This is all waiting for you if you plan to fly soon …

Aviation is slowly emerging from its corona aroma, but it does not happen by itself. The proliferation of corona measures has made flying a kind of Russian roulette. Airlines and passengers are completely in the dark about what is and is not allowed.


“Calabria is a land of mafia and earthquakes”, the advertising shock on easyJet

Then continue: “But if you are looking for a little taste of the sweet life, without too many tourists, then you are in the right place. Climb up to the mountain town of Morano Calabro for breathtaking views and houses, bizarre, built on the peaks, you will have to see it to believe it. You can be among the few tourists to know and really appreciate the three spectacular national parks of this region.”

Ironic the response to the message from page Facebook “The State Jonico”: “Thanks to the friends of easyJet for the wonderful description, but we would like to clarify – for the love of honesty – that we also have defects”.


Billionaire Richard Branson begs for state aid

SRichard Branson has always refused to pay money for private companies. That’s why the British billionaire is by no means getting sympathy when he begs for Corona emergency aid for his acutely threatened airline Virgin. “We should wait for her to die,” he said coolly when Virgin’s arch-rival British Airways was deeply in trouble eleven years ago. “You should let loss-making and inefficient societies run against the wall,” he was convinced at the time. Therefore, “the government should not intervene to save companies from bankruptcy.” Such comments by Branson are currently being disseminated a thousand times on social media.

Philip Plickert

The 69-year-old multi-entrepreneur with the blond hair has not only friends in his home country. For some, he is a public stimulus. And not only since he lived in the British Virgin Islands tax haven. A petition demanding that he use his personal fortune to rescue his spinning airline before he receives taxpayer money is heading for 150,000 signatures these days. But if Branson’s company meets the formal criteria of the British Corona Aid Fund CCFF, it should not be excluded. The low-cost airline operator Easyjet, which is backed by billionaire Stelios Haji-Ioannou, recently received an impressive £ 600m from the state-owned CCFF pot.


Fighting corona consequences: Aviation survival battle rages

JEvery second counts – with this alarm tone, aviation analyst Daniel Röska describes his view of the low-cost airline Norwegian. However, the British rival Easyjet’s boss Johan Lundgren attests that he can even hold out for months with the available means – under certain conditions. In the Corona crisis, many airlines groan and ask for government aid, but the need seems particularly great among the Norwegians. Bondholders, aircraft rental companies, shareholders – all of them are supposed to be part of a bold rescue plan: converting claims over $ 4.3 billion into new shares.

Christoph Hein

Christoph Hein

Business correspondent for South Asia / Pacific based in Singapore.

Timo Kotowski

Philip Plickert

Johannes Ritter

This is bold because Norwegian is only worth around 70 million euros on the stock exchange. The flood of new shares would largely dilute the shares of the existing shareholders. The share price already crashed, a paper is available for about 45 cents. Observers see a “desperate act” of society, which had flown to the limits of resilience with its expansion plan before the crisis. Shareholders should approve the plan on May 4.

Norwegian has made it clear that concessions from creditors and owners are needed to receive state aid. Norway has promised guarantees for loans of over 3 billion Norwegian kroner (264 million euros) – but only 10 percent of them wanted to be granted without conditions. If the rescue plan fails, it threatens to end.

Reserves for up to nine months

Easyjet is far from that, even though 337 jets are on the ground. New loans have reserves of up to £ 3.3 billion and can withstand a standstill of up to nine months. “Our cash lasts longer and longer,” said Chef Lundgren in a conference call. In Germany, the larger Lufthansa group names significantly more reserves and is still in talks about state aid.

However, shareholders reassured Lundgren’s message. Easyjet started with course gains, which melted down during the day. The Bernstein analysts certify that the low-cost airline is “certainly best” from the large British companies. The British Airways group IAG is classified similarly. The outgoing IAG boss Willie Walsh has ruled out that IAG will apply for government aid. Virgin Atlantic, on the other hand, requested it. The billionaire Richard Branson’s group is considered the weakest among the major British lines.

In Germany, a solution is most urgently needed for Condor, whose aid loan from the state-owned KfW bank was due on Friday last autumn. At that time, Condor was in a tight spot after the end of the parent company Thomas Cook, and the Polish LOT, presented as the rescuer, broke the purchase. A new KfW loan is emerging as a solution; a trustee is to take on the role of the owner until the next sales start. Direct entry into the state is considered unlikely.

