Bundeskartellamt gives Unicredit the green light for Commerzbank investment

The German Federal Cartel Office has given Unicredit $UCG (-1,52%) a stake of up to 29.99 percent in Commerzbank. $CBK in Commerzbank. This decision is a turning point for the Milan-based bank, which wants to significantly expand its presence in the private and corporate customer business in Germany. The head of the Cartel Office, Andreas Mundt, stated that there are sufficient competitors to secure market access. Unicredit CEO Andrea Orcel has been pursuing the takeover of Commerzbank for some time and already has 28 percent of the shares in her pocket, 9.5 percent of which is directly through shares and 18.5 percent through financial instruments. A 30 percent stake would oblige Unicredit to submit an official purchase offer. However, a final decision on the merger is not expected until next year, as Orcel is currently in talks with the new German government to clarify the next steps.

US investors optimistic despite customs unrest

In the USA, investors on Wall Street are optimistic at the start of the week in view of the latest tariff exemptions. The Dow Jones rose by 0.8 percent, while the technology-oriented Nasdaq gained 0.6 percent. Investors are confident that electronic devices such as smartphones and computers will be spared from the new tariffs. President Donald Trump has announced that he will soon publish details of the tariffs on semiconductors, which is causing excitement. These uncertainties are also reflected in the currency market, where the dollar index fell by 0.3%. Tech stocks in particular, such as Apple $AAPL (+1,76%) and HP $HPQ (-2,07%) in particular were able to benefit from the tariff exemptions and recorded positive price movements. Apple rose by 2.2 percent, indicating possible relief in prices for consumer goods.

Sources:

https://www.n-tv.de/wirtschaft/Unicredit-kommt-Ubernahme-von-Commerzbank-naeher-article25703117.html

https://www.n-tv.de/wirtschaft/US-Anleger-wagen-sich-aus-der-Deckung-article25704622.html

Slump in the DAX: investors are seeing red

There is a great deal of uncertainty on the stock markets at the moment, and this is being further fueled by US President Trump's aggressive tariff policy. On the last trading day of the week, investors have to accept massive losses in the Dax. Of the 40 companies listed in the leading German index, only two shares were able to record a positive closing price. The remaining 38 stocks experienced double-digit declines in some cases. Deutsche Bank was particularly affected $DBK (+0,67%)which fell by 9.77 percent, and MTU Aero Engines $MTX (-0,04%)whose shares fell by 8.11 percent. Deutsche Börse, Infineon $IFX (+1,5%) and Siemens Energy $SIE (+1,48%) also suffered losses of more than 7 percent. The Dax itself closed 4.95 percent lower at 20,641.72 points.

Trade war continues to weigh on the markets

Pressure on the markets remains high as uncertainty over trade relations between the USA and China persists. China's announcement that it would impose counter-tariffs on US goods has heightened fears of a full-scale trade war. At times on Friday, the Dax fell by up to 5.6 percent to 20,579 points. The MDax and EuroStoxx50 also suffered significant losses. There were significant declines in the banking sector in particular, which is heavily dependent on economic developments. Deutsche Bank and Commerzbank $CBK recorded losses of up to 12.1 and 9.3 percent respectively. Volatility on the markets is likely to remain high as long as the uncertainty surrounding customs policy persists.

Slight stability at Adidas and Beiersdorf

Despite the general downward trend, there were also some bright spots in the Dax. The shares of Adidas $ADS (+1,05%) were able to maintain their position as the lone frontrunner with a plus of 0.54 percent. Symrise $SY1 (+0,38%) and Beiersdorf $BEI (+0,04%) also remained relatively stable, with Symrise recording a minimal gain of 0.01%, while Beiersdorf fell by 0.37%. Investors are hoping that the negative spiral of tariffs and counter-tariffs can be halted through negotiations, but the uncertainties remain and could continue to weigh on the markets.

Sources:

https://www.n-tv.de/wirtschaft/Das-sind-die-groessten-Verlierer-im-Dax-article25682125.html

https://www.n-tv.de/wirtschaft/Dax-schmiert-ab-US-Zoelle-China-Zoelle-und-jetzt-article25681044.html