|Bid||0.00 x 3500|
|Ask||142.85 x 14200|
|Day's range||142.40 - 143.70|
|52-week range||102.40 - 145.95|
|Beta (3Y monthly)||0.08|
|PE ratio (TTM)||28.97|
|Earnings date||28 Oct 2019|
|Forward dividend & yield||2.70 (1.90%)|
|1y target est||119.75|
Today I will take a look at Deutsche Börse AG's (XTRA:DB1) most recent earnings update (30 June 2019) and compare...
Global exchanges urged Britain's markets watchdog on Monday not to ban retail sales of derivatives linked to crypto assets such as bitcoin, saying they were well equipped to protect consumers trading on their platforms. Crypto assets have attracted considerable consumer interest in some cases, holding out the prospect of lucrative new business activity for market participants. Britain's Financial Conduct Authority (FCA) said in July that derivatives and exchange traded notes referencing certain crypto assets were ill-suited to retail consumers who cannot realiably assess value and risks.
Cboe Europe's new share trading hub, which launched in Amsterdam on Tuesday, has attracted light trading so far, giving nervous regulators and policymakers in Britain few clues on how much activity will eventually leave London after Brexit. Faced with the possibility of a no-deal Brexit or patchy UK access to the European Union's financial markets in future, London-based pan-European Cboe built a Dutch hub to ensure continuity for EU clients. Volume in Amsterdam has been tiny.
(Bloomberg) -- European Union regulations may have made analyst research costlier for investors, but Warsaw’s stock exchange is trying to ease the pain. It has started paying brokerages to write reports and distributing these free to its members.A dozen Polish brokerages are being paid 50,000 zloty ($12,500) to cover a single company under a program that has generated reports on about 40 mid-sized companies selected by the bourse. The exchange operator requires the research to continue for two years with the reports regularly updated.Central Europe’s largest exchange, with 460 companies traded on its main board, wants the initiative to boost the profile of smaller companies at greater risk of being overlooked after the EU’s MiFID II regulations put a separate price on research. It’s also a bid to counter growing dominance from larger-scale and more tech-savvy foreign investment firms who skip local intermediaries when placing stock orders.MiFID II has given impetus to the business in Europe of companies paying financial firms to write reports about them in an attempt to stay on investors’ radars. That’s prompted some concerns that analysts may be reluctant to express negative views about a company or set a sell recommendation when its paying them for their work.Research sponsored by a stock exchange instead may hold the attraction of avoiding any potential conflict of interest, said Michal Stalmach, a money manager at Skarbiec TFI SA asset management, who describes the Warsaw exchange’s program as a “clearly positive” initiative.Company Scrutiny“It’s not companies, but the bourse who is paying for these reports, and they are written by specialized analysts intent on retaining their credibility,” said Stalmach. “Any initially optimistic approach toward a stock may derive from the very low valuations in the mid and small cap-segment. Besides, we expect analysts will scrutinize companies’ strategic performance in updates of their reports.”Euronext NV and Deutsche Boerse AG are among western European exchanges offering smaller companies support through subsidizing their access to investor services. The Warsaw operator, confronted by a dearth of initial public offerings and a drop in liquidity in recent years, is taking more direct action as it seeks to revive Poland’s glory days of investor participation during the wave of privatizations in 2006-2012.“We are seeing an increase in interest in covered companies, which may translate in the future into higher liquidity,” Izabela Olszewska, the exchange’s deputy chief executive officer, said in an emailed response to questions. “Still, we have to wait for the program’s long-term effect, especially as we are after more fundamental coverage and not just technical trade recommendations.”Ten companies targeted by the program are being followed by analysts for the first time, while 12 others previously had just a single analyst watching their stock, according to the exchange.Saving JobsThe Budapest Stock Exchange started a similar effort involving five brokerages in 2017, and reported a 20% increase in trading volumes for the covered stocks in the two years since, compared with a rise of 2.4% in the overall market. The operator, which has extended its program into 2021, won’t say how much it pays for the research reports.In Poland, the move came as a relief during a drought of public offerings and falling volumes. “The bourse’s initiative and the fees they’re offering have helped us to maintain our analytical staffing headcount, despite slowing business,” said Radoslaw Olszewski, head of the brokerage at BOS Bank, which has enrolled in the plan. “Trading volumes increased in recent months for the companies we cover. If this continues, it will confirm that companies are benefiting from the boost to their visibility.”\--With assistance from Veronika Gulyas.To contact the reporter on this story: Konrad Krasuski in Warsaw at firstname.lastname@example.orgTo contact the editors responsible for this story: Blaise Robinson at email@example.com, John Viljoen, Celeste PerriFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The European Union could speed up efforts to build an EU-wide capital market by creating euro denominated benchmarks for trading commodities, a new group backed by financial companies, former politicians and central bankers said on Friday. The EU launched its capital markets union (CMU) project in 2014 to encourage more companies to raise funds by issuing stocks and bonds to cut the region's reliance on bank loans. In the EU, companies are still heavy users of banks to get cash unlike in the United States where firms routinely tap the country's vast capital market to raise money by selling bonds or shares.
