Good morning dear readers,
On Wednesday I spoke at this point about words that weigh heavily in the balance given the tense situation on the financial markets. Now this assessment has once again come true in a dramatic way.
Shares in major Swiss bank Credit Suisse fell on Wednesday and were now only worth CHF 1.55 – a record low.
It was triggered by a few sentences from Ammar Al Khudairy, Chairman of the Supervisory Board of the Saudi National Bank and Credit Suisse’s largest shareholder since October. When asked by Bloomberg TV if his bank would be willing to inject fresh capital into the Swiss bank, Al Khudairy replied: “The answer is absolutely not, for many reasons, the simplest being more regulatory and legal Art.”
The statement was interpreted by the markets as dissatisfaction with Credit Suisse. A reading that destroyed billions.
(Photo: imago images/Geisser)
On Thursday night it became known that the ailing Swiss bank, after initial denials, now wants to take out loans from the Swiss National Bank, namely in the amount of up to 50 billion Swiss francs (50.7 billion euros). With the move, Credit Suisse is the first global systemically important bank since the financial crisis to receive a customized lifeline.
After the American Silicon Valley Bank slipped into bankruptcy last week, there are now fears that the banking crisis could now have arrived in Europe. The shares of German banks also reacted to the development with heavy losses. Former Bundesbank board member Andreas Dombret considers the situation to be “not without risk”. The current case is reminiscent of the crisis of 2008.
Why is Credit Suisse getting into such trouble? Handelsblatt CFO Michael Maisch has a clear answer: “The turbulence is due to a toxic mixture of chronic weaknesses in control, sloppy risk management and the wrong strategy,” he analyses. An isolated case, but one with potentially dangerous consequences. Because Credit Suisse is an institution “too big to fail”.
(Photo: VW, Tesla (M))
The name is still a bit awkward, but the goal is clear. The ID.2 could become the most important model for the car manufacturer Volkswagen, because the electric small car should help to make the Stromer suitable for the masses. So far, cars with electric drives cost an average of 42,800 euros, the new ID.2 would be available for 25,000 euros.
At the same time, the new Stromer is to be understood as a declaration of war in a long-distance duel with Tesla. Because the US automaker will probably soon follow suit with a similar mass-market model. So far, the market for cheap e-cars seems large, but at the same time not particularly lucrative. Because of the high costs, only a few percent of the sales price remain with the car manufacturers. In order for the ID.2 to become the new Beetle, it not only needs a snappier name, but also a better margin.
Today, EU Commission President Ursula von der Leyen is presenting a master plan to strengthen climate-friendly technologies in Europe. The “Net Zero Industry Act” is the answer to the US Inflation Reduction Act – but even goes one step further. Because where the Americans only show the way, the EU is now even setting concrete goals. By 2030, Europe should be able to produce 40 percent of the annual demand for zero-emission technologies itself.
If you take a closer look at the initiative, you can smell the whiff of planned economy that is currently blowing through Brussels. Diplomats are already slandering “Ursula’s Gosplan” in reference to the Central Economic Committee of the Soviet Union.
The plan is reminiscent of a historical model – which should actually act as a deterrent. In 1966, French President Charles de Gaulle launched the “Plan Calcul” to build a local computer industry. The initiative swallowed up hundreds of millions of francs at the time, and was discontinued in 1974 due to the lack of success.
(Photo: Bloomberg)
However, there is bad news for the German technology location. Because international buyers are in this country on a real shopping spree for young German companies.
According to a study by the management consultancy EY, a total of 203 start-ups were taken over in Germany last year – more than ever before. Two out of three deals came from foreign investors. What is a compliment for the ideas and business models for the local start-ups is also a warning sign for the location. A lot of innovation potential flows abroad as a result of the takeovers.
If a company leader succeeds in making his style of leadership legendary, he is a big one. This was achieved by the founder of the drugstore chain dm, Götz Werner, who was therefore posthumously inducted into the Handelsblatt Hall of Fame on Wednesday. Here you can read the background to Werner’s formula for success.
Paper king Jürgen Heindl is now also part of the Handelsblatt Hall of Fame of the pioneers of the German economy. You can read the portrait of the founder of the corrugated cardboard giant Progroup here.
Coroplast boss Natalie Mekelburger was honored as the third new member of the illustrious community of entrepreneurs. In addition to her entrepreneurial flair, the head of the adhesive tape manufacturer is also known for her clear political stance. Read here what that is and what distinguishes Mekelburger as a company manager.
Finally, a little news from the always stingy Christian Lindner (FDP). In the ARD program “Maischberger” the Federal Minister of Finance spoiled his chancellor’s spending mood. “I believe that in times of more home office and location-flexible work, a new building next to the Chancellery, which costs at least 800 million euros, is unnecessary,” said Lindner about a planned new building project.
He did not say whether the chancellor should also work more in the home office according to Lindner’s ideas. If so, it’s to be hoped that Scholz won’t keep his sweatpants on like so many of us during the zoom call with Joe Biden.
I wish you a good day in comfortable work clothes.
Best regards
Her
Teresa Stiens
Editor of the Handelsblatt
