Delivery Hero's Wobbly Week: Uber Takeover Fiasco and Bitcoin's Steady Chill
The German Stock Market Bounces Back, But Delivery Hero Takes a Hit
Tom Frankfurt, irreverent as hell
Dax plans to conclude the weekend with monetary success.
Let's get real, folks. Last week was nothing to write home about in the financial world except for a small rebound in the German benchmark index. By the time the weekend rolled around, the stodgy old index had managed to gain a measly 0.7%, edging up to 19,984 points. The good news is that the once-lofty 20,523-point record set in mid-December is still within our sights, but don't hold your breath.
"The stock markets are showing a bit of resilience after taking a beating from the US Fed just before Christmas," said Ulrich Kater, Deka Bank's resident know-it-all. The Fed, that bunch of party poopers, lowered interest rates again on December 19. But Chair Jerome Powell had the audacity to suggest that they might slow down the rate cuts. Not. Well. Received. The stock markets took a nosedive, sparking some profit-taking and raising concerns about the economic policy under the incoming president, Donnie Two-Scoops, and China's shaky economic recovery.
January 20: A Date with Destiny
The upcoming inauguration of Trump and the upcoming federal election in February are the main events on investors' calendars right now. If Donnie implements his promised tax cuts, deregulation, and especially tariffs, it could quash the Dax's recent two-year rally. On the flip side, the election could provide a boon to the markets.
Delivery Hero Feels the Heat
On the individual stock front, Delivery Hero shares suffered a significant blow this week. The competition authority TFTC crushed Delivery Hero's hopes of selling its Taiwan subsidiary Foodpanda to Uber for around $1 billion. The stock nosedived to its lowest point since late August, with a drop of over 5%. Uber was counting on acquiring the division to offset some financial woes, but alas, it's not happening. Delivery Hero is now forced to find other ways to improve its capital structure.
HelloFresh: The Meal Kit Provider Rolls Back Stock
HelloFresh shareholders, on the other hand, had reason to celebrate. The meal kit provider announced plans to buy back another 75 million euros worth of its own shares, leading to a price increase of over 2%. The buyback is designed to offset the dilution that will result from employee participation programs in 2025.
Hornbach: In Need of a New Finance Boss
Hornbach Holding shares were also in the spotlight. CEO Albrecht Hornbach will take over the CFO position on an interim basis after current CFO Karin Dohm announced her departure, effective by March 31. Investors rewarded Hornbach with a temporary price increase of over 3%.
Bitcoin: Steady as She Goes
In the world of cryptocurrencies, Bitcoin maintained its composure this week. The OG crypto was trading at $96,730 on the Bitstamp exchange late in the morning, a slight increase from the previous night. Bitcoin failed to break through the $100,000 mark on Thursday and took a tumble as a result. The market is currently lacking any clear drivers, but last week saw a minor setback, with Bitcoin falling on a weekly basis for the first time since Trump took office.
- Ulrich Kater, from Deka Bank, noted that the stock markets showed resilience, despite a previous beating from the US Fed and the subsequent threat of slowed rate cuts.
- Despite the small rebound in the German benchmark index, Delivery Hero's shares took a hit this week, decreasing by over 5% after the competition authority TFTC blocked the sale of Delivery Hero's Taiwan subsidiary to Uber.
- In a different development, Hellofresh shareholders celebrated as the meal kit provider announced plans to buy back 75 million euros worth of its own shares.
- Bitcoin maintained its steady pace this week, trading at $96,730 on the Bitstamp exchange, although it failed to break through the $100,000 mark on Thursday and took a tumble as a result.
