US tariff threats send Hong Kong stock market plummeting + Novo Nordisk secures rights to weight loss and diabetes drugs + Hornbach defies weak consumer sentiment and increases earnings + Bayer is recommended to stop glyphosate sales in the USA + Heidelberg Materials wants to pay more dividends
US tariff threats send Hong Kong stock market plummeting
- Similar to the start of the week, stock markets in East Asia and Australia were mostly little changed on Tuesday.
- The very firm guidance from Wall Street fizzled out.
- In the US, share prices rose sharply on Monday, supported by media reports that the punitive tariffs announced by the Trump administration for the beginning of April will be less drastic than initially announced.
- The planned introduction date of April 2 also no longer appears to be set in stone.
- There is a sharp drop in Hong Kong, with the Hang Seng Index falling by 2 percent.
- Observers point to the US President's announcement to impose punitive tariffs of 25 percent on imports from countries that purchase oil from Venezuela.
- China is one of the countries affected, notes equity strategist Kai Wang from Morningstar.
- Although there is no direct correlation with the Hong Kong stock exchange, he admits, the market reaction could be a kind of "side effect" of the impending risks.
- Other market participants are talking about profit-taking, especially in the technology sector, which had recently benefited from AI fantasies.
- In Shanghai, meanwhile, the Composite Index is up 0.1 percent.
Novo Nordisk $NOVO B (-1.71%)secures rights to weight and diabetes medication
- The Danish pharmaceutical company Novo Nordisk has secured the rights to a potential next-generation weight loss drug for up to 2 billion US dollars.
- According to a statement on Monday, the Danes are paying an initial 200 million dollars (185 million euros) for the rights to the active ingredient UBT251 from the Chinese company United Laboratories.
- This excludes mainland China, Hong Kong, Macau and Taiwan.
- Depending on certain targets and possible sales figures, up to 1.8 billion dollars may be added at a later date.
- UBT251 is said to target three different mechanisms in the fight against obesity, diabetes and other diseases.
- Studies in early test phases are ongoing.
- It may therefore take some time before approval is granted for the various indications.
- The deal strengthens Novo Nordisk's pipeline of novel drugs for the treatment of diabetes and obesity.
- The Danes were the top dog for a long time, but competition in this lucrative business has been increasing rapidly for some time now.
Hornbach $HBH (+0.28%)defies weak consumer sentiment and posts surprisingly strong earnings growth
- The DIY group Hornbach Holding continued to struggle in the past 2024/25 financial year due to its customers' reluctance to spend.
- However, because the management kept costs firmly under control and lower commodity prices also had a favorable effect, the company increased its operating profit surprisingly significantly.
- In the twelve months to the end of February, earnings adjusted for special items (adjusted EBIT) climbed by 6 percent to 270 million euros, the SDax-listed company announced in Bornheim on Tuesday based on preliminary calculations.
- The Group thus exceeded analysts' profit expectations.
- Albrecht Hornbach, CEO of shareholder Hornbach Management AG, expressed his satisfaction.
- "We look back positively on the results of the past financial year", he said according to the press release.
- "Despite subdued consumer sentiment, especially in Germany, we successfully developed our business further.
- We were able to expand our market share in Germany and other important European markets."
- At EUR 6.2 billion, sales in the period under review were only slightly up on the previous year, meaning Hornbach performed in line with the revenue forecast lowered in December.
- As the largest operating subgroup, the DIY store business posted sales growth of 1.2 percent in the past year, while the builders' merchant business suffered losses of a good six percent due to the weak sector economy in Germany.
- The Board of Management will publish further details on the past financial year and its sales and earnings forecasts for the current year 2025/26 on May 21.
For will Bayer $BAYN (-0.41%)recommended a halt to glyphosate sales in the USA
- Due to the ongoing wave of glyphosate lawsuits, Markus Manns, fund manager at Union Investment, is recommending that Bayer stop selling glyphosate in the USA.
- "If there is no progress in the lobbying activities or the legislative proposals, or if the Supreme Court does not deal with the case, then Bayer must urgently consider stopping glyphosate sales in the USA," Manns told the Rheinische Post.
- "The company and its shareholders cannot tolerate any further large waves of lawsuits."
- Manns further emphasized: "The amount of damages in Georgia is astronomically high and a bitter setback for Bayer's litigation strategy.
- However, the amount will probably be significantly reduced by an appellate court."
- A jury in Georgia has just ordered Bayer to pay more than 2 billion US dollars to a man suffering from cancer. (Rheinische Post)
Heidelberg Materials $HEI (-0.77%)wants to pay more dividends
- The building materials group Heidelberg Materials wants to pay out more to its shareholders despite a decline in profits.
- A dividend of 3.30 euros per share is to be paid for 2024, as the DAX-listed company announced in its annual report on Tuesday.
- This is 30 cents more than in the previous year.
- Analysts had estimated an average of 3.25 euros.
- The company had already presented preliminary full-year figures in February and provided an initial outlook for the current year.
- As already announced, the bottom line for 2024 was a net profit attributable to shareholders of just under EUR 1.8 billion, compared to around EUR 1.9 billion in the previous year.
- The management confirmed the profit target for the current year.
- The Executive Board expects adjusted earnings before interest and taxes (EBIT) of 3.25 to 3.55 billion euros for 2025, compared to 3.2 billion euros in the previous year.
Tuesday: Stock market dates, economic data, quarterly figures
- Quarterly figures / Company dates Europe
- 07:00 TAG Immobilien detailed annual results and dividend
- 07:00 Hornbach Holding AG Trading Statement 2024
- 07:30 Jenoptik annual results | Indus Holding Capital Markets Day
- 07:50 Medios annual results
- 11:00 Jenoptik BI-PK
- Without time information: Heidelberg Materials | MTU Aero Engines Annual Report | Tui Capital Markets Day
- Economic data
06:00 EU: Acea, new car registrations, February
08:00 DE: Construction industry, new orders and sales January | Residential real estate prices (house price index) 4Q
10:00 DE: NordLB Norddeutsche Landesbank Girozentrale, annual results
10:00 DE: Ifo Business Climate Index PROGNOSE: 86.6 PREVIOUS: 85.2 Situation assessment PROGNOSE: 85.5 PREVIOUS: 85.0 Business expectations PROGNOSE: 88.0 PREVIOUS: 85.4
11:00 DE: Bundestag, Constituent Session, Berlin
11:30 EU: ECB, allotment of 7-day main refi tender
14:00 HU: Hungary's central bank PROGNOSE: n.a. previous: 6.50%
14:40 US: Fed Governor Kugler, speech on "Economic Landscape and Entrepreneurship"
15:00 BE: Business Climate Index March PROGNOSIS: n.a. previous: -12.3
15:00 US: Consumer Confidence Index March PROGNOSIS: 93.5 previous: 98.3
15:00 US: New Home Sales February FORECAST: +3.0% yoy previous: -10.5% yoy
