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In the morning: Beiersdorf, Delivery Hero, Deutsche Bank and General Electric in focus – Nord LB column

According to the German Institute for Economic Research, the second corona wave threatens to stifle the economic recovery. “The upswing will very likely be slowed down significantly,” said DIW economic chief Michelsen. “There are again the threat of more severe restrictions on social and economic life – the pandemic is taking consumers and companies away from confidence.” And that at a time when many companies were still struggling with the consequences of the lockdown in spring and had hardly any financial reserves left. As of now, economic output will only increase slightly towards the end of the year, and the strong catching-up process from the summer is unlikely to continue.

According to the Ifo Institute, short-time working fell significantly more slowly in October than in the previous months. It fell by around 450,000 to just under 3.3 million employees. Previously, the decline was around 1 million per month. This means that currently 10% of employees subject to social security contributions are on short-time work, after 11% in September.

Bond market

The worsening corona crisis only caused the prices of government bonds to rise significantly at times. In the course of the afternoon, the Bund future surrendered almost all of its gains. Despite all the current uncertainties in the market, investors have turned their backs on US government bonds and sent their prices south.

Stock market

Investors’ fear of another corona lockdown determined what was happening on the German stock market yesterday. In the course of trading, the Dax fell to 11,457 points, its lowest level since the end of May. DAX -4.17%, MDAX -2.71%, TecDAX -2.92%. In the Dax there was only one value with a positive sign: Delivery Hero with + 1.67%. (see “Company”).

An impending setback for the economy has also driven investors out of the US stock market in America. The Dow Jones also dropped below the 27,000 mark. Dow Jones -3.43%, S&P 500 -3.53%, Nasdaq-Comp. -3.73%. Nikkei-225 lighter at 23,331.94 points.

Companies

Despite an upturn in business in Q3 2020, Beiersdorf expects significantly fewer sales and profits in the corona crisis. For the year as a whole, Beiersdorf expects a decline in sales at the level of the first nine months – during this period sales fell organically by 7.1%. The EBIT margin will be “significantly” below that of the previous year.

The online trade, which was booming during the Corona crisis, is generating significant increases in sales and profits for the US package giant UPS. Q3 revenues increased 15.9% to USD 21.2 billion, largely thanks to strong US business. Profit climbed nearly 12% to $ 2 billion.

Drastic savings, especially in the aircraft division, are paying off at General Electric (GE). The US industrial group reduced its Q3 loss to USD 1.2 billion. A year earlier, massive write-offs resulted in a loss of USD 9.5 billion. Sales slumped 17% to USD 19.4 billion in Q3 – the aircraft division was hardest hit with a 39% decline.

The food delivery service Delivery Hero has almost doubled its sales again thanks to the boom for out-of-home orders in the Corona crisis. Revenues in Q3 climbed 99% to EUR 776 million.

Thanks to growth in investment banking, Deutsche Bank returned to profitability in Q3. The bank earned EUR 482 million before taxes. Analysts had expected a significantly lower result.

currency

After a weaker start, the euro recovered in later trading.

Oil / gold

Two things weighed on oil prices yesterday: On the one hand, a surprisingly sharp increase in production in the USA created pressure. On the other hand, concerns about a new economic downturn and falling demand for crude oil led to less interest in black gold. The price of gold was also affected by the uncertainties in the market.

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: Beiersdorf

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