- Title: Markets brace for a run of EU elections
- Date: 28th November 2016
- Summary: FRANKFURT, GERMANY (NOVEMBER 28, 2016) (REUTERS) DAX INDEX BOARD TRADER AT DESK DAX INDEX TRADER AT DESK DAX INDEX BOARD TRADER AT DESK WIDE OF DAX INDEX BOARD TRADER ON PHONE DETAILS ON DAX INDEX BOARD TRADERS TALKING (SOUNDBITE) (German) CAPITAL MARKETS EXPERT, OLIVER ROTH, SAYING: "Everyone is of course talking about Lufthansa. The repeated strikes by the pilots, the permanent disagreements between the company and the trade union is of course of interest to the stock exchange. There has been a lot of negotiating, we saw it all last week, but of course, the strikes are going to be carried out and in the long run it will not only damage Lufthansa's reputation but also affect their finances." DAX INDEX BOARD (SOUNDBITE) (German) CAPITAL MARKETS EXPERT, OLIVER ROTH, SAYING: "There are a few elections that are just around the corner. There is the referendum in Italy about the political future of the prime minister Matteo Renzi. On top of that, the French have managed to get a very conservative candidate on the presidential ticket for the coming year. Francois Fillon will almost certainly create a certain headache for the right-wing populists. So, as far as France is concerned we are quite relaxed but as to Italy we are very concerned that this could lead to a real crisis and this, along with other situations like Brexit, is the last thing the EU needs right now." TRADING FLOOR TRADER ON PHONE DAX INDEX LINE TRADING FLOOR
- Embargoed: 13th December 2016 12:04
- Keywords: Markets DAX Germany Lufthansa
- Location: FRANKFURT, GERMANY
- City: FRANKFURT, GERMANY
- Country: Germany
- Topics: Currencies/Foreign Exchange Markets,Economic Events
- Reuters ID: LVA0015ACYVM5
- Aspect Ratio: 16:9
- Story Text: Markets were in a holding position on Monday (November 28) as fallout from U.S. President-elect Donald Trump's election proved less spectacular than expected, but with several upcoming European votes carrying potential risk.
Repeated Lufthansa strikes are also proving a liability for the company's stocks.
Last week Lufthansa had to cancel nearly 2,800 flights during a four-day strike from Wednesday that affected more than 350,000 passengers, the 14th walkout in a dispute that since early 2014 has cost the carrier hundreds of millions of euros.
Strikes by the pilots cost Lufthansa 222 million euros ($235 million) in 2014, according to the IW Cologne Institute for Economic Research, while in 2015 walkouts by pilots and cabin crew cost the airline 231 million euros.
Lufthansa said it had taken another 20 million-euro hit in the first two days of last week's strike.
Crude prices and Europe's main stock markets were down over 1 percent in early European trading as Italian shares also took a fresh tumble ahead of its referendum on constitutional change this Sunday.
The European markets did get a lift from the election of Francois Fillon as the center-right candidate in next year's French presidential election.
The reformist former prime minister is now favourite to become president, with a flash opinion poll showing he would easily beat National Front leader Marine Le Pen in a run-off second round.
Markets worry the far-right Le Pen, who has promised a referendum on membership of the European Union if she wins, would threaten the future of the currency bloc.
Italy, which has been plagued by political concerns ahead of its referendum on constitutional reform, remained a more obvious concern meanwhile.
Having lost more than half their value over the last year, Italian banking stocks fell 3 percent to their lowest in almost two months as Italian government bonds also underperformed the wider rally in fixed income.
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