In Australia, government aid becomes a bone of contention

Help is also imminent in Switzerland – for the Easyjet branch there and the Lufthansa brand Swiss. The government in Bern wants to provide bridging loans with state guarantees. The guarantees should be subject to conditions. The borrowers are not allowed to return funds to parent companies: “The money must remain in the country, it is not negotiable,” said Transport Minister Simonetta Sommaruga.

In Australia, it can be seen that government aid does not always help calm aviation. There is a struggle between the listed Qantas and its only serious competitor, Virgin Australia. Virgin initially wants and needs government aid of around 1.4 billion Australian dollars (813 million euros) – otherwise Virgin will go down and Qantas will have a monopoly in intra-Australian traffic. That is why Virgin is considered systemically important.

In contrast, Qantas boss Alan Joyce shoots. If Virgin got the sum, the larger Qantas group would have to receive 4.2 billion Australian dollars. But he didn’t want them at all. After all, it is currently about “surviving the fittest”. Qantas has raised one billion Australian dollars in the market, which it guarantees by plane, and is ready to raise another $ 3.5 billion if necessary.

Will the middle seat remain empty in the future?

“If good companies have been well managed, the government should let them find their own way out of the crisis. And don’t look at the weak who have been poorly managed for a decade, ”said Joyce. He is also upset that Air New Zealand has received $ 900 million in New Zealand from the state. “Without this intervention, New Zealand risked running out of a national airline,” said Treasury Secretary Grant Robertson. The state holds 52 percent of Air New Zealand.

While Lufthansa extended their emergency flight schedule by two weeks until May 17, Easyjet boss Lundgren considered a restart. “We expect to start with domestic flights first,” he said. When cross-border traffic is possible again remains open. Something could also change on board so that passengers keep their distance. “Middle seats will probably remain vacant at first.” However, the financial consequences if a third of the seats fly empty have not yet been quantified.


Varta shares become the game ball of hedge funds

Dusseldorf The German Leading index Dax closed with a slight plus on Thursday. It closed 0.2 percent higher at 10,300 points. By early afternoon, the Dax had consistently posted a plus of around one percent. Then, however, he had turned negative in the meantime and then only recovered slightly.

In the afternoon, new, weak economic data was presented in Washington: Initial jobless claims last week totaled 5.245 million, a figure of 5.105 million was expected. The US stock exchanges were then initially turned negative. Recently, however, only the Dow Jones was slightly below the previous day’s level.

“The labor market in the USA is particularly hard hit by the pandemic and the associated restrictions on public life,” said the analysts at Landesbank Helaba. A total of approximately 22 million people have applied for financial support in the past four weeks.

The Philadelphia Region sentiment barometer has also weakened significantly and is even well below expectations. The index had already deteriorated significantly in March and is now at the lowest level since the mid-1980s. According to the Helaba analysts, economic worries are becoming greater as a result of the data release.

The Dax had reversed yesterday after a five-day recovery and went out of business with a minus of 3.9 percent at 10,279 points. According to chart technology, the Dax achieved a spot landing: from 10,279 points, the index started a rally in December 2018, which continued until a record high in February 2020.

A particularly interesting share is that of Varta, because the game of hedge funds with the title apparently continues. Today, Thursday, the paper rose by 6.7 percent to EUR 72.75, leading the list of winners in the MDax by far. This is no surprise, even if the share certificate at the close of trading was only 3.8 percent up: Five hedge funds are now under pressure to buy around 2.6 million shares. They may have started this Thursday.

Because the funds sold the Varta share short, as it is said in technical terms. So you’re betting on falling prices on paper. To this end, they have borrowed and sold 2.6 million Varta shareholders such as investment funds. But in order to return these shares, you have to buy them again beforehand. Of course, if possible at a lower rate.

With an average trading volume of around 272,000 shares per day in the past month, this buyback has to be carefully dosed so that the Varta price does not rise rapidly and puts pressure on the hedge funds. Because they want to buy back the papers cheaply.

Incidentally, this also explains the drop in yesterday’s Varta share of just under nine percent on Wednesday: the hedge fund Tiger Global increased its short sale rate from 1.06 percent on Tuesday to 1.16 percent on Wednesday.

