Germany

Germany first beneficiary of ECB’s future largesse

23 Nov 2012

The business climate in Europe’s largest economy unexpectedly brightened a bit in November. The staunchest critic of the ECB’s bond-buying programme is the first one to benefit from Mario Draghi’s determination to reduce uncertainty about the future of the euro.

German press crunch time could imperil democracy

21 Nov 2012

The oldest national paper is insolvent and Financial Times Deutschland is in limbo. German quality publications are suffering from the familiar problems of old media in the internet age. The sector is vital for the country. It might soon have to argue for a public bailout.

Merkel forgets austerity at home as elections near

21 Nov 2012

Europe’s austerity grand priestess seems to have forgotten domestic fiscal prudence as she braces for a tough political fight next year. She is spending freely on pet projects that voters might like. Germany does need more public spending, but not that type.

ACS shows who’s the boss at Hochtief

19 Nov 2012

The Spanish group is purging the top management of Hochtief 18 months after gaining control of the German builder. What makes sense for struggling ACS could endanger its subsidiary’s future. Investors should learn to mistrust promises made in the heat of takeover battles.

Bayern’s profits shine in fickle football economy

19 Nov 2012

The German Bundesliga team’s steady profit stands in stark contrast to the exuberant irrationality that is the rule in European football. Other teams, as well as real-world managers or bankers, could learn a few things from the world’s most financially successful team.

Buba can’t rely on orthodoxy to fight bubbles

14 Nov 2012

The German central bank is nervously eyeing rising property prices and is pledging to prevent a possible bubble early on. However, the traditional armoury of central banks is quite empty. One of the most orthodox central banks might be forced to think out of the box soon.

E.ON shocker opens era of crippling uncertainty

13 Nov 2012

Investors punished the energy group for saying it wouldn’t reach its outlook for the next three years. Economic gloom along with political and regulatory uncertainty make life uneasy for European utilities - and even harder for German ones. This isn’t about to end soon.

VW relaunches mandatory convertible market

6 Nov 2012

The German carmaker’s 2.5 bln euro issue is the biggest for a while. The deal immediately alleviates pressure on its credit rating, and is less costly than placing shares today. Other issuers with comparable equity stories may follow.

Deutsche evolution outshone by UBS revolution

30 Oct 2012

The German bank had a strong third quarter, driven by fixed income and equities trading. But its recent three-year strategy to improve capital and returns now looks less decisive against the Swiss bank’s wholesale restructuring. Investors may want Deutsche to be more radical.

Patent lawyers: Y’all better Deutsch sprechen

17 Oct 2012

The smartphone wars are moving from eastern Texas to western Germany. The shift is occurring because courts in Mannheim let the likes of Apple block rivals without proving harm, and their rulings carry global weight. The transatlantic legal arbitrage hurts competition, though.

EADS can’t move if it doesn’t change. But can it?

10 Oct 2012

The Airbus maker couldn’t do a deal with BAE because of its skewed, politicised governance. CEO Tom Enders may have been over-optimistic in thinking the Franco-German group was a normal company. He still has work to do to convince the French and German governments to step back.

BAE must show standalone strength post-EADS

10 Oct 2012

An “in play” BAE may attract a low-ball bid. So the UK defence group must reassure investors. But there are few levers to pull. It has been cost cutting for years. And with defence budgets still shrinking, showering shareholders with cash does not look too wise.

BAE pays price for having no deal to sell

8 Oct 2012

The UK defence group’s lead investor has taken aim at the EADS merger. Finessing leaked deals is always tricky, and angry investors nowadays seem almost de rigueur for big M&A. Still, Invesco’s intervention shortens the odds on a BAE management clearout if the tie-up fails.

France’s silly stake obsession could kill BAE-EADS

8 Oct 2012

Germany, France and the UK could agree on the BAE-EADS merger if Paris didn’t insist on keeping a large stake in the joint company, confirming the fears of the deal’s opponents. The French government doesn’t seem to get that there are other ways to remain influential.

UK should foster not fear BAE-EADS tie-up

5 Oct 2012

Former Chancellor Alistair Darling says UK interests may suffer if France and Germany held sway over the defence merger. Britain certainly needs safeguards to protect national security. But these can be found. And the alternative - no deal - wouldn’t be in the national interest.

Deutsche Telekom brightens stateside status quo

3 Oct 2012

Combining DT’s T-Mobile USA with smaller operator MetroPCS is hardly the big bang solution that a sale to AT&T once promised. But adding Metro would bolster T-Mobile’s weak market position, adding customers and spectrum. Cost savings and a stock listing would help too.

Franco-German politics first hurdle for BAE/EADS

25 Sep 2012

The two European defence and aerospace companies can’t merge unless Paris and Berlin settle their differences over governance and shareholdings. The tension is typical of EADS’ own complex political and economic history. The BAE deal offers a golden opportunity to clear the air.

Court ruling doesn’t alter Germany’s euro equation

12 Sep 2012

Conditional approval for Berlin’s participation in the permanent euro bailout fund means the zone can proceed with its rescue operations. But the ruling doesn’t lessen Germany’s reluctance to finance the periphery, nor its preference for austerity as a cure to the current crisis.

Turkey’s sukuk debut looks well timed

12 Sep 2012

The government’s first Islamic bond will capitalise on Turkey’s growing economic and political ties with the Middle East. A new legal framework, and the massive shortfall of Sharia-compliant assets, suggests the sukuk will get a warm welcome, despite local secular sensitivities.

Deutsche Bank throws down gauntlet on bonuses

11 Sep 2012

The German lender’s new co-CEOs have conceded the need for higher capital and a tangibly tougher policy on pay. Being the first big universal bank to muzzle its trading arm carries risks. But Deutsche has twigged that now is an ideal time to be a first-mover on bonus reform.