Source: Grabowsky / imago images

Source: Grabowsky / imago images

Bafin and the Munich public prosecutor’s office are already busy with Wirecard in two ways. The financial supervisory authority filed a criminal complaint because of possibly misleading ad hoc announcements, the prosecutors have since been investigating Braun and his colleagues on the Wirecard board. At the same time, it is determined whether speculators have damaged Wirecard with illegal exchange rate manipulation.

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Now both authorities have announced that they will expand their investigations. "It goes without saying that the current situation will be incorporated into our ongoing market manipulation investigation"said a Bafin spokeswoman. And the Munich public prosecutor said the authority was in contact with the company and was examining the process.

Sources used: dpa-AFX news agency, Reuters, AFP

Panic on the global stock exchanges: After the share prices in Asia and Europe initially fell, the New York Stock Exchange is now also collapsing. The price losses caused a brief interruption in trading.

The coronavirus and an oil price crash caused the US stock market to collapse on Monday. After panicked sales immediately after the starting bell, share trading was suspended for 15 minutes. After trading resumed, the Dow Jones Industrial recently lost a good five percent to 24,530.08 points.

As a result, the Dow Jones fell to its lowest level since the beginning of 2019. In the past two weeks, the leading American index had lost almost eleven percent. The market-wide S&P 500 lost 5.2 percent to 2819.25 points. For the technology-heavy Nasdaq 100 it went down 4.4 percent to 8159.42 points.

In addition to the consequences of the corona virus for the global economy, a drop in oil prices came as an additional burden on Monday. After failed negotiations by leading oil states to reduce production, the oil market experienced the steepest price slump in almost 30 years.

Oil company stocks drop nearly ten percent

As before in Europe and Asia, shares in the energy sector came under massive pressure. ExxonMobil is down 8 percent and Chevron is down 9.4 percent. The price for the US oil type WTI fell by almost a fifth. Other industry values ​​were hit even harder:

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For the papers of the oil company ConocoPhillips, things went steeply down by 25 percent. Occidental Petroleum collapsed by as much as 40 percent. Service providers and suppliers to oil and gas producers were also affected by the sale: Schlumberger and Halliburton shares lost more than 30 percent.

Sources used: dpa news agency

The Frankfurt Stock Exchange celebrates 200 years of stock trading. Securities were offered there for the first time in 1820 – the stock exchange itself is even older.

The Frankfurt Stock Exchange is celebrating its anniversary: ​​Securities have been traded there for 200 years. On Wednesday, however, a second occasion was celebrated: The 435th anniversary of the Frankfurt Stock Exchange on September 9, 1585.

Woodcut of the new stock exchange building in Frankfurt (archive picture): In 1879 the stock exchange moved into the new building. (Source: imagebroker / imago images)

At that time, a meeting of merchants at the measuring station on Römerberg decided on uniform exchange rates for raw materials, agricultural products and bonds. From 1820 shares were offered – the first shares traded were from the Austrian National Bank.police brutality argumentative essay

The stock exchange has been housed in its current building at Börsenplatz number 4 since 1879. And the digitization of the stock exchange business in Frankfurt began as early as the late 1960s.

A woman at work on the Frankfurt Stock Exchange in 2000 (archive picture): 20 years ago a lot was already digital. (Source: Grabowsky / imago images)

To celebrate the day, trading started with the traditional bell on Wednesday morning. Today it is usually quiet in the trading floor – no bells, no loud phone calls or calls through the hall. In the 21st century, trading works largely automatically via computers.

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The two anniversaries are accompanied by online lectures where interested parties can learn more about the history of the Frankfurt Stock Exchange.

Sources used: Frankfurt Stock Exchange: 200 years of share trading on the Frankfurt Stock Exchange"faz.net": "How things used to be done in Frankfurt"

The gold price cracks one record after the next in the Corona crisis. The precious metal in euros has never cost as much as it does now. Investors in particular should know the reasons for this.

When "historical" analysts described developments on the global financial markets in recent weeks, "gigantic" are the negative effects of the Corona crisis on share trading. At least as remarkable, however, is the development of another asset class: gold. The price of the precious metal rushes from one high to the next during the crisis.

There are many reasons for this – and some of them only become apparent at second glance. Still, investors in particular should study them to find answers to the key questions that many people are currently facing:

Will this development continue? And should I now invest money in gold too?

New price record due to the corona crisis

Quoted in US dollars, the price of gold has risen by around 14 percent since the beginning of the year and by more than 15 percent since mid-March. Most recently, a troy ounce of the precious metal cost more than 1,730 US dollars on Tuesday evening – not that much since November 2012. In euros, the gold price has even reached a new record level: With a price of more than 1,580 euros on Tuesday, gold was more expensive than ever.

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The cause of this gold rush is the Corona crisis – the specific trigger of the latest price increases, above all, the behavior of the central banks:

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As in almost all crises of the recent and distant past, gold assumes the function of a store of value, it is considered to be "Crisis currency". If investors and large investors are afraid, for example of falling share prices, but also of inflation, they take refuge in the precious metal.