With 40,421 million freely tradable shares, he borrowed an additional 40,421 papers and sold them on the day. With a total trading volume of 320,000 units on Wednesday, this sale is likely to have influenced price development.

With such figures, an analyst should say: only the fundamental values ​​are important.

According to the investor survey conducted by the Frankfurt Stock Exchange, the Dax is likely to buy again below 10,000 pointssays Joachim Goldberg after evaluating the survey on Wednesday evening. According to this survey, the mood has dropped significantly despite the rising prices, the Sentiment Index of the Frankfurt Stock Exchange has even dropped to the lowest level since the beginning of the 2002 survey.

To put it simply, negative sentiment is – according to sentiment analysis – a contraindicator because many investors have already sold.

The behavioral economist is also expecting further demand if this recovery rally should continue. “Above all beyond the 11,000 mark” there could be a sudden, rapid rise in prices (“short squeeze”) because investors would then have to buy more. But the Dax is still a long way from this point.

Look at the individual values

Zalando: The coronavirus pandemic is affecting Europe’s largest online fashion retailer. As a result of the weaker growth wants Zalando save now in the current year. Marketing and general costs are to be reduced by 250 million euros and investments by 100 million euros. Nevertheless, the company listed in the MDax average index wants to stick to its original plans and expand its luxury segment and also include second-hand goods in its range. Investors are happy about this news, the stock gained 6.2 percent on Thursday.

Easyjet: The company sees itself prepared for a longer standstill of its fleet and is pleased with its shareholders. At the start of trading, the paper gained more than ten percent and was the frontrunner on the London Stock Exchange. Most recently, however, the paper was down 2.5 percent. The low-cost airline expects to be able to survive a longer break. In addition, the bookings for winter are better than last year.

Look at other asset classes

The gold price put in its upward trend a little breather, but was recently back up 0.4 percent at $ 1,723 per troy ounce.

A side note: Because of the corona virus, the US Mint has to temporarily close its plant in New York. According to the Commerzbank– Commodity analysts are short of gold coins in particular and are distorting the gold market in the United States.

According to a coin dealer, the premiums for gold coins are already five to ten percent above the spot price of gold. After a long dry spell, the Americans bought as many gold coins in March as they did last in November 2016 at 151.5 thousand ounces, according to data from the US Mint. Demand continues: in April it was 56.5 thousand ounces again.

The bond market clearly shows: The decisions of the finance ministers last Thursday to deal with the corona crisis have no effect. The government in Rome will not apply for an ESM package. Accordingly, yields on Italian and other government bonds have risen significantly again.

Although the yield on a ten-year government bond falls to 1.805 percent, the market should soon test the reaction of the European Central Bank: when will it react to this with higher bond purchases? The yield spread (spread) between a German and an Italian government bond has increased to 240 basis points in the past few days, but is currently only at 228 basis points.

Oil prices recovered slightly on Thursday from the significant losses of the previous days. In the afternoon, a barrel (159 liters) of North Sea Brent cost $ 27.63. The price of a barrel of American WTI was little changed at $ 19.97. In the meantime, the price of US oil had dropped to $ 19.20, the lowest level since 2002.

“The oil price is at a low point, but the market could pick up again in June”

The oversupply of crude oil continues in the meantime, and the cut in production agreed by leading oil nations does not come into force until May. As the U.S. Department of Energy announced on Wednesday, stocks in the U.S. have grown significantly more than expected last week. According to the Ministry of Energy, inventories rose by 19.2 million to 503.6 million barrels. This is the strongest increase ever measured.

At the same time however, the Organization of Petroleum Exporting Countries (Opec) predicted a drastic drop in oil consumption due to the corona crisis. As can be seen from the monthly report published in Vienna on Thursday, the oil cartel is expecting the weakest demand for Opec oil in the second quarter in around 30 years.

Dealers still expect no short-term relaxation on the oil market. “In the short term, the market will remain flooded,” said Torbjorn Tornqvist, managing director of the oil dealer Gunvor Group.

What the chart technique says

According to technical analysis, the leading German index is now testing the important key support below the 10,300 point zone. On the one hand, the striking low of December 2018 with 10,279 points is important, the starting point for the rally, which lasted until the record high in February 2020. Just below that there are so-called price gaps for which there were no quotes this year. The last gap would be closed at a Dax level of 10,097 points.

