18.09.2024

FED interest rate cut today + Tenders for onshore wind power pick up + Daimler Truck, weak demand in Europe + Tupperware files for bankruptcy in the US

The US Federal Reserve is expected to announce its interest rate turnaround this Wednesday. The tension is high. After all, it is still unclear how much it will cut key interest rates. According to a survey by the Bloomberg news agency, a majority of economists surveyed expect the interest rate spread to be reduced by 0.25 percentage points to between 5.0 and 5.25 percent. However, there are also a number of economists who believe a larger interest rate cut of 0.50 percentage points is likely. There has recently been increasing speculation on the financial markets about a larger interest rate hike. The US Federal Reserve has been holding on to the current interest rate for 14 months. Previously, it had quickly raised key interest rates in the fight against high inflation. A rate cut is now considered a foregone conclusion. After all, the inflation rate has been trending downwards in recent months and stood at 2.5 percent in August.

What do you think we can expect tonight? 0.25% or 0.5%. Will the market be disappointed by 0.25%, as 0.5% was expected? It remains exciting.

$NDX1 (-0.04%) In the tenders for onshore wind turbines the Federal Network Agency has once again set a new record. On August 1, 230 bids with a volume of 2,723 megawatts were awarded, the agency announced. The tender was oversubscribed for the first time since February 2022, meaning that one bid was not accepted. The tender was for 2,709 megawatts. "This tender is a record. The volume of bids in this round is higher than ever before: the bid volume of almost 3 gigawatts significantly exceeds the volume of 2.5 gigawatts required to achieve the annual expansion target," said the President of the Federal Network Agency, Klaus Müller.

Daimler Truck $DTG (-4.27%) is trying to cushion the weak demand for trucks in Europe, especially in Germany. "We are putting the brakes on costs in order to keep profitability at an acceptable level this year. For example, we imposed a spending freeze at the beginning of August," said CFO Eva Scherer. All costs that do not lead to sales, such as travel and events, are being reduced. "We are also avoiding new hires and replacing employees if it is not absolutely necessary." (Börsen-Zeitung)

The fresh food can specialist Tupperware $TUP has filed for bankruptcy in the USA after years of problems. At the same time, the company is seeking a sale and wants to continue operating. Proceedings under Chapter 11 of the US Bankruptcy Code protect the company from the claims of its creditors. Tupperware, a pioneer in household food containers, has been struggling with economic difficulties for some time. In recent months, negotiations have been underway with creditors, to whom Tupperware owes several hundred million dollars. A sale is now intended to protect the brand, according to a press release. At the same time, the aim is to drive forward the transformation into a primarily technology-based company.

Wednesday: Stock market dates, economic data, quarterly figures

Stock exchange holiday in Hong Kong and South Korea

ex-dividend of individual stocks

Salesforce USD 0.40

Quarterly figures / company dates USA / Asia

09:30 Alphabet Inc (Google Holding): EuG ruling on market abuse in online advertising

18:00 T-Mobile US Capital Markets Day

Economic data

• 08:00 DE: Manufacturing orders on hand and backlog July FORECAST: n/a previous: -0.2% yoy | Building Permits July
• 08:00 UK: Producer prices August output basis PROGNOSE: +0.0% yoy/+0.5% yoy previously: 0.0% yoy/+0.8% yoy | Consumer prices August PROGNOSE: +0.3% yoy/+2.2%
• 11:00 EU: August Eurozone consumer prices FORECAST: +0.2% yoy/+2.2% yoy PREVIEW: +0.2% yoy/+2.2% yoy PREVIEW: 0.0% yoy/+2.6% yoy Core (excl. energy, food, alcohol, tobacco) FORECAST: +0.3% yoy/+2.8% yoy PREVIEW: +0.3% yoy/+2.8% yoy PREVIEW: -0.2% yoy/+2.9% yoy
• 14:30 US: Housing starts/permits August housing starts FORECAST: +5.8% yoy previous: -6.8% yoy Building Permits FORECAST: +1.0% yoy previous: -4.0% yoy
• 20:00 US: Fed, outcome of FOMC meeting Fed funds target rate FORECAST: 5.00% to 5.25% previously: 5.25% to 5.50%
• 20:30 US: Press conference with Fed Chairman Powell