In the morning: K + S, Cineworld and the DAX in focus – Nord LB column

The corona crisis is putting traditional department stores in Germany under increasing pressure. Their price-adjusted sales were 2.4% lower in August than in the same month last year. From April to June 2020 the minus was even 21.3%, said the Stat. Federal Office with. In the online and mail order business, on the other hand, there is a steep upward trend. Here the price-priced improved. Sales compared to the same month last year by 22.9%, from April to June they were even 32.0% higher.

Orders from German mechanical engineering companies fell again in August, but the losses compared to the previous months were lower. In August, orders fell by 14% compared to the previous year (domestic: -19%, international: -11%), announced the industry association VDMA. According to the VDMA, this is the smallest monthly decline since the beginning of the Corona crisis. “Overall, the picture is consolidating that the worst is behind us, but recovery takes time and is still prone to disruptions,” explained VDMA chief economist Wiechers.

The IHS Markit purchasing managers’ index for Germany surprisingly rose by 0.3 to 54.7 points in September. The recovery of the German economy from the Corona recession has thus gained momentum. A previous flash estimate had assumed a decrease to 53.7 points.

Bond market
German government bond prices have expanded their losses after news of US President Trump’s health recovery created some confidence in the markets. US Treasuries also suffered as investor confidence returned. In addition, US economic data surprised positively. E.g. the mood of the service providers in September.

Stock market
The German stock market rose significantly at the beginning of the week. The political uncertainty due to the corona infection of the US President Trump decreased and the hope for further economic stimuli increased again. K + S was particularly in demand yesterday (+ 14.4%). The heavily indebted fertilizer and salt producer can sell its American salt business, possibly for significantly more money than previously expected.

Wall Street was carried by the announcement of US President Trump’s hospital discharge. In addition, the negotiations in Congress about a new aid program in the fight against the coronavirus crisis created confidence. Nikkei-225 friendlier; at currently 23,426.30 points.

According to CEO Weimer, Deutsche Börse is proposing an increase in the DAX from 30 to 40 companies. In addition, membership in the leading index is to be tied to stricter conditions. The stricter requirements include that companies can be banned from the DAX if they do not submit their figures on time. In addition, only demonstrably profitable companies should be able to join the DAX.

The salt and fertilizer manufacturer K + S is apparently on the verge of selling its American salt business. K + S is “in very advanced negotiations with Stone Canyon Industries Holdings LLC” on the sale of the Americas operating unit, the company announced. The purchase price will be around US $ 3.2 billion, it said. Contracts have not yet been signed and there is therefore no guarantee that a final agreement will be reached and announced, K + S announced. (Editor’s note: The contracts have now been signed.)

The world’s second largest cinema operator, Cineworld, is temporarily closing all of its movie theaters in the USA and England. Around 45,000 employees are affected. As a reason, Cineworld cited, among others missing film premieres.

The euro has shown itself to be friendly against the US $. Statements by the doctors of US President Trump that he could leave the hospital have increased investors’ willingness to take risks.

Oil / gold
The hope of a speedy recovery for the US president and the associated friendlier mood on the stock market has also had a positive impact on oil prices. Gold is struggling with the round mark of US $ 1,900 a troy ounce.

Disclaimer: This text is a column of the North LB. 4investors is not responsible for the content of the column and therefore does not necessarily have to agree with the opinion of the 4investors editorial team. Any liability and claims are therefore expressly excluded by 4investors!

At a glance – chart and news: K + S


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