Philips shares plunge 15%
Stake in Dutch health care giant Philips European trading plunged early Monday after company cuts Its full-year sales outlook is due to weak demand in China.
Philips’ European-traded shares fell 15% after initially failing to start trading at the open, and were last down 14.55% at 8:26 a.m. London time.
——Sophie Kidlin
European markets rise as trading begins
European markets were higher at the start of trading on Monday, with pan-European stocks Stoke 600 It was last up 0.24% at 8:15am London time.
Travel and leisure stocks rose about 1.1%, while oil and gas stocks fell 1.7%.
Regional stock markets were also mostly higher, with France’s CAC 40 index rising 0.7% and Germany’s DAX index rising 0.2%.
——Sophie Kidlin
CEO Roy Jacobs says Philips needs to ‘adapt to China’s new growth rate’
Health device maker Philips CEO Roy Jakobs said on CNBC’s “Squawk Box Europe” on Monday that the company needs to “adapt to China’s new growth rate.”
He said the company originally expected the Chinese market to stabilize in the second half of the year, but the actual situation worsened.
However, Jacobs said China remains an important market for Philips.
“We believe that China remains fundamentally an attractive growth market for us. So it’s a matter of when to come back, not if,” he said.
After Jacobs commented Philips said on Monday The company lowered its full-year sales forecast after demand in China “deteriorated”.
In an interview with CNBC, Jacobs blamed China’s problems on slowing consumer confidence and the resulting slowdown in sales, as well as the impact of anti-corruption measures on health care, which he said have left the market at “low points.” ”.
——Sophie Kidlin
Philips cuts sales outlook as demand in China ‘deteriorates’
Dutch medical device giant Philips The company said on Monday it would cut its full-year sales forecast due to weak demand in China.
The company said it now expects full-year 2024 comparable sales growth to be between 0.5% and 1.5%. This was lower than previous sales growth expectations of 3% to 5%.
Philips CEO Roy said: “In the third quarter, hospital and consumer demand in China further deteriorated, while we continued to see strong growth in other regions. We have adjusted our full-year sales outlook to reflect the continued impact of China.” Ya Jacobs said in an article statement.
Philips said in its financial report on Monday that comparable sales growth in the third quarter was flat. Reuters reported that analysts had expected growth of 2.1%.
——Sophie Kidlin
European Markets: Here are the opening calls
European markets are expected to open mixed on Monday.
British FTSE 100 German stocks are expected to open 8 points lower at 8,243 German DAX Index France rises 30 points to 19,747 CAC Up 12 points to 7,508 points, Italy FTSE MIB It rose 108 points to 34,648 points, according to IG data.
Philips reports earnings on Monday. No major data releases.
— Holly Elliot
Oil prices drop more than 4% after Israel’s ‘limited’ attack on Iran
Yen falls to three-month low after Japan election
The yen fell to a three-month low against the dollar on Monday after the ruling Liberal Democratic Party lost its majority in the House of Representatives following Sunday’s election.
The currency hit a low of 153.32 against the dollar, its lowest level since July 31.
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CNBC Pro subscribers can read more here.
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