Morning compact: Today with Volkswagen, Drägerwerk and Software AG – 07/15/22

Morning compact: Today with Volkswagen, Drägerwerk and Software AG – 07/15/22

The most important news of the day in a quick summary. Today with Volkswagen, Drägerwerk and Software AG

UNIPER – There has been no success yet in the fight for the future of Germany’s largest gas importer. “So far, no decisions have been made,” said Fortum, the main shareholder of Uniper, in which the Finnish state also has a stake. Finland’s Europe Minister Tytti Tuppurainen had previously spoken with German government officials in Berlin, and also held talks with Fortum. Tuppurainen, like Fortum, insists on a quick solution. Uniper has asked the federal government for help in the gas crisis. It is unclear how the Finnish government and Fortum will be held accountable.

CHINA – China’s economic growth slowed sharply in the second quarter, coming in at 0.4 percent year-on-year, below expectations. According to official statistics, the national income decreased by 2.6 percent in the second quarter compared to the previous quarter. Experts had predicted a decline of only 1.5 percent. In the first half of the year, the GDP grew by 2.5 percent. So it was below the growth of around 5.5 percent targeted by the government for this year.

BMW – From 2025, the car manufacturer wants to change its model range to a new generation of electric cars with the “New Class”. “To begin with, we are planning a small sedan in the 3-seater segment and a corresponding sports SUV,” CEO Oliver Zipse said to “Handelsblatt”. “These are very high volume components at the core of the BMW brand.” The new technical architecture is intended to fundamentally change the model range. “We are planning a rapid rollout with other models. This means that the new class will already provide more than half of our sales by the end of the decade,” said Zipse.

VOLKSWAGEN – In the long term, the Wolfsburg car group does not want to finance the development of its cell production, which will be merged into the new PowerCo subsidiary, on its own. “Financial investors can be added from next year,” VW CFO Arno Antlitz told “Handelsblatt”. There are already initial inquiries from potential investors. In another step, the battery subsidiary may at least be listed on the stock market. However, this is a consideration that will not be implemented until 2024 at the earliest or even later.

SOFTWARE AG has lowered its annual forecast for bookings in the Digital Business category. An adjusted currency increase of twelve to 18 percent compared to the previous year is now expected here instead of the previous 15 to 25 percent, as the company announced. “The reasons for this are weaker than expected digital business bookings in the second quarter and the first signs that customers are delaying their decisions due to the changing macroeconomic environment.” The full-year outlook for gross product sales and operating profit margin is unchanged.

Despite the difficult half of the year, DRÄGERWERK expects a significant recovery in the second half of the year. The medical technology maker confirmed its full-year forecast for 2022. There will be a decline in adjusted sales of between five and nine percent. According to preliminary figures, sales in the first half of the year fell to around 1.3 billion euros, 22.2 percent less than the figure of the previous year.

AXA – A few weeks after Zurich French insurer AXA is also selling part of its old life insurance and pension policies in Germany to the liquidator. A package worth 16 billion euros is going to Athora Life of Wiesbaden for 660 million euros, as AXA announced. With sales, the French are pursuing the goal of making their life insurance business less dependent on financial market risks.

PINTEREST – According to the newspaper, activist investor Elliott has acquired a stake of more than nine percent in the online photo platform. Talks between the two sides were also ongoing, the Wall Street Journal reported. Pinterest shares are up 24 percent in after-hours trading. Information from the online group was previously unavailable.

GROUP OF PARTNERS – In the first half of the year, the Swiss financial investor received investment commitments from clients totaling 13.1 billion dollars (prior year period: 12.1 billion dollars). Total assets under management were $130.6 billion at the end of June. The Partners Group reiterated its full-year guidance and continues to expect commitments of between $22 billion and $26 billion in 2022.

FED/POWELL – Federal Reserve Chairman Jerome Powell’s securities operations did not violate any laws or break any laws, according to authorities. The Office of the Inspector General also gave former Fed Vice President Richard Clarida a clean record. However, Clarida failed, among other things, to declare various business activities through the disclosure required for this. A financial advisor to the Powell family also traded during the FOMC meeting when trading was prohibited. The report, which has now been published, examines the central bank’s activities from 2019 to 2021. It is the result of a nine-month investigation by an independent authority.

ECB – The European Central Bank (ECB) wants to review its economic models for forecasting inflation in order to be able to present more accurate forecasts of price developments in the future. A spokesman for the ECB said to “Bild”: “We are working with the national central banks of the euro area to adjust and improve forecasts during times of great uncertainty.” The ECB, like other economists, underestimated the current rate of inflation, a spokesman admitted. The ECB has been under fire for months due to high inflation rates in eurozone countries. The fault is that it recognized the wave of inflation too late.

OIL/SAUDI ARABIA – The world’s largest oil exporter, Saudi Arabia, more than doubled its imports of oil for power generation from Russia in the second quarter. According to the Reuters news agency, citing Refinitiv data, 647,000 tons of oil reached the Kingdom through Russian and Estonian ports from April to June. This equates to 48,000 barrels (159 liters) per day (bpd). In the same period last year, the amount was 320,000 tons. Saudi Arabia uses imported oil to generate electricity and can then export its crude oil. Large amounts of electricity are needed for cooling in the hot summer months.