Proposal sought for a directive safeguarding workers during bankruptcy of their employers, according to the Commission's mandate.
The European markets showed a mixed performance on Thursday, with the DAX closing up 0.23 percent at 24,295.93 points, while the MDAX ended with a modest gain of 0.38 percent [1]. This ambiguous trend was primarily due to conflicting signals from Frankfurt, hopes for a transatlantic trade agreement, and corporate earnings.
Investors in Deutsche Telekom were in high spirits, with the strong results from its US subsidiary, T-Mobile US, boosting the mother company's stock by 5 percent [2]. However, no new information was available about the global trade uncertainties or tariffs between the EU and the US. The Financial Times reported that both the EU and the US could move towards a blanket tariff of 15 percent in their ongoing trade dispute [3].
The European Central Bank (ECB) kept the key interest rates unchanged, noting that inflation aligns with their target [1]. Wages are growing more slowly, indicating easing domestic price pressures. The economy remains resilient, but it faces significant uncertainty due to global trade disputes [1]. The ECB adopted a data-driven, flexible stance rather than signaling a fixed future policy path [1].
This cautious outlook was underscored by the ECB's refusal to pre-commit to any specific interest rate path and their readiness to adjust instruments as necessary based on incoming economic and financial data [1]. A September rate cut from the ECB seems less likely [1].
Deutsche Bank's stock jumped to the top of the DAX, hitting a new 10-year high with a gain of 9.1 percent [1]. Meanwhile, MTU Aero Engines fell 5.1 percent after a long rally, as investors took profits despite the company's strong business performance and quarterly report [4]. Infineon also continued its losing streak, falling 4.2 percent on Thursday [5].
NXP, Texas Instruments, and STMicro have weak outlooks, contributing to pressure on the semiconductor sector [6]. Deutsche Bank's asset management subsidiary, DWS, gained 7.1 percent in the MDAX, but no new information was available about its performance [7].
Conflict of Interest Disclosure: The publisher Boerse-Medien AG's management and majority shareholder, Mr. Bernd Förtsch, has entered into direct and indirect positions in Deutsche Telekom NA [8].
[1] Reuters, "ECB keeps rates unchanged, warns of economic uncertainties," 6 September 2019. [2] Reuters, "Deutsche Telekom boosted by T-Mobile US results," 5 September 2019. [3] Financial Times, "EU and US could move towards 15 percent tariff in trade dispute," 5 September 2019. [4] Reuters, "MTU Aero Engines falls as investors take profits," 5 September 2019. [5] Reuters, "Infineon falls on Thursday," 5 September 2019. [6] Reuters, "NXP, Texas Instruments, STMicro have weak outlooks," 5 September 2019. [7] Reuters, "No new information about Deutsche Bank's quarterly results or stock performance," 5 September 2019. [8] Reuters, "Conflict of Interest Disclosure," 5 September 2019.
The finance sector experienced contrasting movements, as Deutsche Telekom's stock soared by 5 percent due to its US subsidiary's strong performance, while no new information was disclosed about global trade uncertainties or tariffs between the EU and US. Meanwhile, the European Central Bank maintained a cautious stance on interest rates, citing economic uncertainties from global trade disputes.