The recent recovery rally led the Dax from 8255 points in mid-March to a new five-week high last Tuesday at 10,820 points. This rally remains intact as long as the stock market barometer remains above 9235 points.

If this upward trend remains intact, the next targets would be 11,030 and then 11,266 points, the August 2019 interim low.

Here is the page with the DAX course, here is the current tops & flops in the Dax. Current Short sales of investors can be found in our Short sales database.


Easyjet founder exchanges blows with the airline

Easyjet aircraft in Southend

The British airline will initially not accept 24 aircraft ordered from Airbus.

(Photo: dpa)

London Airlines around the world are currently struggling with the consequences of the corona crisis. The British budget airline Easyjet must fight another battle: Stelios Haji-Ioannou, company founder and largest shareholder, takes public action against the management. On Tuesday, the Greek-Cypriot billionaire, whose family holds 34 percent of the company’s shares, threatened to take legal action and, according to his own statements, complained to the financial market regulator.

To ensure the airline’s survival, he recently asked Easyjet to make all aircraft orders airbus undo and carry out a capital increase. In order to give weight to his demands, he also threatened to convene one general meeting after the other, at which he wanted to have members of the board voted out.

After initial hesitation, Easyjet reacted: In order to be “ready for the lower demand” for the cancellation of the corona measures, an agreement had been reached with Airbus to postpone the delivery of 24 aircraft planned for the coming years, the airline said in a statement the Easter holidays with.

The exact delivery dates are to be determined on the basis of demand. This measure “gives our cash flow a decisive boost and significantly reduces our short-term capital expenditures,” said Easyjet boss Johan Lundgren.

But Haji-Ioannou was not satisfied with that. That was a “completely general and inappropriate statement,” criticized the investor. It did not enable any investor to assess the financial consequences of the decision, he wrote in a complaint that he said he addressed to the UK financial regulator. Among other things, details were missing as to whether and under what conditions payments to Airbus had to be made in the current financial year.

To his knowledge, Easyjet has also promised to take 107 machines in the coming years, Haji-Ioannou claims. “The villains of Easyjet” do not have the authority to conclude such a deal, the billionaire concludes, that the shareholders should have agreed to such a deal.

Easyjet had shut down its entire fleet of around 330 aircraft at the end of March. This should save costs – but no sales are made either. Nevertheless, according to projections by Haji-Ioannou, Easyjet will have to pay Airbus around 5.2 billion euros in the coming years, in his opinion the “greatest risk for the company’s survival”.

The entrepreneur has long been skeptical of Easyjet’s expansion plans. He had repeatedly criticized general meetings. In the end, however, he had become quiet.

More: What will become of business trips after the crisis


Dax closes almost two percent

Up and down the Dax: “We have to die a stability death”

Dusseldorf After significant price fluctuations in the previous week, the German stock market started the new trading week comparatively successfully. The Dax closed Monday 1.9 percent increase at 9816 points.

In the previous week, the leading German index had the best weekly balance since December 2011: Despite price losses on Friday (3.7 percent in the red), the Dax had gained 7.9 percent.

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Dax current: Dax continues to slide

Dusseldorf The German stock market is starting the new trading week weakly. Of the Dax in the first hour of trading, it is down one percent at 9,537 points.

Nevertheless, the German stock market could face a turbulent week of trading. Because hedge funds like Bridgewater, which played a significant part in the high price gains at the beginning of last week, have resolved most of their speculations. (Read here: How Ray Dalio made profits in the Dax).

Especially since the guidelines are bad: The US indices have slipped significantly in the last hours of trading. And the Asian stock market barometers are also starting the new trading week with losses.

Which does not exactly speak for further rising prices: Many DAX companies are considering reducing their dividend or canceling it entirely. For shareholders and the Dax prospects, dividend cuts and, above all, the uncertainty about it are bad news.

Companies have never canceled the dividends proposed by the Board of Management and the Supervisory Board, not even during the financial crisis in 2009, the largest recession in German post-war history. With the annual distributions, more could be earned in the long run than with price increases.

