- Title: GERMANY: German DAX down more than 1 percent in early trading
- Date: 12th May 2010
- Summary: FRANKFURT, GERMANY (MAY 11, 2010) (REUTERS) EXTERIOR OF FRANKFURT STOCK EXCHANGE HIGH SHOT OF FLOOR VARIOUS OF TRADERS WORKING ON COMPUTERS DAX BOARD TRADERS WORKING ON COMPUTERS VARIOUS OF BANK SHARES ON ELECTRONIC BOARD (SOUNDBITE) (English) HEAD OF RESEARCH AT BAADER BANK, ROBERT HALVER, SAYING: "Nobody is interested in having a low inflation. We need inflation to get rid of the high debt levels. There is no other chance." TRADERS WORKING ON COMPUTERS (SOUNDBITE) (English) HEAD OF RESEARCH AT BAADER BANK, ROBERT HALVER, SAYING: "I guess it's difficult for the ECB to be independent in the long-term because the other countries push enormously and the ECB has to do their work in getting inflation and that's not good news." DAX BOARD (SOUNDBITE) (English) HEAD OF RESEARCH AT BAADER BANK, ROBERT HALVER, SAYING: "Today is judgement day. Many people and investors are thinking about the future of the common currency and I guess we are losing stability criteria. That's not good for the euro currency in the short term." TRADERS WORKING ON COMPUTERS DAX BOARD HIGH SHOT OF FLOOR
- Embargoed: 27th May 2010 13:00
- Keywords:
- Location: Germany
- City:
- Country: Germany
- Topics: Finance
- Reuters ID: LVA5EVCETIRFX18T6I04UZ3IJYIZ
- Aspect Ratio:
- Story Text: Germany's DAX index is down more than one percent in early trading after it soared only a day earlier, with one Frankfurt trader arguing that inflation is needed to get rid of the high debt levels.
Germany's DAX was down more than one percent in early trading on Tuesday (May 11), just one day after the index ended at 6,017.91 points, up 302.82 or 5.30 percent.
Frankfurt trader Robert Halver of Baader Bank said there was no alternative to inflation.
"Nobody is interested in having a low inflation. We need inflation to get rid of the high debt levels," Halver said.
The bank's head of research also argued that the European Central Bank (ECB) was under increasing outside pressure and its independence in danger.
"Other countries push enormously and the ECB has to do their work in getting inflation and that's not good news."
One day after European stocks soared, Halver called Tuesday "judgement day. Many people and investors are thinking about the future of the common currency and I guess we are losing stability criteria."
"That's not good for the euro currency in the short term," Halver said. - Copyright Holder: REUTERS
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