Share prices plummeting: Fear of the virus causes Dax to slide into the basement

The fear of a new lockdown is causing the Dax to rush into the depths in Frankfurt. At the start of the week, the leading index lost a good 4.4 percent. In addition to the fear of a pandemic, Deutsche Bank is also making negative headlines.

The fear of the rising wave of corona infections has seriously affected the Dax at the start of the week. In the end, the leading index narrowly escaped its biggest daily loss since mid-March, when the virus crash was still going on. From trading it went 4.37 percent lower at 12,542.44 points. Shortly before, it had fallen close to 12,500 points, to a low since early August.

Dax 12.642,97

According to market analyst Milan Cutkovic from the trading house AxiTrader, the increasing number of infections in Europe became the next disruptive factor in the stock rally that has recently stalled. The MDax also went down a lot. The index of medium-sized stock market stocks lost 3.68 percent to 26,499.95 points. In Germany, the number of new infections reported on Friday reached a high for almost five months, while in some neighboring countries there is an even higher incidence of infections. The British Minister of Health Matt Hancock did not rule out another lockdown in a BBC interview. In this case, stockbrokers fear catastrophic effects on the economy.

Leak puts pressure on Deutsche Bank

There were only losers in the Dax. At the end of the index, Deutsche Bank’s paper slumped 8.8 percent. The financial sector also suffered severe losses across Europe. The reason for this was a leak in confidential money laundering reports from the US Treasury Department about dubious payment flows, the so-called “FinCEN files”. Deutsche Bank is one of the banks explicitly mentioned in the report. Even if a few questions had to be clarified, the files in any case increased the regulatory and sanction risks for the industry, said market analyst Neil Wilson of The fact that the Frankfurt bank should be on a takeover wish list from Swiss UBS did not help in this environment.

Deutsche Bank
Deutsche Bank 6,96

Among the German small caps, the escalating dispute with the Spanish Telefonica group dealt the shareholders of United Internet and 1 & 1 Drillisch a powerful blow. After it became known that both had to cut their goals for this year due to rising costs of access to the O2 network, United shares collapsed by almost a quarter and 1 & 1 by almost 28 percent. Telefonica Deutschland’s shares followed the overall market by around four percent.

Investors seek refuge in the dollar

Across Europe, travel figures were once again hit particularly hard by investors’ fears. The papers of Lufthansa slipped in the MDax by 9.5 percent. That fit the message in the afternoon that the airline wants to make even deeper cuts in the fleet and staff due to the virus. The clouded prospects in the Dax brought the shares of the aircraft industry supplier MTU a minus of eight percent. The few positive rays of hope in the Dax index family were the shares of Hornbach, Shop Apotheke, Zooplus and Hellofresh, which have already been celebrated as Corona winners in the past few months, which are listed in the MDax or SDax and between 0.7 and 6.7 percent there won.

Lufthansa 7,56

The stock exchanges across Europe also went downhill. In the end, the EuroStoxx lost 3.74 percent to 3160.95 points. The French Cac 40 was similarly downhill, while the British FTSE 100 lost around 3.4 percent. The downward trend was also evident in New York, where the Dow Jones Industrial lost around three percent at the close of trading here.

The euro also came under pressure as investors sought refuge in the US dollar. Most recently, $ 1.1742 was paid for the common currency. The European Central Bank (ECB) had meanwhile set the reference rate at 1.1787 (Friday: 1.1833) dollars. The dollar cost 0.8484 (0.8451) euros. On the bond market, the current yield fell from minus 0.50 percent on Friday to minus 0.52 percent. The Rex bond index rose by 0.08 percent to 145.73 points. The Bund future rose 0.34 percent to 174.66 points.


The Swiss are said to have a nose ahead at the Milan Stock Exchange

Dhe Swiss stock exchange operator SIX has, according to observers, the best chance of winning the takeover battle for the Milan Stock Exchange against rivals Deutsche Börse and Euronext. The Swiss made the highest offer for Borsa Italiana, said two people familiar with the transaction after a report by Reuters news agency. All three offers would value the operator of the stock market in Milan at around 3.5 to four billion euros each.

