—— Heineken Drops 7.4% Amid Consumer Demand Dip; Trump Openly Supports Crypto in Speech; Mcdonalds Sales Drop for First Time Since 2020; Sixth Street Leads Group to Buy Out Enstar; Lamborghini Breaks New Profit Record; Xiaomi Buys EV Factory in Beijing
1. Heineken Drops 7.4% Amid Consumer Demand Dip
Heineken NV has taken an €874 million ($949 million) impairment on its stake in China Resources Beer Holdings Co., China’s largest brewer, due to pressure on consumer spending in key markets, including China, the US, and Europe.
The Dutch brewer attributed the impairment to a decrease in the valuation of its stake in China Resources Beer Holdings, stemming from concerns over consumer demand in China that have negatively impacted the company’s share price. Additionally, Heineken noted weaknesses in the US and Europe, further clouding its outlook.
Following the announcement, Heineken’s shares dropped by as much as 7.4% early Monday in Amsterdam, and they have declined by 7.3% over the past 12 months.
In the first half of the year, Heineken’s overall beer volume grew organically by 2.1%, falling short of the Bloomberg estimate of 3.7%. As a result, Heineken has narrowed its forecast for full-year operating profit.
Heineken acquired a 40% stake in the majority shareholder of Hong Kong-listed China Resources Beer for $3.1 billion in 2018. This deal provided Heineken with a partner possessing local distribution capabilities to navigate the world’s largest beer market, while allowing the Chinese firm to expand into the premium beer segment.
At the time of the investment, China’s consumer market was thriving, but spending has struggled to recover following pandemic lockdowns and a real estate crisis. This economic downturn has impacted European companies across various sectors.
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2. Trump Openly Supports Crypto in Speech
Bitcoin reached its highest level since mid-June after Donald Trump expanded his pro-crypto agenda and amid expectations of US Federal Reserve interest-rate cuts, which boosted investor sentiment.
The largest digital asset rose by as much as 2.7% on Monday, trading at $69,645 as of 7:08 a.m. in New York. Other cryptocurrencies, including Ether, Solana, and Dogecoin, also saw gains. During a weekend conference, Republican presidential nominee Trump pledged to make the US the “crypto capital of the planet and the Bitcoin superpower” if he wins the upcoming November election.
Trump also announced plans to order the US government to refrain from selling cryptocurrencies seized in criminal cases and instead use these tokens to establish a strategic Bitcoin stockpile.
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3. Mcdonalds Sales Drop for First Time Since 2020
McDonald’s Corp. experienced its first sales decline since 2020, falling short of analyst expectations for modest growth but avoiding a steeper decline feared by investors.
In the second quarter, comparable sales—tracking restaurants open for over a year—fell 1% from the previous year. Each of McDonald’s geographic segments reported sales declines, with the US seeing a drop in foot traffic, which was partially offset by higher prices.
Chief Financial Officer Ian Borden noted that same-store sales have also been negative at the start of the third quarter across McDonald’s three geographic units, as consumers’ budgets remain under pressure. He stated on a call with analysts, “We don’t expect that we’re going to see a change in that environment over the next few quarters.”
Despite the warnings, investors reacted positively, sending shares up about 3.8% in New York trading at 10:08 a.m. The decline in same-store sales was less severe than some on Wall Street had anticipated. However, McDonald’s stock had already fallen 15% this year as of Friday’s close, compared to a 14% gain for the S&P 500 index during the same period.
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4. Sixth Street Leads Group to Buy Out Enstar
An investor group led by Sixth Street has agreed to purchase property and casualty insurer Enstar Group Ltd. for $5.1 billion, marking the second-largest private equity-backed insurance deal of the year.
The deal involves participation from former US Treasury Secretary Steven Mnuchin’s Liberty Strategic Capital and J.C. Flowers & Co. The Bermuda-based Enstar specializes in acquiring and managing blocks of insurance policies that are in run-off.
The group is offering $338 per share in cash, approximately 2.9% below Enstar’s closing share price of $348.31 on Friday. However, this price represents a premium of about 8.5% over the 90-day volume-weighted average price through July 26.
Following the announcement, Enstar’s shares fell 6.7% to $325 by 11:51 a.m. in New York trading, giving the company a market value of around $4.95 billion.
As part of the agreement to go private, Enstar will retain its current operations and business strategy. The deal includes a return of about $500 million from Enstar’s balance sheet to shareholders and is expected to close in mid-2025. Enstar has 35 days to solicit other offers.
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5. Lamborghini Breaks New Profit Record
Automobili Lamborghini SpA reported record-breaking results for the first half of 2024, in stark contrast to much of the auto industry, which has faced declining sales, lowered expectations, and plummeting stock values.
The Italian supercar manufacturer delivered 5,558 vehicles by the end of June, generating revenue of €1.6 billion ($1.762 billion). This marks a 14.1% increase from the same period in 2023, recovering from a slight dip in US sales in the first quarter.
Operating profit reached a record €458 million, significantly higher than the first half of 2023.
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6. More American Companies Feel Safer in Mexico
A larger share of companies operating in Mexico are feeling more positive about security, according to a new report from the American Chamber of Commerce of Mexico.
In the survey released Monday, 39% of respondents stated they consider themselves safer than the previous year, a significant increase from the 17% reported in the last survey in 2022. Additionally, the proportion of respondents expecting improvements in their safety in the coming year rose to 43% from 29%.
“The figures are a surprise,” said Pedro Casas Alatriste, executive vice president and general director at AmCham, noting how prominently security concerns typically feature for firms in the region. Key concerns for respondents included the security of employees and their families, as well as cybersecurity.
Casas suggested that advancements in technology might be contributing to the enhanced security perceptions, making it cheaper and easier for companies to protect themselves. According to the report, 16% of respondents are currently incorporating artificial intelligence in their security strategies for activities such as access control and cybersecurity. Moreover, 28% plan to adopt AI in the future.
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7. Xiaomi Buys EV Factory in Beijing
Chinese tech company Xiaomi Corp. has acquired a plot of land in Beijing for 842 million yuan ($116 million) to enhance its electric car production, following the initial success of its debut sedan.
The 53-hectare (131-acre) site is located near Xiaomi’s existing electric vehicle (EV) factory in the Yizhuang district of Beijing, according to filings from the Beijing Municipal Commission of Planning and Natural Resources. The land, purchased by Xiaomi subsidiary Xiaomi Jingxi Technology Ltd., will be dedicated to the “development of the high-end automobile and new energy intelligent vehicle industry,” as stated in the filing.
Xiaomi entered the automotive market in March with its base model SU7, priced at 215,900 yuan. This move is part of Chief Executive Officer Lei Jun’s ambitious $10 billion plan to establish Xiaomi as a significant player in the EV market.
Lei announced earlier this month that the company has already delivered 30,000 cars and is on track to reach its initial 2024 sales target of 100,000 vehicles by November.
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本文内容来自《Financial Times》、《Bloomberg》，以及《The Real Deal》等多家财经新闻媒体。