Latest news with #Creditreform
The Market Online
02-07-2025
- Business
- The Market Online
Is there a credit crunch coming? Alarm signals in the SME sector: Deutsche Bank, Commerzbank, Globex Mining
Stockhouse does not provide investment advice or recommendations. All investment decisions should be made based on your own research and consultation with a registered investment professional. The issuer is solely responsible for the accuracy of the information contained herein. German SMEs are under pressure, struggling with the weight of the economic crisis, regulations and requirements, as well as increasingly poor financing conditions. According to Creditreform, German SMEs currently have little confidence in Germany as a business location. This mistrust is supported by a growing number of payment defaults. 11.2% of companies surveyed by Creditreform recently reported bad debt losses exceeding 1% of their turnover. Resourceful investors are already taking precautions. Deutsche Bank: Rating agencies remain optimistic Although business is still going well for major German banks such as Deutsche Bank and Commerzbank, the risks are also increasing here. Deutsche Bank, for example, has taken additional precautions to mitigate macroeconomic risks. Back in April, Bundesbank President Joachim Nagel warned of a possible mild recession in Germany that could hit banks and lead to credit defaults among corporate customers. However, Deutsche Bank appears to be well equipped: its asset quality and liquidity are considered robust. Rating agency Fitch emphasizes that the bank's risk appetite, credit quality, and liquidity have remained solid despite uncertainties and raised its short-term rating for Deutsche Bank from 'F2' to 'F1.' Caution with yesterday's statistics – Commerzbank with risk provisions Nevertheless, the industry remains cautious. As news agency Reuters recently reported, banks in the eurozone have tightened their lending guidelines for loans to companies. Commerzbank is also keeping a close eye on the situation at smaller companies. Although the default rate remained unchanged at a low 1.0%, which shows that customers' payment difficulties are not yet having a dramatic impact on the bank's balance sheet, Commerzbank is placing great emphasis on risk discipline and is underlining its commitment to being a solid partner for its customers even in difficult times. The fact that statistics from recent months are often not a good indicator of existing trends is shown by recent media reports, for example, from Deutsche Wirtschaftsnachrichten. According to these reports, half of German companies expect their customers to file for insolvency – a fatal warning sign. In the first half of the year, the number of insolvencies has already reached a ten-year record high according to Creditreform – 11,900 companies slid into bankruptcy. If the number continues to rise, this could also dampen business for the big banks and, in the next step, ensure that loans flow more sparingly. Companies with a good relationship with their house bank are likely to have an advantage. Investors would be wise to anticipate the potential crisis in the banking sector and focus on precious metals. According to Business Insider, gold is increasingly establishing itself as a safe haven. Global demand for the precious metal rose by 13% year-on-year in the first quarter of 2025. Gold price rises – Globex Mining offers access to 250 commodity projects The commodity conglomerate Globex Mining (TSX:GMX) is benefiting significantly from this development. Globex Mining is a Canadian commodity company with a diversified project portfolio across North America comprising over 250 properties. Around half of these are precious metal projects. Unlike traditional explorers, Globex does not finance exploration itself, but leases or sells projects to partner companies in return for equity interests and license fees. This project generator model enables ongoing revenue in the form of option payments and license fees with limited risk. The Company is debt-free and invests surpluses in, among other things, share buybacks. This stabilizes the share price and benefits loyal shareholders. What is particularly interesting about Globex Mining is the large number of raw material projects it has in its portfolio. The fact that the Company offers critical metals such as copper, rare earths and lithium in addition to its comprehensive raw material portfolio makes its shares a core investment. Although all of Globex's projects are at an early stage, this is anything but a disadvantage: Especially in the early stages, experienced mining professionals can leverage properties with relatively little capital. This is particularly true when new mineral deposits are identified or there are strong indications of profitable production in the future. The large number of around 250 projects in Globex's portfolio reduces risk, and the focus on projects in North America fits perfectly with the current tense geopolitical situation. This is currently offset by a valuation of CAD 74.6 million. Core investment with catch-up potential? While shares of major banks like Commerzbank (+74%) and Deutsche Bank (+48.5%) have