Hope for stimulus packages boost Asian stock markets

Tokyo

Reflections on a display board of the Tokyo Stock Exchange.

(Photo: AFP)

Washington / Sydney Asian equity markets rose on Thursday. The combination of a recovery in crude oil prices from historic lows and the promise of further US government aid to cushion the coronavirus-affected economy calmed investors’ concerns. The U.S. House of Representatives is expected to launch a fourth coronavirus package on Thursday, which has already been unanimously approved by Congress. The rescue package would total almost three trillion dollars. Analysts therefore believe that after the price falls, the low point has been reached.

Still, the recent recovery has been tightly focused on the big tech companies, said Seema Shah, chief strategist at Principal Global Investors. However, Shah believes market positioning could now drive markets upwards, supported by solid political momentum around the world. “Investors have built sensible cash positions that indicate that senseless selling has ended, but that investors have enough funds to take advantage of attractively valued risk assets.”

Look at the indices:

The Tokyo stock exchange was initially stronger on Thursday. The Nikkei index, comprising 225 values, was 0.7 percent higher over the course of the year at 19,266 points. The broader Topix index rose by 0.5 percent and stood at 1414 points.

The Shanghai stock exchange remained unchanged. The index of the most important companies in Shanghai and Shenzhen lost 0.1 percent. The MSCI index for Asian stocks outside of Japan rose 0.9 percent.

In Asian currency trading, the dollar remained almost unchanged at 107.76 yen and stagnated at 7.0842 yuan. On the Swiss currency, it was 0.1 percent higher at 0.9723 francs. At the same time, the euro fell 0.1 percent to $ 1.0808 and hardly changed at CHF 1.0511. The pound stagnated at $ 1.2330.

More: Read all current developments regarding the corona pandemic here.

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Pro Sieben Sat 1 withdraws forecast and dividend proposal

Per seven sat 1

The media group does not want to pay a dividend for 2019 because of the corona crisis.


(Photo: dpa)

Berlin, Unterfoehring The television company Pro Sieben Sat 1 cancels its forecast for 2020 and the dividend because of the corona crisis. Due to the current standstill of the global economy and the resulting economic uncertainty, it is Per seven Sat 1 is currently unable to provide an outlook on the financial results in the second quarter and for the full year, the company said on Wednesday evening.

The management board had therefore decided to withdraw the financial forecast for 2020 as a whole. The television group does not want to pay a dividend for the 2019 financial year either.

The company had previously announced that it would propose a dividend of EUR 0.85 per share to the general meeting. At the same time, the Group confirmed its previous dividend policy with a payout ratio of 50 percent of the Group’s adjusted consolidated net income.

Investors appeared to be calm in view of the similar announcements from various listed companies from the recent past. In an initial reaction, the Pro Sieben Sat 1 share price only declined by a good half percent on the Tradegate trading platform.

The new CEO and CFO Rainer Beaujean said: “By mid-March we were well on track until the first Covid 19 effects began to affect our business in all segments. As the duration and full scope of the pandemic remain uncertain, it is currently not possible to provide an outlook on our full year results. ”

Sales increased slightly in the first quarter

According to preliminary figures, consolidated sales rose slightly by one percent to 926 million euros in the first three months. The previous year it had been 913 million euros. The initial restrictions in the corona crisis would have impacted the high-margin advertising business in the second half of March: advertising revenues therefore fell by four percent in the first quarter after the first cancellations of line items. The entire media industry in Germany is currently struggling with losses in the advertising business.

The group also benefited from classified business such as the online beauty provider Flaconi. However, because business grew in areas with lower margins and decreased in high-margin (advertising business), adjusted EBITDA decreased in the first quarter by 17 percent to EUR 157 million, compared to EUR 190 million in the same period of the previous year. The company reported adjusted net income at EUR 58 million (previous year: EUR 94 million).

Pro Sieben Sat 1 assumes that advertising revenues in the TV business will decrease by around 40 percent in April compared to the previous year. Shifts in production at Red Arrow Studios are also affecting business.

