FT : Two Ford family members poised to join carmaker’s board

Two Ford family members poised to join carmaker’s board
Changing of the guard comes as group pushes ahead with $11bn global restructuring

The next generation of the Ford family is set to join the board of the Michigan carmaker.

Alexandra Ford English, 33, and Henry Ford III, 40, will stand for election at the company’s annual shareholder meeting on May 13. Both are great-grandchildren of Henry Ford, who founded the car and truck manufacturer in 1903.

At the same time, Edsel Ford, 72, will step down after serving on the company’s 10-director board for 33 years. He and Bill Ford Jr, who is continuing as executive chairman, both joined in 1988.

The Ford family has 40 per cent voting power in the company because of a two-tier stock structure.

“Henry and Alexandra are both passionate and capable young business leaders who care deeply about Ford Motor Company,” Bill Ford Jr said.

The changing of the guard comes as Ford remains embroiled in a multiyear, $11bn global restructuring. Chief executive Jim Farley, who started in the top job last August, is re-evaluating unprofitable parts of the business while steering Ford through the industry-wide transition to electric vehicles.

Henry Ford III is the son of Edsel Ford, and Ford English is the daughter of Bill Ford Jr.

Ford English, who joined the company four years ago, is a director of corporate strategy, where she is “responsible for enterprise, connectivity and digital network strategic plans”. She is also Ford’s representative on the board of electric truckmaker Rivian, in which the company owns an equity stake.

Henry Ford III has been at the automaker since 2006, holding roles in labour relations, purchasing, corporate strategy and marketing and sales. The company said he “played a key role in the launch of the latest Ford GT” sports car.

The United Auto Workers union, while noting it will always have differences with management, said adding the new, younger family members continued the company’s tradition of taking the long view.

“In an age of short-term Wall Street focused management decisions, Ford Motor Company has benefited from the stability and continuity of the Ford family's involvement in the management of one of America’s most iconic corporations,” the union said.

FT : UK and EU clash over post-Brexit fishing rights

UK and EU clash over post-Brexit fishing rights
Row erupts over British conservation plan for part of the North Sea

The UK and the EU have clashed over the bloc's fishing rights in British waters, in an early test of the two sides’ post-Brexit relationship. 

Britain and Brussels held negotiations this week over how much fish each side can catch from the around 100 species spread across EU and UK waters. The two sides are obliged under international law to work together to set these annual fishing limits.

But people close to the negotiations warned they had hit problems from the start, with the EU even halting talks at one point because of concerns that Britain’s stance violated shared commitments to manage the fish stocks together.

Negotiations subsequently resumed after the UK gave assurances that it did want to work together, but people close to the talks said serious problems remained. “Harm has been done,” said one EU diplomat.

The row began after the UK announced on February 1 that it was considering a total ban on fishing in the British waters that form part of the Dogger Bank area of the North Sea.

The move was enthusiastically welcomed by non-governmental organisations that have long lobbied for stricter conservation measures.

However the proposal was viewed in EU member states as a cynical British step to reduce the bloc’s fishing rights under the guise of environmentalism.

About 85 per cent of the fish caught on Dogger Bank — a 17,600 sq km area that straddles the territorial waters of the UK, Netherlands, Denmark and Germany — is taken by EU fleets. The bloc’s boats caught 34,758 tons of fish there in 2018, compared to 1,318 tons for UK vessels.

The UK move to consider banning fishing in the British waters that form part of Dogger Bank “is not proportionate and disproportionately affects EU fisheries”, said one EU diplomat. “There is no scientific justification for it, not all parts of the Dogger Bank are so vulnerable that they should be closed.”

Conservation experts disagreed, saying that the UK move was “long overdue” and that the EU’s common fisheries policy had consistently prevented Britain from acting to protect marine environments.

Callum Roberts, professor of marine conservation at the University of Exeter, said the UK step was justified.

“This is very much a proportionate response — and a belated one — to a long overdue need to better manage the nation’s marine environment,” he added. 

The UK agriculture department said that leaving the EU had enabled Britain to act more flexibly and to follow scientific advice to protect the marine environment.

“The UK now has new powers to introduce protections in offshore marine protected areas with a consultation on the first four sites, including Dogger Bank, currently under way,” added a spokesperson.

Brussels is concerned the British stance in the talks reflects a disregard of commitments the two sides made in their future relationship deal, struck at the end of last year.

