German industrial group Siemens AG (DE:SIEGn) and French rival Alstom SA (PA:ALSO) agreed to merge their rail operations, creating a European champion to better withstand the international advance of China’s state-owned CRRC Corp Ltd (SS:601766).
Siemens will own 50 percent plus a few shares of the joint venture, to be called Siemens Alstom, while Alstom will supply Henri Poupart-Lafarge as chief executive, helping to counter criticism that France is giving up control of another national industrial icon.
The non-executive chairman will come from Siemens.
The framework deal, which still has to be approved by Alstom shareholders as well as regulators, is a Franco-German industrial breakthrough for French President Emmanuel Macron but is a move that has riled opposition politicians.
By Alexander Hübner and Cyril Altmeyer
The dollar was at one-month highs against a basket of the other major currencies on Wednesday supported by comments from Federal Reserve Chair Janet Yellen and as political risk continued to pressure the euro.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.41% at 93.19 by 03:37 AM ET (07:37 GMT), the highest since August 31.
Demand for the dollar continued to be underpinned after Yellen said Tuesday that the Fed needs to continue with gradual rate hikes in spite of uncertainty over the inflation outlook.
The remarks came after the Fed indicated last week that it would like to raise rates once more this year and three times in 2018.
Higher rates tend to boost the dollar by making the U.S. currency more attractive to yield-seeking investors.
Nike Inc (N:NKE) posted its slowest quarterly sales growth in nearly seven years in the face of intensifying competition from Adidas AG (DE:ADSGn) and said it expects a further drop in revenue from North America.
Shares of the Dow component were trading down 3.7 percent at $51.71 after the bell on Tuesday.
Nike is battling pressures on many fronts – in North America a reinvigorated Adidas has taken market share, while athleisure, a decade-long trend that saw shoppers wear sports apparel for formal and informal occasions, has been fading.
Certain retailers may respond to the weak demand in North America through door closures and potential discontinuities, which could lead to contraction of revenue in the market in the current quarter, Nike said on a post-earnings call.
Beaverton, Oregon-based Nike also said it expects its second-quarter revenue to grow in the low single-digit percentage range.