeing, bringing S&P 500 closer to record; European stocks close slightly higher as Brexit hits another roadblock
Stocks rose slightly on Wednesday as investors digested earnings reports from Caterpillar and Boeing. The Dow Jones Industrial Average closed 45.85 points higher, or 0.2% at 26,833.95. The S&P 500 gained 0.3% to close at 3,004.52. The Nasdaq Composite climbed 0.2% to 8,119.79.
Caterpillar said it earned $2.66 per share in the third quarter, versus the Refinitiv consensus estimate of $2.88 per share. Revenue came in at $12.758 billion, while Wall Street expected revenue of $13.572 billion. The heavy machinery manufacturer lowered its full-year earnings per share forecast to a range of $10.59 and $11.09, lower than the expected $11.70. The stock closed 1.2% higher, however, after falling more than 6% in the premarket.
Meanwhile, Boeing shares climbed 1% after the airplane maker said it will stick to its timeline for the return of the 737 Max. That was enough to offset earnings that badly missed analyst expectations. The company reported a profit of $1.45 per share. Analysts polled by Refinitiv expected a profit of $2.09.
Weak results from Texas Instruments kept stocks in check, however. Texas instruments — which is often seen as a proxy for the microchip industry — plunged 7.5% after posting fourth-quarter guidance well below market estimates.
European stocks traded largely flat Wednesday after Prime Minister Boris Johnson pressed pause on the progression of his Brexit deal. The pan-European Stoxx 600 pared early losses to trade just above the flat line by the close of play, up provisionally by 0.12%. Financial service firms led losses with a 0.6% average fall while the basket of basic resources added just below 1.1%.
PSA Peugeot Citroen reported rising third-quarter revenues before the bell on Wednesday despite a gloomy outlook for the auto market. Revenue rose to 15.58 billion euros ($17.35 billion) from 15.43 billion euros a year earlier. The French carmaker expects automotive markets to decline by 1% in Europe, 5% in Latin America and 7% in China. The company’s stock rose 3.2% by the end of the session.
Dutch brewer Heineken trimmed its profit forecast for the year after a drop in third-quarter sales in the Americas, causing its shares to fall 3.1%.