It’s not just Argentine soccer fans who woke up depressed after their nation’s 1-0 defeat to Germany in the World Cup final. Traders in Buenos Aires were also feeling blue.
Though Argentina’s main Merval index closed up 0.2 percent Monday, it traded sharply lower for much of the session after the team succumbed to a late goal Sunday from German striker Mario Goetze in Rio de Janeiro.
Despite the late advance, the Merval underperformed other markets in the region and around the world, notably Germany’s DAX, which closed 1.2 percent higher – the biggest gain Monday among the major European stock indexes.
The underperformance was widely anticipated.
Alex Edmans, a professor at London Business School and the Wharton School of the University of Pennsylvania, has analyzed stock market responses to World Cup defeats and found those from losing nations have underperformed.
Swiss candy-maker buys Russell Stover
Swiss chocolate-maker Lindt & Spruengli says it is buying U.S. manufacturer Russell Stover Candies Inc. for an undisclosed sum.
Lindt CEO Ernst Tanner said Monday that the purchase provides a unique opportunity for us to expand our North American chocolate business. The company says the deal will make it the No. 3 chocolate manufacturer in North America.
Russell Stover, which also owns the Whitman’s brand, is based in Kansas City, Missouri, and has four factories – in Kansas, Texas and Colorado.
It has about 2,700 employees and about $500 million in annual sales.
Samsung suspends Chinese supplier
Samsung Electronics Co. said it has suspended ties with a Chinese supplier that allegedly hired children.
The South Korean company, which is the world’s biggest smartphone maker, said in its blog Monday that it had found possible evidence of child labor and illegal hiring at Dongguan Shinyang Electronics Co.
Samsung said last week it would investigate the Chinese supplier after a New York watchdog’s report that it hired at least five children younger than 16.
China Labor Watch said children as well as minors younger than 18 worked at Shinyang for three to six months to meet production targets. The watchdog said the child workers were paid for 10 hours a day but worked 11 hours.
The report detailed 15 labor violations discovered during its undercover investigation. They included child labor, the absence of safety training, no overtime wages and no social insurance for temporary workers, who constituted at least 40 percent of 1,200 employees at the Chinese cellphone parts supplier for Samsung.
Airbus launches new fuel-efficient models
Airbus has launched updated versions of its A330 wide body aircraft in a bid to improve fuel efficiency, increase range and help the aircraft compete against Boeing’s 787 Dreamliner.
Airbus said Monday the new designs for the A330-800neo and the A330-900neo will reduce fuel consumption by 14 percent per seat and boost the model’s range by 400 nautical miles.
Air Lease Corp., of Los Angeles, on Monday agreed to buy 25 of the new A330-900s as well as 60 A320neos.