The group with more than 7200 employees is currently also examining whether it will introduce short-time working within the entertainment business. In the NuCom division with internet shops and platforms such as Verivox or Parship, the media group is already using short-time working in some portfolio companies.

More: Pro Sieben Sat 1 starts the big podcast offensive.

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Wall Street on the upswing after oil price collapse

Dusseldorf After the turmoil of the past few days, Wall Street is breathing a little more. The prospect of further stimulus measures on Wednesday lured investors back into the US stock market. The standard value index Dow Jones closed two percent higher at 23,475 points. The technology-heavy Nasdaq advanced 2.8 percent to 8495 points. The broad S&P 500 gained 2.3 percent to 2799 points.

Impaired by the historic oil price chaos, the Dow Jones ended Tuesday trading 2.7 percent lower at 23,018 points. The technology-heavy Nasdaq dropped 3.5 percent to 8,263 points. The broad S&P 500 lost 3.1 percent to 2736 points.

“Stock markets seem to think that stimulus from governments and central banks will be enough to neutralize the economic damage caused by the coronavirus pandemic,” said Rabobank economist Teeuwe Mevissen. “As long as this mood persists, economic data don’t seem to matter.”

The Federal Reserve (Fed) pumps trillions of dollars into the financial markets through the purchase of securities. In parallel, the US Senate launched another $ 500 billion stimulus package. That is certainly not the last, said analyst Joshua Mahony from the brokerage IG. “US President Donald Trump has demonstrated his willingness to increase debt in the name of economic growth.”

With the overall market, oil stocks also went on a recovery course. They had come under pressure in the past few days because of the price hype of the US variety WTI. The shares of Exxon and Chevron grew up to 3.4 percent.

Look at the individual values

One of the biggest winners on Wall Street Biontech with a course increase of almost 27 percent. The Mainz biotech company, which works together with the US pharmaceutical company Pfizer researching a vaccine against the lung disease Covid-19 has received approval for a clinical study in Germany.

In the USA, too, the active ingredient will soon be clinically tested after approval. While in the Dow Pfizer shares In line with the market, increasing by 1.8 percent, the Biontech stocks listed on the Nasdaq gained almost 27 percent.

The titles of Chipotle, which rose by twelve percent. The strong online business cushioned the slump in the stationary business of the fast food chain, the analysts of the investment bank BMO wrote. The company, which also has branches in Germany, made a surprisingly high quarterly profit of $ 0.18 per share.

The papers from Netflix On the other hand, they fell by 2.8 percent, although the online video store was able to win twice as many new customers as expected due to the coronavirus restrictions. However, the company warned that the boom would slow down as soon as the restrictions on public life were relaxed again.

But that doesn’t change the positive long-term business prospects, wrote the analysts of the asset manager Cowen. They also considered Q2 user numbers to be too conservative because of the still widespread exit restrictions.

Quarterly numbers, among other things Texas Instruments, AT&T and Biogen in front. The chipmaker had lost less revenue and profit in the first quarter than feared, which gave the shares an increase of 4.8 percent. The telecom company’s papers, on the other hand, lost 1.3 percent after a drop in sales and a withdrawn outlook.

Biogen fell by 9.4 percent to the end of the Nasdaq 100. The biotech company was not only in the spotlight with its quarterly figures, but also with its active ingredient aducanumab against Alzheimer’s.

The application for approval of this product is to be submitted later than previously announced. That raised more questions than answers, complained about RBC analyst Brian Abrahams and immediately lowered the price target for the share.

There was also news too United Airlines and Facebook. The shares of the battered airline dropped 7.2 percent because United wants to raise fresh money through a billion dollar capital increase.

Facebook on the other hand, jumped 6.7 percent after strong losses from the previous day. The network giant wants to penetrate further into India and buys almost ten percent of the Jio Platforms for $ 5.7 billion (€ 5.25 billion). This is the subsidiary of a leading mobile operator.

In the US bond market, ten-year government bonds lost 17/32 points to 108 10/32 points and returned 0.624 percent. The euro was trading at $ 1.0820 at the close on Wall Street. The European Central Bank set the reference price at $ 1.0867 (Tuesday: 1.0837). The dollar thus cost 0.9202 (0.9228) euros

With agency material.