priced in virtually no risks over the past six months, Globex Mining, whose shares have gained 9.5% in the same period, may have significant catch-up potential. Just this week, Globex announced the receipt of cash payments from several project partners, including the USD 60 billion conglomerate Agnico Eagle. Globex Mining represents an attractive core investment in the commodities sector: The team is well-connected within the industry and has been operating its business model for decades. The diversified mix of precious metals and critical raw materials is compelling, and the high number of projects effectively reduces risk for investors. Conflict of interest Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as 'Relevant Persons') may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a 'Transaction'). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company. 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Russia Today
28-06-2025
- Business
- Russia Today
12,000 German companies went bust in six months
Germany endured the highest wave of corporate bankruptcies in a decade in the first half of this year, a study by economic tracking agency Creditreform has suggested. The first six months of this year saw some 11,900 German companies go bust, the study released on Thursday indicates. The figure represented a 9.4% increase over the same period last year, according to the agency. Some 141,000 employees worked at the companies affected. 'Despite some signs of hope, Germany remains mired in a deep economic and structural crisis. Companies are struggling with weak demand, rising costs, and persistent uncertainty,' Creditreform chief economist Patrik-Ludwig Hantzsch said. The situation is expected to remain difficult as Germany continues to struggle with a recession that has dragged on for two years already. The wave of bankruptcies might ultimately increase in the next six months, given that the 'persistently high level of insolvencies is increasingly triggering chain reactions,' Hantzsch warned. While German GDP grew by a slight 0.2% in the first quarter of 2025, weak global demand and uncertainty in trade policies continue to take a toll on its economy. According to a new survey conducted by the Ifo economic institute released this week, expectations have worsened among German exporters this month over uncertainty regarding a potential trade war with Washington. The US was Germany's top trading partner in 2024, with bilateral trade in goods totaling €253 billion (around $280 billion), according to official data. Earlier this year, US President Donald Trump imposed 20% tariffs on all EU goods, with 25% on steel, aluminum, and cars. When Brussels signaled its readiness to retaliate, most of the levies were put on hold for 90 days to allow for negotiations. A 10% base tariff and the 25% targeted duties remained unchanged. 'The tariff threats from the US are still on the table. An agreement between the EU and the US has yet to be reached,' Klaus Wohlrabe, head of Ifo surveys, said, adding that the uncertainty has lowered exporters' expectations, with the respective index falling to -7.4 points in June from -5.0 in May. The index measures how optimistic or pessimistic German manufacturing companies are about their prospects for selling abroad over the next three months.
Zawya
26-06-2025
- Business
- Zawya
German corporate insolvencies at highest level in a decade, study shows
Corporate bankruptcies in Germany were at their highest level in a decade in the first half of 2025, as firms in Europe's largest economy struggle with weak demand, rising costs and uncertainty, a study by economic tracking agency Creditreform showed on Thursday. Some 11,900 corporate insolvencies were registered in the first six months of this year, 9.4% more than in the same period last year, the agency said. "Germany remains in a deep economic and structural crisis," said Creditreform chief economist Patrik-Ludwig Hantzsch. Companies are increasingly having problems as their financial reserves dwindle and loans are sometimes no longer being extended, added Hantzsch. He warned that the risk of insolvencies remains high for the rest of the year as Germany, which has been in recession the past two years, is not seen making a significant recovery. More economic momentum is not expected until next year, when the government's 500 billion euro ($586 billion) investment fund is expected to take effect. Roughly 141,000 employees worked at the affected companies, an increase of 6%, driven by large-scale insolvencies, the agency said. "The persistently high level of insolvencies is increasingly triggering chain reactions," said Hantzsch. Consumer insolvencies have also been on the rise, up 6.6% to around 37,700, as households are under pressure due to a rise in the cost of living and job losses, particularly in industry. Germany's federal statistics office reported final first-quarter insolvency figures earlier this month that showed corporate insolvencies rose by 13.1%. ($1 = 0.8529 euros) (Reporting by Klaus Lauer, Writing by Miranda Murray; Editing by Hugh Lawson)
Euronews
23-05-2025
- Politics
- Euronews
Price of power: Does Germany need to return to nuclear?