We can only hope that the extremely negative scenario of asset manager Markus Schön will not come true. He predicted a new “Black Monday” on the stock markets on Friday. “The Dax could drop below 9,000 points again next week and the Dow Jones could drop below 20,000 points,” he said on Friday.

One could dismiss this view as scaremongering. However, Schön was often right with his forecasts: when the Dax was still trading at 13,000 points at the end of February, he saw a quick slide below the 12,000 count mark. On March 9, he forecast a Dax level of 9,400 points. At that time, the index was still around 11,000 points.

The key economic indicator will be released today at eleven o’clock on Monday. It is the European business climate index. After the collapse of the Ifo index, which reflects the mood in the German executive floors, experts expect a similarly sharp decline across Europe. The publication of the info index had led to a quick sellout at the Dax a week ago.

Look at other asset classes

The EU’s refusal to issue common bonds, has little impact on the market. The yield spread between Italian and German government bonds increases only slightly from 1.78 to 1.84 percentage points. The yield on Italian bonds is 1.35 percent, that of German bonds at minus 0.490.

President Ursula von der Leyen has made it clear that the EU Commission is not planning to issue its own bonds to raise debt in the Corona crisis. Italy, along with Spain, France and other countries, is calling for joint EU borrowing. In Germany in particular, the Greens support this vehemently. Chancellor Angela Merkel and other EU heads of government reject corona bonds because they fear liability for the debts of financially troubled countries.

The fear of falling demand due to the coronavirus crisis sends the Oil price plummets again. The Brent variety from the North Sea slipped by up to 7.6 percent on Monday and, at $ 23.03 a barrel (159 liters), was as cheap as it was last more than 17 years ago. The US oil WTI fell at a similar price and was trading at $ 19.92, just above its 18-year low from last week.

In addition to the extensive standstill of the global economy, crude oil is suffering from the price war in Saudi Arabia and Russia, which, despite lower demand, turn the oil tap on to the stop. Experts expect crude oil demand to drop by around 20 percent due to the pandemic.

Because of the corona virus pandemic Investors again flee into the world’s leading currency. The dollar index, which reflects the price of major currencies, rose 0.3 percent on Monday to 98.674 points. In return, the euro is cheaper by 0.5 percent to $ 1.1086.

Look at the individual values

MTU: The company has now canceled the dividend and forecast for 2020 in the past few days. No wonder investors are buying the papers from MTU sell, which is at the start six percent in the red.

Vonovia: The largest German apartment rental company postpones its general meeting until the end of June and, unlike many banks, wants to pay a dividend. In order to be able to hold a general meeting, the shareholders’ meeting will be set to June 30, 2020 Vonovia With. The event should have been on May 13th. As previously planned, Vonovia will pay the shareholders a dividend of EUR 1.57 per share. This announcement pleases the shareholders, but the share price falls by 0.7 percent.

Easyjet: The British low-cost airline has suspended flight operations indefinitely due to travel restrictions to combat the corona virus. In order to keep the impact on the balance sheet as low as possible, costs would be reduced. The news was no longer a surprise: the share rose by 2.9 percent in German retail.

Indus Holding: After a decline in profits in the previous year, the investment company expects a drop in earnings as a result of the Corona pandemic 2020. With sales of 1.5 to 1.65 (previous year: 1.74) billion euros, the Management Board is aiming for an operating result (EBIT) of 85 to 95 (135.2) million euros. Although, according to the company, the forecast “takes into account the currently foreseeable consequences of the corona pandemic, it is associated with a high degree of uncertainty”, which causes the title to lose 0.9 percent.

What the chart technique says

The past two trading days have been a comfort. The respective price fluctuations remain within the daily high and low of last Wednesday. Experts speak of an “inside day”.
With the increase to 10,137 points on Wednesday last Wednesday, two resistances on the upper side are now of great importance: Firstly, the downward price gap of March 12, which covers the range between 10,138 and 10,391 points; on the other hand the low of December 2018 with 10,279 points, the starting signal for the rally until mid-February 2020.

“This is the decisive hurdle in chart technology, the skipping of which would put the German standard values ​​on a quick recovery path,” say the technical analysts at Düsseldorfer Bank HSBC. Without a recapture, the coming trading days are likely to remain volatile.

