- Title: Dax starts week stronger, having the 13.000 mark firmly set in their sights
- Date: 6th July 2020
- Summary: FRANKFURT, GERMANY (FILE - FEBRUARY 13, 2020) (REUTERS) VARIOUS OF COMMERZBANK CEO MARTIN ZIELKE AT PRESS CONFERENCE FRANKFURT, GERMANY (FILE - MAY 13, 2020) (REUTERS) VARIOUS OF EXTERIORS OF COMMERZBANK TOWER (HEADQUARTERS) VARIOUS OF EXTERIORS OF BRANCHES
- Embargoed: 20th July 2020 13:00
- Keywords: Commerzbank DAX Frankfurt stock Exchange
- Location: FRANKFURT, GERMANY
- City: FRANKFURT, GERMANY
- Country: Germany
- Reuters ID: LVA002CLO8CCT
- Aspect Ratio: 16:9
- Story Text: While European markets were influenced by the Chinese markets rallying as investors banked on the world's second biggest economy to lead a recovery from the coronavirus-induced slump, the German stock exchange all but occupied themselves with the resignations of both Commerzbank CEO Martin Zielke and chairman Stefan Schmittmann.
Commerzbank suffered a "palace coup" as the trader from Oddo Seydler Bank, Oliver Roth, said. The German government who partially own Commerzbank and the hedge fond Cerberus have come to some sort of arrangement regarding the relief of the current Commerzbank bosses, CEO and board, Roth added.
With nearly 12,000 jobs at stake, a quarter of the Commerzbank workforce, divisions came to a head when labour representatives blocked a supervisory board meeting to discuss the future of Germany's second largest bank.
Although precipitated by a public campaign for change by U.S. activist investor Cerberus, one of its top shareholders, the sudden resignations of both CEO Martin Zielke and chairman Stefan Schmittmann came as a shock.
Even Cerberus, which has called Commerzbank "disastrous", had wanted an orderly transition, firstly with changes to its supervisory board, and then to its management.
The optimism from Asia spilled over to European trading session.
Shortly before 3:40 p.m. (1340 GMT), Germany's DAX was at 12,726 points, an increase of 198 points or 1.59%.
(Production: Hakan Erdem, Ute Swart)
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