German Stocks Advance; MAN SE, Beiersdorf Advance as E.ON, RWE Shares Fall
German stocks advanced, erasing earlier losses, as MAN SE increased following the extension of subsidies for its trucks in Brazil.
Beiersdorf AG rose after an analyst said Procter & Gamble Co. should look at buying the German maker of Nivea skin cream and Elastoplast bandages. RWE AG and E.ON AG fell as investors speculated that the government’s plan to extend the life of nuclear-power plants may face parliamentary and legal challenges.
The DAX Index climbed 25.3, or 0.4 percent, to 6,189.74 at 11:51 a.m. in Frankfurt.The DAX dropped 3.6 percent in August as concern mounted that the global economic rebound will slow down, hurting German exporters. The broader HDAX Index gained 0.4 percent.
Beiersdorf gained 1.6 percent to 44.04 euros. Procter & Gamble Chief Executive Officer Bob McDonald should pursue skin- cream maker Beiersdorf or Estee Lauder Cos. as he seeks to acquire international brands, Deutsche Bank AG analyst William Schmitz said in an interview. MAN increased 2 percent to 73.90 euros. Europe’s third- largest truckmaker will benefit from an extension yesterday of subsidies to the Brazilian truck market, BofA Merrill Lynch Global Research wrote in a report today.
RWE fell 1.3 percent to 53.56 euros. E.ON declined 1.5 percent to 23.11 euros. Chancellor Angela Merkel’s plan to extend the running time of German nuclear-power plants requires approval in the upper house of parliament, Handelsblatt said, citing former high-court chief justice Hans-Juergen Papier.
The proposed extension of plants’ life beyond 2022 cannot be passed by the lower house alone, Papier says in a paper to be published in Neue Zeitschrift fuer Verwaltungsrecht, a legal journal, the newspaper reported. Merkel’s governing coalition lacks a majority in the upper house.
“It is most likely that the opposition and some federal states will file a lawsuit against any decision that is going to be taken without consent from the upper house,” Mainfirst Bank AG wrote in a report today, as it downgraded its recommendation on RWE to “neutral” from “buy.”
To contact the reporter on this story: Alexis Xydias in London at axydias@bloomberg.net.
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