IAG

02.10.2024

Middle East escalation drives oil and armaments, airlines weak + Boeing considers billion-euro capital increase

Oil stocks benefited from the news of a possible conflagration in the oil-rich Middle East, as this is associated with the risk of a shortage of the raw material. Chevron $CVX (+0 %) , Exxonmobil $XOM (+0,26 %) and ConocoPhillips $COP (-0,1 %) gained up to 2.4 percent in New York. In Europe Totalenergies $TTE (-0,17 %) and Eni $ENI (-0,22 %) rose by up to 1.4 percent. In times of war, it is also not unusual for arms manufacturers to see share price gains. In the USA, for example Lockheed Martin $LMT (+0,01 %) and RTX $RTX (-0,17 %) recorded gains of around 2.7 percent in some cases, while in Europe Rheinmetall $RHM (+0,28 %) was particularly popular in Europe, with a rise of more than 5 percent. BAE Systems $BA. (-0,25 %) were 3 percent higher.

The situation was different for shares in tourism groups and airlines. For the latter, the risks of higher kerosene prices are increasing. Some travel destinations may also be canceled for the time being and the risk of terrorist attacks is increasing. Investors in Tui $TUI1 (+0,05 %) saw their share price fall by 2.5 percent. For the share price of Lufthansa $LHA (+0,26 %) fell by more than 2 percent. IAG $IAG (-0,25 %) lost 3.9 percent. Shares in US airlines such as American, Delta and United Airlines fell by up to 2.4 percent.

The US aircraft manufacturer Boeing $BA (+0,46 %) is considering a capital increase in the double-digit billion range in its ongoing crisis, according to insiders. The company is considering issuing new shares worth at least 10 billion US dollars (just under 9 billion euros), the Bloomberg news agency reported on Tuesday, citing people familiar with the matter. The fresh money from shareholders is intended to fill the manufacturer's coffers, which are becoming ever emptier as a result of years of ongoing crisis with flight bans and production restrictions as well as the recent strike by tens of thousands of employees. A Boeing spokesperson declined to comment. According to insiders, it is likely to be at least a month before Boeing gets serious about such a capital increase

Economic data, quarterly figures

Stock market holiday in China

ex-dividend of individual stocks

Cisco Systems USD 0.40

Quarterly figures / company dates Europe

07:00 Grenke new business 3Q

09:00 Gea Group Capital Markets Day

No time specified: Totalenergies Investor Day - 2024 Strategy & Outlook

Economic data

• 11:00 EU: Labor market data August Eurozone Unemployment rate Forecast: 6.4% Previous: 6.4%
• 14:15 US: ADP Labor Market Report September Private Sector Employment PROGNOSE: +128,000 jobs previous: +99,000 jobs

Best vs. Worst Investment

Inspired by @SGEJan I took a look at what is my best and worst investment I ever had.

My happiest investment is Super Micro Computers $SMCI , however, I already sold off a large portion of that some time ago. Combined with the ones I still hold, the total return is now 41.5%. I first became aware of SMCI in early 2021.

My worst investment was $IAG (-0,25 %) (International Consolidated Airline Group). I bought IAG during the Corona crisis with the approach that after Corona the airline industry would boom again. Unfortunately, I forgot to factor in the massive layoffs and the resulting complications for the airline market and lost quite a chunk. If only I'd had getquin back then 🤓.

Fortunately, however, I had more SMC than IAG, so the whole thing is good to take.

The format best / worst investment I find exciting, now I nominate @MAXICONRAD & @Boersenape blank myself!

#bestworst
#IAG
#SMCI