Such downward price gaps arise when the daily low of the previous day is above the daily high of the subsequent trading day. The daily low of March 11 was 10,391 points, the high of the following trading day was 10,138 points. Such gaps are a quick re-evaluation of the market and therefore an important resistance according to chart technology.

On the underside, according to the HSBC, the Dax should return to crisis mode at prices below 9070 points.

Here is the page with the DAX course, here is the current tops & flops in the Dax. Current Short sales of investors can be found in our Short sales database.


EasyJet apologizes to the staff after the videos directed to the staff copy Leo Varadkar’s speech

It is not a good look.

EasyJet apologized to the staff after a video emerged that spoke to the cabin crew and pilots asking them to make financial sacrifices due to the coronavirus epidemic used extensive stretches of Taoiseach Leo Varadkar’s speech to the Irish public St. Patrick’s day.

The company’s general manager, Peter Bellew, made the video for staff who were accused of heavily plagiarizing Taoiseach’s speech.

An Internet user joined the two speeches and apologized to the airline’s staff.

Apologizing to the staff this weekend, reported by The Guardian, Bellew wrote: “Some of you have noticed similarities between the message I made last week and a recent speech by the Irish taoiseach, Leo Varadkar.

“I can only raise my hands and apologize. I thought the Taoiseach had hit exactly the right note and it really rang in my mind with what we are going through, so I borrowed some of his sentences in my recent message to the cabin crew and to the drivers, which I now understand that I shouldn’t have done.

“I would like to apologize for the taoiseach and for all of you. I will write all my speeches in the future. “

Clip via Stuart George

Like many airlines, EasyJet has been hit hard by the coronavirus pandemic with the budget airline, stating that government credit or loans may be needed last week to stay afloat.

The airline plans to shut down 90% of its flights by Tuesday, following similar moves by Ryanair and other airlines.


Easyjet is sorry while the staff motivation video copies Leo Varadkar | Business

EasyJet apologized to staff after it emerged that a motivational video aimed at pilots and cabin crew who were asked to make huge financial sacrifices due to the coronavirus crisis heavily plagiarized a speech by Irish taoiseach, Leo Varadkar .

An unknown video editor combined the footage of Varadkar’s address with a cry for recall from EasyJet general manager Peter Bellew, a former Ryanair manager who negotiated with the cabin crew.

Video sent to EasyJet staff edited with the Irish Prime Minister’s speech on Covid-19 to highlight the similarities.

The speeches are identical in some places, causing dismay and ridicule among easyJet staff, who are asked to accept a long period of unpaid leave, freezing of wages and decreased working conditions to help the airline survive the pandemic.

“The easyJet pilots were already horrified by Peter’s conduct this week, I think this clearly plagiarized speech reinforces his reputation as completely unreliable,” said one pilot, who asked not to be named due to the sensitivity of the negotiations with the ‘company.

Apologizing to the staff on Saturday, Bellew wrote: “Some of you have noticed similarities between the message I made last week and a recent speech by the Irish taoiseach, Leo Varadkar. I can only raise my hands and apologize. I thought the taoiseach hit exactly the right note and it really rang in my mind with what we are going through, so I borrowed some of his phrases in my recent message to the cabin crew and pilots, who now realize that they don’t I should have done.

“I would like to apologize for the taoiseach and for all of you. I will write all my speeches in the future. “

Embarrassing video emerged as easyJet and the wider aviation industry is facing a struggle for survival, with global air travel to a virtual standstill due to the coronavirus epidemic.

The Luton-based airline said on Friday that most of its fleet would be grounded on Monday, with only 10% of its flight capacity still operational. The company asked the cabin crew and pilots to accept sudden cuts to help overcome the crisis, including three months of unpaid leave.

Pilots and crew were said to be in tune with the demand in view of the devastating financial effect of the pandemic on airlines, but were furious with other proposals, viewed as a long-term attack on labor rights. These include meals provided to the crew, promotion-based wage increases and fatigue prevention measures for pilots.

The union of pilots Balpa and Unite, who represent the cabin crew, is believed to have rejected easyJet’s plan and filed a counter-proposal. Staff stressed that the airline could receive financial support from the government and complained that rival airlines offered better staff conditions.

Despite the planned staff cuts, the airline is slated to proceed with a dividend of £ 174 million to its investors, including £ 60 million for the founder and largest shareholder Sir Stelios Haji-Ioannou.