Volkswagen AG’s besieged chief executive has survived a monthslong battle with labor leaders but he will now lead Europe’s biggest auto maker on a shorter leash, raising questions about how fast and how far he can push through the electric transformation he started at the company. VW’s supervisory board approved a compromise to end the conflict between Herbert Dies and powerful labor leaders at the company who had sought his ouster. As part of the deal, Mr. Diess was stripped of some responsibilities and his management team reshuffled, with managers handpicked by the company’s directors, who include labor representatives. Analysts said the deal leaves Mr. Diess weakened just as VW faces pressure from a global shortage of semiconductors, the continuing impact of the pandemic, rising challenges from Tesla Inc., which begins production of cars in Germany next year, and the rise of Stellantis NV, the Italian-French-American auto group that is challenging VW’s dominance in Europe.

The Swiss stock market outperformed the other European stock exchanges for the second day in a row on Thursday. However, after the all-time high of the previous day, it was only enough for very moderate gains in the course of the day. The SMI gained 0.1 per cent to 12,608 points. Among the 20 SMI stocks, there were eleven price gainers and eight price losers, and one share closed unchanged. 27.06 (previously: 33.81) million shares were traded. The heavyweight pharmaceutical stocks Novartis (-0.2%) and Roche (+0.3%) were little changed, as was the overall market. Lonza (+1.7%) benefited from the current Omikron discussion. The group is cooperating with the US pharmaceutical group Moderna on the Corona vaccine. Holcim (-1.6%), the bottom performer, continued its weak performance since the summer. Among the second-line stocks, Zur Rose came under pressure by 4.2 per cent. The mail-order pharmacy had carried out a capital increase. Poenina (+2.3%) presented investigation results on the former CEO.

European equity indices continued to fall on Thursday as investors remained focused on the health situation in Europe following the announcement of new restrictions, notably in the UK, to combat the spread of Covid-19. They also remain cautious ahead of the release of US inflation figures for November. The Stoxx Europe 600 index lost 0.1% to 477 points. In Paris, the CAC 40 and SBF 120 also lost 0.1% each. In Frankfurt, the DAX 40 gave up 0.3%, and the FTSE 100 in London was down 0.2%. UniCredit SpA said it plans to expand by hiring staff and investing in digitization as part of a three-year strategic plan that includes share buybacks and bigger dividends. The plan, the first since Chief Executive Andrea Orcel took the helm in April, targets annual revenue growth of about 2% and profit growth of 10% through 2024. UniCredit, Italy’s second-largest bank by assets, said it would distribute at least €16 billion, equivalent to $18.2 billion, to investors in dividends and share buybacks over the next three years. It said it would invest €2.8 billion in its digital and data infrastructure over the same period. UniCredit’s shares rose about 7% after the bank unveiled the plan. Vivendi SE said it plans to launch a takeover bid for Lagardère SA, a deal that would resolve a yearslong saga over control of the Hachette books owner. The French conglomerate, which is already Lagardère’s biggest shareholder, said Thursday it would seek to take full control of the company after finalizing the purchase of Amber Capital’s 17.5% holding. Vivendi said that deal, agreed in September, would be completed in the coming days, paving the way for it to file a tender offer for the rest of Lagardère.

U.S. stocks continued to trade fitfully, with major indexes falling Thursday as investors assessed weekly jobless claims data and the latest global restrictions targeting the spread of the Omicron variant of the coronavirus. The Dow Jones Industrial Average spent the morning falling, the afternoon rising, and closed nearly flat. It finished off less than a point-down 0.06-at 35754.69. The S&P 500 dropped 33.76 points, or 0.7%, to 4667.45. The benchmark index had closed 0.3% higher Wednesday. Losses were worse for the tech-heavy Nasdaq Composite, which dropped 269.62, or 1.7%, to 15517.37. Its dip accelerated during the afternoon. American Airlines Group Inc. said it would trim international flights next summer because of Boeing Co. ’s delays in delivering new 787 Dreamliners. A schedule cut by the world’s largest carrier by passenger traffic is the latest sign of broader fallout for Boeing’s prolonged Dreamliner production problems that have largely prevented it from handing over the popular wide-body jets to airlines for more than a year. Amazon. com Inc. has settled a lawsuit over the sale of alleged fake cashmere products on its site, a cashmere industry organization said. The Cashmere and Camel Hair Manufacturers Institute in November sued Amazon and a U.S.-based store, CS Accessories LLC, that sold scarves on the retail site after the organization said it tested numerous products labeled as 100% cashmere and found they contained no cashmere and were made out of much-cheaper acrylic and other synthetic materials. Starbucks Corp. baristas in Buffalo, N.Y. voted to form the first labor union at one of the coffee giant’s own U.S. cafes in its 50-year history, as workers across the country push companies for better pay and benefits in a tight labor market.

Investors in the Asian and Australian markets see few reasons to buy stocks on Friday. China's stock markets were weighed down by news about the indebted real estate groups Evergrande and Kaisa, which were unable to service dollar payments. The rating agency Fitch has classified both companies as partially insolvent. In Japan, the Nikkei loses 0.5 per cent. Financial stocks are holding up better on expectations that the US Federal Reserve could tighten monetary policy more quickly. Dai-ichi Life Holdings gains 1.8 and Resona Holdings 0.9 per cent.

Long-dated Treasury yields edged back up in Asia after they posted their biggest one-day drop in almost a week on Thursday, with the U.S. consumer price report in focus.

JP Morgan raises Temenos to Overweight (Neutral) – Target CHF 165 (155)
Deutsche Bank lowers Delivery Hero target to EUR 140 (150) – Buy
Independent Research raises ABB target to CHF 33 (32) – Hold

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