Germany Daybook: Asmussen Says Euro Prepared for Any Turbulence
German Deputy Finance Minister Joerg Asmussen said the euro region is prepared for any “turbulence” that may arise in financial markets as a result of the bloc’s sovereign-debt crisis.
“We have the strengthened Stability and Growth Pact, we have the euro-plus pact for competitiveness, we have the design of the permanent crisis-resolution mechanism, the ESM,” Asmussen said in an interview on his way to China, where German officials will participate in Group of 20 talks. “We will explain the results in detail to our partners. We are well- suited for turbulence that may arise in financial markets.”
ECONOMY: *The German banking system must overcome structural weaknesses as the longer the industry waits to make changes, the higher the cost for the economy and taxpayers will be, Deutsche Bank (DBK@GR) CEO Ackermann wrote in Boersen-Zeitung. *German Finance Minister Schaeuble said financial markets are regaining confidence in the stability of the euro area after a European Union summit, Reuters reported, citing an interview. *ECB announces allotment in 3-month tender at 11:15 a.m. *The Portuguese government does not plan to request external aid, Prime Minister Jose Socrates said.
EQUITIES: *Stada (SAZ@GR) is sticking to its targets for 2014 and forecast a “positive outlook” for 2011 and 2012. *Grammer (GMM@GR) said order cancellations are possible for car suppliers this year in the aftermath of the Japan earthquake and tsunami. *H&R Wasag (WAS@GR) is proposing a 44 percent increase in the annual dividend to 65 euro cents a share. *Bilfinger Berger (GBF@GR) holds annual press event at 11 a.m. *Nordex (NDX1@GR) cut to “hold” from “buy” at Commerzbank. *Q-Cells (QCE@GR) reduced to “underweight” at HSBC. *Metro’s (MEO@GR) Media-Saturn unit will generate more than 10 percent of its sales via the internet by 2013 or 2014 at the latest, Sueddeutsche Zeitung said, citing Horst Norberg, who heads the electronics chain. *Bertelsmann (BTG@GR) and KKR (KKR@US) want to acquire Warner Music (WMG@US) jointly and are ready to pay between $2.5 billion and $3 billion, Handelsblatt reported, citing unidentified people close to the process. *Wolfgang Franz, head of German Chancellor Angela Merkel’s council of economic advisers, will leave EnBW’s (EBK@GR) supervisory board, Handelsblatt reported, citing an interview.
WHAT TO WATCH: *German Banking Congress starts in Berlin. Two-day event is organized by Germany’s BDB banking association. *European Commission releases euro-area confidence indicators for March at 11 a.m. *European Central Bank Executive Board member Lorenzo Bini Smaghi speaks at the completion of the Eurosystem Cooperation Program with the Bank of Russia on banking supervision and internal audit. In Moscow, at 10:30 a.m. Frankfurt time. *BayernLB holds annual press conference in Munich at 10 a.m.
MARKETS: *The DAX Index was little-changed at 6,934.44 *The Stoxx Europe 600 Index rose 0.1 percent to 276.51 *MSCI Asia-Pacific Index gained 1.1% to 134.54 as of 1:10 p.m. in Tokyo *German 10-year bond yield at 3.355 *Euro -- U.S. $1.4086
To contact the reporter on this story: Nicholas Comfort in Frankfurt at email@example.com
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