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In the morning: BMW, Vonovia and Zalando in focus – Nord LB column

After the drop in orders in the spring, the industry association VDMA sees the low point in German mechanical engineering as having been overcome, at least for the time being. In Germany, for the first time since January, more orders were landed in September (+ 4%). Overall, however, the minus was 10%. In the period from July to September, orders fell by a total of 14%; at home they fell by 10% and abroad by 16%. For the year as a whole, the VDMA expects production to drop by 17%; in 2021, it should increase by 2%.

The tightened restrictions due to the second wave of corona infections caused the economy in the euro area to stagnate in October according to final figures. The IHS MarkitComposite purchasing managers’ index fell by 0.4 to 50.0 points compared to the previous month.

In the USA, the ISM purchasing managers’ index for services fell to 56.6 points in October. This development is not a big surprise. The time series thus continues to clearly show growth.

Bond market

The uncertainty about the US election result has given investors access to German government bonds. The prices of US government bonds improved significantly and benefited from the continuing uncertainty about the outcome of the election.

Stock market

Despite the uncertain outcome of the US election, the German stock market has not allowed itself to be dissuaded from its upward trend. DAX + 1.95%, MDAX + 2.52%, TecDAX + 2.72%. Good quarterly figures and a strong outlook made Vonovia investors happy; the stock gained 5.40%.

Although there was still no clarity as to the outcome of the presidential election, the US stock exchanges have risen again. Dow Jones + 1.34%, S&P 500 + 2.20%, Nasdaq-Comp. + 3.85%. A jump in profit at the competitor Hynix caused Intel (+ 1.90%) and AMD (+ 6.23%) to attract prices. The Nikkei-225 gained 1.73% to 24,105 points.

Companies

BMW’s business development improved noticeably in Q3. The group delivered 675,592 (previous year: 621,981) automobiles of the brands BMW, MINI and Rolls-Royce to customers worldwide. Group sales fell slightly to EUR 26.283 billion (-1.4%). The consolidated earnings before taxes (EBT) rose, among other things due to the positive development of the joint venture BMW Brilliance Automotive Ltd. in China, by almost 10% to EUR 2.464 billion, and consolidated net income was EUR 1.815 (1.546) billion. Consolidated net income in the first nine months was EUR 2.177 (3.614) billion.

Vonovia increased its adjusted EBITDA by 7.6% to EUR 1.432 billion in the first nine months of 2020 compared to the same period of the previous year. Group FFO increased by 8.9% to EUR 1.016 billion. In particular, the acquisition of Hembla in Sweden and organic growth through modernization and new construction contributed to this, it said. CEO Buch assumes “that Corona will not have any significant effects on the business in the coming months either”. He now expects the operating result (Group FFO) 2020 to be in the upper end of the forecast range of 1.275 to 1.325 Billion euros and forecast a further increase in profits to 1.415 to 1.465 billion euros in 2021.

The online fashion retailer Zalando grew significantly in Q3. Revenues rose by 21.6% to EUR 1.85 billion, while adjusted operating profit rose to EUR 118.2 (6.3) million. Significantly improved cost of sales and increased efficiency in logistics led to higher profitability, it said. In addition, as a result of the unusually strong sales in the spring / summer season, Zalando was able to release write-downs on inventory amounting to EUR 35 million, which had a positive one-off effect on profitability in Q3.

currency

The euro was largely negatively affected by the opaque situation in the US presidential election. In the end, he concluded little changed.

Oil / gold

Oil prices were propped up by hopes of a Trump election rise. The gold price continued to hover around the US $ 1,900 mark.

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: BMW

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