Dax slips after weak US data

Dusseldorf After a friendly start to trading, the Dax slipped back into the red. The German stock market barometer is down more than 1.7 percent in afternoon trading at 9379 points. The reason for this is weak US data.

Because in the Coronavirus Crisis US Unemployment Claims Reach historic highs. Last week, 6.65 million Americans made an initial application, the Department of Labor said in Washington on Thursday. Analysts interviewed by the Reuters news agency had only expected 3.5 million applications. In the previous week, the previous high of 1982 had already been exceeded with almost 3.3 million applications.

Many economists assume that the unemployment rate of 3.5 percent will skyrocket in the wake of the wave of redundancies triggered by the virus pandemic: leading monetary authorities of the Federal Reserve expect an increase to double-digit figures. “The labor market situation in the United States can be described as catastrophic,” said the analysts at Landesbank Helaba.

The US unemployment rate will be released tomorrow Friday as part of the March job report. However, some of the statistics are collected before the outbreak of the corona crisis. So only the April values ​​should provide more information.

These numbers didn’t just impact the stock market. The gold price rose from $ 1,580 to $ 1,603 per troy ounce and is currently up 0.8 percent. The price of silver increases by almost four percent to $ 14.53 an ounce.

Yesterday, Wednesday, the leading German index went down again: He lost 3.9 percent and closed at 9545 points – that’s a minus of 390 points. All 30 DAX values ​​were negative yesterday. The ratio of winners to losers in the overall market was also clearly negative at 203 to 633.

Many companies change their forecasts

It is a dangerous mixthat continue to weigh on the stock market. Economic development is clouding over, and more and more companies are moving away from their previous forecasts. However, reports of short-time work continue to increase.

Since the beginning of the year, the 160 companies listed in the Dax, MDax and SDax indices have already had 59 changes in their forecasts, as the service provider for financial communication EQS in Munich counted.

The company did not determine whether the individual changes in the outlook were triggered by the corona pandemic. However, the fact that the vast majority at 51 occurred after February 16, when the crisis was picking up speed, suggests a connection.

According to investor sentiment, the Situation on the German stock market somewhat eased again. The evaluation of the survey conducted by the Frankfurt Stock Exchange shows that local investors with a medium-term investment horizon are now increasingly relying on falling prices, presumably due to some “frightening” economic forecasts.

According to sentiment analysis, such behavior is a contraindicator. According to the behavioral economist Joachim Goldberg, who evaluates the survey, such bad forecasts have the advantage that they can hardly be undercut by reality. In addition, investors are now realizing that the economic consequences of the corona crisis will be considerable.

He sees the overall development as positive because investors would probably buy again at a significantly lower level.

Speculation on falling prices still at four values

In the past trading week they had Hedge funds still with their speculations contributed to the fact that there was an intermediate recovery on the German stock market. (Read: How Ray Dalio’s Billion Bet Winned Dax)
And how are the hedge funds currently behaving? Bridgewater, Dalio’s hedge fund, has resolved its speculation on falling prices at twelve DAX values. Or more precisely: the quota for all twelve stocks fell below the reportable limit of 0.5 percent of freely tradable shares.

The other funds that continue to focus on falling prices focus on four values: Covestro (1.7 percent), Deutsche Bank (2.9 percent), Germans Lufthansa (9.78 percent) and Wirecard (4.22 percent). The number shows the level of the short sale rate of freely tradable paper (as of Tuesday).

“When planning wealth, the rule is: never get out completely!”

Betting on falling prices in the Technical language Called short sales, operate according to the following principle: Investors borrow shares from companies where they expect price losses. They sell these papers afterwards and hope that the prices will drop. Then you can buy the shares back later and give them back to the lender. The difference between the short sale and the subsequent buyback is then the profit.

All of this leads to the conclusion: Trading with these four DAX values ​​is likely to become turbulent in the coming weeks. On the one hand, the outlook for these stocks is negative. But the Hedge funds will have to buy back the securities at some point.

This particularly affects Lufthansa’s share certificates, which slid to their lowest price level since 2012 on Wednesday. Almost ten percent of all freely tradable shares have to be bought back by the funds.

