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German stocks – a factor to watch for on 23 November | Instant News


BERLIN / FRANKFURT, 23 Nov (Reuters) – Here are some of the factors that could move German stocks on Monday:

CORONA VIRUS

Germany must extend its measures to contain the COVID-19 pandemic until December 20, according to senior politicians and a draft proposal obtained by Reuters.

German Finance Minister Olaf Scholz plans to take at least 160 billion euros in new debt by 2021 to help prevent the economic impact of the COVID-19 pandemic, said three people with knowledge of the matter.

Germany could start giving injections of the COVID-19 vaccine as soon as next month, Health Minister Jens Spahn was quoted as saying.

German Chancellor Angela Merkel has urged COVAX, an initiative set up to provide a COVID-19 vaccine to poor countries, to immediately start talks with producers.

A special envoy for the World Health Organization predicts a third wave of pandemic in Europe as early as 2021, if the government repeats what he says is a failure to do what is needed to prevent a second wave of infections.

Germany reported 10,864 new COVID-19 infections and another 90 deaths.

Asian stocks rose, with the broad regional index hitting record highs on hopes for a coronavirus vaccine soon, but concerns over the impact of the economic lockdown and uncertainty over US stimulus limited gains.

GERMAN BANK

Deutsche Bank is seeking takeovers and joint ventures to help achieve its goal of becoming a force in the European payment processing industry, The Financial Times reported, citing a senior executive.

GERMAN STOCK EXCHANGE

Institutional Shareholder Services proxy advisor said new owner Deutsche Boerse would support him in a legal battle against the Securities and Exchange Commission which will help shape the market for shareholder advice, the Financial Times reported.

GERMAN TELECOM

Germany needs to reach a consensus within the government that telecommunications vendors pose a national security threat to exclude its equipment from the national 5G network, according to a draft law reviewed by Reuters.

SIEMENS

Siemens Mobility and Deutsche Bahn have started developing a hydrogen-powered fuel cell train and fueling station that will be piloted in 2024 with the aim of replacing diesel engines on Germany’s local rail network.

VOLKSWAGEN

Electric grid company 50Hertz and Stromnetz Berlin launched a program in collaboration with Volkswagen and Bosch subsidiaries to find out how electric car batteries can help stabilize the grid.

Separately, a group representing major auto makers, including Volkswagen, filed a lawsuit to block a Massachusetts state ballot initiative seeking to dramatically expand access to vehicle data.

VONOVIA

The current lockdown to contain the spread of the coronavirus pandemic has no impact on rent payments, Rolf Buch, Chief Executive of Vonovia, Germany’s largest real estate company, told Die Welt.

HELLOFRESH

The company said it had agreed to buy Factor75, a fully prepared food provider in the US, for up to $ 277 million in cash.

BILFINGER

Private equity firm CVC has joined the race for Germany’s Bilfinger, Bloomberg reported, citing people with knowledge of the matter.

OVERSEAS STOCK MARKET

Dow Jones -0.8%, S&P 500 -0.7%, Nasdaq -0.4% at close.

Japanese market is closed, Shanghai shares + 1.3%.

Time: 5:48 GMT

ECONOMIC

* Germany’s November Markit flash PMI is due at 0830 GMT. Manufacturing is seen at 56.3, services at 47.0, composite at 50.0

Diary

TOP NEWS REUTERS (Reported by newsrooms of Berlin, Frankfurt and Gdansk)

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Breakingviews – The Italian sovereign fund is a force to be reckoned with | Instant News


MILAN (Reuters Breakingviews) – When Cassa Depositi e Prestiti (CDP) was founded 170 years ago this week, Italy didn’t exist as a nation yet. The main task of the agency was to finance basic infrastructure such as roads and waterways for the King of Sardinia-Piedmont, Victor Emmanuel II, who later became Italy’s first king. Fast forward to 2020 and the once sleepy nation’s lender has turned itself into a nervous deal-making machine, leveraging 474 billion euros in total assets to build corporate champions in sectors ranging from telecommunications to financial technology.