Annual fishing talks between the EU and the UK are needed because, while the two sides’ trade deal sets out the relative share of fishing rights each gets for species, it does not solve the issue of the overall amount that can be caught.

International law requires this to be done by negotiations. Normally these should be completed by January 1, but the fact the EU and UK only agreed their future relationship deal in late December means provisional arrangements are in place for the time being. 

Both the EU and UK are now faced with the prospect of no agreement being ready for when provisional fishing rights expire on April 1, leaving both sides weighing up measures to extend them.

The European Commission declined to comment.

>>> US Close Dow +0.90% S&P +0.10% Nasdaq -0.59% Russell +0.61%

Closing Stock Market Summary

The S&P 500 (+0.1%) eked out a closing record high on Friday, coming back from an early 0.6% decline as it gradually absorbed another sharp rise in long-term interest rates. The 10-yr yield rose 11 basis points to 1.64% to reach its highest level since last February. 

The Dow Jones Industrial Average (+0.9%) and Russell 2000 (+0.6%) set intraday and closing record highs, while the Nasdaq Composite declined 0.6% amid relative weakness in the mega-cap/growth stocks. To the Nasdaq's credit, it was down as much as 1.8% intraday due to the initial shock of higher rates. 

The sharp rise in yields was driven by widely-reported expectations for economic growth and inflation. These expectations were supported by President Biden's instruction that all states make all adults eligible to be vaccinated no later than May 1 and by pipeline inflation pressures that were evident in the February Producer Price Index report. 

Some circles attributed the rise in yields to a more subtle factor: selling by primary dealers anticipating that the Fed isn't going to extend the supplementary leverage ratio exemption when it expires March 31. This exemption was introduced last April amid the economic meltdown brought on by the pandemic.

Whatever the case, the higher rates worked against the mega-cap stocks within the S&P 500 information technology (-0.7%), communication services (-0.9%), and consumer discretionary (+0.1%) sectors. The latter sneaked into positive territory into the close amid a familiar resiliency in the broad market.

The financials sector (+1.1%) was a direct beneficiary of the curve-steepening activity in Treasuries, although the top spots belonged to the real estate (+1.5%), industrials (+1.3%), and utilities (+1.3%) sectors.

Boeing (BA 269.19, +17.19, +6.8%) was an influential driver within the industrials sector on news that 777 Investment Partners ordered 24 737 MAX planes. BA shares rose 7% to fresh 52-week highs. 

The 2-yr yield increased one basis point to 0.14%. The U.S. Dollar Index increased 0.2% to 91.63. WTI crude futures rose 0.7%, or $0.43, to $65.59/bbl.

Reviewing Friday's economic data:

  • The Producer Price Index for final demand increased 0.5% m/m in February, as expected, following a 1.3% increase in January. In turn, the Producer Price Index for final demand, less foods and energy, rose 0.2% m/m, as expected, following a 1.2% increase in January. On a year-over-year basis, the Producer Price Index for final demand was up 2.8%, versus 1.7% in January. The Producer Price Index for final demand, less foods and energy, was up 2.5% versus 2.0% in January.
    • There are a few important takeaways from this report: (1) there were no surprises in the headline numbers, so the stock market could choose to turn a blind eye to it, but (2) there was a sightline to pipeline inflation pressures, as the index for processed goods for intermediate demand rose 2.7% m/m (up 6.6% yr/yr), the largest monthly increase since July 2008, while the index for unprocessed goods for intermediate demand increased 4.3% (up 19.0% yr/yr).
  • The preliminary University of Michigan Index of Consumer Sentiment for March increased to 83.0 (consensus 80.0) from the final reading of 76.8 for February. The March reading is the highest since August 2020.
    • The key takeaway from the report is that the improvement was driven by gains across all socioeconomic subgroups and stemmed from optimism about the increasing number of vaccinations and the passage of the $1.9 trillion stimulus package.

Looking ahead, investors will receive the Empire State Manufacturing Survey for March and Net Long-Term TIC Flows for January on Monday.

  • Russell 2000 +19.1% YTD
  • Dow Jones Industrial Average +7.1% YTD
  • S&P 500 +5.0% YTD
  • Nasdaq Composite +3.4% YTD

>>> TradeGate Pre-Market Indications

DAX:
  • VW (VOW3 TH) +0.6%
  • Infineon (IFX TH) +0.4%
    • Carmakers’ Chip Shortages May Last into Late 2021, Renesas Says
  • Deutsche Bank (DBK TH) -0.6%
    • Deutsche Bank Sees 2021 Revenue ‘Marginally’ Lower Than 2020
  • BMW (BMW TH) -0.6%
    • BMW Cut to Equal-Weight at Barclays; PT 83 euros
  • Daimler (DAI TH) -1.7%
    • Renault Sells Entire 1.54% Daimler Stake at EU69.50 Per Share
MDAX:
  • HelloFresh (HFG TH) +1.1%
  • Varta (VAR1 TH) +1.1%
  • Freenet (FNTN TH) +1.1%
  • LEG Immobilien (LEG TH) +1.1%
  • Hugo Boss (BOSS TH) -1.3%
    • Burberry Says Rebound Has Been Stronger Than Analysts Expected
SDAX:
  • LPKF (LPK TH) +3.5%
    • LPKF Raised to Buy at HSBC; PT 33 euros
  • VERBIO Vereinigte (VBK TH) +3%
  • Global Fashion Group (GFG TH) +1.1%
  • Bilfinger (GBF TH) -0.8%
  • 1&1 Drillisch (DRI TH) -1%

>>> What to look at today - 12th of March 2021

Asian stocks were mostly higher Friday and U.S. equity futures fluctuated after the S&P 500 Index swept to a record on optimism over the $1.9 trillion U.S. stimulus package. The dollar and Treasury yields climbed.
MSCI Inc.’s regional gauge rose a fourth day as Japan rallied amid a jump in Rakuten Inc. on news of an investment by Japan Post Holdings Co. U.S. equity futures were steady following broad S&P 500 gains and a Nasdaq 100 rebound. South Korean e-commerce giant Coupang Inc. popped 41% in its debut.
Chinese shares posted modest gains amid a renewed focus on U.S.-China relations. The Biden administration informed some suppliers to Huawei Technologies Co. of tighter conditions on previously approved export licenses, prohibiting items for use in or with 5G devices.
Relatively smooth bond sales this week eased concerns about the market outlook. Yields on the 10-year Treasury benchmark rose to about 1.57% on Friday. Verizon Communications Inc. saw surging demand for its $25 billion debt sale.
US After Hours FNKO +10%, MTN +10% gain while POSH -15% declines on earnings/guidance

Nikkei +1.73% Hang Seng -0.84% CSI +0.02% Shanghai +0.16% Shenzen -0.11%

Eur$ 1.1966 CNH 6.4870 CNY 6.4874 JPY 108.69 GBP 1.3982 CHF 0.9264 RUB 73.3975 TRY 7.5070 WTI$65.85 -0.26% GOLD 1,719 -0.20% BTC 56,600 -250

S&P +0.05% Nasdaq -0.24% EuroStoxx -0.05% FTSE -0.24% Dax -0.14% SMI -0.17%

Macro :
- EU To Make Batteries For 7 Million Electric Cars/Yr By 2025: HB
- London Jobs Market Lags Rest of U.K. With 15% Drop in New Roles
- Biden to Order All U.S. Adults Be Eligible for Vaccine by May 1
- Largest Crypto Exchange Names Ex-U.S. Senator Baucus Adviser
- ECB Doesn’t Intend Faster Bond-Buying to Mean More Stimulus

Spacs :
- Grab Is in Talks to Go Public Through a SPAC Merger
- Holley to Go Public Via SPAC Merger at $1.55b Valuation: DJ

Keep an eye on :
- AIR FP : Colombia Says Airbus Part Fell From Plane in Bogota, No Injuries
- ATL IM: Investment Banks Value Atlantia Highway Unit at EU11b: Sole
- ATL IM : Atlantia 2021 Revenue Forecast Misses Estimates
- AGL IM : Autogrill 2021 Revenue Forecast Misses Estimates
- AGL IM : Autogrill Efficiency Is Silver Lining for Dim Sales View: React
- AZN LN : Mexico to Continue Use of AstraZeneca Vaccine, Lopez-Gatell Says
- AZN LN : Daiichi Sankyo Starts Manufacturing AstraZeneca Vaccine in Japan
- AZN LN : Thailand Suspends Use of AstraZeneca Shots After Clot Report
- POST AV : Austrian Post FY Ebit Beats Estimates
- BIDU US : Baidu Seeks Up to $3.6 Billion in Hong Kong Second Listing
- CLNKB SS : Cellink Seeks to Raise SEK2.75B in Convertible Bond, Share Issue
- DAI GY : Renault Selling $1.4 Billion Daimler Stake for Turnaround (1)
- DAI GY : Ionity Looking to Sell Minority Stake for EU400M-EU500M: Reuters
- EDF FP : France Sees Reasonable Chance of EU Deal on EDF Within Weeks (1)
- EL FP : EssilorLuxottica FY Adjusted Operating Profit Beats Estimates
- ENX FP : Euronext Makes No Changes to CAC40 Index Composition in Review
- RACE IM : Ferrari to Restart Buyback With Fourth Tranche up to EU150M
- GBLB BB : Groupe Bruxelles Lambert FY Cash Profit Beats Estimates
- BOSS GY : Hugo Boss Raised to Buy at LBBW; PT 38 euros
- HMSO LN : Hammerson to Sell Stakes in Two French Joint Ventures: Sky
- BOWL LN : Hollywood Bowl Offers GBP30m Shares via Investec
- MMT FP : Vivendi, TF1, Xavier Niel Among Bidders for M6, Les Echos Says
- NZYMB DC : Novozymes Buys Biota’s Data Science Platform For Undisclosed Sum
- 6178 JP : Rakuten Soars on Report of a Capital Tie-Up With Japan Post
- RNO FP : Renault: Taking Steps to Find a Buyer for Caudan Site
- RNO FP : Renault Selling $1.4 Billion Daimler Stake for Turnaround (1)
- SPIE FP : Spie Sees 2021 Rev., Ebita Margin Very Close to 2019 Levels
- STLA IM : Jeep Targets Cadillac Escalade with $111,000 Grand Wagoneer - http://cnn.it/3laE1Ww
- SZU FP :
- URW NA : Hammerson to Sell Stakes in Two French Joint Ventures: Sky
- VTWR GY : Vantage to Lead the Way in Big Week for European IPOs: ECM Watch
- VOW3 GY : Ionity Looking to Sell Minority Stake for EU400M-EU500M: Reuters
- VOW3 GY : Volkswagen boss Diess tells execs third-party software fix isn't an option https://t.co/BhkB0bcD6n
- VOW3 GY : VW Chairman Of Supervisory Board Poetsch May Get Reelected: HB
- FHZN SW : Zurich Airport FY Revenue Beats Estimates

>>> Europe : Brokers Upgrades & Downgrades - 12th of March 2021

>>> Up
* Barclays Raised to Buy at Goldman; PT 240 pence
* Centrica Raised to Buy at SocGen; PT 77 pence
* Couche-Tard Raised to Overweight at JPMorgan; PT C$52
* Daimler Raised to Overweight at Barclays; PT 96 euros
* Direct Line Cut to Hold at HSBC; PT 350 pence
* Freenet Raised to Overweight at Barclays; PT 24 euros
* Kloeckner Raised to Hold at LBBW; PT 9 euros
* LPKF Raised to Buy at HSBC; PT 33 euros
* Lundin Energy Rated New Hold at Deutsche Bank; PT 297 kronor
* Norsk Hydro Raised to Add at AlphaValue
* OMV Raised to Buy at Deutsche Bank; PT 47.70 euros
* Petra Diamonds Raised to Buy at Berenberg
* Rentokil Raised to Buy at Deutsche Bank; PT 565 pence
* Suedzucker Raised to Equal-Weight at Barclays; PT 14.70 euros
* Tullow Raised to Overweight at Morgan Stanley; PT 75 pence

>>> Down
* Antofagasta Cut to Sell at Liberum; PT 1,400 pence
* BMW Cut to Equal-Weight at Barclays; PT 83 euros
* Credit Suisse Cut to Neutral at Goldman; PT 16 Swiss francs
* Direct Line Cut to Hold at HSBC; PT 350 pence
* Hugo Boss Cut to Sell at SocGen; PT 27.50 euros
* Hollywood Bowl Cut to Hold at Peel Hunt
* Inditex Cut to Hold at Jefferies; PT 31 euros
* ING Cut to Hold at LBBW; PT 11 euros
* Lundin Energy Cut to Equal-Weight at Morgan Stanley
* Renault Cut to Underweight at Barclays; PT 35 euros
* Scor Cut to Hold at SocGen; PT 32 euros

>>> Initiation
* Belimo Rated New Equal-Weight at Morgan Stanley
* SOITEC Rated New Equal-Weight at Morgan Stanley; PT 180 euros

>>> Call
* Inditex Cut at Jefferies as Margin Outlook Not Quite Good Enough
* Diamond Mining Market in Better Health, Upgrade Petra: Berenberg