Central banks play a crucial role

This is because gold is a "inner" Owns material value – and the amount is limited despite further funding. In the language of investors, gold is therefore considered to be "Safe haven"As an investment object that usually survives the turbulence on the financial markets and retains its value.

Even during the Corona crisis, many investors sold their securities in order to avoid major losses – and bought gold instead. This increase in demand and thus in prices is reinforced by the announcements made by the US Federal Reserve and the European Central Bank (ECB).

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In order to contain the negative effects of the corona crisis on the economy, both banks want to buy large amounts of government bonds. The Fed alone is planning purchases worth up to 2.3 trillion US dollars – money that will also find its way into the economic cycle in the medium term because the state distributes it to companies as grants or commissions companies, for example for investments in infrastructure.

Low interest rates make gold comparatively cheap

As a result of this increase in the money supply, some investors already fear that inflation could rise in the long term. Because this threatens to devalue their cash assets on the accounts, gold appears to them once again as a safe parking space for their money.

Another driver of the gold price is the interest that banks offer investors. They will remain low for the foreseeable future. The reasons for this are also the crisis and the monetary policy of the central banks.

The ECB and the Fed can now raise the key interest rate at which commercial banks can borrow money from them even less than before – after all, companies and the self-employed currently need cheap loans to survive the crisis.

The result: The so-called opportunity costs for gold are falling. This refers to the indirect costs that arise when buying a product by not buying another item.

Corona shutdown at gold refineries is causing delivery bottlenecks

In the case of gold, this means that the fact that the precious metal pays neither interest nor profits in the form of dividends is less dramatic for investors – because there is hardly any interest income on the bank account either.

Less important in the long term, but more important in the short term, is that the supply of physical gold is currently lower than before the Corona crisis. In short: gold bars have recently been in short supply.

The reason for this is that the three largest gold refineries in the world in Switzerland had to temporarily suspend gold bar production as part of the corona shutdown. In the meantime, operations are starting up again. Nevertheless, the global supply chains for gold are still jumbled, so that bottlenecks can also occur in the next few weeks – which in turn could drive up the price.

Commodity market: Corona crisis sets new record for gold price Euro notation: Gold price is approaching new record high

What that means for investors

Because of all these developments, quite a few people are considering investing in gold themselves, at least for the duration of the current crisis. Two points are particularly important when making this decision:

High costs: If you are only now starting a gold investment, you are literally paying a high price for it, possibly too high. At the moment it hardly looks as if the gold price is likely to fall sharply in the foreseeable future – experts are assuming that it is likely to rise in the short term and will remain at a high level in the long term because of the rising national debt. But nobody can rule out a sudden fall in prices. Because: Gold is purely an object of speculation, its price is very volatile. Even in the years of the global financial crisis, the gold price rose to new highs before falling sharply afterwards. A well-known problem: gold does not create value. As old as this wisdom is, it is so important in view of the high price. Although interest rates are low, the lack of return payments on gold is less painful. At the same time, however, the probability that the stock markets will pick up again increases with each additional day of crisis: Even if share prices should fall again in the short term, it is certain that they will rise again in the medium term. The advantage of shares: Companies often generate profit sharing for their shareholders in the form of dividends.

In all of this, one thing is clear: Anyone who is toying with a gold investment now, for example to temporarily park their money on the stock market until they return later, also has alternatives. Silver is currently also gaining in value.

Investors should also keep an eye on platinum. The advantage of this precious metal over gold: It is not only suitable for maintaining value, but is also used in industry – and is currently comparatively cheap due to the Corona crisis.

Sources used: own research Commerzbank Commodities DailyHandelsblattCapitalWith material from the news agency dpa show more sources less sources

Never before have German fund companies invested as much money as they do today. One of the drivers of this development are equity funds and ETFs, in which more and more small investors are investing.

The boom on the stock exchanges gave the German fund industry the best year in its history. At the end of 2019, the fund companies managed the record value of almost 3.4 trillion euros. That was 15 percent more than a year earlier (2.95 trillion euros), as the Federal Association of Investment and Asset Management (BVI) announced on Tuesday in Frankfurt. Fund assets have almost doubled within ten years.

The bottom line was that a good 120 billion euros flowed into open-ended investment funds last year, a little more than a year earlier (118 billion euros). The drivers of new business were again special funds, in which insurers and pension funds invest primarily, with inflows of 102.7 billion euros.

Public funds, which are aimed at broader groups of investors, collected 17.5 billion fresh money – and thus less than a year earlier (22.5 billion euros). Climate and environmental protection are playing an increasingly important role for investors: 40 percent of the 17.5 billion euros were put into so-called sustainable funds.

Great demand for index funds

With 4.4 billion euros, significantly more new money flowed into pure equity funds than in 2018 (0.7 billion euros) – also driven by the booming demand for exchange-traded index funds (ETF).

One reason for this is the ongoing low interest rate phase. Many experts advise investors to invest their money in equity funds, including ETFs.

"One could actually think that German savers are finally betting on the right horses", said BVI President Tobias C. Pross. However, the greater part of savings in Germany is still going to low-yield investments.

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To encourage private retirement planning, the industry called for plans to tax stock purchases to be buried.

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