Borsa Italiana is currently still owned by the London stock exchange operator LSE, who has to sell at least part of it in order to get the green light from the EU competition authority for the 27 billion dollar takeover of the data provider Refinitiv. LSE and SIX declined to comment.

After the recently completed takeover of the Madrid Stock Exchange BME, SIX is the third largest exchange operator in Europe in terms of income. SIX is determined to buy Borsa Italiana, but has no intention of teaming up with a partner from the euro area, it is said. However, SIX is open to discussing the issue of running Borsa Italiana with the Italian authorities. The offer is fully financed.

The French stock exchange Euronext announced on Monday that it had made a non-binding offer for the Milan stock exchange together with the Italian state bank Cassa Depositi e Prestiti and the Italian institute Intesa Sanpaolo. The government in Rome is very interested in a takeover by Euronext as it seeks a say in the future strategy and management of Borsa Italiana, said one person familiar with the matter. Italy’s Finance Minister Roberto Gualtieri is said to have spoken to Euronext CEO Stephane Boujnah about the future of the Milan Stock Exchange at a private meeting in Rome last week. Also the German Stock Exchange threw her hat into the ring in the race for the Borsa Italiana.


RTL gets out of the MDax – nothing changes in the Dax

There were already two changes to the Dax this year: Lufthansa was relegated in June and the insolvent Wirecard Group in August. Initially, the composition of the leading index will not change any further, but that of the MDax.

In the first stock exchange league Dax there after the recent exchange of the insolvent Wirecard WIRECARD AG share through the delivery service Delivery Hero DELIVERY HERO SE NA O.N. Aktie no further changes in September.

The plastics manufacturer Covestro COVESTRO AG ON Stock was able to defend his Dax place. As the German Stock Exchange announced on Thursday evening in Frankfurt, but there are numerous changes in the second and third row.

RTL has to leave MDax

Im MDax MDAX PERFORMANCE-INDEX Index there are several changes: The media group RTL RTL GROUP share must leave the index of medium-sized stocks. The company, which also owns the TV station of the same name, was promoted to the MDax in September 2013.

Because of the collapsed advertising market as a result of the Corona-Krise also gave the Share price strong after. This determines the market value, one of two criteria for inclusion in an index of the Dax family.

The real estate financier Aareal Bank is also increasing AAREAL BANK AG Share into the SDax. The shop pharmacy succeeded in advancing from the SDax SHOP APOTHEKE EUROPE INH.  share as a corona crisis winner and, as expected, the specialty chemicals manufacturer Wacker Chemie WACKER CHEMIE ON share.

These companies are promoted to the SDax

There are also changes below the MDax. The furniture dealer Steinhoff STEINHOFF INT.HLDG.EO-, 50 Shares, the engineering service provider Bertrandt, which is primarily geared towards the automotive industry BERTRANDT AG ON Aktie and the human resource management software provider Atoss ATOSS SOFTWARE AG Share must have their seats in the SDax SDAX P-IN. Index vacate.

The newcomers are the specialty pharmaceutical manufacturer Medios MEDIOS AG ON Aktie, the online fashion retailer Global Fashion Group founded by Rocket Internet among others GLOBAL FASHION GRP EO-, 01 Stock and the Essen IT company Secunet Security SECUNET SECURITY AG O.N. Aktie.

That is why changes in the Dax are important

The changes will be implemented on Monday, September 21. Changes are especially important for index funds, too ETFs called.

A computer algorithm forms one of these Stock index to. So investors invest in all stocks that are listed in the index. In the ETF, changes in the index must be made accordingly, which can affect the share price.

In addition, a stock index can also be a question of prestige. As the top German stock market league, the Dax particularly attracts the interest of investors from Germany and abroad.


Interview with investor protection: “Rocket Internet is neutering its investors”

Rocket Internet wants to take the startup incubator off the stock exchange. There is great indignation among shareholders about the buyback offer. In an interview with ntv, investor advocate Marc Tüngler speaks of “legal fraud”. Finally, the shareholders will be denied the opportunity to sell their shares quickly.

ntv: Rocket Internet wants from the stock market. Many investors are only now realizing the losses they have made over the years. The outrage over the buyback offer is great. But isn’t the problem more that the Stock not working, even though internet stocks are actually booming?

