Germany's DAX Index Falls, Paced by DaimlerChrysler, Fresenius Medical

(Bloomberg) -- German stocks declined for a second
day, led by DaimlerChrysler AG, Fresenius Medical Care AG and
Allianz SE.

The benchmark DAX Index lost 37.04, or 0.5 percent, to
7398.63 as of 9:04 a.m. in Frankfurt. The HDAX Index of the
country's 110 biggest companies fell 0.6 percent.


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Chrysler sale to Cerberus completed

(Reuters) - As a result, DaimlerChrysler and Cerberus decided to help with the financing, a move they confirmed on Friday.




"DaimlerChrysler and Cerberus have agreed to support the financing of the majority takeover of Chrysler by Cerberus in light of highly volatile U.S. loan markets," the German carmaker said.


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Hannover Re Q2 robust, sees little subprime impact

(Reuters) - By Sabine Ehrhardt



HANNOVER, Aug 3 - German reinsurer Hannover Re posted robust second quarter profits on Friday and its chief financial officer said she sees little bottom-line impact from the U.S. subprime mortgage crisis.


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European Stocks Fall, Led by IKB, UBS, Commerzbank; ICI Gains on New Bid

(Bloomberg) -- European stocks fell for a fifth day,
led by financial-services companies after IKB Deutsche
Industriebank AG of Germany said profit will be ``significantly''
lower than forecast, hit by the U.S. subprime mortgage rout.

IKB tumbled 20 percent. UBS AG, the biggest money manager,
and 3i Group Plc, Europe's largest publicly traded buyout and
venture-capital firm, led declines by financial companies.
Commerzbank AG slid after saying it expects to make provisions
for losses tied to the U.S. subprime mortgage market.


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Siemens shares up on rumour of special div -traders

(Reuters) - Siemens, which last week sold its automotive unit VDO to
German car-parts supplier Continental for 11.4 billion
euros , said it has no reason to speculate on
the dividend for its fiscal year 2007.




Siemens shares were up 0.6 percent at 95.40 euros at 1315
GMT, while Germany's DAX index was up 0.2 percent.


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UPDATE 1-Akzo Nobel says ICI rejects new takeover bid

(Reuters) - Akzo Nobel said it had teamed up with Germany's Henkel
for the offer and that ICI had considered that the
offer did not reflect its full value.




In June, Akzo Nobel had make an indicative offer of 600
pence a share, which ICI also rejected as too low. The UK
Takeover Panel had set an Aug. 9 deadline for Akzo to make a
firm bid or walk away.


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RWE Reports Lignite-Fired Power-Plant Shutdowns, Reduced Nuclear Capacity

(Bloomberg) -- RWE AG, Germany's second-largest
utility, reported shutdowns at three lignite-fired power plants
and a capacity reduction at a nuclear plant.

RWE's 289-megawatt Neurath B lignite-fired plant stopped on
July 27, the Essen, Germany-based company said today on its Web
site. Neurath B is expected to remain halted for between six days
and eight days, the company said.


Read more at Bloomberg Energy News

Porsche not planning now to raise VW stake: paper

(Reuters) - The federal law guarantees special rights for the German state of Lower Saxony, where VW's headquarters in Wolfsburg are located, as a shareholder as well as preventing any one individual investor from exercising more than 20 percent of their voting rights.




Wolfgang Porsche did not deny that the Porsche and Piech families who control the sports car maker were immune to the idea of controlling VW itself, effectively founded in 1937 by Beetle designer and family patriarch Ferdinand Porsche.


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Vattenfall Plans Annual Repairs at Germany's Kruemmel Reactor in August

(Bloomberg) -- Vattenfall Europe AG, Germany's
fourth-largest utility, will carry out annual maintenance at its
closed Kruemmel reactor in August.

Kruemmel, which has a capacity of 1,260 megawatts, was
stopped June 28 after a fire in a transformer. It will remain
disconnected from the grid ``until all questions and
irregularities are clarified and relevant measures taken,''
parent company Vattenfall AB said today in a presentation posted
on its Web site.


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Siemens's Loescher Starts With Mega-Deals, Disappointments, Sliding Shares

(Bloomberg) -- Peter Loescher, less than a month
into his job as Siemens AG's chief executive officer, handed
investors two of the German engineering company's biggest deals
and a 6 percent stock plunge in the same day.

The stock lost the most in more than four years yesterday
after Siemens agreed to buy Dade Behring Holdings Inc. for $7
billion, 38 percent more than the U.S. medical-scanner maker's
market value the day before. Siemens also agreed to sell its VDO
automotive unit to Continental AG for 11.4 billion euros ($15.7
billion). To top it off, he presented earnings that disappointed
investors.