An Italian flag flies in front of Piazza Navona, as Italians remain in isolation to prevent the spread of the Corona virus (COVID-19), in Rome, Italy, April 4, 2020.

Such activism has arguably a lot to do with the ambitions of its chief executive, Fabrizio Palermo, and to the desire of Prime Minister Giuseppe Conte’s government to reshape Italy’s industrial landscape. Since taking the top spot in 2018, former deputy general manager of shipbuilder Fincantieri and banker Morgan Stanley has worked to transform CDP’s mission. In just the last few months, the sovereign wealth fund has secured a deal to build a huge stake on the pan-European exchange Euronext, rising payments star Nexi and domestic developer Webuild.

Rome-based CDP is also working to combine the ruling Telecom Italia broadband network and the challenger to Open Fiber, both of which claim CDP as a shareholder. Responding to a government dictate following the fatal bridge collapse in 2018, the CDP is also vying to replace the humiliated Benetton dynasty’s control of domestic highway operator Autostrade per l’Italia. These endeavors are on top of pre-existing holdings in local heavyweights such as oil group Eni and mail-and-package player Poste Italiane.

“We decided to rationalize our portfolio but also to shore up the companies within it with a strategy of trying to create champions on the one hand and continue to develop infrastructure on the other,” Palermo told Breakingviews on the eve of the group’s 170th anniversary. CDP’s invested capital is “permanent, patient and dynamic,” he said.

This focus on infrastructure – albeit by an expanded definition – is at the root of CDP. The group, which is 83% owned by the Italian treasury with the remainder in the hands of a banking foundation, finances itself primarily through postal savings and bonds. This helped build Italy’s first telegraph network and its first highways; it still costs one day of schooling, said Palermo.

Today, however, the focus on equity investment is a priority. With an estimated 23 billion euros holdings in listed companies – or 5% of the June FTSE MIB blue-chip index – CDP is already Italy’s biggest stock picker. That compares to the French state’s investment in both listed and unlisted companies, at more than 100 billion euros at the end of June, according to data provided by the CDP. With its cheap funding providing a greater tolerance for lower returns than, say, private equity funds, CDP wants to become a bigger actor of the Italian economy, explained Palermo.

CDP arguably filled the void. Excluding state-backed groups, most of the listed Italian companies are dwarves compared to European or American rivals. Local entrepreneurs often do not have the capital or courage to increase the global scale through acquisitions. On the other hand, well-known brands such as Bulgari jewelery shop and tyremaker Pirelli have been caught by foreign predators. With Covid-19 likely to shrink Italy’s economy by about 10% this year, the need for cash will be even more acute, and the role of the state is expanding.

With a 10% average return on equity, CDP’s past track record looks impressive to country-related investors. But taking bigger stakes carries an element of risk. These funds, according to the law, are prohibited from investing in companies that are financially fragile. And the banking foundation can de facto veto the deal. But political pressure to shore up losing companies such as Alitalia airline has increased. Rome’s decision to create a 44 billion euro fund to inject capital into the Italian company, which will be managed by the CDP but remain separate from its accounts, has raised concerns that state money could be funneled to keep the politically connected zombie company alive.

Nonetheless, professional investors appear relatively comfortable with the CDP’s new role. The Blackstone and Macquarie purchase fund has joined forces with Palermo to possibly offer 9 billion euros for Autostrade per l’Italia. And Euronext’s € 4.3 billion in cash purchase of Borsa Italiana, which is supported by the CDP, is highly valued despite a potential conflict of interest in Rome wanting the offer to work. The Italian fund paid the market price when it agreed to inject 700 million euros into the exchange operator registered in Paris, along with Milan bank Intesa Sanpaolo. And while Euronext provided CDP board representatives in exchange for its support in the Borsa deal, CDP’s request to dominate the pan-European stock exchange headquarters in Italy was rejected, according to someone with direct knowledge of the deal.

