• UK reaches tentative trade agreement with Japan
• Number of new COVID-19 cases continues to surge across Europe
• Volkswagen's (VOW3.DE) introduces a restructuring plan
• Number of new COVID-19 cases continues to surge across Europe
• Volkswagen's (VOW3.DE) introduces a restructuring plan
European indices are trading mostly lower on Friday as tense Brexit negotiations and surging COVID-19 cases weighed on market sentiment. The EU urged the UK to back down on plans to override the Withdrawal Agreement "by the end of the month" or risk jeopardising trade talks. Meanwhile UK reached an agreement with Japan regarding trade deal, thanks to which British businesses would benefit from tariff-free trade with Japan. The tentative agreement still have to be approved by the governments of both countries and is scheduled to come into the force at the end of the year. Yesterday France reported record number of 9843 new COVID-19 cases while Spain recorded 10,764 new daily cases, the highest figure since the start of the pandemic. Meanwhile ECB chief economist Philip Lane warned that the deflationary impact of the Covid-inspired recession has not been banished. "Inflation remains far below the aim and there has been only partial progress in combating the negative impact of the pandemic on projected inflation dynamics," "It should be abundantly clear that there is no room for complacency.” Lane said in a blog post. On the data front, German consumer prices declined in August for the second consecutive month, confirming preliminary data; while UK monthly GDP and industrial production readings showed that economy is slowly recovering from the pandemic. Meanwhile consumer prices in Spain fell for a fifth straight month in August, while industrial production data came slightly above analysts' expectations, pointing to a much smaller downturn in July.
DE30 recently bounced off the upper limit of triangle pattern located at 13300 pts. However, buyers are showing some activity during today's session. If the bulls manage to break above this level, then the next resistance at 13,570 pts could be tested. On the other hand if sellers manage to take control on the market, the downward impulse towards lower limit of the formation is possible. Source: xStation5
Bayer (BAYN.DE) signed a strategic collaboration agreement with Recursion Pharmaceuticals, Inc., a digital biology company industrializing drug discovery for the treatment of fibrotic diseases. According to Bayer, the collaboration with Recursion will enable the former to discover small molecule drug candidates targeting novel biology for the treatment of fibrotic diseases and the portfolio will complement its expertise in cardiovascular research with digital technologies.
Henkel (HEN3.DE), a leading manufacturer of well-known beauty care and hair products will invest $23 million in its North American manufacturing facilities. This major investment will provide new equipment and a series of improvements that will support additional production of Dial® liquid hand soap and hand sanitizers.
Volkswagen's (VOW3.DE) truckmaking unit MAN is planning to implement a restructuring plan in order to improve earnings and finance investment in new vehicles. The restructuring plan would include the closure of three factories and a reduction of employment by around 9500 jobs, while company's operating result is expected to jump by 1.8 billion euros ($2.1 billion).
Volkswagen (VOW3.DE) stock managed to broke above the 200 MA (red line ) this week. Should upbeat moods prevail, resistance at €160.84 may come into play. The nearest support lies at the upward trendline. Source: xStation5This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
