BMW 2015 Annual Report Download - page 87

87 COMBINED MANAGEMENT REPORT
BMW Stock and Capital Markets in 2015
BMW shares of common stock climbed to a new record
high of € 122.60 during 2015. The BMW Group contin-
ues to have the best ratings in the European automobile
sector, enabling it to benefit from excellent access to in-
ternational capital markets.
Volatile stock markets in 2015
The 2015 stock market year was influenced by the slow-
down of the Chinese economy, the weakness of the
euro against the US dollar and the depreciation in value
of the Chinese renminbi. The Greek debt crisis and the
monetary policies pursued by the US Federal Reserve
Bank were sources of additional uncertainty for inves-
tors.
Even the bond-buying programme put in place by
the ECB in the first quarter, initially lauded by capital
markets, was unable to fully counteract the negative con-
sequences of these events. However, thanks to the im-
proved mood towards the year-end, most stock markets
recorded a gain for the twelve-month period.
At the beginning of 2015, the ECB’s expansionary mone-
tary policies prompted an upturn in Europe’s capital
markets. The loss in value of the euro against the US
dollar provided a boost for European exports and con-
tributed to a more amenable stock market climate. This
initial momentum was overshadowed in the second
quarter by the renewed flare-up of the debt crisis in
Greece, news of China’s faltering economy, and the
Ukraine crisis. The Chinese government revised down
its growth forecast for the domestic economy for 2015
from 7.5 % to 7.0 %. The Greek sovereign debt crisis took
another turn for the worse in June, putting a further
dampener on sentiment among investors. The financial
situation in Greece eased in the third quarter, following
the authorisation of a further rescue package. However,
the Chinese government’s announcement of its inten-
tion to devalue the renminbi triggered further shock
waves on the world’s capital markets. Moreover, news
of the manipulation of competitors’ diesel and petrol
engines at the end of the third quarter had a negative
effect on investor sentiment with respect to the auto-
mobile industry as a whole. The general mood on stock
markets proceeded to turn yet again during the final
three months of the year. The ECB’s announcement that
it is was considering expanding the scale of cheap money
within the euro region and the news of a renewed re-
duction in the reference interest rate by the Chinese
government fuelled the hopes of investors that the global
economy could pick up. As a consequence, the DAX
and the EURO STOXX 50 finished the year with a tangi-
ble gain, despite the losses arising in the interim period.
Development of BMW stock compared to stock exchange
indices since 30 December 2010
in %
240
200
160
120
80
40
BMW BMW Prime DAX
preferred stock common stock Automobile
201.1 165.9 187.9 155.4
Development of BMW stock compared to stock exchange indices
(Index: December 2010 = 100)
250
225
200
175
150
125
100
75
50
11 12 13 14 15
BMW preferred stock
BMW common stock
Prime Automobile
DAX
BMW preferred stock BMW common stockPrime Automobile DAX