Senior Italian and foreign executives who have dealt with CDP said that CDP is run professionally, with many financial executives from international banks such as Citigroup and Deutsche Bank. They also note that Palermo is highly skilled at cultivating political support, particularly of the 5 Star Movement, an anti-establishment but pro-state party that is the government’s largest coalition partner. Such a relationship is sure to raise questions about Palermo’s ability to withstand political interference when choosing investments or choosing company directors.

It’s up to Palermo, 49, to allay those concerns if he gets Roma’s backing for another three-year term next year. Board reforms at state-backed companies including Telecom Italia and Eni, and institutions such as CDP, sparked an intense political horse trade. Palermo, however, is clear about wanting to stay: “In my career I haven’t changed many jobs,” he said. “I hope I can stay here for a long time because this institution can do a lot for the country.”

Breakingview

Reuters Breakingviews is the world’s leading source of agenda setting financial insights. As the Reuters brand for financial commentary, we dissect the big business and economic stories that are scattered around the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides real-time expert analysis.

Register for our full service free trial at https://www.breakingviews.com/trial and follow us on Twitter @Breakingviews and on www.breakingviews.com. All opinions expressed are those of the authors.

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UPDATE 1-Poste Italiane buys Italy’s second largest postal group, Nexive | Instant News


(Added CEO Poste comments, details)

MILAN, November 16 (Reuters) – Poste Italiane said on Monday it was buying domestic rival Nexive from German fund Mutares and Dutch post and parcel group PostNL.

Poste Italiane, a former postal monopoly in Italy, said it plans to consolidate Nexive, the country’s second largest mail group, and its 1,300 workers, giving it a market share in Italy of about 94% in mail delivery and 24% in parcel distribution. .

The acquisition will allow Poste to extract synergies from its smaller, loser rivals who have struggled to cope with falling mail volumes and the impact of the coronavirus pandemic.

“As a result of the acquisition, we are primarily expecting cost savings,” said Poste Chief Executive Matteo Del Fante, speaking to reporters on the Poste TV channel.

Nexive has about 12% market share, with an annual volume of around 350 million items, of which 5% were registered emails in 2019. It also has 1% market share in packages.

“This acquisition will be key for Poste to shorten the break-even time for its mail, parcel and distribution division,” Del Fante said, without providing an exact timeline.

Poste reported a net profit of 1.3 billion euros ($ 1.54 billion) last year as its insurance, banking and digital payments businesses more than offset 306 million euros in losses in its parcel and distribution division. Restrictions related to the coronavirus pandemic have further reduced the volume of mail, he said.

The exact value of the Nexive deal, which is expected to close in January, will be calculated at the end of the due diligence process, Poste said, adding the initial deal was based on a corporate value for Nexive of 60 million euros.

Italy’s antitrust watchdog has given pre-approval to the deal, but has 30 days to request a potential adjustment.

$ 1 = 0.8446 euros $ 1 = 0.8445 euros Report by Francesca Landini; Edited by Susan Fenton

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Australian stocks ended lower as traders avoided risks from the surge in the virus | Instant News


(Reuters) – Australian stocks closed lower on Friday as risk sentiment slumped after major central banks warned that near-term economic risks remained as a result of the accelerating coronavirus infection, which led to heavy selling in travel and energy stocks.

FILE PHOTOS: An investor is reflected in a window in front of a board displaying stock prices on the Australian Stock Exchange (ASX) in Sydney, Australia May 5, 2017. REUTERS / Steven Saphore

S & P / ASX 200 Index .AXJO fell 0.2% to close the trade at 6405.2 points. However, the benchmark index recorded a weekly gain of 3.5%.

As the initial euphoria of the vaccine news subsided, global equities dragged further after the US Federal Reserve and European Central Bank said the economy was still in difficult times, while the Bank of England said there was still a long way to go for drugs. testing.

