German CPI Falls; TUI, Hapag Worries

Mayank Mehta
11 Aug, 2009
New York City

Germany reported first monthly decline in consumer prices in 22 years in June. The prices decreased 0.7% from a year ago and wholesale prices fell 10.6%. The pre-paid telecom operator Drillisch surged 7% after its net soared five-fold. TUI AG declined on financing worries related to Hapag-Lloyd.

[R]7:00PM Frankfurt, Paris; 1:00 PM New York – Germany reported first monthly decline in consumer prices in 22 years in June. The prices decreased 0.7% from a year ago and wholesale prices fell 10.6%. The pre-paid telecom operator Drillisch surged 7% after its net soared five-fold. TUI AG declined on financing worries related to Hapag-Lloyd.[/R]

Seasonally adjusted consumer prices in July decreased 0.7% from a year ago and wholesale prices fell 10.6%.

Consumer prices decreased 0.1% from June and on unadjusted basis prices fell 0.5% from a year ago.

In London FTSE 100 Index closed lower 50.86 or 1.08% to 4,671.34, in Paris CAC 40 Index decreased 48.36 or 1.38% to close at 3,456.18 and in Frankfurt DAX index lower 132.31 or 2.44% to close at 5,285.81. In Zurich trading SMI decreased 57.57 or 0.96% to close at 5,949.98.

Gainers & Losers

Aareal Bank AG added 1.3% to €11.15 after the real estate bank said first-half net interest income rose 3.2% to €228 million from €221 million a year ago. Net profit for the first-half fell 36.6% to €26 million or 0.62 per diluted share compared to net profit of €41 million or €0.95 per share a year ago.

Adecco SA the offshore marine services said first-half sales fell 28.4% to €7.3 billion from €10.2 billion a year ago. Net loss for the first-half was €124 million or 0.71 per diluted share compared to net profit of €349 million or €1.90 per share a year ago.

Drillish AG surged 7.1% to €3.32 after the pre-paid mobile telecom carrier reported first half net income surged five-fold to €55.8 million.

ESR Group, the IT outsourcing infrastructure manager declined 1.1% to €1.77 after it reported first half net loss of €0.3 million compared to a year ago profit of €0.7 million.

Fonciere Atland, the Paris based realty investor added 4.8% to €66 after it reported first half revenues gain of 24% to €4.56 million. At the end of June the company had total investment property of €107.6 million and net annual rent revenue of €9.4 million.

Gagfah SA dropped 10.8% to €5.53. Bloomberg reported a sale of 12.5 million shares arranged by Goldman Sachs. New York based Fortress Investment Group is the largest and majority owner in the real estate company.

Heidelberger Druckmaschinen AG declined 2.3% to €6.40 after the printing machine maker said first quarter sales fell 22% to €514 million from €657 million a year ago. Net loss for the quarter was €69 million compared to net loss of €39 million a year ago.

Leoni AG declined 2.9% to €14.96 after the automotive cables maker reported a quarterly loss of €38.5 million.

Patrizia Immobilien AG plunged 9.3% to €3.04 after the real estate investor second quarter net dropped to €1.1 million from €19.9 million a year ago.

TUI AG the German based tourism and transportation company that holds majority stake in the container ocean carrier Hapag-Llyod AG fell 3.5% to €4.85. Financial Times Deutschland said that the troubled container carrier may need €1.95 billion compared to €1.2 billion previously estimated.

Separately, the supervisory board issued a statement that supported the restructuring plan developed by management consultant Roland Berger.

Sal. Oppenheimer Jr. & Cie agreed to sell a minority stake in the private bank to shareholders that received funding from Deutsche Bank. The unusual arrangement will allow Deutsche Bank to acquire controlling stake at a later date and bolster its private banking arm.

The family controlled Oppenheimer manages €132 billion for its private clients and Deutsche Bank manages €171 billion.

DAX Index Movers

Hannover Rueckversicherung AG led the decliners in the DAX index of 4.81% followed by losses in ThyssenKrupp AG of 4.71%, in Bayer AG of 4.41%, in Adidas AG of 4.08%, in Deutsche Post AG of 3.98%.

CAC-40 Index Movers

Alcatel Lucent led the decliners in the CAC-40 index of 4.93% followed by losses in ArcelorMittal of 4.52%, in Renault SA of 4.16%, in STMicroelectronics NV of 3.93%, in Vallourec SA of 3.84%.

DANONE gainers in the CAC-40 index with a rise of 0.89% followed by gains in Veolia Environmental Services North America of 0.38%.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 23 increased, 79 declined and 0 were unchanged.

Lloyds Banking Group Plc decliners in the FTSE 100 index with a loss of 7.04% followed by losses in Aviva plc of 6.45%, in The Royal Bank of Scotland Group Plc of 6.03%, in Kazakhmys PLC of 6.01%, in Liberty International PLC of 5.98%.

International Power PLC led gainers in the FTSE 100 index with a rise of 7.61% followed by increase in Rexam PLC of 5.70%, in Reckitt Benckiser Group PLC of 1.86%, in British American Tobacco PLC of 1.08%, in National Grid PLC of 1.06%.