A calculation example shows that this buyback is likely to have a significant impact on the price. Of the 478 million freely tradable Lufthansa shares, 46 million shares are “sold short”. With a daily trading volume of around ten million units in the past week, this buyback should not be quick.

Look at other asset classes

The prospect of a prolonged crisis in the United States weighs on the yuan. The chinese currency falls, a dollar costs 7.1283 yuan at the top 0.4 percent more and as much as it has not in almost half a year. In China, production is ramping up again after the corona virus outbreak, but customers are missing because the global economy is in quarantine.

Of the Oil price benefits from mediation efforts by US President Donald Trump in the dispute between Saudi Arabia and Russia. A barrel (159 liters) of light US oil costs nine percent more at $ 22.15, while North Sea oil of the Brent variety costs 10.1 percent to $ 27.23 per barrel.

According to a report by the “Wall Street Journal”, Donald Trump wants to meet with the CEOs of the largest oil companies on Friday to discuss ways out of the difficult situation. According to this, both aid for industry and punitive tariffs on oil exports from Saudi Arabia are under discussion.

Look at the individual values

Rocket Internet: According to the start-up investor, it is financially prepared for burdens caused by the coronavirus pandemic, but the share nevertheless falls by 1.97 percent. The bottom line was Rocket, whose biggest startups like Global Fashion Group or Home24 are now listed on the stock exchange last year, a profit of 280 million euros. In 2018, a profit of 196 million euros was incurred.

Hella: The auto parts supplier was hit by the corona pandemic in the third quarter of its 2019/20 financial year. Nevertheless, the headlight specialist is still within the expected range in the first nine months. For the full year, the board had already cashed its annual targets in mid-March due to the corona crisis. The share gains 0.16 percent.

United Internet: They are up 0.15 percent United Internet-Shares. The telecommunications provider plans to launch a new share buyback program with a volume of up to 150 million euros. A clear contrast to many other companies. The reinsurer Munich Re has, for example, stopped its current buyback program.

What the chart technique says

Although there was no significant technical decision on Wednesday despite the high losses, the trading day was also not helpful. So the Dax was unable to close the small downward price gap.
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 on Tuesday was 9703 points, the daily high on Wednesday was reached at 9686 points.

On the other hand, the previous week’s low of 9453 was not fallen below. According to the Düsseldorf-based bank HSBC, the Dax will only go back into crisis mode at prices below 9070 points.

The Frankfurt benchmark has moved far away from the important brands on the top. The decisive factor is the space between 10,138 and 10,391 points inclusive. Among other things, there is the low of December 2018 with 10,279 points, the starting signal for the rally until mid-February 2020 with the previous record high.

“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.

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. “

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Current Dax rate: Dax defies weak US requirements

Dusseldorf Investors can breathe a sigh of relief: The German stock market starts this Thursday with a plus despite poor specifications from the USA in the trade. Of the Dax rises in the first trading hour by 0.4 percent to 9582 points.

Yesterday, Wednesday, the leading German index fell again: The Dax lost 3.9 percent and closed at 9545 points – that’s a minus of 390 points. All 30 Dax values ​​are in the minus. The ratio of winners to losers on the overall market was also clearly negative at 203 to 633.

The start on the German stock market could have been much worse. Because the indices in the USA continued to decline after the close of trading in Germany and went out of trading with a decrease of more than four percent.

The US central bank wants the Fed to face the corona virus crisis Facilitation for the banking industry create. According to its own statements, the central bank is temporarily changing the calculation of the debt ratio (SLR, supplementary leverage ratio). Large banks are now allowed, among other things, to leave their holdings of government bonds out of the calculation for the key figure.

Trade in Asia was mixed. While the Tokyo stock exchange gave way, the mainland Chinese indices are up.

It is a dangerous mixthat continue to weigh on the stock market. Economic development is clouding over, and more and more companies are moving away from their previous forecasts. However, reports of short-time work continue to increase.

Since the beginning of the year, there have been 59 forecast changes in the 160 companies listed in the Dax, MDax and SDax indices, as the service provider for financial communication EQS in Munich counted. The company did not determine whether the individual changes in the outlook were triggered by the corona pandemic. However, the fact that the vast majority at 51 occurred after February 16, when the crisis was picking up speed, suggests a connection.

