S&P 500 2,441.20 17.28
Gold$1,224.80 $5.30
Nasdaq 6,253.81 61.92
Crude Oil $60,490.00      $-1570.00
Market Update

Volkswagen to Cut 30,000 Jobs, Lafarge Trims Earnings Goal

Author: Sarla Buch
Last Update: 10:22 AM ET November 18 2016

4:00 PM Frankfurt – Airbus secured new order for 13 commercial aircraft from Japan-based low-cost airline for $1.4 billion. Lafargeholcim lowered its fiscal 2018 profit forecast and cash flow targets. Troubled Volkswagen AG plans to cut about 30,000 jobs worldwide including 23,000 in Germany.

In London trading, FTSE 100 index fell 26.68 or 0.4% to 6,768.56 and in Frankfurt the DAX index edged down 5.60 to 10,679.32.

In Paris, CAC 40 index rose 24.47 or 0.5% to 4,503.30.

For the week, FTSE 100 index gained 0.6%, the DAX index edged up 0.1% and the CAC 40 index slipped 0.6%.

Airbus Group SE slipped 1.1% to €54.90 after the Netherlands-based aircrafts, helicopters maker secured new order for 13 commercial aircraft valued at about $1.4 billion at list prices from Japan-based low-cost airliner Peach Aviation Ltd.

Lafargeholcim Ltd decreased 1.8% to 53.90 Swiss francs after Switzerland-based building materials maker lowered its fiscal 2018 profit forecast and cash flow targets but raised its annual dividend to 2 francs from 1.5 francs in a year ago period.

The world’s largest cement maker forecasted cumulated operating free cash flow of 7.5 billion francs up by 2018.

Lafargeholcim forecasted operating profit in 2018 of 7 billion francs, including 200 million francs of additional cost savings.

Volkswagen AG gained 0.5% to €118.10 after Germany-based automaker said it plans to cut about 30,000 jobs worldwide, including 23,000 in Germany after its labour unions agreed to a turnaround plan and save $3.9 billion per year.

“Volkswagen is far behind competitors” and “Volkswagen has to quickly earn more money for the change ahead,” Herbert Diess, the chairman of the brand board of management of Volkswagen passenger cars said.

Separately, today the passenger car maker said its estimated Volkswagen brand vehicles sales in China to surge to 3 million this year, an increase of 340,000 from last year.

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