Marc Tüngler: In fact, you don’t really trust the Samwer brothers or Rocket Internet. But: Now the shareholders are cut off by this strange takeover offer and the plan to go from the stock exchange. This is ultimately legal fraud, it has to be said.

Legal fraud? Not more of an offer? Eventually you can decline and stay involved in Rocket Internet.

Fraud is too harsh, you are right. But one must not forget one thing: anyone who holds a stake in a listed company has the option of selling the shares quickly on the stock exchange. But if the delisting happens now, it will no longer exist. So there will be no more market and certainly no more fair or free trade. And that is how the shareholders are ultimately castrated. They are then dependent on someone buying a share from them somewhere, at a price that is not somehow generated in a market.

What should you do as an investor in your opinion? Complain?

Rocket Internet 18,73

Complain? I stressed that it is legal. Delisting was regulated in Germany four or five years ago. As the German Association for the Protection of Securities, we have opposed this massively. It is not the true value of the share and the company that is relevant for the takeover offer that has now been made to the Rocket shareholders, but the average stock market price over the last six months. Now we see that the course at Rocket went very badly. This is exactly what makes delisting so attractive for major shareholders and for society. Shareholders are being held back because the alternative they have – staying in an unlisted company – is very unattractive. Today we have to say that the intrinsic value is well over 30 euros. So that’s missing at least 12 euros. So shareholders should rather stay in, actually.

If you say the intrinsic value is 30 euros: why isn’t that reflected on the stock market?

Yeah that’s interesting. There is no confidence that the story will continue. But if you look at Rocket Internet’s balance sheet, you can see that there are 2.5 billion euros in cash alone. And then there is the opportunity from the investments. The offer moves within the framework of the market capitalization around two billion. There is already a discrepancy.

Isn’t it a completely different problem that Rocket doesn’t fit the stock market? Transparency is required here, i.e. openness in all matters. And such a startup financier is not always open.

Absolutely right. We have always criticized that at the general meetings. But each shareholder has to decide for himself whether he wants to be involved in such a systematically opaque company. The shareholders made their decision and said: ‘Yes, I want to take the chance with me’. That is exactly the problem now. This chance is now being taken from them. You had to deal with lack of transparency beforehand, very deliberately. Now they are also being slowed down.

Raimund Brichta spoke to Marc Tüngler


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Chairman of the supervisory board of Deutsche Börse calls for more help

Munich Joachim Faber, 69, is as familiar with start-ups as he is with share prices. The supervisory board chief of Deutsche Börse AG is involved in some young companies. Now the doctor of law thinks about the time after the “lockdown”, after the peak of the corona crisis – and calls for “a new start-up initiative, an hour zero of the founders”.

The German start-ups that still exist after Corona would “bring the modernization of the German economy forward significantly,” believes Faber. They are agile and could find gaps. “A large part of the gross domestic product will no longer be served by traditional industry in the future.”

Last but not least, President Donald Trump’s recent push to secure the United States’ vaccines from the Tübingen company CureVac has made it clear that start-ups are part of geopolitics. “We can’t fool ourselves: restrictions on selling good ideas abroad have long been a matter of course in China and the United States,” explains Faber. “Only we Germans are the model boys of free world trade.”

It is therefore legitimate for the federal government to prevent loans or investments from “preventing interesting start-ups from going to foreign investors at bargain prices in the crisis”. Along certain “preference sectors”, “a sell-out of German start-ups must be prevented in the next three to six months”. That would be a sales moratorium for young German companies, so to speak.

Venture Network initiatives

The Chairman of the Supervisory Board also announces initiatives by the Venture Network of Deutsche Börse. It is an ecosystem of founders that currently comprises 200 companies and 400 investors: “We have achieved a lot with this platform. That can and must double. “

According to Faber, the German start-up scene has so far relied too much on foreign investors. In large financing rounds, only ten percent of the capital comes from Germany. But it is “illusionary” to believe that long-term investment companies like Sequoia from California “always provide reliable support to local founders,” warns Faber.