“You have not just one, but three heads of central banks around the world just commenting on the fact that the economic picture is still pretty bad at the moment, so it will definitely weigh on investor sentiment,” said James Tao, market analyst at CommSec.

More than 52.45 million people have been reported infected by the new coronavirus globally and around 1.3 million have died, according to a Reuters tally.

Back home, Australian energy stocks .AXEJ down as much as 2.4% as crude oil prices fell on short-term fuel demand, while up 14.2% for the week.

Santos STO.AX and Cooper Energy COE.AX each lost more than 2% when in Coastal Energy BPT.AX fell 3.2% to the worst session since October 29.

Travel and tourism stocks also fell, with Flight Center Travel Group FLT.AX, and Corporate Travel Management CTD.AX each fell by more than 1%.

Against the trend, gold stocks .AXGD rally 4.5% as gold prices edged up amid fears of an economic slowdown. Gold stocks, however, posted their worst week since the week ended September 25. [GOL/]

In New Zealand, the benchmark index S & P / NZX 50 .NZ50 reverse direction to finish 0.2% higher. Benchmark recorded its best week since the week ended October 9.

Medical device maker Fisher & Paykel Healthcare Corp. FPH.NZ and the logistics company Mainfreight MFT.NZ is the biggest percentage gainer.

Reporting by Deepali Saxena, Editing by Sherry Jacob-Phillips

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Aboriginal names have a proud place in the Australian address | Instant News


(Thomson Reuters Foundation) – The Australia Post has supported a months-long campaign to add Aboriginal place names to addresses to recognize the country’s indigenous people and the traditional names of their lands.

Rachael McPhail, an Aboriginal woman, started a social media campaign in August to ask Australia Post to add traditional place names to postal addresses. He also started an online petition that received about 15,000 signatures.

“Every area on the continent that is now known as Australia has an original place name,” McPhail said in his petition.

“I am calling for place names to be part of the official address information in Australia, the same as postal codes and street names,” said McPhail, who started his campaign by posting photos of his letter with an Aboriginal name.

This week, the Australia Post updated its guidelines for sending and receiving mail, with a section on traditional place names “to recognize traditional custodians of land”.

Australia Post has “a long history of promoting and celebrating indigenous cultures and implementing measures that contribute to lasting reconciliation between Indigenous Australians and non-indigenous Australians”, a spokesman said on Thursday.

A visual example on the Australia Post website features the name McPhail and the traditional name Wiradjuri Country, for the territory in New South Wales where he lives.

Australia’s Aborigines were sacked when the continent was colonized by the British in the 18th century.

The country’s roughly 700,000 indigenous people track near the bottom in nearly every economic and social indicator.

Indigenous activists have long called for native land rights to be recognized, and return to names given by traditional landowners who can trace their lineage back 60,000 years, not those given by white settlers.

As protests over racial inequality swept across many parts of the world earlier this year, Australia saw a renewed push to rename buildings and places.

“It’s a way of acknowledging traditional owners and their ancestors, and recognizing that all these places have names that have been replaced by English names,” said Marcia Langton, a professor of indigenous studies at the University of Melbourne.

“I don’t see a reason why a place can’t have two names. This is happening all over the world as people break free from colonial heritage, ”he said, pointing to Mumbai which was formerly Bombay, and Beijing which was then Peking.

The push to restore original place names has worked in neighboring New Zealand, where many Maori place names have been restored, with other places having two names.

Earlier this year, companies including telecommunications company Vodafone pledged to use the country’s real name Aotearoa more frequently in their operations.

The Australia Post’s move “is an important first step towards decolonization”, said McPhail.

In a social media post, he said he would now lobby the Australia Post to consult with indigenous elders to create a “comprehensive database recording real place names before colonialism”.

Reporting by Rina Chandran @rinachandran; Edited by Michael Taylor. Please appreciate the Thomson Reuters Foundation, the Thomson Reuters charity, covering the lives of people around the world who struggle to live free or fair. Visit news.trust.org

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