Philips shares tumble as much as 15%
Shares in Dutch health product giant Philips tumbled in Europe deals early on Monday, after the company cut its full year sales outlook on weak demand from China.
After initially failing to begin trading when markets opened, Europe-traded shares of Philips fell as much as 15% and were last down 14.55% at 8:26 a.m. London time.
— Sophie Kiderlin
European markets rise as trading kicks off
European markets were higher as trading began on Monday, with the pan-European Stoxx 600 last adding 0.24% at 8:15 a.m. London time.
Travel and leisure stocks were up around 1.1%, while oil and gas stocks lost 1.7%.
Regional bourses were also mostly higher with France’s CAC 40 adding 0.7% and Germany’s DAX rising 0.2%.
— Sophie Kiderlin
Philips needs to ‘adjust to a new speed of growth in China,’ CEO Roy Jakobs says
Health device maker Philips needs to “adjust to a new speed of growth in China,” its CEO Roy Jakobs told CNBC’s “Squawk Box Europe” on Monday.
The company had been expecting China to stabilize in the second half of the year, but instead saw deterioration, he said.
China however is still a key market for Philips, Jakobs said.
“We believe that China fundamentally remains an attractive growth market for us. So it’s a matter of when that comes back, not if it comes back,” he said.
Jakobs’ comments come after Philips on Monday said it was cutting its full-year sales outlook after demand in China “deteriorated.”
Speaking to CNBC, Jakobs attributed the issues in China to slowing consumer confidence and a resulting easing of sales, as well as the impact of anti-corruption measures on the health care side, which he said were keeping the market at a “low-point.”
— Sophie Kiderlin
Philips cuts sales outlook as China demand has ‘deteriorated’
Dutch medical devices giant Philips on Monday said it was cutting its full-year sales outlook due to weak demand from China.
Comparable sales growth is now expected to come in between 0.5% and 1.5% for full-year 2024, the company said. This is down from a previously expected sales growth range of 3% to 5%.
“In the [third] quarter, demand from hospitals and consumers in China further deteriorated, while we continue to see solid growth in other regions. We have adjusted our full-year sales outlook to reflect the continued impact from China,” Philips CEO Roy Jakobs said in a statement.
Comparable sales growth was flat in the third quarter, Philips said in its earnings release on Monday. According to Reuters, analysts had been expecting 2.1% growth.
— Sophie Kiderlin
European markets: Here are the opening calls
European markets are expected to open in mixed territory Monday.
The U.K.’s FTSE 100 index is expected to open 8 points lower at 8,243, Germany’s DAX up 30 points at 19,747, France’s CAC up 12 points at 7,508 and Italy’s FTSE MIB up 108 points at 34,648, according to data from IG.
Earnings come from Philips Monday. There are no major data releases.
— Holly Ellyatt
Oil prices slide more than 4% after Israel’s ‘limited’ attack on Iran
Yen weakens to fresh 3-month low after Japan elections
The Japanese yen weakened to fresh three-month lows against the dollar on Monday, after the ruling LDP lost its majority in the country’s lower house following elections on Sunday.
The currency hit a low of 153.32 against the greenback, marking its weakest level since July 31.
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