The corona crisis has ended a longstanding boom. In 2019, 6.24 million euros were invested in 704 financing rounds, of which 75 percent came from abroad. Funds like Soft bench from Japan or Temasek from Singapore were strikingly represented.

According to Faber, the one-sided distribution by Germans with large fortunes should change. “We need lighthouses for domestic investors and family entrepreneurs who will stick to it when things get risky but also interesting when it comes to financing growth,” he says. Such investors would need capital organizations that check start-ups and separate the wheat from the chaff. That is just different from the brothers Andreas and Thomas Strüngmann or the SAP-Co-founders Dietmar Hopp and Hasso Plattner, who themselves had large research departments. Faber emphasizes: “The worst thing is when a smart founder encounters naive money. That has to go wrong. “

Worries about startups

The stock exchange chief supervisor cites the venture capital company UVC from Munich as a positive example, which is connected to the UnternehmerTUM start-up center. Its managing director Helmut Schönenberger confirms surveys in the industry, according to which eight out of ten start-ups are currently worried about their existence: “Many have currently switched to remote control, are putting the brakes on costs and are in intensive exchange with investors and customers,” says Schönenberger: “In the consumer sector, the markets are breaking away, and some business models are being put to the test.” On the other hand, the corona crisis also opens up opportunities: “People are open, everyone is moving closer together.” This spirit must be used to promote cutting-edge technology, in artificial intelligence, cybersecurity and medical technology, for example. Everyone would have to contribute a table and their know-how: family entrepreneurs, top managers, state institutions, universities, research institutions – “only then will we bring the start-up scene forward sustainably.” thereby stipulating a clear strategy in which technologies Germany leads Schönenberger wants to be successful. The professor at the Technical University of Munich, whose association is largely responsible for, praises the federal government’s immediate start-up aid of two billion euros BMW– entrepreneur Susanne Klatten is financed.

Reluctance among private investors

Fortunately, public capital providers such as KfW Capital or the European investment fund EIF are stepping on the gas, says Schönenberger. “But many private investors are holding back, that’s a danger.” But it is best for founders to “get the money from the state as a pilot customer and not through alms”. In China and the United States, too, young entrepreneurs grew up with their government buyers, creating an ecosystem.

Foreclosure from foreign investors is not the solution, explains Schönenberger, rather, all resources in the country have to be specifically promoted so that the founders remain in the Federal Republic. “In the past, they only migrated because they lacked support and appreciation.”

Investor Faber, who is leaving Deutsche Börse at the Annual General Meeting in May, knows the scene from a variety of supervisory board positions. In the future, he will head the central supervisory board for four financial firms for the Harald Quandt (“HQ”) family in Bad Homburg. And as the supervisor of the ESMT European School of Management and Technology in Berlin, he happily registered that some students are starting a company.

Faber is now optimistic for those start-ups that have already won private equity or venture capital as donors. These funds would typically have unspent funds in the reserve. There is only a marginal share in the corona crisis. It could be difficult for those who would have to rebuild. Young companies in the tourism, hotel and travel sectors were particularly hard hit.

Checking credit risk

Faber currently sees problems with government loan support for medium-sized and larger companies. Under the lending regulations, the banks involved would understandably have to “check their ten percent risk like a hundred percent risk”. And if the state too often directly gets into valuable start-ups, there is a risk of enormous bureaucracy. Because budget law does not allow risky grants to be simply given away.

Finally, the long-standing board of the insurance giant comes into play alliance another old suggestion: “We urgently need to allow insurance companies and pension funds in Germany to participate in start-ups.” Today’s regulation approach does not take enough account of the fact that significantly more risk must be allowed over a long investment horizon than for short-term ones available facilities. The problem here is securing capital preservation. That was still feasible with a five to ten percent return on federal bonds, says Faber. Today, however, a “significant proportion of risk paper is essential for investments over 30 to 40 years”. And that also includes capital for start-ups.

More: The new delivery service Holy Bowly is adapting its business model overnight to the crisis.


Dax benefits from economic data from China

PEconomic data from China, which was picked up positively, supported the Dax on Tuesday. The leading German index closed 1.25 percent higher at 10,696.56 points, building on its recent recovery after the Easter holidays.

