Renault reports record sales, expects further growth, despite emissions probe

French carmaker Groupe Renault reported record sales for 2016, thanks to growth in Europe and in overseas markets such as India and Iran. It expects more progress this year.

Sales rose 13.3 per cent last year and vehicles sold in 2016 topped 3.18 million vehicles – a sales record, it said.

“Our strategy of product range renewal and geographic expansion, under way for several years now, has proven to be successful. It enables the Groupe Renault to progress significantly in terms of volume and market share in every region,” said Thierry Koskas, member of Renault's executive committee, in a statement.

Renault's figures painted a similar picture to that of rival Peugeot which last week also reported higher sales, with the lifting of international sanctions against Iran boosting sales there.

Earlier this month, a source at the Paris prosecutor's office said it had launched a judicial investigation into possible cheating on exhaust emissions at Renault, causing Renault shares to touch one-month lows.

Volkswagen's admission that some of its diesel vehicles were fitted with software designed to hide their true level of emissions has highlighted that most cars spew out far higher levels of health-threatening nitrogen oxide (NOx) in everyday driving conditions than in laboratory tests.

Reuters

Lindt sales rise, sees profit boost from lower tax rate

Swiss chocolate maker Lindt & Spruengli boosted its share of a stagnating market in 2016 thanks to solid showings in Europe, Japan and Brazil, it said on Tuesday.

Overall sales grew 6.8 per cent to 3.90bn Swiss francs (£3.15bn), in line with the average estimate of 3.89bn francs in a Reuters poll of eight analysts.

Organic sales – stripping out currency moves – grew 6 per cent, within its target range of 6 to 8 per cent. The rate of organic sales growth increased from 4.4 per cent in the first half to 7 per cent in the second as customers snapped up Christmas season promotions.

“The group's operating margin is expected to increase within the strategic target range. There will be a disproportionate increase in net profit due to a lower tax rate,” it said.

The group has said it aims to grow the margin on earnings before interest and taxes by 20 to 40 basis points. Full financial results for 2016 are due on 7 March.

Chocolate makers are grappling with stagnant markets and subdued consumer confidence, but Lindt managed to grow sales thanks to premium products such as Lindor chocolate balls and gold foil-wrapped Christmas chocolate bears.

But adjusting US brand Russell Stover's product line and promotions strategy weighed on sales growth, it said.

Reuters

Lloyd’s of London to announce new EU outpost in coming months

Lloyd’s of London will make an announcement on its new European subsidiary by the middle of April at the latest, its Chairman John Nelson said on Tuesday, as it prepares for Britain's exit from the European Union.

The world's largest speciality insurance market, which started life in Edward Lloyd's coffee house in 1688, has been one of the most vocal London financial institutions about the need to set up an EU subsidiary as Britain readies to leave the bloc.

“We will be ready to make an announcement in relation to our move to Europe in Q1, certainly by Easter,” Nelson told Reuters in an interview on the sidelines of the World Economic Forum in Davos.

Lloyd’s has said it is considering five locations for its new subsidiary, including Dublin. Nelson did not give any further detail on the insurance market's choice of location.

Industry observers say all insurers looking to set up EU subsidiaries have included Dublin among their options, attracted by its language, location and tax and regulatory systems.

Reuters

UK car industry says Britain must participate in customs union to keep EU trade

Britain needs to participate in the European customs union to help retain EU trade, a car industry body said on Tuesday, warning that a return to World Trade Organisation tariffs would threaten the sector.

Prime Minister Theresa May said on Tuesday Britain cannot remain a full member of the EU customs union but will seek tariff-free trade with the bloc after it leaves.

“We need ... a deal which includes participation in the customs union to help safeguard EU trade, trade that is tariff-free and avoids the non-tariff and regulatory barriers that would jeopardise investment, growth and consumer choice,” the CEO of the Society of Motor Manufacturers and Traders Mike Hawes said.

“Reversion to WTO tariffs... would threaten the viability of the industry,” he said.

Reuters

Davos: Trump adviser tells elite to listen to the people

Anthony Scaramucci, who is part of US President-elect Donald Trump's transition team, says global elites have to get out of their comfort zones and listen to the people if they don’t understand how Trump was elected or why Britain voted to leave the European Union.

At a panel at the World Economic Forum, financier Scaramucci said the richest 3 per cent of the world benefited from the massive stimulus measures enacted by global central banks since the financial crisis and are basically back to where they were in 2007. The remaining people, he said, are “struggling”.

To those among the global elites who don't understand that post-crisis phenomenon, Scaramucci had a message: “Go to the prairie lands of the United States, or perhaps places in Great Britain or places in Europe. You know the places. Listen to the people. We have to as a collective group of people come up with the right policies”.

AP

Tiffany feels the Trump effect on 5th Avenue

Security barricades, protesters and a perpetual media encampment in and around Trump Tower since the election tarnished sales at Tiffany, the jeweller whose flagship store is just steps from the president-elect’s front door.

Tiffany said Tuesday that sales at its store on Manhattan’s 5th Avenue tumbled 14 per cent in November and December, compared with the same period last year, partly due to “post-election traffic disruptions”.

Tiffany has been under pressure more broadly, however, and overall sales in the Americas declined by 4 per cent.

Shares of the New York retailer slid 3 per cent at the opening bell.