The euro moved lower against the U.S. dollar on Monday, after the release of somewhat disappointing German data and as investors were still digesting the weekend’s elections in Germany.
EUR/USD was down 0.45% to 1.1903 by 04:15 a.m. ET (08:15 GMT).
Data on Monday showed that German business confidence edged lower in September. However, the reading remained close to the highest level on record, suggesting momentum in the euro zone’s biggest economy remains strong.
The euro had weakened after Germany’s federal election on Sunday showed growing support for a far-right party.
Chancellor Angela Merkel won a fourth term in office on Sunday but will have to build a coalition to form a government as Conservatives lost support in the face of a surge by the anti-immigration Alternative for Germany (AfD).
Power grids maker ABB is buying General Electric’s Industrial Solutions business for $2.6 billion in a bet it can improve the division’s lackluster margins over the next five years, the Swiss engineering company said on Monday.
Zurich-based ABB sees potential for annual cost benefits of $200 million with the deal, which includes an agreement for long-term use of GE’s brand and a strategic partnership. In 2016, the GE business had sales of $2.7 billion.
The GE products include circuit breakers, switchgear, components for lighting control and power supply equipment for facilities including data centers. ABB’s portfolio includes similar products.
ABB is seeking to better penetrate the North American market and gain access to GE’s larger installed base of electrical installations worldwide.
ABB said the business had been “an unloved child” and pledged to upgrade aging products with its own technology to help arrest a declining U.S. market share.
By John Miller
Unilever (L:ULVR) (AS:UNc) has agreed to buy cosmetics firm Carver Korea for 2.27 billion euros ($2.7 billion/2 billion pounds) from Goldman Sachs (NYSE:GS), Bain Capital and the company’s founder as it expands its beauty and personal care business.
The Anglo-Dutch company announced the deal on Monday, saying Carver was the fastest-growing skincare business in South Korea, through sales of its A.H.C brand.
Unilever said the range includes “Eye Cream for Face”, along with essences, toners, moisturisers, masks, and sun protection.
Bain and Goldman Sachs jointly bought a roughly 60 percent majority stake in Carver for around $500 million last year, a source familiar with the matter said on Monday.
Credit Agricole (PA:CAGR) is to move its European government bonds trading platform from London to Paris in September 2017, a spokeswoman for the bank told Reuters.
“To achieve critical mass, Credit Agricole CIB has decided to concentrate its euro flow rates market making capabilities in Paris,” said the spokeswoman.
“Therefore the European government bonds trading platform currently based in London will be relocated, as of September 2017, to Credit Agricole CIB in Paris where it will be positioned at the heart of our euro swaps, repo and inflation focused activities,” she said.
French bankers have pledged to create 1,000 jobs in Paris as part of a plan to shift their operations out of London once Britain leaves the European Union.
However, despite efforts by the French government to attract London banks after Brexit, international banks so far have mostly chosen Frankfurt as their EU hub.
By Abhinav Ramnarayan