|Bid||24.64 x 5400|
|Ask||24.70 x 32100|
|Day's Range||24.46 - 25.52|
|52 Week Range||21.16 - 47.14|
|Beta (3Y Monthly)||0.80|
|PE Ratio (TTM)||10.71|
|Earnings Date||Nov 12, 2019|
|Forward Dividend & Yield||0.05 (0.20%)|
|1y Target Est||69.47|
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. Germany Inc. is flashing recession signals.Major companies in Europe’s largest economy, lead the list of profit warnings issued in the region during the latest earnings season. Daimler AG, BASF SE, Continental AG, Henkel AG, Deutsche Lufthansa AG and Metro AG are among those that have cut their forecasts. Many more have drawn bleak pictures of their prospects.The combined misery of corporate Germany was highlighted on Wednesday, when a report showed a quarterly contraction of the economy, the second in the past year. Surveys for the third quarter have hinted at a further deterioration, with a manufacturing gauge firmly pointing to shrinking output.Adding to the sense of woe, materials maker SGL Carbon SE said late Wednesday its guidance for 2020-2022 is no longer sustainable and Chief Executive Officer Juergen Koehler is stepping down. United Internet AG cut its full-year sales forecast and 1&1 Drillisch AG trimmed its revenue prediction.Read Bloomberg Economics’ German Country PrimerAt the heart of companies’ concerns are weaker global growth, dwindling demand from China, and trade tariffs -- factors that hurt Germany’s export-heavy industrial sector in particular.Industrial companies have fared worst during the second-quarter earnings season. Expectations for German businesses were comparatively low, but even so, only 41% of them managed to beat sales estimates. The ratio is well above 50% in France, Italy and Spain.The consequences are starting to be felt. Unemployment rose by a total of 62,000 in the three months through July and demand for new workers continued to soften.That’s bad news for a country hoping to make up dwindling exports with consumption and investment. Domestic demand still supported the economy in the second quarter but that might change once uncertain prospects prompt companies and households to rein in spending.Economists at Deutsche Bank AG and ABN Amro Group NV see Germany’s economy contracting again in the third quarter, pushing the nation in recession -- it’s first in six and a half years. Many more analysts say the risk of such a scenario has increased significantly after Wednesday’s report.European banks are already preparing for an economic slump. Loan-loss provisions have risen for a second quarter, after declining during all of 2016 and 2017.Shares in Commerzbank AG, which has revamped its business model to focus on lending to corporate and individual clients in Germany, have slumped to a record low.“Earnings are shrinking and entire sectors are in deep crisis,” said Andreas Lipkow, a strategist at Comdirect Bank AG. “The current effects of the trade conflict between the U.S. and China have noticeably arrived at German export companies.”(Adds further profit warnings in fourth paragraph.)\--With assistance from Justina Lee and Iain Rogers.To contact the reporter on this story: Jan-Patrick Barnert in Frankfurt at email@example.comTo contact the editors responsible for this story: Celeste Perri at firstname.lastname@example.org, Jana Randow, Paul GordonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Shares in telecoms firm 1&1 Drillisch and its parent United Internet slumped to six-year lows on Thursday after they trimmed profit guidance due to initial 5G network costs and higher line connection charges. Drillisch shares fell 12% while United Internet's slid by 9% even though United announced a share buyback, responding to steep falls over the past year as concerns grew over the cost of building its own network. CEO Ralph Dommermuth splurged 1.07 billion euros ($1.2 billion) at Germany's auction of 5G frequencies in June, bringing the self-made billionaire a step closer to his dream of founding a fourth German mobile network.
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Gains for metal and mining companies helped European stocks end slightly higher on Thursday, with concerns over an attack on tankers in the Gulf of Oman and continuing U.S.-China trade tensions sapping early enthusiasm among investors. The pan-European STOXX 600 index closed 0.16% higher having earlier climbed nearly half a percent aided by surge in telecom and oil stocks. The surge in oil prices that had dominated morning trading after the tanker attacks faded by the close.
Germany's pricey 5G spectrum auction drew protests from existing mobile operators but cheered investors betting the entry of a new player will revive competition and help close a connectivity gap with the United States and Japan. For market leader Deutsche Telekom the auction, which ran for a record 12 weeks and raised 6.55 billion euros ($7.4 billion), left a "bitter aftertaste", while rival Vodafone called the result "catastrophic".