In the past trading week they had Hedge funds still with their speculations contributed to the fact that there was an intermediate recovery on the German stock market. (Read: How Ray Dalio’s Billion Bet Winned Dax)
And how are the hedge funds currently behaving? Bridgewater, Dalio’s hedge fund, has resolved its speculation on falling prices at twelve DAX values. Or more precisely: the quota for all twelve stocks has fallen below the notifiable limit of 0.5 percent of freely tradable shares.

The other funds that continue to focus on falling prices focus on four values: Covestro (1.7 percent), Deutsche Bank (2.9 percent) Germans Lufthansa (9.78 percent) and Wirecard (4.22 percent). The number indicates the level of the short sale rate of freely tradable paper. (As of Tuesday).

“When planning wealth, the rule is: never get out completely!”

Betting on falling prices in the Technical language Called short sales, operate according to the following principle: Investors borrow shares from companies where they expect price losses. They sell these papers afterwards and hope that the prices will drop. Then you can buy the shares back later and give them back to the lender.

All of this leads to the conclusion: Trading with these four DAX values ​​is likely to become turbulent in the coming weeks. On the one hand, the outlook for these stocks is negative. But the Hedge funds will have to buy back the securities at some point.

This particularly affects Lufthansa’s share certificates, which slid to their lowest price level since 2012 on Wednesday. Almost ten percent of all freely tradable shares have to be bought back by the funds.

A calculation example shows that this buyback is likely to have a significant impact on the price. Of the 478 million freely tradable Lufthansa shares, 46 million shares are “sold short”. With a daily trading volume of around ten million units in the past week, this buyback should not be quick.

This Thursday, the focus is again on an economic indicator that has not been observed for a long time. It’s about the Initial jobless claims in the United States. Last Thursday, the number of people registered as unemployed rose to over three million – a historic figure. Helaba analysts estimate that today the number will increase by another three million, meaning that a total of well over six million people have lost their jobs within two weeks.

Not a good sign for the US unemployment rate, which will be released tomorrow as part of the March job market report. However, some of the statistics are collected before the outbreak of the corona crisis. So only the April values ​​should provide more information.

According to calculations by Johns Hopkins University, more than 200,000 people in the United States are now infected with the corona virus, which is more than in any other country. To slow the spread, Trump is now considering restrictions on air traffic.

Look at other asset classes

The prospect of a prolonged crisis in the United States weighs on the yuan. The chinese currency falls, a dollar at 7.1283 yuan temporarily costs 0.4 percent more than it has in almost half a year. In China, production is ramping up again after the corona virus outbreak, but customers are missing because the global economy is in quarantine.

Of the Oil price benefits from mediation efforts by US President Donald Trump in the dispute between Saudi Arabia and Russia. A barrel (159 liters) of light US oil costs 7.6 percent more at $ 21.85, North Sea oil of the Brent variety costs 9.4 percent to $ 27.06 per barrel.

According to a report by the “Wall Street Journal”, Donald Trump wants to meet with the CEOs of the largest oil companies on Friday to discuss ways out of the difficult situation. According to this, both aid for industry and punitive tariffs on oil exports from Saudi Arabia are under discussion.

Look at the individual values

Rocket Internet: The startup investor claims to be financially armed for the coronavirus pandemic, which gives the share a plus of one percent. The bottom line was Rocket, whose biggest startups like Global Fashion Group or Home24 are now listed on the stock exchange last year, a profit of 280 million euros. In 2018, a profit of 196 million euros was incurred.

Hella: The auto parts supplier was hit by the corona pandemic in the third quarter of its 2019/20 financial year. Nevertheless, the headlight specialist is still within the expected range in the first nine months. For the full year, the board had already cashed its annual targets in mid-March due to the corona crisis. The share loses 0.6 percent.

United Internet: They are up 0.2 percent United Internet -Shares. The telecommunications provider plans to launch a new share buyback program with a volume of up to 150 million euros. A clear contrast to many other companies: the reinsurer Munich Re has, for example, stopped its current buyback program.