More: Read here what happened on the German stock market this Tuesday.

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Dax on a recovery course despite further oil price turmoil

Dusseldorf The German stock market starts trading nicely. In the first trading hour, the index was up 1.1 percent at 10,357 points.

The oil price has dominated the market for the second day in a row. The renewed sell-off on the oil market shows that the historic collapse late Monday evening, which temporarily pushed the price of US crude oil down to minus $ 38 a barrel, was not a singular event, not a one-time market failure. It was only the preliminary climax of a crisis that the oil market has never experienced before.

The answer to the question is crucial: If the June futures contract falls on the US variety WTI as well as the May future below zero dollars in the coming weeks?

The price of a barrel (159 liters) of the US grade WTI for delivery in June has dropped to $ 10.30 today, a drop of more than ten percent. The Brent crude price reached $ 15.98 a barrel, the lowest since June 1999.

Netflix’s strong numbers are reassuring on the stock markets. Due to the corona crisis, the streaming service has reached the record number of 15.8 million new subscribers worldwide in just three months. The cautious outlook sent the stock Although one percent in the aftermarket in the US markets, it could have been worse. On the German stock market, the paper rose 3.2 percent at the opening.

The requirements from overseas are mixed. The US markets have given in significantly, but were able to reduce their losses slightly after the market closed in Germany. The futures contracts on the US stock exchanges signal an increase of 0.2 to 0.5 percent at the start of trading. The prices of the shares on the Tokyo stock exchange fell for the second day in succession after the US crude oil slump, and the Chinese indices rose.

Dates today

The most important number comes from the USA: Because of the oversupply of tank farm capacities, which are apparently almost exhausted worldwide, investors are paying attention to the figures for the US inventory in the afternoon of Central European Time.

On Wednesday, however, company figures are also in focus. Among other things, pose AT&T, Roche and the US tech exchange Nasdaq released their quarterly figures. Chip manufacturer STMicro and US laboratory supplier Thermo Fisher also wrote their books. The latter wants the German competitor Qiagen take over for a good ten billion dollars.
Main focus on the impact of the coronavirus pandemic on business, Börsianer said

Look at individual values

Wirecard: The “Day X”, the moment of truth is there for the online payment service provider: The final KPMG report is due to be published today – in full, how Wirecard has promised. Management hopes to finally draw a line under the debates of the past. At the opening of the stock exchange, the Wirecard share rose by 2.8 percent.

In the run-up to the publication of the quarterly figures, hedge funds had increased their speculation on falling prices at Wirecard. This quota is now 4.28 percent of all freely tradable shares, i.e. 45.27 million shares. (As of April 20)

Further rising prices are likely to put hedge funds under pressure. Because such a short sale, a speculation on falling prices, follows the following principle: So far, the hedge funds have borrowed and sold the 45.27 million shares of Wirecard 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 1.65 million shares per day this buyback of 45.27 million is not easy to implement.
In the past four weeks, the Wirecard share has increased by more than 40 percent, almost 14 percent since the beginning of the year.

STMicroelectronics: Europe’s largest chip manufacturer expects a decline in sales as a result of the collapse in demand in the auto industry due to corona virus. A minus of around ten percent is expected in the second quarter. However, the share price increases by 4.3 percent. The German competitor also benefits from this Infineon. Infineon paper increases by 2.7 percent.

What the chart technique says

There is currently a lot at stake with the leading German index, the German “blue chips” have a lot to lose. If the break in core support proves to be sustainable at around 10,300 to 10,000 meters, according to chart technology, investors must assume that it has a “second pillar”. Specifically, that means: The Dax should drop again towards 8255 points and in extreme cases even undercut the mark.

The closing price on Tuesday was already below the important mark at 10,279 points. The leading index started its rally of 10,279 points in December 2018, which lasted until a record high in February 2020. The brand was “confirmed” on Tuesday last week because the index had ended trading there.

