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Porsche Slips To Loss In H1, Expects Positive Group Result In FY20; Stock Dips

Alstom Says Still Convinced Of Strategic Rationale For Bombardier Transportation Acquisition

French speed-train maker Alstom SA (AOMFF.PK,ALS.L), which is in deal to buy Bombardier Transportation, Monday said it remains convinced of the strong strategic rationale for the acquisition. The company also said it is confident in its ability to restore in the medium term the profitability and commercial performance of the business.

Alstom issued the statement after reviewing Bombardier Inc.’s first-half report on August 6, particularly with regards to the financial and operational performance of Bombardier Transportation.

The company further said, “However, the quarterly announcement points to unexpected and negative developments regarding Bombardier Transportation, which is currently facing challenges, especially when compared to the information available prior to the February 17, 2020 announcement regarding Alstom’s intended acquisition of Bombardier Transportation.”

Alstom said it will take into account the consequences of these operating and financial developments in the upcoming talks with Bombardier Inc, and will update the market as required.

In France, Alstom shares are currently trading at 46.55 euros, down 1.65 percent.

Shale Job Losses Accelerating and the Worst May Be Yet to Come

Roughneck job cuts accelerated in July and the outlook may worsen as new Covid-19 cases stifle economic activity, according to thePetroleum Equipment and Services Association.

The U.S. oilfield-services sector shed 9,344 jobs last month, a 43% increase from June’s losses, the industry-funded trade group said in a report released Monday. That pushed the industry’s total job casualties since the pandemic emerged to 99,253.

Texas, Louisiana, Oklahoma, Colorado and New Mexico were the hardest-hit regions for oilfield job cuts, according to the report, which crunched U.S. Bureau of Labor Statistics data with help from the University of Houston’s Hobby School of Public Affairs. Oilfield employment in American fields hasn’t been this low since March 2017.

“Industry analysts anticipate additional job losses as the pandemic continues and jobs supported by emergency measures such as the Paycheck Protection Program are threatened by congressional inaction,” the report said. “Additionally, rising infection rates may depress economic activity as communities resume quarantines.”

Lira Extends Drop in Sign of Further Turkish-Market Turmoil

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It’s shaping up to be another rough day for Turkish markets.

The lira, which sank to a record low last week as the central bank abandoned some of the policies that had underpinned it for much of this year, extended its declines Monday, dropping as much as 1.7% to trade as low as 7.4080 per dollar. The premium investors demand to buy Turkish dollar bonds instead of U.S. Treasuries increased 2 basis points to 683 basis points, according to a JPMorgan Chase & Co. index.

Read:Turkey Eases Asset Ratio Rule for Banks to Contain Loan Growth

To add to an increasingly nervous-looking backdrop, Turkey began gunnery exercises Monday to the east and south of the Greek islands of Rhodes and Kastellorizo, potentially exacerbating tensions with Greece over maritime rights in the region.

The Borsa Istanbul introduced an index-linked circuit-breaker system following the week-long market turmoil Friday. The benchmark Borsa Istanbul 100 index tumbled the most since March last week, losing 9.5% in dollar terms.

Russia fines Google for not blocking banned content – Ifax

MOSCOW (Reuters) – A Russian court on Monday fined Google 1.5 million roubles ($20,350) after finding it guilty of failing to block content banned in Russia, the Interfax news agency reported.

Porsche Slips To Loss In H1, Expects Positive Group Result In FY20; Stock Dips

Porsche Automobil Holding SE (POAHY.PK,POAHF.PK), which holds the majority stake in German auto maker Volkswagen AG, reported Monday that its first-half Group result after tax was a loss of 329 million euros, compared to prior year’s profit of 2.38 billion euros.

The result was significantly influenced by the result from the investment accounted for at equity of minus 300 million euros, compared to prior year’s plus 2.42 billion euros.

The company said the change in the result from equity accounting was mainly attributable to the decrease in Volkswagen’s group result after tax due to the negative impact of the Covid-19 pandemic.

Revenue for the first half was 50 million euros, down from 52 million euros last year.

Looking ahead, Porsche SE said it does expect a positive group result after tax for the fiscal year 2020. The company added that it is currently not possible to make a reliable and realistic forecast.

In light of the Covid-19 pandemic, Volkswagen Group withdrew its outlook in April. Accordingly, Porsche SE also withdrew its forecast for the group result after tax. This decision still applies, the company said.

Further, the board of management and supervisory board of Porsche SE agreed to propose to the annual general meeting the distribution of a dividend of 2.210 euros per preference shares and 2.204 euros per ordinary share.

In Germany, Porsche shares were trading at 51.40 euros, down 1.95 percent.