Skip navigation Scroll to top
Scroll to top

LGT Navigator: Turbulent company news

June 18, 2019

Ahead of the Fed's interest rate decision on Wednesday evening, investors remain cautious. Meanwhile, several corporate news items caused a stir: Lufthansa due to a profit warning and Pfizer due to a billion-dollar takeover.


Lufthansa shares under pressure after profit warning

After a profit warning, shares of German Lufthansa came under massive pressure and lost more than -12% yesterday – the largest daily loss in five years. Due to price pressure in the European airline business, triggered by market-wide overcapacities and aggressively growing low-cost competitors, as well as higher fuel costs, the airline felt compelled to strongly lower its profit target for 2019. Lufthansa now expects an adjusted operating result of EUR 2.0 to EUR 2.4bn (previously EUR 2.4-3.0bn).

Pfizer invests in cancer division

The US pharmaceutical group Pfizer acquires the biotechnology company Array BioPharma for USD 11.4bn, thereby expanding its portfolio of cancer drugs. At USD 48 per Array share, Pfizer will pay a premium of 62% over last Friday's closing price. Array has been cooperating with Pfizer for many years in the development of cancer drugs.

Huawei expects significantly lower sales

Due to the US sanctions, the Chinese telecom group Huawei expects revenue over the next two years to be around USD 30bn lower than previously forecast. Revenue in 2018 was 721bn yuan (EUR 95bn). The US government blacklisted the company for security reasons, subjecting Huawei's business relationships with US partners to strict controls. This makes the relationship between Huawei and American suppliers massively more difficult, and the sanctions for the Chinese also make access to the Google system Android more difficult. Huawei has therefore already announced its intention to push ahead with its own operating system for smartphones.

New York economic barometer signals slowdown in US manufacturing

The Federal Reserve of New York's business activity indicator for the industrial sector in the greater New York area collapsed surprisingly sharply in June, indicating a downturn in the regional industrial sector. In May, the so called Empire State Index fell by 26.4 points to minus 8.6, its weakest level since October 2016. A value of over zero points signals an expansion, an index level below it a contraction.

Economic Indicators June 18

MEZ Country Indicator Last
08:00 EU Car registrations (m/m) -0.4%
11:00 GE ZEW economic expectations -2.1
11:00 GE ZEW current situation +8.2
11:00 EZ ZEW economic expectations -1.6
11:00 EZ Consumer prices (m/m) +0.2%
11:00 EZ Consumer prices (y/y) +1.2%
11:00 EZ Core consumer prices (y/y) +0.8%
14:30 US Housing starts (m/m) +5.7%
14:30 US Building permits (m/m) +0.2%

Earnings Calendar June 19

Country Corporate Period
US Oracle Q4



Follow us on TwitterFacebook or LinkedIn, where we inform you about latest market developments and LGT News. Further informationen is available on: LGT Social Media.

LGT Research Publications subscription 

Publisher: LGT Bank (Switzerland) Ltd., Glärnischstrasse 36, CH-8027 Zurich
Editor: Alessandro Fezzi, +41 44 250 78 59, E-Mail:
Source: LGT Bank (Switzerland) Ltd.

Risk Disclosure (Disclaimer)
This publication is an advertising material / marketing communication. This publication is for your information only and is not intended as an offer, solicitation of an offer, or public advertisement to buy or sell any investment or other specific product. Its content has been prepared by our staff and is based on sources of information we consider to be reliable. However, we cannot provide any confirmation or guarantee as to its being correct, complete and up to date. The circumstances and principles to which the information contained in this publication relates may change at any time. Information that has been published should therefore not be understood as implying that no change has taken place since its publication or that it is still up to date. The information in this publication does not constitute an aid for decision-making in relation to financial, legal, tax-related or other consulting matters, nor should any investment decisions or other decisions be made on the basis of this information alone. It is recommended that advice be obtained from a qualified expert. Investors should be aware that the value of investments can fall as well as rise. Positive performance in the past is therefore no guarantee of positive performance in the future. Investments in foreign currencies are also subject to fluctuations in exchange rates. We disclaim all liability for any loss or damage of any kind, whether direct, indirect or consequential, which may be incurred through the use of this publication. This publication is not intended for persons subject to legislation that prohibits its distribution or makes its distribution contingent upon an approval. Any person coming into possession of this publication shall therefore be obliged to find out about any restrictions that may apply and to comply with them. In line with internal guidelines, persons responsible for compiling this report are free to buy hold and sell the securities referred to in this report.

Herausgeber: LGT Bank (Schweiz) AG, Glärnischstrasse 36, CH-8027 Zürich
Redaktion: Alessandro Fezzi, +41 44 250 78 59, E-Mail:
Quelle: LGT Bank (Schweiz) AG