As every Sunday, the most important news from the past week, as well as the most important dates for the coming week.
Also as a video:
https://youtube.com/shorts/qddXVLwZJxA?si=fuYDrtqdo6eoQnvb
Monday:
After various announcements, China is apparently getting serious and actually changing its monetary policy, for the first time in 14 years. The central bank is to pursue a looser monetary policy, meaning interest rate cuts to stimulate the economy. Stocks in China and luxury companies are also benefiting from the news.
$CON (-0.02%) Continental is following the path of many suppliers. The tire business (which has a promising future) is being spun off from the traditional supplier business. In this way, Continental is ensuring that the company will survive the end of the combustion engine.
Tuesday:
The company $TMV (-2.93%) Teamviewer is under pressure following the purchase of London-based software specialists 1E. Teamviewer is buying 1E for around 720 million euros, which would be the largest acquisition in the history of the Göppingen-based company. Products from 1E can probably detect and rectify software problems at an early stage. Well-known customers include Adidas, Nike and AT&T.
Inflation in Germany remains above the ECB's 2% target for the time being. According to the HICP, inflation in November was 2.2% compared to the previous year.
Wednesday:
$ZAL (-0.7%) Zalando buys its direct competitor $YOU (+0.31%) About You for 1.1 billion euros. The reason for the consolidation is the growing competition from China, e.g. Shein and Temu. Zalando pays a hefty premium of 65% on the last stock market price.
The Bank of Canada cuts its key interest rate by half a percentage point. This major cut in the prime rate was expected by most experts. The reason for this was poor labor market
Thursday:
The Kiel Institute for the World Economy also expects 0% growth in Germany in 2025. Stefan Kooth, economist and Head of the Forecasting Center at the IfW, is calling for a move away from interventionism in economic policy and for better framework conditions instead. In this context, he takes a positive view of the idea of more Musk and Milei.
The ECB cuts the deposit rate again to 3.0%. This is the fourth rate cut we have seen this year.
https://www.n-tv.de/wirtschaft/EZB-schraubt-Zinsen-weiter-nach-unten-article25428364.html
Most important dates in the coming week:
Monday: 9:30 Purchasing Managers' Index (DE)
Wednesday: 20:00 Interest rate decision (USA)
Thursday: 14:30 Economic data (USA)
What other important dates can you think of?