The focus at the start of the week is China as the country’s authorities make a renewed attempt to stabilize battered stock markets following recent slumps. Starting Monday, the lending of shares that are not fully transferable and known as “restricted shares” will be prohibited until certain conditions are met. At the same time, a court in Hong Kong has ordered the winding up of the heavily indebted real estate developer China Evergrande Group. Judge Linda Chan emphasized that “enough is enough” and that the company had not offered effective communication or solutions over a period of more than 18 months.
DAX: Record high remains within reach
After the recent rise, the German stock market fell at the beginning of the new trading week. It is believed that some investors realize profits. Corporate quarterly reporting season is starting to pick up steam, especially in the US, where heavyweights such as Microsoft, Meta, Apple, Alphabet and Amazon are set to report their numbers this week. No significant economic data is expected on the market for Monday. Probably the most important date of the week is on Wednesday evening with the meeting of the US Federal Reserve Bank.
The DAX fell by 0.25 percent to 16,918.94 points in the first minutes of trading. On Friday, the German stock market barometer missed the record high of just over 17,000 points by just 36 points, but recorded a weekly gain of around two and a half percent. The MDax fell by 0.81 percent to 25,962.77 points on Monday. The EuroStoxx, the leading index for the euro zone, lost around 0.1 percent
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+1,40 %
+15,41 %
+11,98 %
+23,92 %
+50,99 %
+80,65 %
+2.580,32 %
ISIN:DE0008469008WKN:CG3AA0
Biden fuels AI hype
The US government is expected to announce billions of dollars in subsidies for leading chipmakers such as Intel (INTC) and Taiwan Semiconductor Manufacturing (TSMC) in the coming weeks, according to a media report. The aim of this measure is to support the construction of new factories in the USA. The information comes from industry executives familiar with the negotiations, the Wall Street Journal (WSJ) reported on Saturday. The planned measures are intended to promote the production of advanced semiconductors used in smartphones, artificial intelligence and weapon systems.
Executives expect some of the announcements to come before U.S. President Joe Biden’s State of the Union address on March 7. In addition to Intel and TSMC, Micron Technology (MU), Texas Instruments (TXN) and GlobalFoundries (GFS) are also mentioned as other promising candidates. The U.S. Commerce Department, Intel and TSMC have not yet responded to a Reuters request for comment.
Reddit plans to go public
Reddit is moving forward with its plans for an IPO. The well-known American internet forum had already confidentially submitted an application for an IPO to the US Securities and Exchange Commission in December 2021. At that time, however, Reddit missed the opportunity to list on the stock exchange and temporarily suspended its plans. Now the IPO plans are being activated again, also due to the interests of venture capital investors looking for an exit. In the 2021 financing round, Reddit was valued at around $10 billion.
On Monday night it was announced that Reddit is now aiming to go public in the first quarter and is aiming for a market capitalization of just $5 billion. This represents a halving compared to the previous peak, but it still provides an exit that opens up the possibility of finding broader funding base. Reddit generates primarily advertising revenue, which is projected to reach more than $800 million in 2023.
Bayer: And the marmot greets you again
US jurors have sentenced Bayer, the agricultural chemicals and pharmaceutical company, to pay a record $2.2 billion in damages in trials involving weed killers containing glyphosate. The Philadelphia plaintiff, who has cancer and used Roundup both professionally as a landscaper and personally, received $250 million in compensation for losses and $2 billion in compensatory damages.
Bayer plans to appeal and criticizes the verdict for contradicting scientific findings and official assessments. The total of $2.2 billion is made up of two parts, as Bloomberg reported from the courtroom. Bayer emphasized in its statement that in previous lawsuits the total damages had been reduced by more than 90 percent and that the company was successful in court in 10 of the most recent 16 cases.
On appeal, Bayer’s damages will certainly be reduced. However, the age-old story that Bayer is convinced of the safety of glyphosate is no longer valid. In Leverkusen, the board of directors has to get the problem under control so that the shares can get back into calmer waters.
However, Bill Anderson remains silent on the topic and also on the restructuring of Bayer. He doesn’t want to reveal the big secret about Bayer’s future until the beginning of March. Until then, investors should stay away from the stock.
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ISIN:DE000BAY0017WKN:BAY001
BARCLAYS RAISES PROSIBENSAT.1 TO ‘OVERWEIGHT’ (EQUAL WEIGHT)
BARCLAYS RAISES PROSIEBENSAT.1 TARGET TO EUR 8.00 (6.50).
BARCLAYS LOWERS STRÖER TO ‘EQUAL WEIGHT’ (OVERWEIGHT) – TARGET EUR 60
BARCLAYS LOWERS TARGET FOR RWE TO EUR 50 (55) – ‘OVERWEIGHT’
CITIGROUP RAISES HENSOLDT TO ‘BUY’ (NEUTRAL) – TARGET EUR 37.70 (37.30).
DEUTSCHE BANK RESEARCH RAISES TARGET FOR SCHOTT PHARMA TO EUR 38 (36) – ‘BUY’
GOLDMAN LOWERS TARGET FOR RWE TO EUR 48.00 (53.50) – ‘BUY’
HAUCKAUHÄUSER IB RAISES FRIEDRICH VORWERK TO ‘BUY’ (HOLD) TARGET OF EUR 20 (12.40).
HAUCK Aufhäuser IB RAISES TARGET FOR GFT TECHNOLOGIES TO EUR 48 (41) – ‘BUY’
HAUCK Aufhäuser IB RAISES TARGET FOR JOST WERKE TO 88 (83) EUR – ‘BUY’
HAUCK Aufhäuser IB LOWERS TARGET FOR ADIDAS TO 95 (100) EUR – ‘SELL’
JEFFERIES RAISES TARGET FOR DWS TO EUR 41 (39) – ‘BUY’
JPMORGAN RAISES TARGET FOR SARTORIUS TO EUR 365 (315) – ‘OVERWEIGHT’
CITIGROUP LOWERS TARGET FOR DELIVERY HERO TO EUR 38 (39) – ‘BUY’
Markus Weingran, stock expert wallstreetONLINE Börsenlounge
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