Once a world market leader, today, Germany is considered the "sick man of Europe", as the country remains mired in recession for the third year in a row. Economic experts predict zero growth for this year, as the figures continue to show a dramatic decline. Last year, almost 200,000 companies shut their doors, according to a study by Creditreform, the highest figure since 2011. The numbers will continue to plummet in 2025. A new high in insolvencies was reported in April. According to the Leibniz Institute, 1,626 company insolvencies were registered — 21% more than in April 2024 — exceeding even the figures from the 2008 financial crisis. The high electricity prices in particular are causing problems for industry. Some steel giants now have to temporarily shut down their production on a single day to protect their company from financial damage. Meanwhile, other companies are relocating their production to Eastern Europe — or even to China. Entire industries are under threat. Foremost among them is the automotive industry: VW, Mercedes and BMW are cutting thousands of jobs. "Made in Germany" has simply become too expensive. "We now only have 24 months to save the energy-intensive industries," well-known German economist Daniel Stelter warned in an interview with Euronews. The losses suffered by industrial companies to date can no longer be reversed, he said. Economics Minister Katherina Reiche (CDU) has correctly recognised Germany's energy cost problem. She is in favour of energy security and lower electricity prices. This is why she wants to subsidise industrial electricity, for example. However, the EU is threatening not to go along with this. Reiche also wants new gas-fired power plants as a solution to the problem — but the price of gas is also higher than ever. Does the minister have the right recipe to save the German economy? Stelter explains that Minister Reiche is taking the right step. "When the wind isn't blowing and the sun isn't shining, we need a secure supply. Now that we have switched off nuclear power plants and we also want to switch off coal, the only thing left is gas-fired power plants," he said. Only with renewable energies, "it just won't work." However, Reiche's measures have not yet been enough to revive the economy so that Germany can remain an industrial nation. "Anyone who believes that renewable energy in combination with gas-fired power plants will lead to cheap electricity is living in a dream world," Stelter told Euronews. "Many people only ever look at the costs of solar cells and wind turbines. Only when the wind is blowing and the sun is shining is it favourable. In reality, we have to include the system costs such as storage and batteries - then renewable energies are the most expensive," he explained. "Reiche's policy, as it stands today, is actually the continuation of (former minister) Robert Habeck's policy," Stelter added, and is not suitable for "supplying an industrialised country with energy sustainably and cheaply." Instead of gas-fired power plants, nuclear power plants would be a better solution, says Stelter. "If you ask me personally for my opinion, I would of course not have phased out nuclear power in the same way. And I would now do everything in my power to reverse the nuclear phase-out by reactivating the old nuclear power plants." Energy expert Björn Peters takes an even more critical view. He has just launched his new book on the market titled "An End to the Energy Transition." In it, he argues that the economy should dare to be more ecologically realistic. "You can't reduce the price of electricity with gas-fired power plants alone. They are very expensive to operate. Gas is expensive. Then there are the CO2 costs on top. That would mean that in the long term you would have producer prices of between 15 and 20 cents per kilowatt hour," said Peters, emphasising this is too expensive. "That would make us uncompetitive." Instead, the supply must be expanded quickly. "This consists of the decommissioning of nuclear power plants, domestic production of natural gas and CCS, which is CO2 capture from coal-fired power plants," he explained. "We have enough coal for 200 years. It would be in the interests of national security to continue using coal, but with the appropriate filters." Nuclear power plants such as Brokdorf and Emsland could be reactivated by 2026. Six other nuclear power plants could also be recalled, and the process could continue into the 2030s. The consequences of the previous "bad energy policy should not be subsidised down", warns Peters. "Of course that won't work." "Politicians are focusing on solving the industrial crisis through subsidies - in other words, less taxes and state subsidies instead. That doesn't make sense. The principle is that the greater the supply, the better," Stelters said. Nevertheless, he is optimistic about his expectations of the new economics minister. Reiche wants to "seriously take stock" of the economy, he said. "We have spoken to individual government representatives in the last few days. And they at least seem to be reflecting on the nuclear phase-out."
