- Title: Autos, airlines hit in sluggish start to European trading week
- Date: 24th July 2017
- Summary: FRANKFURT, GERMANY (JULY 24, 2017) (REUTERS) TRADING FLOOR AT FRANKFURT STOCK EXCHANGE SIGN READING (German) "FRANKFURT STOCK EXCHANGE" DAX BOARD DAX GRAPH TRADER BOARD SHOWING DAX START AT 12,228.63 POINTS BOARD SHOWING DAX LOSS OF 50.51 POINTS OR 0.41 PERCENT VARIOUS OF TRADERS DAX GRAPH TRADERS TRADER LOOKING ON TRADING FLOOR (SOUNDBITE) (German) BAADER BANK'S HEAD OF CAPITAL MARKET ANALYSIS, ROBERT HALVER, SAYING: "The DAX continues to suffer from the flu in three areas. First, the strong euro is not helpful for Germany's export industry. Second, it's suffering from a U.S. president who does not succeed in pushing through a reasonable economic policy. Not a single one of his election promises looks set to be implemented. And third, and this is terrible, there are rumours Germany's flagship industry, the crown jewel of our industrial goods culture, the car industry, is suffering from cartel accusations." AUTOMOBILE SHARES SHOWN ON BOARD TRADER VARIOUS OF AUTOMOBILE SHARES SHOWN ON BOARD TRADERS (SOUNDBITE) (German) BAADER BANK'S HEAD OF CAPITAL MARKET ANALYSIS, ROBERT HALVER, SAYING: "Germany's flagship industry is the car industry. If those rumours about a cartel are only remotely true then we have a serious problem because a lot of jobs are attached to it and also a lot of reputation, including for the German industrial goods culture. I can only hope that the ladies and gentlemen sitting on the boards of these companies give clarifications as soon as possible. Should they be unable to do so they should find another job?" TRADING FLOOR BLUE PLASTIC BULL WITH WRITING (German) "FRANKFURT STOCK EXCHANGE" (SOUNDBITE) (German) BAADER BANK'S HEAD OF CAPITAL MARKET ANALYSIS, ROBERT HALVER, SAYING: "The Fed will not raise interest rates. There is a lot of suspense about whether she (Federal Reserve Chair Janet Yellen) will comment on whether she is ready to slowly, very slowly reduce the money she has been pumping into the market for years. But I don't think there is a lot of reason for concern. Mrs. Yellen knows that America's debt is dramatic, this year almost 800 billion new debt. Student loans and car loans are at an all-time high. She can't do much in regard to restrictive monetary policy." STOCK EXCHANGE SIGN TRADER DAX GRAPH TRADING FLOOR
- Embargoed: 7th August 2017 10:39
- Keywords: VW BMW drop carmaker automobile shares Daimler DAX fall stocks
- Location: FRANKFURT, GERMANY
- City: FRANKFURT, GERMANY
- Country: Germany
- Topics: Economic Events
- Reuters ID: LVA0016R2SNM5
- Aspect Ratio: 16:9
- Story Text: The euro hit a 23-month high on Monday (July 24) against an ailing dollar, weighing on shares of European exporters before weaker-than-expected German business activity took the shine off the single currency.
The euro touched $1.1684 in Asian trade before pulling back to trade at $1.1648, down 0.2 percent on the day. The pan-European Stoxx 600 fell 0.1 percent as price war worries hurt airlines.
German auto stocks took a hit in early Monday trading, weighed down by uncertainty over possible antitrust fines after European regulators said they were investigating allegations that carmakers were operating a cartel.
Shares in Volkswagen were down 3.3 percent, with premium rivals Daimler and BMW down 2.9 percent and 2.5 percent respectively, underperforming the blue-chip DAX index, which was 0.4 percent lower, and pushing down the Stoxx 600 index.
The car industry has been hit with billion-euro fines on both sides of the Atlantic in recent years for cartels related to various parts such as lighting systems, engine coolers and bearings. - Copyright Holder: REUTERS
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