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European Bonds Little Changed Before German Business Confidence Report

(Bloomberg) -- European bonds were little changed
before a survey that's forecast to show business confidence in
Germany, the region's largest economy, fell for a second month in
July.

Benchmark 10-year yields are near the lowest in almost two
months on concern a housing slump in the U.S. will spread to
Europe. The region's exporters are being hurt by an almost 2
percent surge in the euro against the dollar in the past month.
The Ifo institute's sentiment index declined to 106.4 this month
from 107 in June, according to a Bloomberg survey of economists.


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UPDATE 2-Continental AG joins industry elite with VDO buy

(Reuters) - FRANKFURT, July 25 - German car parts maker
Continental AG agreed to acquire Siemens's auto
electronics unit VDO for 11.4 billion euros on
Wednesday, beating U.S. rival TRW to the deal.




Pulling off its biggest takeover and virtually doubling in
size, Continental will become one of the top five global
automotive suppliers, within reach of domestic rival and
industry leader Robert Bosch [ROBG.UL].


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European Stocks Gain on Takeovers; Friends Provident, Depfa, TomTom Rally

(Bloomberg) -- European stocks advanced, lifted by
takeovers in the financial and technology industries.

Friends Provident Plc and Resolution Plc rose after the U.K.
insurers said they are discussing a merger. Depfa Bank Plc jumped
after Hypo Real Estate Holding AG offered 5.7 billion euros ($7.9
billion) for the German bank. Tele Atlas NV, the world's second-
biggest maker of maps, soared as it received a bid from TomTom NV.


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N.Hydro says sold 2 magnesium plants to Straits

(Reuters) - "The sale will have a modest positive book effect," Norsk
Hydro ASA, the energy and aluminium group, said in a statement.




"The divestment concludes Hydro's decision to withdraw from
the magnesium business," it said, adding that the divestment was
subject to approval by Chinese and German authorities.


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European Bonds Fall in Early Trade; 10-Year Yield Rises to 4.56 Percent

(Bloomberg) -- European bonds fell today in early
trade.

The yield on the German 10-year bund, Europe's benchmark,
rose 3 basis points to 4.56 percent.


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European Swaptions Demand Increases as Subprime Mortgage Concerns Spread

(Bloomberg) -- Demand for interest-rate swap
options in Europe is rising as concern spreads that losses from
collateralized mortgage obligations will increase after Bear
Stearns Cos. said two failed hedge funds are almost worthless.

The near collapse of the funds, which invested in subprime
mortgage bonds, is dimming demand for other risky assets and
prompting investors to seek protection through financial
instruments such as options. Government bonds in the U.S. and
Germany advanced today as investors sought the safety of the
highest rated debt.


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Sarkozy Sees `Positive' Movement in Germany's Merkel's Views on the Euro

(Bloomberg) -- French President Nicolas Sarkozy
said German Chancellor Angela Merkel's views on the euro are
moving closer to his own position, which calls for greater
political influence in monetary policy, the government spokesman
said.

``For him, it's not about questioning the independence of
the central bank but showing that monetary policy is a topic of
debate and dialogue,'' Sarkozy told the weekly Cabinet meeting
today in Paris, according to the spokesman, Laurent Wauquiez.
``In that respect, Madame Merkel's position has evolved in a
positive way.''


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German 2008 Power Trades at 12-Week Low as Carbon-Emission Costs Decline

(Bloomberg) -- German electricity for delivery next
year fell to the lowest in more than 12 weeks as a reduction in
carbon-emission permit prices cut the cost of power generation at
plants that burn fossil fuels.

Next-year baseload power prices in Germany, Europe's biggest
electricity market, dropped as much as 0.2 percent to 54.60 euros
($75.30) a megawatt-hour, according to broker GFI Group Inc. The
contract was unchanged from yesterday at 54.70 euros a megawatt-
hour at 9:45 a.m. Berlin time. That's the lowest since April 24.
Baseload refers to electricity delivered around the clock.


Read more at Bloomberg Energy News

Deutsche Bank, Freenet and ProSiebenSat.1 Media AG: German Equity Preview

(Bloomberg) -- The following stocks may rise or fall
in German markets.

Germany's X-DAX Index lost 0.3 percent to 8074.17. The index
provides an estimate of the DAX Index, based on trading in DAX
futures after the Xetra electronic market closes. The DAX
increased 0.2 percent to 8105.69 on the Xetra electronic-trading
system.


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First Solar shares may be overvalued - Barron's

(Reuters) - Barron's said though First Solar's technology is more
cost-effective than competitors, it still falls short of the
huge potential for Solar 2.0, a thin-solar energy technology
based on chemicals and vapor deposition.




First Solar is also highly dependent on European government
subsidies, especially in Germany, which said two weeks ago it
wants to cut subsidies further for solar, Barron's reported.


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