Euronews
23-05-2025
- Business
- Euronews
Does Germany need to return to nuclear power?
Germany was once a world market leader. Today, the industrialised nation is considered the "sick man of Europe". The country is in recession for the third year in a row. Economic experts predict zero growth for this year. The decline is dramatic in the figures. Last year, almost 200,000 companies shut their doors, according to a study by Creditreform. This is the highest figure since 2011. The figures will continue to plummet in 2025. A new high in insolvencies was reported in April. According to the Leibniz Institute, 1626 company insolvencies were registered - 21% more than in April 2024. This even exceeds the figures from the 2008 financial crisis. The high electricity prices in particular are causing problems for industry. Some steel giants are now having to temporarily shut down their production on a single day to protect their company from financial damage. Meanwhile, other companies are relocating their production to Eastern Europe - or even to China. Entire industries are under threat. Foremost among them is the automotive industry: VW, Mercedes and BMW are cutting thousands of jobs. "Made in Germany" has simply become too expensive. The well-known economist Daniel Stelter warned in an interview with Euronews that: "We now only have 24 months to save the energy-intensive industries." The losses suffered by industrial companies to date can no longer be reversed, he said. Economics Minister Katherina Reiche (CDU) has correctly recognised Germany's energy cost problem. She is in favour of energy security and lower electricity prices. This is why she wants to subsidise industrial electricity, for example. However, the EU is threatening not to go along with this. Reiche also wants new gas-fired power plants as a solution to the problem - but the price of gas is also higher than ever. Does the minister have the right recipe to save the German economy? Daniel Stelter explains that Minister Reiche is taking the right step. "When the wind isn't blowing and the sun isn't shining, we need a secure supply. Now that we have switched off nuclear power plants and we also want to switch off coal, the only thing left is gas-fired power plants." Only with renewable energies, "it just won't work." However, Reiche's measures have not yet been enough to revive the economy so that Germany can remain an industrial nation. "Anyone who believes that renewable energy in combination with gas-fired power plants will lead to cheap electricity is living in a dream world," Stelter told Euronews. "Many people only ever look at the costs of solar cells and wind turbines. Only when the wind is blowing and the sun is shining is it favourable. In reality, we have to include the system costs such as storage and batteries - then renewable energies are the most expensive!" This is why "Reiche's policy - as it stands today - is actually the continuation of Robert Habeck's policy" and is not suitable for "supplying an industrialised country with energy sustainably and cheaply." Instead of gas-fired power plants, nuclear power plants would be the better solution, says Stelter. "If you ask me personally for my opinion, I would of course not have phased out nuclear power in the same way. And I would now do everything in my power to reverse the nuclear phase-out by reactivating the old nuclear power plants." Energy expert Björn Peters takes an even more critical view. He has just launched his new book on the market entitled "An End to the Energy Transition." In it, he argues that the economy should dare to be more ecologically realistic. "You can't reduce the price of electricity with gas-fired power plants alone. They are very expensive to operate. Gas is expensive. Then there are the CO2 costs on top. That would mean that in the long term you would have producer prices of between 15 and 20 cents per kilowatt hour," says Peters, who says this is too expensive. "That would make us uncompetitive." Instead, the supply must be expanded quickly. "This consists of the decommissioning of nuclear power plants, domestic production of natural gas and CCS, which is CO2 capture from coal-fired power plants. We have enough coal for 200 years. It would be in the interests of national security to continue using coal, but with the appropriate filters." Nuclear power plants such as Brokdorf and Emsland could be reactivated by 2026. There are also six other nuclear power plants that could be recalled. The process could continue into the 2030s. The consequences of the previous "bad energy policy should not be subsidised down", warns Peters. "Of course that won't work." Stelters also emphasises that: "Politicians are focusing on solving the industrial crisis through subsidies - in other words, less taxes and state subsidies instead. That doesn't make sense. The principle is that the greater the supply, the better." Nevertheless, the physicist is optimistic about his expectations of the new Economics Minister. Reiche wants to "seriously take stock" of the economy, he said. "We have spoken to individual government representatives in the last few days. And they at least seem to be reflecting on the nuclear phase-out."