What the chart technique says

Although there was no significant technical decision on Wednesday despite the high losses, the trading day was also not helpful. So the Dax was unable to close the small downward price gap.
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 on Tuesday was 9703 points, the daily high on Wednesday was reached at 9686 points.

On the other hand, the previous week’s low of 9453 was not fallen below. The Dax, according to the Düsseldorfer Bank, only return to crisis mode at prices below 9070 points. #

The Frankfurt benchmark has moved far away from the important brands on the top. The decisive factor should be between 10,138 up to and including 10,391 points. Among other things, there is the low of December 2018 with 10,279 points, the starting signal for the rally until mid-February 2020 with the previous record high.

“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.

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.

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US exchanges remain in the red – Xerox and HP lose after the deal is stopped

Dusseldorf The fear of bigger ones economic damage from the rapidly spreading corona virus continues to burden Wall Street. Of the Dow Jones index falls 4.4 percent to 20,943 points. The broader S&P 500 slips 4.4 percent to 2470 points. The technology-heavy Nasdaq Composite gives 4.4 percent to 7360 meters.

“The warning from US President Donald Trump about upcoming horrible weeks and up to 240,000 deaths in the coming months depresses the mood on the market,” said investment strategist Kit Juckes from the bank Societe Generale. Trump also warned the population to strictly follow public restrictions for another 30 days.

“Talking of a stock market bottom still seems remarkably premature given the continued rise in infection and death rates in Europe and the United States,” said Michael Hewson, senior market analyst at CMC Markets in London.

This view is shared by other stock market experts such as fund manager Jeffrey Gundlach. In his view, the recent highs should not be reached for a long time, on the contrary: He even expects new lows on the US stock exchanges. “I also think in April this feeling of panic will come up again ”said the CEO and chief investment officer of Doubleline Capital.

Large US banks’ forecasts that the US economy will quickly recover from the coming recession are too optimistic. The current general economic situation is reminiscent of a depression.

The total volume of US economic stimulus and monetary support measures is expected to reach $ 10 trillion, Gundlach expects. The US unemployment rate will rise to ten percent, and the dollar will lose value as government debt escalates.

The labor market service provider ADP reports one with minus 27,000 digits surprisingly small decline in jobs in the private sector. A drop of 150,000 jobs was estimated. Still, it’s the first drop since September 2017.

This is due to the exit restrictions in connection with the Covid 19 spread. “It is not yet clear to what extent the virus will affect the labor market,” said the analysts at Landesbank Helaba. However, the indication for the official report next Friday is negative. A massive rise in the unemployment rate is to be feared in the coming months.

Look at the individual values:

Macy’s shares fell 9.8 percent to $ 4.43. The papers of the US department store chain fall out of the S&P 500 index and will in future only be represented in the S&P small-cap 600. Since the beginning of the year, the paper of the chain, which has been suffering from customer loss for some time, has lost around 70 percent due to the corona crisis. Since the record high of $ 73.60 five years ago, the market value has shrunk by more than $ 20 billion.

The US printer manufacturer Xerox in the middle of the corona virus pandemic refrains from the planned hostile takeover of the computer company HP. Xerox described the move on Tuesday night as disappointing, but necessary to focus on addressing the corona crisis. Xerox had offered $ 35 billion for HP.

Xerox stocks lost seven percent in response to this decision, while HP stocks fell 14 percent.

The withdrawal is considered a victory for HP boss Enrique Lores, who had rejected the takeover offer published for the first time in November as too low.
Xerox’s business is under pressure during the crisis. The value of the stock has halved in the past five weeks, while HP’s share certificates have fallen by around a quarter. HP benefits from the trend towards home office.

At T-Mobile US and Sprint on the other hand, you have reached your goal: After a two-year tremor, the merger of the mobile operators is in a dry cloth. Investors reacted relieved in both cases, the papers became winners against the weak market with 1.5 and 2.1 percent respectively.

The interest rate sensitive shares of Banks are among the big losers. Citigroup, lost 8.6 percent, JP Morgan and Goldman Sachs gave in 6.3 and six percent.

The title of the hotel operator Marriott slipped 7.6 percent. Reason: There was a data leak, about 5.2 million customers are affected.

