ROUNDUP 2: Volkswagen wants to invest billions in electric car company Rivian

WOLFSBURG/IRVINE - Volkswagen is getting help with electric cars from Tesla challenger Rivian - and is investing billions in the process. Europe's largest carmaker wants to spend up to five billion dollars and jointly develop technology for future vehicles. For Rivian, this is a very welcome cash injection: the company is still in the red and is currently struggling with declining interest in electric cars in the USA. Rivian shares, which have been weakening recently, jumped by almost 60 percent in after-hours trading on the Tradegate platform on Wednesday morning. VW shares, however, fell slightly in Xetra trading in the morning.

ROUNDUP: Fedex inspires with profit forecast and considered spin-off

MEMPHIS - Logistics group Fedex has astonished experts and excited investors with its outlook. The DHL competitor expects adjusted earnings per share of 20 to 22 US dollars for the 2024/25 financial year (until the end of May), as the company announced on Tuesday after the US stock market close in Memphis. Analysts had previously expected an average of 20.85 US dollars. Fedex is forecasting an increase in sales in the low to mid single-digit percentage range. In after-hours trading, Fedex shares jumped by more than 16 percent at the peak.

Bayer CEO expects faster restructuring of the Group than expected

DÜSSELDORF - The pharmaceutical and agrochemical company Bayer expects its reorganization to be implemented more quickly. "We are making faster progress than expected and, as promised, will save two billion euros annually from 2026," CEO Bill Anderson told the German business newspaper Handelsblatt (Wednesday edition). By the end of 2024, 70 percent of the Group's reorganization will have been implemented, the manager announced. "We will already see the results of the reorganization this year - through cost reductions, a reduction in bureaucracy and significantly accelerated projects."

Covestro: No connection between savings program and possible takeover

DÜSSELDORF - The plastics manufacturer Covestro sees no connection between the announcement of concrete takeover negotiations and the savings program published one day later. "I can assure you that these two topics are not connected, even if it may seem so from the timing," company CEO Markus Steilemann told the "Handelsblatt" (Wednesday edition). The "Strong" efficiency program is solely intended to strengthen Covestro's strategy.

Western Europe is catching up internationally in 5G mobile communications

STOCKHOLM - One in four mobile phone contracts in Western Europe now includes the option of using the faster 5G network. With a market penetration of 26 percent, Western European mobile providers are only in fourth place in an international comparison, according to an analysis by mobile equipment supplier Ericsson. North America (59%) is in the lead, ahead of North East Asia (41%) and the Gulf Cooperation Council region (34%). The number of 5G mobile contracts is therefore increasing in all regions worldwide and will reach 1.7 billion by the end of the first quarter of 2024.

Zurich acquires travel insurance business from AIG

ZURICH - The Zurich Group is expanding its travel insurance business. It is taking over the travel insurance and assistance business for private customers from AIG under the name AIG Travel. Zurich will integrate the business into its subsidiary Cover-More, as announced on Wednesday.

ROUNDUP: Cartel office sees AI as a 'fire accelerator' for consumers

BONN - The growing role of artificial intelligence (AI) threatens to become a disadvantage for consumers, according to Germany's top competition watchdog. "From a competition perspective, artificial intelligence is a fire accelerator of the first order," said the head of the Federal Cartel Office, Andreas Mundt, in Bonn on Wednesday. The power of the "Big Techs" - i.e. US technology companies such as Google and Amazon - would become even greater as a result of AI and the problems that we already have with them would be exacerbated. Dependence on such companies could have dire consequences, he warns. "Imagine if these companies became anti-democratic at some point, if they became anti-human rights - and you couldn't avoid them."

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Further news

-Amazon lets AI generate advertising

-Mercedes works council mobilizes against sale of own car dealerships

-Suspicion of corruption in China - two employees leave Adidas

-Messi and Co. continue at Adidas - contract until 2038

-Debut in Latin America: Gamescom games fair in Brazil for the first time

-Chemical collective bargaining partners seek solution before the end of the peace period

-Robotaxi company Waymo now without waiting list in San Francisco

-ROUNDUP: Higher ticket prices and fewer services threatened at Deutsche Bahn

-Bahn admits deficits in long-distance transport during the European Championships

-Bahn rejects report on plans to cut services

-Anton switch to Dortmund perfect? Voller rows back°

Customer tip:

ROUNDUP: You can read a summary in the company overview. There are several reports on this topic on the dpa-AFX news service.

/jha