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BDSwiss | October 19, 2017

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TOP 3 Headlines from 20.12.2016 Attack on Berlin Christmas Market - BDSwiss

TOP 3 Headlines from 20.12.2016 Attack on Berlin Christmas Market
Christopher Scharl

Attack on Berlin Christmas Market

No big news from BoJ

Worry over Monte Paschi

Main points:

  1. A lorry with a Polish license plate and a Pakistani drive drove through a Christmas market in Berlin Charlottenburg yesterday. The police are reporting that 12 people were killed and a further 48 injured, of which 45 are still in the hospital. Germany’s Interior Minister, Thomas de Maiziere, says that the circumstances around the insident are still unclear, but many signs are pointing to a planned attack.
  2. In the early morning hours today, the Bank of Japan decided to leave the benchmark rate unchanged at -0.1% after evaluating the economic developments in recent weeks. Officially, there were 7 votes for remaining at this level and 2 for changing the currently low interest rate. Moderate economic development is expected for the future and the current monetary policy hopes to reach the long-term inflation target of 2%.
  3. Banking stocks were were down yesterday across the board, with share prices in Europe falling by an average of 1.7%. The DAX, German stock index, was the hardest hit by these losses, as investors started taking their profits after seeing the index rise by more than 20% in December. This caused the DAX to close down by 4.5%. The cause of the downturn in bank share prices has been linked to the Italian bank Monte Paschi, whose continued existence is in doubt. By the end of the year, the bank needs more than €5 billion in new equity from private investors in order to stay solvent.

Watch-List today:

  1. The truck was registered to a Polish transport company and its real driver was found dead in the passenger sear. This has led many to assume that the truck was hijacked. The driver has now been arrested, but no further statement has been released by the police. So far, no larger group has claimed responsibility for the act.
  2. The yen continues to lose against the USD and is currently trading at an exchange rate of 117.78 and thus higher by ¥ 0.7 than before the publication of the benchmark interest rate. The Nikkei225 is benefiting from the low yen and has been able to continue its upward trend, it rose by about 120 points today nearing the year’s high of 19,538 points.
  3. Monte Paschi lost more than 11% yesterday and is now at only € 18.65, compared to € 119.7 a year ago. If investors have learned anything from the financial market crisis, then it is that the case of a bank can quickly affect others. For this reason, particular caution should be exercised with affiliated companies.

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