They also flew out of the depots Petroleum values. In addition to virus worries, they suffered from the price war of the two important export countries of Saudi Arabia and Russia. This caused US inventories to swell more than three times as expected last week. In return, the price of the US oil grade WTI fell by up to 2.8 percent to $ 19.90 a barrel (159 liters). It was about half a dollar above its 18-year low from last week.

This affects shale oil producers in particular because, according to experts, they only work profitably from a price of around $ 50 due to the complex fracking process. With Whiting Petroleum, the first company from this group had to apply for bankruptcy protection. The stock then plummeted by about half.

The aircraft manufacturer’s papers too Boeing it was hard again, with a price slide of more than twelve percent they became a noticeable burden in the Dow, where they still belong to the heavyweights.

With agency material.

More: Shares, bonds, oil, gold: That was 100,000 euros in the first quarter

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Dax survives a slide and closes 1.2 percent in positive territory

Dusseldorf The Dax continued its slight upward trend from the previous day on Tuesday: the leading German index closed 1.2 percent up at 9936 points. In the morning, the leading German index had even reached 10,096 points, but was unable to hold the five-digit number.

In the meantime, however, the Dax had slipped almost 400 points and was trading in negative territory before working its way up again in the afternoon with the opening of Wall Street. Probably had foreign investors triggered the price slide. The euro also fell against the dollar and subsequently recovered to the same extent as the Dax.

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Financial regulators control the liquidity of large banks on a daily basis

Frankfurt When banks go bankrupt, it is often not because the capital buffers are too thin, but because of a lack of liquidity. In other words, the institutes simply run out of money. In the corona crisis, the central banks, financial regulators and financial institutions want to prevent this in any case. The issue of liquidity is therefore at the top of everyone’s agenda.

The largest, systemically important institutions in the euro zone currently have to give the European financial supervisory authorities their liquidity indicators and their internal plans for the management of liquid funds in conference calls, as several people familiar with the subject told Handelsblatt. A second group at somewhat smaller banks had to report to the controllers once or twice a week. The ECB’s banking regulator did not want to comment on this.

Compared to the 2008 financial crisis, banks now have thicker liquidity buffers. So far, according to information from the Handelsblatt, there have been no bottlenecks at any major European bank. But the tension is great among everyone involved. “In times like these, it cannot be ruled out that a lot will change from one day to the next,” says a person familiar with the discussions.

The so-called interbank market plays an important role in the liquidity management of financial institutions. Not only do financial institutions lend and lend liquidity there, but also money market funds, asset managers, companies and states.

During the financial crisis there were violent upheavals on the money market. Because after the bankruptcy of the US investment bank Lehman Brothers, there was a great fear that other institutions would collapse, everyone involved held their funds together instead of lending them to each other.

Everyone hoarded cash

There is no such mistrust of other financial institutions today, several bankers with whom the Handelsblatt has spoken in recent days emphasize. “In the corona crisis, there is no threat from other banks,” says one of them. “The challenge is the increasing liquidity demand from the real economy.”

Instead of investing excess funds in the money market, many companies are currently sucking themselves up with liquidity. They draw their credit lines from the banks and apply for additional loans. In doing so, they are reacting to the great uncertainty, after all nobody knows how long the corona crisis will continue and how the economy will cripple.

Asset managers and money market funds struggling with price losses and cash outflows are also currently failing to provide long-term liquidity. The same applies to many states and their funding institutions, which are in the process of supporting the economy with extensive aid programs. “At the moment, nobody is willing to spend money for three or six months,” reports one banker.

All of this means that banks can currently only absorb liquidity for a short time on the money market. There is a concentration of market participants on terms of up to one month, said Helaba capital market chief Hans-Dieter Kemler on Wednesday. “The market for long-term, unsecured transactions is currently rather difficult.”

Kemler does not want to know anything about a financial crisis 2.0. The situation is “not yet comparable to the situation we had in 2008 and 2009,” he said. At that time, many banks also had problems taking up liquidity in the short term. So you actually ran out of money.