The pricing of stock market data could be more transparent but no "substantive" changes were needed by European Union regulators, London Stock Exchange Chief Executive David Schwimmer said on Tuesday. The price of market data has become a battle ground between exchanges, who generate data, and investment managers and brokers who need the data to meet a requirement to demonstrate they are getting the best deals for their customers. The EU's markets watchdog, the European Securities and Markets Authority (ESMA), is due to recommend later in the year whether the bloc's executive should mandate a single feed for stock market prices, which could impact the level of prices charged by exchanges to make it commercially viable.
Britain should avoid regulations which allow arbitrage opportunities in the trading of euro denominated swaps after Brexit, France's top market regulator warned on Thursday. The European Union is seeking to build up its own capital markets and reduce its reliance on London. The clash over where euro-denominated securities should be traded and cleared echoes the stand-off between regulators over trading of euro-denominated shares inside the bloc if there is a no-deal Brexit.
A British investment banker at the center of Germany's biggest fraud trial told judges on Thursday he earned millions of euros from deals involving "astronomical" trades that prosecutors say were a means to make bogus tax reclaims. Martin Shields, a former investment banker, said the trading, known as cum ex, thrived between 2005 and 2012, as investors from around the globe made multi-billion-euro trades on German companies. The trial where Shields is giving detailed evidence is the first in a wider investigation aimed at recovering billions from banks which prosecutors believe profited from the trades.
A banker at the center of a trading scheme German prosecutors say resulted in hundreds of millions of euros of illegitimate tax rebates told a court the scheme had taken on an "industrial scale" involving a network of banks and other institutions. Martin Shields, a former investment banker, said that a web of banks, investors and brokers had organized the circular trades, making multiple tax reclaims and sharing the profit. "I am not before you to deny my involvement, but to explain it," Shields told the court in Bonn on Wednesday.
A banker at the centre of a trading scheme German prosecutors say resulted in hundreds of millions of euros of illegitimate tax rebates told a court the scheme had taken on an "industrial scale" involving a network of banks and other institutions. Martin Shields, a former investment banker, said that a web of banks, investors and brokers had organised the circular trades, making multiple tax reclaims and sharing the profit. "I am not before you to deny my involvement, but to explain it," Shields told the court in Bonn on Wednesday.