However, technical disruptions at Deutsche Börse triggered an hour-long interruption in Xetra trading. It was only in the early afternoon that the exchange operator managed to solve the problems.

China’s foreign trade hit harder than feared

From the crash low in mid-March, the Dax has now worked its way up almost 30 percent. The M-Dax of medium-sized stocks gained 1.24 percent on Tuesday to 22,374.20 points.

China’s foreign trade had been hit much weaker than feared by the Corona crisis in March. “If China came with a comparatively small economic loss from the pandemic, that would be positive for the global economy,” commented expert Thomas Altmann from the asset manager QC Partners.

Flattening contagion curves with the corona virus in Italy or Spain also give hope. There is now increasing debate about easing the measures to contain the virus in order to mitigate the economic consequences.


Dax closes more than one percent in the plus

Dax curve

View of the Dax curve in the Frankfurt trading hall.

(Photo: dpa)

Dusseldorf The leading German index rose by almost 1.3 percent from trading and closed the day at 10,696 counts. So that is the Dax currently not to brake

However, there was no trading on the Xetra platform for more than four hours. The reason for the interruption was a technical problem with the electronic trading system T7, said a spokesman for the German stock exchange. “An error in the internal communication of the trading system triggered the problem.”

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Trading on the German stock exchange stands still for over four hours

Bull and bear in front of the Frankfurt stock exchange

A bug in the T7 electronic trading system led to the longest trading failure in many years on Tuesday.

(Photo: dpa)

Frankfurt, Dusseldorf The stability of their trading systems is for that German Stock Exchange essential. “Our capital is the trust of the market participants in us and our systems,” says CEO Theodor Weimer.

But it was precisely in the hectic times of the corona crisis that Germany’s largest stock exchange operator suffered the biggest breakdown in years on Tuesday. On Tuesday, a large part of the trade stopped for more than four hours from 9.25 a.m. The reason for the interruption was a technical problem with the electronic trading system T7, said a spokesman for the German stock exchange. “An error in the internal communication of the trading system triggered the problem.”

The default affected both equity trading via Xetra and derivatives trading in the most important division, Eurex. In addition, electronic trading did not work on many other stock exchanges that use the Hessen system. These include the trading centers in Vienna, Prague, Budapest, Zagreb, Ljubljana, Sofia and Malta.

In Frankfurt, the floor trading was not affected by the breakdown. However, it has only played a subordinate role for years. More than 90 percent of German stock trading is done electronically.

According to the German stock exchange, trading on the Eurex started again at 1.45 p.m., electronic stock trading on Xetra at 1:50 p.m.

For the company from Eschborn near Frankfurt, it is the worst breakdown in years. Compared to breakdowns at banks, failures at Deutsche Börse are rare. System availability at Eurex was 99.97 percent in the past twelve months.

Weimer hates failures “like the plague”

Most recently, there were two failures in the public eye, which were shorter than the current breakdown. On October 15, Xetra trading began an hour later due to technical problems, and on March 16, 40 minutes late.

The latter breakdown was particularly annoying for Deutsche Börse, after all, the group had proclaimed “Share Day” this Friday in March, where private investors could buy Dax shares and index funds free of charge. In addition, the IPO scheduled for that day was delayed due to the breakdown Siemens-Medical technology daughter Healthineers.

The head of Deutsche Börse Weimer was visibly uncomfortable. “A stock exchange boss hates it like the plague when there are network problems or software problems,” said Weimer a little later in the Handelsblatt interview.

The breakdown in March 2018, according to Weimer, was due to the fact that logging in of several customers’ trading applications to the system resulted in a blockage for all customers. “Such incidents are ugly, but not really worrying,” said Weimer. “What really worries me is massive cyberattacks on all corporate systems, including ours.”

However, the trading failure on Tuesday was not due to a hacker attack, said a spokesman for the Deutsche Börse Group – and thus rejected corresponding speculation on dealer platforms.

Many investors were annoyed by the failure. An hour-long disruption “is unfortunately not acceptable for an exchange,” wrote a user on Twitter. Another took it with humor and asked chief engineer Scotty from the Star Trek science fiction series for help.

More: Private investors are particularly affected by breakdowns in the certificate trade.