The European banking sector is still a long way from this situation – and there are several reasons for this. For one thing, many institutions have significantly reduced their dependency on the interbank market since the financial crisis. On the other hand, the central banks provide the banks with liquidity on a large scale.

Toilet paper effect on the money market

“Compared to 2008, the central banks reacted promptly and very quickly,” says one banker. From the point of view of European financial institutions, it was particularly important that several central banks around the world decided in mid-March to make US dollars available to the money houses against the provision of collateral on a large scale.

Since then, banks have been able to borrow dollar liquidity daily from the ECB for seven days – and on more favorable terms than before. In addition, the ECB has launched a tender where institutions can borrow dollars for 84 days once a week. The institutes secured a whopping $ 76 billion on the first allocation and $ 28 billion on the second.

This instrument is important for European banks because they have a relatively large number of claims in dollars. Large parts of global trade, as well as business in sectors such as oil or aviation, are ultimately settled in the US currency. On the other hand, European banks have relatively little natural dollar financing – for example through stable dollar deposits from private customers or companies.

The institutes therefore normally borrow dollars on the international money market. But it is currently very difficult for them to get money there for more than a month. “Investors and banks have been hoarding dollar liquidity like many German toilet paper since the beginning of March,” complains one market participant. “The whole thing is an expression of fear.” He hopes that the state of shock will soon resolve again. “Everyone has to assume that there will still be toilet paper tomorrow and that I don’t have to store tons of it in the basement.”

graphic

You can see how big the concerns about the dollar money market are from the Libor-OIS spread. It shows how expensive it is to refinance in dollars for a certain period of time. The spread has widened from below 20 to almost 120 basis points since the beginning of February. However, it is still a long way off the highs from the financial crisis when the stress barometer climbed over 350 basis points.

Nonetheless, the situation is tense – and the central banks are in close contact with the banks. The Money Market Contact Group (MMCG), in which the ECB discusses the situation on the money market with bank representatives, exchanged views five times in March alone. For comparison: there were only four meetings throughout 2019.

In the MMCG, heavyweights are like Deutsche Bank, BNP Paribas, ING and represented UniCredit. And they are preparing for a persistently difficult situation in the long-term dollar money market, as can be seen from a summary of the March 20 debate. The tenor: It will be some time before trust returns and the situation improves.

More: Private investors are particularly affected by breakdown series on trading platforms.

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Suspension of dividends for savings banks and Volksbanks

Sparkassen logo

In addition to the savings banks, the ECB is also demanding that the Volksbanks waive dividends.


(Photo: dpa)

Frankfurt Financial supervision has loosened the rules for banks significantly in the wake of the corona crisis. This should enable the institutes to support companies in this difficult time. However, the authorities want to prevent banks from using the additional scope to keep their shareholders on line with dividends.

The European banking regulator has therefore tightened its pace on this subject. On Friday evening, it asked the largest institutes in the euro zone not to pay dividends until at least October 1, 2020. The same applies to the buyback of own shares.

“With the recommendation, we want to prevent that in the current uncertain situation due to distributions, much needed capital may later flow out of the banking system,” Bundesbank board member Joachim Wuermeling told Handelsblatt. “However, this is not the case for payments between parent companies and subsidiaries within banking groups. That is why the recommendation does not extend to such transactions. ”The Munich-based HypoVereinsbank can therefore pay its Milan-based parent company UniCredit a dividend of EUR 3.29 billion as planned.

“The situation within groups is comparable, even if it is not legally a group,” said Wuermeling, who is responsible for banking supervision on the Bundesbank board.

Here too, a dividend payment remains “within the financial group of the savings banks or cooperatives” and thus in the banking system. “That’s why I don’t assume that distributions will be waived within alliances,” emphasized Wuermeling.

DZ Bank, fund provider Deka and individual Landesbanken are therefore likely to be able to pay dividends to their owners after a case-by-case assessment. DZ Bank belongs to the Volks- und Raiffeisenbanken, some of which have factored in the distribution of their central institution in their plans.

The same applies to the savings banks, to which Deka belongs 100 percent. The ownership structure of the Landesbanken is very different. The savings banks hold only 25 percent of BayernLB, but more than 80 percent of Helaba.