Despite the friendly start on Wednesday, investors should look south. In the course of the upward recovery, two so-called upward price gaps have remained open since mid-March. With such gaps there was no price position during Dax trading, the lowest price on a trading day was higher than the highest price on the previous day. Such upward price gaps are an important resistance, according to chart technology.

The first gap is closed when the 10,097 points are reached, the second at 9,627 points.

At 11,025 meters there is an important resistance on the top. There is the so-called 50 percent correction of the overarching trend, at which counter-movements very often end. Currently related to the Dax, this means that the downward trend has so far been from the record high in mid-February at 13,795 points to the low point in mid-March at 8255 points.

The 50 percent mark is accordingly at 11,025 points, i.e. exactly in the middle between record high and low point. With the increase to 10,820 points last Tuesday, the index of this brand had already approached. But the focus is currently on the lower price brands.

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

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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Asian stocks fall second consecutive day after US crude oil slumps

Tokyo

A passer-by in front of a display board of the Tokyo Stock Exchange.

(Photo: AFP)

Washington / Tokyo Asian equity markets fell to a two-week low on Wednesday. The drop in crude oil prices gives an idea of ​​the impact of business restrictions due to the corona pandemic: earlier this week, the US futures contract plummeted in May for the first time in history.

In addition to massive oversupply concerns, analysts say, the slump also underscores the technical constraints the market is facing in responding to such shocks. “The negative price was probably an anomaly, but it was also a symptom of major underlying issues that the industry needs to address,” said Arij van Berkel, who heads Lux Research’s energy research team in Amsterdam. It shows that despite the diverse product portfolio in the oil industry, the ability of the industry to switch between markets is “extremely limited”. The fall in oil prices has triggered new caution towards the stock market.

“Overnight stocks of companies that were seen as winners in the ‘post-corona world’ fell like Amazon. This is a worrying sign, ”added Naoya Oshikubo, manager at Sumitomo Mitsui Trust Asset Management. The online giant’s shares fell 2.7 percent on Tuesday.

Look at the indices:

The Tokyo stock exchange was initially weaker on Wednesday. The 225-value Nikkei index was 1.2 percent lower at 19,050 points. The broader Topix index fell by 0.5 percent and stood at 1409 points.

The Shanghai stock exchange was down 0.2 percent. The index of the most important companies in Shanghai and Shenzhen lost 0.1 percent. The MSCI index for Asian stocks outside Japan fell 2.5 percent.

In Asian currency trading, the dollar remained almost unchanged at 107.73 yen, falling 0.1 percent to 7.0833 yuan. The Swiss currency was 0.1 percent higher at 0.9702 francs. At the same time, the euro fell 0.1 percent to $ 1.0847 and hardly changed at CHF 1.0527. The pound sterling lost 0.1 percent to $ 1.2284.

More: Read all current developments regarding the corona pandemic here.

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Record quarter for Netflix – Europe is the largest growth market

San Francisco Also at Netflix has messed up the global corona pandemic a lot: “We are struggling to maintain our service and further organize the post-production of our content,” said Reed Hastings, head of the world’s largest paid streaming service. The Netflix founder even made the presentation of the business figures for the first quarter this time from a bedroom in his apartment building, with blue bed linen in the background.

The fact that Netflix reached the record number of 15.8 million new subscribers worldwide in just three months is of course primarily due to the global curfews and the lack of alternatives at a time when visits to the cinema, concerts and bars are prohibited in many places are. Despite these circumstances, analysts had only expected an average of seven million subscribers.

With the documentary “Tiger King” about an eccentric zoo owner and the dating show “Love is Blind”, Netflix also managed to launch two highly regarded shows. “Our small contribution in this difficult time is to make the house arrest a little more bearable,” said Hastings.

The company from Los Gatos in Silicon Valley now has a total of 182.9 million paying customers worldwide. Even in the United States, where every second household already had a Netflix account, the service grew from around 67.5 to almost 70 million customers.

For several quarters, however, the most important growth drivers for Netflix have been Europe and the Middle East: the streaming service gained almost seven million new customers in the region, which is gradually catching up with Netflix’s home market with a total of 58.7 million.

