German People Want Grand Coalition: Wemuth

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Sept. 23 (Bloomberg) -- Peter Schaffrik, Head of European Rates Strategy at RBC Capital Markets, and Dieter Wermuth, Head of Macroeconomic Research and Co-Founder of Wermuth Asset Management, discuss Merkel’s victory in Germany and their thoughts on the who will comprise the coalition government. They speak on Bloomberg Television’s “On The Move.” (Source: Bloomberg)

Will be positive for her.

Is a great win for.

-- it is a great win for and it is a question of who she will find to govern.

She will talk to less of the middle and there'll be a coalition with the green.

It is not a natural coalition partner and none of them are.

Who will govern with merkel?

It will be a coalition.

The two partners are the social democrats or the greens.

The overlap with the greens is small.

It will be a coalition with the much diminished social democrats.

Sorry teacher --, dieter.

I'm not concerned.

Why should i be concerned?

This was hugely successful for merkel.

She has 311 seats.

She needs 316 to have a governing majority.

Shia asked that she has to find someone to govern with -- she has to find someone to govern with.

What i was going to ask you was about your concern about the rising euro skeptics.

4.7%. they are in the discussion about the future of the euro.

It was a suppressed topic in the election campaign.

It is time that major decisions have to be taken.

We are prepared for large moves towards banking unions.

And bank resolution authorities and mechanisms.

This will come when the majority is comfortable.

I'd like to mention that merkel would prefer the social democrats.

In the upper house, there is a clear majority of the left.

To have mr.

Steinbruck's party will -- yes.

The coalition with the greens would be much more difficult.

Are you worried about the eurosceptics?

Yes and no.

In the main parliament, they will have an attraction.

There is a percentage of the population that falls into this camp.

There are dissenters.

I do not think that the view of the population has changed.

If you have an outspoken anti- european parliament -- party in parliament, that has implications.

I'd nothing be german strategy will change this much.

We had european equities.

-- i do not think that the german strategy would change very much.

We had european equities.

What will this be?

It will be tax issues.

If we get an increase in taxes, that could be bad for the german economy and we will have to analyze that.

It is too early to tell.

Jeter, what does this mean for the euro question mark -- euro?

Germany is getting even more stable.

It confirms the germany dictating -- overall, the euro has stabilized.

It is a good day for euros.

First of all, the euro will weaken against the dollar and that is a risk.

I'm not concerned about the euro.

Thank you so much for that.

Coming up on the program, we'll take a look at how much the industry is worth to the european economy.

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This text has been automatically generated. It may not be 100% accurate.

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