European shares fell back on Wednesday, with all major benchmarks in the red after a car hit a group of soldiers in a Parisian suburb in what was said to be a deliberate act.
The falls followed U.S. and Asian market declines after North Korea said it was considering plans to attack Guam, which has a large U.S. military base.
Strong results from Scout24 and Novo Nordisk (CO:NOVOb) lifted those shares, but the pan-European STOXX 600 extended early losses to fall 0.7 percent. Euro zone stocks and blue-chips dropped 1 percent.
France’s CAC 40 extended losses to hit a session low, down 1.2 percent after the car incident in Paris..
Germany’s DAX was also down 1.1 percent as bond yields fell.
By Helen Reid
Walt Disney Co will stop providing new movies to Netflix Inc (NASDAQ:NFLX) starting in 2019 and launch its own streaming service as the world’s biggest entertainment company tries to capture digital viewers who are dumping traditional television.
Disney’s defection, announced on Tuesday alongside quarterly results showing continued pressure on sports network ESPN, is a calculated gamble that the company can generate more profit in the long run from its own subscription service rather than renting out its movies to services like Netflix.
In turn, Netflix and rivals such as Amazon.com Inc (NASDAQ:AMZN) and Time Warner Inc’s HBO are spending billions of dollars to buy and produce their own content and stream it straight to consumers.
Disney’s entry into a crowded subscription streaming market and the cost of technology to support its own online services could weigh on earnings, Wall Street analysts said.
By Lisa Richwine and Aishwarya Venugopal
Germany’s liberal Free Democrats (FDP) on Wednesday urged the state of Lower Saxony to sell its stake in Volkswagen (DE:VOWG_p), citing the risk of conflicts of interest weakening the region’s oversight of the scandal-hit carmaker.
Lower Saxony, which owns a fifth of Volkswagen’s voting rights, holds an election on Oct. 15 in which Chancellor Angela Merkel’s conservatives are forecast to win and to most likely form a coalition government with the FDP.
“The state should completely privatize VW,” FDP leader Christian Lindner told the Handelsblatt newspaper in remarks published on Wednesday. “This is our liberal conviction.”
The Bank of England said a transition period after the Britain leaves the European Union would give banks more time to make orderly changes as Brexit poses risks to financial stability.
With UK due to leave the bloc in March 2019, the BoE’s Prudential (LON:PRU) Regulation Authority (PRA) said it faces heavy demands from Brexit fallout on banks and insurers.
BoE Deputy Governor and PRA Chief Executive Sam Woods said “some form of implementation period is desirable” between Britain leaving the bloc and start of new trading terms to “give UK and EU firms” more time to make necessary changes.
But he stopped short of saying what sort of transition he wanted in a reply to Nicky Morgan, new chair of parliament’s Treasury Select Committee, who asked him this month for his views on the design of such a period.
By Huw Jones