GERMANY: Traders in Germany say they are worried about the state of Spain's economy, but the DAX index remains almost untouched

Record ID: 858850

  • Title: GERMANY: Traders in Germany say they are worried about the state of Spain's economy, but the DAX index remains almost untouched
  • Date: 1st June 2012
  • Summary: FRANKFURT, GERMANY (MAY 31, 2012) (REUTERS) EXTERIOR OF STOCK EXCHANGE TRADING FLOOR TRADER BOARD SHOWING DAX GRAPH TRADER BOARD SHOWING LOWEST STANCE OF THE DAX VARIOUS OF TRADERS VARIOUS OF BANKING SHARES (SOUNDBITE) (German) FIDEL HELMER FROM HAUCK & AUFHAEUSER, SAYING: "Spain is in a very precarious situation. They have their highest ever level of unemployment. The gross national product (GNP) is falling and if they now have to get hold of money on the markets at higher interest rates, then this will not necessarily promote the productivity." TRADERS (SOUNDBITE) (German) FIDEL HELMER FROM HAUCK & AUFHAEUSER, SAYING: "Ackermann definitely moulded the picture of the Deutsche Bank. He has been in the job for ten years and led the bank to new heights." VARIOUS OF DEUTSCHE BANK SHARES TRADER BOARD SHOWING DAX GRAPH TRADERS TRADING FLOOR
  • Embargoed: 16th June 2012 13:00
  • Keywords:
  • Location: Germany
  • City:
  • Country: Germany
  • Topics: Economy,Politics
  • Reuters ID: LVAEB66G5KG1G7ROEKUSWWQKN6VF
  • Aspect Ratio:
  • Story Text: Germany's DAX index remained unaffected by ongoing worries within the eurozone about the state of the Spanish economy on Thursday (May 31).
    At 0851GMT the DAX was up 0.44 percent at 6308 points.
    "Spain is in a very precarious situation. They have their highest ever level of unemployment. The gross national product (GNP) is falling and if they now have to get hold of money on the markets at higher interest rates, then this will not necessarily promote the productivity," Fidel Helmer from Hauck and Aufhaeuser told Reuters TV.
    Spain has sky-high unemployment, falling housing prices, autonomous regions effectively shut out of debt markets and a ballooning budget deficit. Its banks need financial help, but many in the market believe Madrid may not be able to afford it.
    The European Commission said on Wednesday (May 30) it was ready to give Spain an extra year to reduce its budget gap and offer direct aid for its banks from the region's rescue fund. But it is member states who decide whether to adopt such proposals and Germany has so far opposed any collective banking resolution.
    Meanwhile Helmer also praised head of the Deutsche Bank, Josef Ackermann, who was to hold his final speech as CEO on Thursday at the company's AGM.
    Around 5,000 shareholder representatives are expected to attend the annual general meeting, where veteran bankers Anshu Jain and Juergen Fitschen officially take over the reins as co-chief executives from departing boss Ackermann.
    "Ackermann definitely moulded the picture of the Deutsche Bank. He has been in the job for ten years and led the bank to new heights," Helmer said.
    Ackermann's reign has spanned a decade during which Deutsche transformed itself from being heavily dependent on corporate Germany into a global lender with investment banking, wealth management and retail banking operations.
    Deutsche's more international footprint and its focus on investment banking prompted fears the bank could neglect its German roots, a factor which led to a compromise solution on succession.
    The Frankfurt-based lender appointed German corporate banker Juergen Fitschen to work alongside India-born investment banker Anshu Jain.
  • Copyright Holder: REUTERS
  • Copyright Notice: (c) Copyright Thomson Reuters 2012. Open For Restrictions - http://about.reuters.com/fulllegal.asp
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