(Bloomberg Opinion) -- The audacious bid by Hong Kong’s stock exchange for its London rival is likely to fail – and that’s no bad thing.Hong Kong Exchanges & Clearing Ltd.’s unexpected $36.6 billion offer for London Stock Exchange Group Plc would create one of the world’s largest trading hubs. The cash-rich, equities-focused HKEX would gain an edge in fixed-income trading, but in a world where algos and bots handle much of the action, the bidder would do better to take a page from LSE’s playbook and look for bigger data sources. Hong Kong Exchanges calls its plan to create an Asian-European giant that’s open 18 hours a day a "vote of confidence in London and the United Kingdom’s future role as a global financial center” at a time that Brexit paralysis is clouding the outlook. The move also shows belief that, despite the recent protests, Hong Kong can still produce world-stage firms.The more than 300-year-old London exchange has a lot going for it, including fixed-income heft and the FTSE Russell portfolio of index benchmarks used by institutional investors. The offer values LSE shares at 8,361 pence (about $103), around 42 times 2019 earnings, according to Citigroup Inc. analysts, much higher than the London bourse’s historical average price-earnings multiple of 22 times. But Hong Kong Exchanges’ offer would scupper LSE’s own bid for data provider Refinitiv, a deal that LSE shareholders like as shown by its soaring share price. They, and politics, may stand in HKEX’s way. U.K. regulators will have a tough time accepting the takeover of a British institution by a Hong Kong company. Given the impact to global financial markets and the popularity among exchange-traded funds of the FTSE Russell indexes, U.S. regulators may also weigh in. HKEX Chief Executive Charles Li can argue that his firm is already a global company, having acquired the London Metal Exchange in 2012, but it remains a foundation stone of Hong Kong. The city’s government owns just 5.9% but appoints the majority of the directors. Exchange mergers are sensitive propositions anywhere. The LSE has been a frequent target and was in the sights of Germany’s Deutsche Boerse AG three years ago until Brussels blocked the deal. In the Asia-Pacific region, Singapore Exchange Ltd.’s 2011 bid for ASX Ltd. was rejected by Australian regulators on national-interest concerns.There are also questions over HKEX’s deal-making prowess. HKEX acquired the LME, the world’s biggest venue for trading base metals like aluminum, at the top of the commodities cycle. It promised LME members that it would have a warehouse in China from which to access the country’s massive metals market. Seven years later and it doesn’t, as Chinese authorities seek to protect homegrown commodities entities, including the Shanghai Futures Exchange and the Dalian Commodities Exchange.There is no doubt that HKEX needs to diversify. Volumes on the exchange have slumped and it has fallen off its perch as the world’s top IPO venue last year.Stock exchange businesses reliant on volatile volumes are increasingly passe in a world of computerized trading. With little overlap with LSE, Hong Kong Exchanges can’t count on simply cutting costs. The key to growth for exchanges is in the data that fixed-income, currency, and equities traders need and the analytical tools that deliver it to them. That’s why LSE has pursued Refinitiv. HKEX has depended on a strategy of being the gateway to China through its stock and bond trading links. The value of that role is diminishing as the country opens direct access to markets, removing quotas Tuesday on purchases by global funds. Wanting to go beyond Hong Kong to create a global powerhouse is understandable. Doing so with another market grappling with its own political crisis and uncertain future post-Brexit is less so. Li likened the Hong Kong exchange’s unsolicited takeover of LSE to a “corporate Romeo and Juliet.”He missed the point on how that story ended.To contact the author of this story: Nisha Gopalan at firstname.lastname@example.orgTo contact the editor responsible for this story: Patrick McDowell at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Nisha Gopalan is a Bloomberg Opinion columnist covering deals and banking. She previously worked for the Wall Street Journal and Dow Jones as an editor and a reporter.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Deutsche Boerse's Eurex Clearing arm said on Monday it was scrapping booking fees for customers that want to switch clearing in over-the-counter derivatives to the Frankfurt operator before Britain leaves the European Union. Most euro-denominated derivatives traded off-exchange, such as interest rate swaps, are cleared by the London Stock Exchange's LCH unit. "The incentive program of Eurex Clearing provides for a 100% discount on booking fees for portfolio switches in over-the-counter interest rate derivatives to Eurex Clearing until end of 2019," Eurex said in a statement.
The Bank of England has less firepower at its disposal than it did before past recessions, but new ideas for firing up the economy in a downturn need to be handled carefully, BoE policymaker Gertjan Vlieghe said on Monday. Speaking about a think-tank report which said Brexit and the global slowdown meant Britain faced the biggest recession risk since the 2008-09 global financial, Vlieghe said it was prudent to think about what to do to see off an economic shock.
Thyssenkrupp AG will drop out of Germany's benchmark stock index this month, the stock market operator said, the latest setback for the ailing conglomerate's turnaround efforts. Thyssenkrupp will leave the DAX on Sept. 23 and will be replaced by aircraft engine maker MTU Aero Engines AG , making it the second founding member to exit the 30-member index in the past 12 months. Hit by four profit warnings and two botched restructuring attempts, shares in Thyssenkrupp have fallen 42% in the past year, while the DAX has kept steady.