- Title: European shares dip as shrinking German economy stokes slowdown fears
- Date: 14th August 2019
- Summary: FRANKFURT, GERMANY (AUGUST 13, 2019) (REUTERS) ELECTRONIC BOARD TRADER TRADING BOARD SHOWING BANK SHARES TRADER LOOKING AT COMPUTER TRADING BOARD SHOWING DAX GRAPH WIDE OF TRADING BOARD TRADER TRADING BOARD SHOWING CHANGES MORE OF TRADERS WIDE OF TRADING BOARD VARIOUS OF TRADERS (SOUNDBITE) (German) HEAD OF CAPITAL MARKET ANALYSIS AT BAADER BANK, ROBERT HALVER, SAYING: "The shrinking of the German economy in the second quarter was somehow expected, it is no great surprise, but also no relief. We have to do something now. The German export nation is under attack and we are not coming up with modern reform policies and infrastructural reforms in order to remain competitive in the long term." TRADER LOOKING AT COMPUTER MONITOR (SOUNDBITE) (German) HEAD OF CAPITAL MARKET ANALYSIS AT BAADER BANK, ROBERT HALVER, SAYING: "As an export nation we rely on the world economy of course but it must not continue like that. We can make sure that we get more attractive as an industry location by using the good old German motto: leading through technical advantage instead of stepping back due to innovation threats. We got ahead because of our technical edge and we cannot stop acting now. Right now I get the impression that the government in Berlin is sitting back, doing nothing while China keeps on getting stronger and is attacking us directly. We have to wake up and take action for the German industry." TRADER (SOUNDBITE) (German) HEAD OF CAPITAL MARKET ANALYSIS AT BAADER BANK, ROBERT HALVER, SAYING: "The situation won't get easier in the next quarter as long as the trade war goes on and Europe and Germany won't come up with any reasonable reforms. The goal of a balanced budget is also under threat. No one will be able to campaign any longer claiming we have a balanced budget. We would have to make debt in order to keep the welfare state going. It would be much better to finance the welfare state with a strong economy and not with debt." TRADING FLOOR FRANKFURT, GERMANY (AUGUST 13, 2019) (REUTERS) VARIOUS OF CONTAINER TERMINAL WITH SKYLINE OF BANKING DISTRICT IN BACKGROUND
- Embargoed: 28th August 2019 10:30
- Keywords: markets Frankfurt DAX European shares growth outlook global slowdown automotive sector
- Location: FRANKFURT & HAMBURG & EMMERICH & INGOLSTADT & WOLFSBURG & MUNICH & BERLIN, GERMANY
- City: FRANKFURT & HAMBURG & EMMERICH & INGOLSTADT & WOLFSBURG & MUNICH & BERLIN, GERMANY
- Country: Germany
- Topics: Economic Events
- Reuters ID: LVA001AS6UW7H
- Aspect Ratio: 16:9
- Story Text: European shares fell on Wednesday (August 14), as a shrinking German economy and weak industrial data from China stoked fears of a global slowdown, forcing investors to turn defensive and overshadowing a temporary U.S.-China tariff truce.
The pan-European STOXX 600 index fell 0.2% by 0820 GMT, with banks weighing on the benchmark, while the defensive healthcare, utilities and telecoms sectors outperformed.
U.S. President Donald Trump's administration delayed imposing a 10% tariff on certain Chinese products, including laptops and cell phones, beyond September on Tuesday, providing battered equity markets world-wide some relief.
"China keeps on getting stronger and is attacking us directly. We have to wake up now and take action for the German industry", said Robert Halver, head of capital markets analysis at Baader Bank.
The Frankfurt-dominated auto index fell more than 1%, while borrowing costs in Germany fell to fresh record lows following the GDP data, reinforcing expectations for monetary policy stimulus soon.
Market participants are now keeping watch for a read-out of second quarter GDP numbers in the eurozone due later in the day.
(Production: Hakan Erdem, Ulrike Heil) - Copyright Holder: REUTERS
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