A 7 billion yuan ($989 million) investment by investors into Nio China, a new entity controlled by Chinese electric vehicle maker Nio Inc, will smooth its cash flow and guarantee future product developments, its CEO said on Wednesday. The new investment will boost product development and research, Chief Executive William Li told a news conference, adding it will not impact its existing partnerships with Changan [SASAGG.UL] and GAC or the ownership structure of its New York-listed company. The investors include state-controlled Hefei Construction Investment Holding (Group) Co Ltd, CMG-SDIC Capital Management Co Ltd, and Anhui High and New Technology Industrial Investment Co Ltd....
Strategic investors will inject 7 billion yuan ($989 million) into Nio China, a new entity controlled by Chinese electric vehicle maker Nio Inc, the firm said on Wednesday. The new investment will boost product development and research, Chief Executive William Li told a news conference, adding that the firm would consider expanding capacity in the eastern city of Hefei if sales demand grew. In a statement, the firm said Nio will inject its core businesses and assets in China, which are valued at 17.77 billion yuan, into Nio China and invest 4.16 billion yuan in it....
(Bloomberg Opinion) -- Michael O’Leary knows plenty about state aid. The Irish budget airline he runs, Ryanair Holdings Plc, has been the focus of various subsidy disputes over the years, related to the small airports it serves. Still, you can understand his frustration at the way European governments are showering bailout money on a handful of mostly inefficient carriers, while those he views as more deserving airlines go without.He’s threatened to go to court to force France and other wealthy countries to share rescue money out more equitably, Bloomberg News reported last week, and he’s compared cash-strapped Deutsche Lufthansa AG of behaving like a “crack cocaine junkie.” Thanks to the largess of Paris and Berlin, Air France-KLM and Lufthansa could end up with almost 20 billion euros ($21.7 billion) of taxpayer cash between them, even though they had inferior profit margins and balance sheets prior to this crisis.It’s not just Ryanair that’s losing out. International...
The Cambridge-based drugmaker joined other big pharma firms in either maintaining or raising its forecast for 2020 and said its supply chain had proved resilient to the coronavirus-induced disruptions in the period. All of its China operations had come quickly back on line, it said, and while it assumed the pandemic would last for several more months, sales have been helped in the short term by stockpiling by distributors....
Shares in Alphabet (GOOGL) spiked 8% in after-hours trading following the release of the tech giant’s first quarter earnings results. Revenue surged 13% year-over-year to $41.16B, easily beating the Street forecast of $40.2B, although Q1 Non-GAAP EPS of $9.87 missed the consensus forecast by $0.89.As expected, the fallout from the coronavirus pandemic saw YouTube advertising revenue drop 14% compared to the previous quarter, but on a year-over-year basis the figure was still up over 33%.“Our business, led by Search, YouTube, and Cloud, drove Alphabet revenues to $41.2 billion, up 13% versus last year, or 15% on a constant currency basis,” commented Ruth Porat, CFO of Alphabet and Google. For instance, Google Cloud recorded $2.8B in revenue, up 52% year-over-year.“Performance was strong during the first two months of the quarter, but then in March we experienced a significant slowdown in ad revenues” Porat said.To offset the lower ad revenue, she told investors that...
(Bloomberg) -- Planemaking giant Airbus SE said it consumed 8 billion euros ($8.7 billion) in cash in the first quarter as Chief Executive Officer Guillaume Faury warned of the “gravest crisis the aerospace industry has ever known.”Some 3.6 billion euros of the cash hit came from a payment to settle a bribery case, eating up reserves while Airbus grapples with the coronavirus crisis, the company said in a statement Wednesday.Faury warned employees in a letter Friday that Airbus must quickly adapt to a shrinking aerospace ector as the pandemic undermines demand for new aircraft and threatens existing orders as airlines run short of money. A plan to slash output by one-third announced earlier this month may not reflect the worst-case scenario, he said.Airbus said it has reduced anticipated capital spending this year by about 700 million euros to 1.9 billion. It already extended credit lines and clamped down on expenses to...
African leaders are asking what China can do for them as the coronavirus pandemic threatens to destroy economies and wipe out some 20 million jobs across a continent where Beijing is both the top trading partner and top lender. The World Bank and the International Monetary Fund have announced immediate relief measures, including freeing up billions in debt payments and expectations for help from China are high across resource-rich Africa, but Beijing has remained silent....