Although revenue per user decreased slightly in all markets, Netflix increased revenue nearly 28 percent year-over-year to $ 5.77 billion in the quarter, and operating profit grew 17 percent to $ 958 million.

Even the Achilles’ heel of the Netflix balance sheet was no longer the most recent: The company’s cash flow, still $ -1.67 billion in the final quarter of 2019, was slightly positive at $ 162 million between January and March.

Even prepared for a recession

For years, Netflix has been spending more than it takes to produce its own series and films that are believed to be amortized over years. The company therefore has debts of $ 14.1 billion that it has to service with relatively high interest rates of more than six percent.

CFO Spencer Neumann announced that cash flow will still be negative in the full year 2020, but instead of the planned 2.5 billion, it will only be less than one billion dollars – also because the film productions canceled due to Corona save money.

Netflix is ​​less affected than its competitors by the risk of contagion because of the risk of infection, said content manager Ted Sarandos. “We plan well in advance because we publish entire seasons at once.”

Until well into 2021, the planned films and series were largely in the box, and the post-production that was still necessary had been switched to the home office within days. That’s why there are no considerations to postpone Corona start dates so that the existing new releases last longer, said Sarandos.

“Netflix is ​​much more responsive to this new reality than competitors who rely on movie releases, theme parks, or sporting events,” said eMarketer analyst Eric Haggstrom.

The fact that company boss Hastings has kept the service ad-free now helps, because the implosion of advertising expenditure bypasses Netflix. The company sees itself prepared for a global recession: “People tend to stay at home during these times and save on other pleasures,” explained Product Manager Greg Peters.

The stock markets have apparently already priced in a good Netflix result. While the overall market is clearly in the red this year, the Netflix share is a third more expensive than at the beginning of January. After the publication of the record quarterly figures, however, it fell by one percent after the exchange.

Netflix’s cautious forecast may also have contributed to this: “We preferred user growth, so growth will be lower in the third and fourth quarters,” said Hastings.

In the current quarter, the company expects more than $ 6 billion in sales for the first time, but with slower sales growth and only 7.5 million additional subscribers.

More: Amazon, Nvidia and Netflix: Which tech stocks are still worth getting started with.

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Netflix wins significantly more customers than expected due to pandemic

Netflix

A man turns on Netflix: According to the streaming service, 15.8 million paying customers were added worldwide in the first quarter.


(Photo: dpa)

Los Angeles / Bangalore / Los Gatos The coronavirus pandemic brought Netflix significantly more viewers than expected in the first quarter. Worldwide, 15.8 million paying customers were added, said the US company on Tuesday after the market closed. Experts predicted nearly eight million, according to the FactSet research group. It brought it to the end of the quarter Netflix a total of almost 183 million paid memberships.

Netflix said that customer growth and the amount of time spent in front of the screen could decrease with the end of contact restrictions. Nevertheless, the company expects 7.5 million new customers worldwide in the current quarter, almost twice as many as analysts estimate.

Revenue for the quarter rose to $ 5.8 billion from $ 4.5 billion in the prior year period, roughly in line with expert expectations. Net income was 709 million, more than twice the previous quarter.

Netflix shares initially rose more than five percent in after-hours trading, but later turned negative. So far, it has gained more than a third this year. In terms of market value, Netflix was even able to beat its big rival Disney pass by.

More: Ufa boss Nico Hofmann: “We have to do similar things to football”.

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Dow Jones, Nasdaq, S&P 500: Oil price chaos leads to further losses on the US stock exchanges

Oil prices have not yet recovered after the historic crash. This puts pressure on the three most important US indices, they close in the loss zone. .

Short ETF speculation is tricky

Bull and bear on the edge of a crumbling cliff

To bet on price losses on the stock exchanges is only worthwhile in the short term.

(Photo: imago images / Ikon Images)

Equities, oil, gold – a look at the fund balance sheet for the first quarter shows that the bottom line is that investors have lost a lot of money in most asset classes. Investors who bet on falling prices have made money, but these bets are tricky.

So-called short ETFs are one way of speculating on falling prices from indices. These exchange-traded index funds reflect the opposite percentage development of indices.

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