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In the morning: Software AG, Delivery Hero, Ericsson and Nestle in focus – Nord LB column

The British government took on record debts in the first half of the year due to the Corona pandemic. The borrowing was at 208.5 billion GBP, as the national statistics office announced. As soon as the economy recovers, the government will take the necessary steps to reorganize public finances, said Finance Minister Sunak.

The IMF sees the economic outlook for Europe as quite weak. The recovery will drag on because of the corona pandemic and will vary in strength, according to a study. This year the economy is expected to contract by 7%, next year a recovery of 4.7% is expected. So the pre-crisis level is far from being reached.

According to the Fed, the US economy has continued to recover slowly to moderately. Consumers bought real estate and increased their spending, according to the Beige Book economic report. But there are big differences between the individual industries.

Bond market

German government bonds were unable to benefit from the weakness of the stock market and closed somewhat more easily. The prospect that a hard break between the EU and Great Britain could be avoided at the end of the year also put the bonds, which are considered safe, under some pressure. In the case of US government bonds, the topic that determined the market was the negotiations on new financial aid in the Corona crisis. The information on this is contradicting itself. Nevertheless, US bonds fell somewhat.

Stock market

The German stock market went downhill again. Some disappointing company figures and negative analyst comments made for negative omens. DAX -1.41%, MDAX -1.90%, TecDAX -1.5%. The previous week’s favorite, Delivery Hero, was under pressure again and was the bottom of the DAX with -3.98%.

The struggle for corona aid worth billions of euros for the US economy continues to set the tone on Wall Street. Despite the hope of a quick agreement, investors withdrew in view of the rising number of new corona infections. Dow Jones -0.4%, S&P 500 -0.2%, Nasdaq-Comp. -0.3%. Nikkei-225 is currently lighter at 23,472.94 points.

Companies

After a hacker attack, Software AG presented the first key business data in Q3. Accordingly, revenues fell to EUR 180.5 to 185 (previous year: 224) million. Incoming orders are said to have increased by 1 to 4% to EUR 98.5 to 101.5 million. The operating result (EBIT) should be between EUR 20.4 and 23.9 million. The Board of Management was confident that it would achieve the annual targets.

Akzo Nobel posted Q3 sales down 5% to EUR 2.27 billion. Adjusted core profit, on the other hand, improved by 18% to EUR 353 million. Due to the imponderables with regard to the corona pandemic, the management board continues to refrain from making a specific forecast.

The Swedish network equipment supplier Ericsson increased its operating profit significantly to SEK 9.0 (6.5) billion in Q3 with almost unchanged revenues and benefited above all from the development of the new 5G mobile communications standard in China. According to CEO Ekholm, the corona pandemic has so far only had a limited impact on business.

Iberdrola earned more in the first nine months. Adjusted EBITDA improved 3.2% to EUR 7.56 billion, and net profit climbed 4.7% to EUR 2.68 billion.

Nestle saw organic growth of 3.5% for the first nine months, with growth accelerating in Q3. In absolute figures, sales fell by 9.4% to CHF 61.9 billion due to divestments and currency losses. Due to the acceleration of growth in Q3, CEO Schneider is more optimistic than before about the outlook for the current year.

currency

The euro continued to gain ground in the middle of the week, but this should be understood less as a euro strength than as a US dollar weakness.

Oil / gold

The expectation of rising US stocks has weighed on oil prices. The short-term uptrend in gold was also confirmed mid-week.

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: Software AG

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