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Market Update

BHP Settles $47.5 B Claims in Brazil, Zodiac in €10 B Deal with Safran

Author: Sarla Buch
Last Update: 3:55 PM ET January 19 2017

4:00 PM Frankfurt – BHP, Vale and Samarco settled a $47.5 billion civil claim with Brazilian authorities. Credit Suisse settled mortgage securities claims with the U.S. regulator for $5.3 billion. Ahold Delhaize sales jumped 3% to €15.5 billion. Zodiac agreed to be acquired by Safran for €10 billion.

In London trading, FTSE 100 index slipped 30.28 or 0.4% to 7,217.33 and in Frankfurt the DAX index edged up 9.23 to 11,608.23.

In Paris, CAC 40 index slid 4.20 to 4,849.20.

BHP Billiton Plc slid 0.6% to 1,446 pence after the U.K.-based integrated mining group said that its Brazilin unit, Vale SA and Samarco Mineracao S.A. reached an agreement with Brazil authorities to settle a $47.5 billion civil claim over the Samarco iron ore mine disaster.

Credit Suisse Group AG fell 2.3% to 15.29 Swiss francs after the Switzerland-based financial services formally agreed to pay $5.3 billion to settle with the U.S. authorities over claims it misled investors in residential mortgage-backed securities through 2007-2008 financial crisis.

Credit Suisse will pay $2.48 billion cash penalty and $2.8 billion in consumer relief, including loan forgiveness and finance for affordable housing, the Justice Department said in the statement.

Koninklijke Ahold Delhaize NV jumped 4.38 to €20.38 after the Netherlands-based food retailer said sales in the quarter ending in December increased 2.8% from a year ago to €15.5 billion and free cash flow to reach about €1.3 billion.

In the quarter, comparable sales in the Netherlands advanced 6.6% and online consumer sales surged 27.9%. Comparable sales in the U.S., at Delhaize America rose 2.2% but sales at the Ahold USA stores fell 0.2%.

The retailer is scheduled to release its full-year result on March 1.

Royal Mail Plc declined 5.3% to 425.80 pence after the U.K.-based postal services provider said group revenues in the nine-month ending on December 25 decline 25% but in General Logistics Segment revenue jumped 9% that offset a 2% fall in UKPIL revenue. UKPIL segment includes core mail service and global parcel services.

“Our postmen and women delivered great service at Christmas, better than last year, with 138 million parcels handled in December alone.” chief executive officer, Moya Greene said.

Further he added “our cost avoidance program remains on track to deliver £225 million of UKPIL operating costs avoided in fiscal 2016,” and “we are confident that total net cash investment will be no more than £500 million this year and next.”

Zodiac Aerospace SA surged 21.9% to €28.41 after France-based aeronautical group agreed to be acquired by aircraft and rocket propulsion engines maker Safran SA for €29.47 per share or about €9.7 billion or $10.3 billion in cash.

Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc