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Seven days: 27 April

A round-up of the most important business stories during the past week
April 27, 2017

For the first time in six decades, neither of France's main left-wing or right-wing have a horse left in the race, as the country voted two candidates through to the second round of the Presidential run-off. Emmanuel Macron of En Marche! and Marine Le Pen, leader of the far-right Front National party, received 24 per cent and 21.3 per cent of first-round votes, respectively. France's Cac 40 share index closed 4 per cent up on the day the result was announced, taking it to its highest level since 2008. Investors were likely relieved a shock result was averted. With Le Pen in second place, the exit of France from the European Union is also less likely.

 

Genel chief retires

Former BP boss to step-down

Genel Energy (GENL) chairman Tony Hayward will be retiring from his role at the troubled Iraqi Kurdistan oil producer in June. A replacement has already been lined up - former Royal Dutch Shell (RDSB) employee Stephen Whyte. Former BP (BP.) boss Mr Hayward now really will get his life back. Investors were seemingly pleased at the news, with the shares closing 5 per cent higher on the day of the announcement.

 

Attack speculation

Suspect's put option purchase

The man, known only as Sergej W., suspected of carrying out the bus bomb attack on German football team Borussia Dortmund, had been speculating in the team's shares, prosecutors have revealed. German prosecutors said the 28-year old had bought 15,000 put options on shares in the club, betting that the shares would fall in the aftermath of the attack. The suspect, who is under arrest, could have made profits in the millions had the attack resulted in deaths and the club's shares plummeted.

 

 

BHP sells shale

Arkansas field under review

Perhaps BHP Billiton (BLT) took heed of some of the suggestions from activist investor Elliott Advisers after all. The mining giant plans to sell 50,000 acres of its shale exploration land and has put its Fayetteville field under review. This comes just weeks after the fund manager revealed it had been pressuring the group to divest its US petroleum assets. As expected, its full-year copper production has been hit by strikes at the Escondida mine, with expectations cut to between 1.33 and 1.36 million/tonnes. Coking coal production is also anticipated to be lower due to the effects of Cyclone Debbie.

 

US taxes slashed

Business rates reductions planned

US treasury secretary Steven Mnuchin has announced plans to overhaul America's "very uncompetitive" tax system, which will include cutting corporate tax rates. White House officials said the proposals would including slashing business rates to 15 per cent from 35 per cent. However, some economists have criticised the reforms, saying they will add trillions to the country's deficit. Other suggestions include a cut individual rates and a type of repatriation tax, giving large companies an incentive to bring back money they hold overseas.

 

Auto sales accelerating

Deutschland uber autos

Things are looking up on the continent. Several leading automakers, including Mercedes-Benz parent Daimler AG, have reported accelerating sales in the early part of the year. Of course, this is particularly encouraging for German policymakers, given the size of the country's automotive sector - but it also augurs well for UK companies in the supply chain The German government has raised its growth outlook for this year, with domestic consumption predicted to reduce the country's much-criticised trade surplus, while cars sales in the UK - Europe's second-largest market - are holding up despite the Brexit vote and cost pass-through to offset sterling post-referendum decline.

 

Sky partners up

HBO production deal

Being in the midst of a tie-up bid with Twenty-First Century Fox (US:FOXA) hasn't stopped Sky (SKY) from seeking out other partnerships. The media group has linked up with Time Warner-owned US network HBO as part of a £250m multi-year co-production deal. Sky said it would produce "high-end drama" and that the first productions are in development. Management announced the deal at the same time as unveiling 5 per cent revenue growth at constant currency during the first nine months of its financial year.