GERMANY: Shares dip after two-day recovery

Record ID: 722464

  • Title: GERMANY: Shares dip after two-day recovery
  • Date: 10th September 2011
  • Summary: WOLFSBURG, GERMANY (FILE) (REUTERS) EXTERIOR OF VW HEADQUARTERS
  • Embargoed: 25th September 2011 13:00
  • Keywords:
  • Location: Germany, Germany
  • Country: Germany
  • Topics: Business,Economy,Transport
  • Reuters ID: LVA4QY1IZSY1SWO5JDCTFDHXLZCX
  • Story Text: German shares began trading lower on Friday (September 9), with equities poised to halt a two-day tentative recovery and track losses on Wall Street after U.S. Federal Reserve Chairman Ben Bernanke gave no indications of new stimulus measures.
    Investors were also cautious after U.S. President Barack Obama proposed a 447 USD billion package of tax cuts and spending measures late on Thursday (September 8) aimed at boosting growth and hiring, waiting to see if Republicans will back the plan.
    At 0832GMT Germany's DAX was down 1.38 per cent at 5331 points.
    "It's nice to have a new economic package in America but the Republicans have to approve it and that's why I would say it's definitely a lame duck package because the Republicans will not say, yes we will do it," said Robert Halver from Baader Bank.
    Shares in Volkswagen AG were also down on Friday after the company said it would delay a merger with Porsche Automobil Holding SE beyond 2011 because of legal issues and examine other ways of creating an integrated auto group.
    "Now there will be no merger between Volkswagen and Porsche but right now it is even not necessary to do this because VW is still a big major shareholder in Porsche equities and that's why VW is able to build a big international car producer having all in the programme, delivering trucks and premium cars," Halver said.
  • Copyright Holder: FILE REUTERS (CAN SELL)
  • Copyright Notice: (c) Copyright Thomson Reuters 2011. Open For Restrictions - http://about.reuters.com/fulllegal.asp
  • Usage Terms/Restrictions: None
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