European shares dipped on Thursday, tracking Asian markets lower after more violent protests in Hong Kong and weighed down by doubts over the United States and China's ability to reach a trade deal any time soon. The pan-European STOXX 600 index fell 0.24% at 0709 GMT, with traders also pointing to nerves over the scale of monetary easing priced in to markets over the past two weeks. Europe's telecom providers index bucked the trend to gain 0.3% after Germany completed its 5G mobile spectrum auction, handing a licence to new entrant 1&1 Drillisch and its parent United Internet.
Telefonica SA’s local unit is at particular risk of losing out. The Spanish carrier is bidding alongside Deutsche Telekom AG, Vodafone Group Plc and 1&1 Drillisch AG in the auction for 5G spectrum: the radio bandwidths for next-generation telecommunications. The unbalanced distribution of the spectrum from the auction so far suggests it has some way to go, according to Bloomberg Intelligence analyst Erhan Gurses.
Bidding has accelerated again in Germany's auction of frequencies for next-generation 5G mobile networks, reducing chances that the four companies taking part will bag spectrum at bargain prices. Action had slowed to a trickle this week with new bids in each auction round dwindling to just a few million euros, fuelling speculation the auction could end up being Germany's cheapest ever. The auction is being held in an old army barracks, with teams sequestered in separate rooms submitting offers via a secure network.
Bidding slowed on Wednesday in Germany's 5G mobile spectrum auction, and with offers from the four companies taking part totalling just 2.4 billion euros ($2.7 billion) it could end up being the cheapest ever. Results from the 118th round of the auction https://www.bundesnetzagentur.de/_tools/FrequenzXml/Auktion2019_XML/118.html;jsessionid=E63E2FD08872677D72E48735A476D2BC, being held at an old army barracks in the western city of Mainz, showed fresh bids for only 5 of the 41 spectrum blocks that are on offer in the 2GHz and 3.6GHz bands. Analysts had forecast that proceeds could be as low as 3 billion euros, while cautioning that the entry of tycoon Ralph Dommermuth's 1&1 Drillisch as a fourth player could drive spectrum costs higher.
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Internet billionaire Ralf Dommermuth said on Thursday he wanted to seize the chance to become Germany's fourth mobile network operator, but was prepared to walk away if the cost turns out to be prohibitive. The 55-year-old tycoon who owns 40 percent of United Internet is, through its 1&1 Drillisch unit, taking on the three existing operators in a 5G spectrum auction where bids so far have topped 1 billion euros ($1.1 billion). The prospect that Drillisch could abandon its profitable existence as an asset-light virtual mobile operator has spooked some investors, sending shares in both companies down by more than a third over the past 12 months.
MAINZ/FRANKFURT (Reuters) - Germany's auction of spectrum for 5G mobile networks drew brisk initial bidding on Tuesday with prospective new entrant 1&1 Drillisch submitting bold offers for the frequencies it covets. Drillisch, run by maverick tycoon Ralph Dommermuth, is vying to become a fourth operator in Europe's largest economy - a move that could benefit consumers but pressure the margins of the three existing players. Drillisch, majority owned by United Internet , put down a marker in the first round by staking more than 20 million euros apiece for 10 of the 41 blocks of spectrum on offer.
Germany's auction of spectrum for 5G mobile networks attracted brisk initial bidding on Tuesday as prospective new market entrant 1&1 Drillisch submitted chunky offers for the frequencies it is interested in. Results of first-round bidding showed that Drillisch, which is vying to become Germany's fourth network operator, had submitted offers of more than 20 million euros (17.1 million pounds) for 10 of the 41 blocks of spectrum on offer.
FRANKFURT/BERLIN (Reuters) - Germany's years as a cosy oligopoly in which the Big Three mobile operators carve up a saturated market could be about to end as billionaire Ralph Dommermuth joins the fray to bid for a fifth-generation licence. Such a 'three-to-four' move would inject fresh competition into Europe's largest market. Users paying some of the highest charges in Europe stand to benefit, while operators would face pressure on margins as they battle for customers.
United Internet's mobile unit 1&1 Drillisch said on Thursday it would apply to take part in Germany's auction of 5G licenses, opening the way for it to become the country's fourth network operator. The gambit by Ralph Dommermuth, the billionaire CEO of both firms, threatens to shake up a cosy oligopoly that has left Europe's largest economy lagging on connectivity just as the United States, China and South Korea forge ahead on 5G. "Now we want to lay the foundation, as a fourth mobile network operator, to contribute to Germany becoming a leading 5G market," Dommermuth said after winning boardroom backing for the move.