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German Stocks Drop, Extending Third Straight Weekly Slide

Feb. 15 (Bloomberg) -- German stocks fell to a one-week low, extending the benchmark DAX Index’s third straight weekly drop, as U.S. industrial production unexpectedly contracted and Group of 20 policy makers met in Moscow.

Deutsche Telekom AG sank the most in four months as as Paulson & Co. said it may oppose MetroPCS Communications Inc.’s combination with the phone company’s T-Mobile USA unit. Commerzbank AG rose 1.2 percent as Germany’s second-largest bank cut bonus payments. Gerresheimer AG climbed to a record after CA Cheuvreux recommended investors buy the shares.

The DAX slid 0.5 percent to 7,593.51 at the close in Frankfurt, having swung between gains and losses at least 15 times. The gauge has retreated 0.8 percent this week, for its longest weekly losing streak since April. The broader HDAX Index slipped 0.4 percent today.

“I’d argue that you re-enter the DAX probably in the next two to three months,” Bob Parker, senior adviser at Credit Suisse Asset Management in London, said in a Bloomberg Television interview with Manus Cranny. “But will the DAX significantly outperform other European markets in 2013 like it did in 2012? The answer is no. The huge divergence will not be repeated this year.”

The volume of shares changing hands in DAX-listed companies was 31 percent lower than the average of the last 30 days, data compiled by Bloomberg showed.

U.S. Economy

In the U.S., industrial production shrank 0.1 in January after a revised 0.4 percent gain in December, figures from the Federal Reserve showed today. The median forecast of economists surveyed by Bloomberg called for a 0.2 percent increase.

G-20 finance ministers and central bankers began a two-day meeting in Moscow, with investors seeking clarity on how comfortable they are with a weakening yen. Russia, which holds the group’s rotating presidency this year, wants to head off a global currency war by pushing policy makers to make stronger commitments against exchange-rate manipulation.

The G-20 should have more “specific” language opposing exchange-rate interference in the communique that will be issued after the meeting among finance chiefs ends tomorrow, Russian Finance Minister Anton Siluanov said yesterday.

Separately, European Central Bank council member Jens Weidmann said an appreciating euro alone won’t trigger a cut in interest rates and the currency’s gains are justified by the economic outlook.

“I believe that the exchange rate of the euro is broadly in line with fundamentals,” Weidmann said in a Feb. 13 interview. “You cannot really say that the euro is seriously overvalued.”

Deutsche Telekom

Deutsche Telekom slid 3.3 percent to 8.19 euros, the biggest drop since Oct. 4. Paulson & Co. agrees with arguments presented by P. Schoenfeld Asset Management LP, which opposes the merger of MetroPCS and T-Mobile USA, according to an e-mailed statement yesterday.

Carl Zeiss Meditec AG declined 5.8 percent to 22.54 euros as Kepler Capital Markets downgraded the maker of medical lasers and surgery products to reduce from hold.

Commerzbank added 1.7 euro cents to 1.49 euros, snapping three days of declines. Chief Executive Officer Martin Blessing gave up his bonus for last year and cut payouts by an average 17 percent across as he warned of further pressure on revenue. The bank revised its fourth-quarter loss to 716 million euros ($956 million) compared with the 720 million euros it had reported last week in a preliminary earnings statement.

Gerresheimer Upgrade

Gerresheimer, the German producer of pharmaceutical and health-care equipment, gained 3.9 percent to 43.17 euros, the highest price since its June 2007 initial public offering. Cheuvreux upgraded the shares to outperform, the equivalent of a buy rating, from underperform. The company’s growth guidance for 2013 is too conservative, according to Oliver Reinberg, an analyst at Cheuvreux in Frankfurt.

Lanxess AG surged 3.5 percent to 66.42 euros for the biggest advance in the DAX. MainFirst Bank AG lifted its rating to outperform, the equivalent of buy, from underperform, saying prices for its synthetic rubber products will increase on improving demand and supply shortages. Citigroup Inc. listed Lanxess among potential acquisition targets.

To contact the reporter on this story: Sofia Horta e Costa in London at shortaecosta@bloomberg.net

To contact the editor responsible for this story: Andrew Rummer at arummer@bloomberg.net

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