As in the previous year, Helaba plans to distribute 90 million euros to its owners for the 2019 financial year. “This corresponds to a payout ratio of less than 20 percent,” said CEO Herbert Hans Grüntker on Wednesday. “We believe that we are careful with our capital resources.”

DZ Bank plans to pay dividends to its owners totaling EUR 322 million. This corresponds to a payout ratio of around 17 percent.

“Basel IV” rules are postponed

In contrast to DZ Bank and Deka, German private banks like that Commerzbank, the Aareal Bank or the Deutsche Pfandbriefbank will probably have to suspend or cancel their planned dividend payments for 2019.

On the other hand, the institutes can look forward to further relief. International banking regulators announced on Friday that they will postpone the introduction of tougher capital requirements because of the corona crisis by a year. The set of rules, which is called “Basel IV” in the industry, should only be gradually introduced in 2023.

More: So far, almost everything has been about relieving companies of labor costs. Now relief is also being discussed in the cost of capital.

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Savings banks and Volksbanks can continue to receive dividends

Sparkassen logo

In addition to the savings banks, the ECB is also demanding that the Volksbanks waive dividends.


(Photo: dpa)

Frankfurt Financial supervision has loosened the rules for banks significantly in the wake of the corona crisis. This should enable the institutes to support companies in this difficult time. However, the authorities want to prevent banks from using the additional scope to keep their shareholders on line with dividends.

The European banking regulator has therefore tightened its pace on this subject. On Friday evening, it asked the largest institutes in the euro zone not to pay dividends until at least October 1, 2020. The same applies to the buyback of own shares.

“With the recommendation, we want to prevent that in the current uncertain situation due to distributions, much needed capital may later flow out of the banking system,” Bundesbank board member Joachim Wuermeling told Handelsblatt. “However, this is not the case for payments between parent companies and subsidiaries within banking groups. That is why the recommendation does not extend to such transactions. ”The Munich-based HypoVereinsbank can therefore pay its Milan-based parent company UniCredit a dividend of EUR 3.29 billion as planned.

“The situation within groups is comparable, even if it is not legally a group,” said Wuermeling, who is responsible for banking supervision on the Bundesbank board.

Here too, a dividend payment remains “within the financial group of the savings banks or cooperatives” and thus in the banking system. “That’s why I don’t assume that distributions will be waived within alliances,” emphasized Wuermeling.

DZ Bank, fund provider Deka and individual Landesbanken are therefore likely to be able to pay dividends to their owners after a case-by-case assessment. DZ Bank belongs to the Volks- und Raiffeisenbanken, some of which have factored in the distribution of their central institution in their plans.

The same applies to the savings banks, to which Deka belongs 100 percent. The ownership structure of the Landesbanken is very different. The savings banks hold only 25 percent of BayernLB, but more than 80 percent of Helaba.

As in the previous year, Helaba plans to distribute 90 million euros to its owners for the 2019 financial year. “This corresponds to a payout ratio of less than 20 percent,” said CEO Herbert Hans Grüntker on Wednesday. “We believe that we are careful with our capital resources.”

DZ Bank plans to pay dividends to its owners totaling EUR 322 million. This corresponds to a payout ratio of around 17 percent.

“Basel IV” rules are postponed

In contrast to DZ Bank and Deka, German private banks like that Commerzbank, the Aareal Bank or the Deutsche Pfandbriefbank will probably have to suspend or cancel their planned dividend payments for 2019.

On the other hand, the institutes can look forward to further relief. International banking regulators announced on Friday that they will postpone the introduction of tougher capital requirements because of the corona crisis by a year. The set of rules, which is called “Basel IV” in the industry, should only be gradually introduced in 2023.

More: So far, almost everything has been about relieving companies of labor costs. Now relief is also being discussed in the cost of capital.

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Dax current: US stock markets boost Dax – closing price is just over 10,000 points

For the third day in a row, the leading German index ended trading in positive territory. The main reasons for this can be found on Wall Street. .

Dax current: Dax turns positive after initial losses – gambler brings major bank ABN Amro loss of millions

The German stock market remains in a difficult position. New details from the European Central Bank also have a significant impact on bond yields. .