Bloomberg News

German Stocks Drop, Extending Third Straight Weekly Slide

February 15, 2013

German stocks fell for a second day, with the benchmark DAX Index heading for its third straight weekly drop, as Group of 20 finance ministers and central bankers met in Moscow.

Deutsche Telekom AG slipped 1.6 percent as Paulson & Co. said it may oppose MetroPCS Communications Inc.’s combination with the phone company’s T-Mobile USA unit. Commerzbank AG rose 3.2 percent as Germany’s second-largest bank cut bonus payments. Gerresheimer AG gained 1.9 percent after CA Cheuvreux recommended investors buy the shares.

The DAX declined 0.3 percent to 7,611.11 at 10:50 a.m. in Frankfurt. The gauge has dropped 0.5 percent this week, for its longest weekly losing streak since April. The broader HDAX Index fell 0.2 percent today.

“I’d argue that you re-enter the DAX probably in the next two to three months,” Bob Parker, senior adviser at Credit Suisse Asset Management in London, said in a Bloomberg Television interview with Manus Cranny. “But will the DAX significantly outperform other European markets in 2013 like it did in 2012? The answer is no, the huge divergence will not be repeated this year.”

The number of shares changing hands in companies listed on the DAX was 69 percent greater than the average of the past 30 days, data compiled by Bloomberg showed.

G-20 finance ministers and central bankers hold talks in Moscow today, with investors seeking clarity on how comfortable they are with a sliding yen. Russia, which holds the group’s rotating presidency this year, wants to head off a global currency war by pushing policy makers to make stronger commitments against exchange-rate manipulation.

Rate Interference

The G-20 should have more “specific” language opposing exchange-rate interference in the communique that will be issued after the meeting among finance chiefs ends tomorrow, Russian Finance Minister Anton Siluanov said yesterday.

Separately, European Central Bank council member Jens Weidmann said an appreciating euro alone won’t trigger a cut in interest rates and the exchange rate’s gains are justified by the economic outlook.

“I believe that the exchange rate of the euro is broadly in line with fundamentals,” Weidmann said in a Feb. 13 interview. “You cannot really say that the euro is seriously overvalued.”

In the U.S., industrial production climbed 0.2 percent in January after a 0.3 percent advance the previous month, according to the median forecast of 81 economists in a Bloomberg survey before a report due at 9:15 a.m. New York time.

Deutsche Telekom

Deutsche Telekom dropped 13.5 cents to 8.34 euros, the lowest level since Dec. 7. Paulson & Co. agrees with arguments presented by P. Schoenfeld Asset Management LP, which opposes the merger of MetroPCS and T-Mobile USA, according to an e- mailed statement late yesterday.

Commerzbank added 4.7 cents to 1.52 euros, snapping three days of declines. Chief Executive Officer Martin Blessing gave up his bonus for last year and cut payouts by an average 17 percent across the firm as he warned of further pressure on revenue. The bank revised its fourth-quarter loss to 716 million euros compared with the 720 million euros it had reported last week in a preliminary earnings statement.

Gerresheimer, the German producer of pharmaceutical and health-care equipment, gained 80 cents to 42.37 euros. Cheuvreux upgraded its recommendation on the shares to outperform, the equivalent of a buy rating, from underperform. The company’s growth guidance for 2013 is too conservative, according to analyst Oliver Reinberg.

To contact the reporter on this story: Sofia Horta e Costa in London at shortaecosta@bloomberg.net

To contact the editor responsible for this story: Andrew Rummer at arummer@bloomberg.net


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