• Coronavirus infection rates continue to accelerate above historical highs.
• European stocks turn positive
• VW's (VOW3.DE) management sees no need for more cost cuts
• European stocks turn positive
• VW's (VOW3.DE) management sees no need for more cost cuts
Major European indices managed to erase earlier losses and are trading higher as investors digest latest coronavirus figures. Yesterday US officials reported 62,751 new cases of COVID-19, setting yet another record in a summertime surge that has swept across much of the South and West. Globally, record number of 227,000 new cases have been reported on Thursday. Moods improved after Italy's industrial production in May soared 42.1%, while France also saw production rebounded strongly. The U.K. has announced it will allow for re-openings of gyms, tattoo parlors, and swimming pools. Meantime, European Council President Michel is due to propose a smaller 2021-27 EU budget than previously envisaged. On the Brexit front, EU chief negotiator Michel Barnier said that “significant divergences” remained between the EU and the UK after days of talks with his counterpart David Frost raising concerns about Brexit negotiations. Investors will begin to hear how companies have been holding up during Covid-19, with next week marking the start of second-quarter earnings season.
DAX (DE30) launched today’s session lower and broke below upward trendline. Should downbeat moods prevail, support at 12 000 pts may come into play. On the other hand, breaking above the trendline will invalidate the bearish scenario and 12980 pts would be the first resistance to look for. Source: xStation5
DAX members at 10:10 am BST. Source: BloombergDeutsche Post (DPW.DE) - company's preliminary quarterly pretax profit jumped 16% to 890 million euros ($1 billion), compared to 769 million euros ($868 million) for the same period last year. "Our fundamental strength and resilience as a group has paid off in recent months," company's CEO Frank Appel said in a statement. "With our broad portfolio of leading logistics services, we have the right business model to form the backbone of global trade."
Deutsche Bank DB (DBK.DE) and The Bank of New York Mellon Corporation BK jointly developed a new foreign-exchange (FX) solution enabled by application programming interface (API). This solution aims to reduce the confirmation times for restricted emerging-market currency trades.The digital solution will also reduce the pre-trade time in emerging-market custody FX considerably, along with lowering operational burden and manual intervention.
Siemens AG (SIE.DE) CEO Joe Kaeser told Bloomberg, that proposed spinoff of an energy business is the best way to refocus and boost the company's share price. Kaeser is expecting that investors will back the idea of separation of Siemens Energy, which makes turbines for power plants and wind farms.
Volkswagen's (VOW3.DE) labour chief Bernd Osterloh told analysts and investors during a roadshow that the carmaker does not see a need for deeper cost cuts in Germany. Existing cost reduction measures, agreed in 2016, will be enough to help the company to overcome the coronavirus crisis, Osterloh said.
Volkswagen's (VOW3.DE) price is testing upward trendline. As long as the price sits above it, continuation of a upward trend seems more probable. The nearest resistance to watch lies at €152.32per share, which is additionally strengthened by 200 MA (redline). However should a break below the trendline occur, downward move may accelerate toward € 115.51 per share. Source: xStation5Yesterday German state prosecutors announced that are investigating individuals at Wirecard (WDI.DE) for suspected money laundering, adding to probes into alleged fraud, balance falsification and market manipulation at the collapsed firm. According to The Irish Times, company's offices in Dublin had been raided by police at the request of German authorities.
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