June 11, 2018 / 5:26 AM / 8 days ago

German stocks - Factors to watch on June 11

FRANKFURT, June 11 (Reuters) - The following are some of the factors that may move German stocks on Monday:

BAYER

Wirtschaftswoche reported on Sunday that a U.S. court case against seed maker Monsanto, just acquired by Bayer, over alleged cancer risks from its Roundup herbicide that contains glyphosate will start on Jun 18. The case is brought by an individual but several thousand other consumers have also submitted complaints.

The head of Bayer’s crop science division, Liam Condon, said in an interview with Frankfurter Allgemeine Sonntagszeitung (FAS) that he expects the U.S. courts should affirm the weed killer’s harmlessness, provided it is used correctly.

BMW

Procurement chief Markus Duesmann told Automobilwoche at the weekend the company is preparing for negative consequences from punitive U.S. tariffs and Brexit. For example, the Spartanburg plant in South Caroline could build limousines instead of X vehicles, which would be “challenging, but do-able.” A Brexit task force was establishing how to deal with potential supply chain hiccups.

COMMERZBANK

U.S. buyout fund Cerberus holds more than 5 but less than 10 in Germany’s second-largest listed lender, Sueddeutsche Zeitung reported.

DAIMLER

Daimler CEO Dieter Zetsche is due to have a follow-up meeting with German Transport Minister Andreas Scheuer on Monday regarding diesel emissions. Scheuer rejected plans by the environment ministry for planning tougher emissions rules for cars.

Germany’s road vehicle authority KBA has found five “illegal switch-off devices” in Daimler car engines, Bild am Sonntag (BamS) reported on Sunday.

The 2.5 million rate of software updates of German cars lags far behind 5.3 million promised by the industry for 2018, Bild reports on Monday, citing Liberal MP Oliver Luksic, who received the figures in a government response to a parliamentary question.

DEUTSCHE POST

Unions fear job losses because of the company’s “exorbitant” 2020 profit targets after management on Friday set out plans to restructure the post and parcel division and cut its 2018 EBIT target to cope with rising costs.

LUFTHANSA

Monthly traffic figures for May due at 1100 GMT.

SIEMENS

The European Commission said late on Friday it would decide by July 13 whether to grant antitrust approval of the planned merger of the rail businesses of Siemens and French rival Alstom .

THYSSENKRUPP

Thyssenkrupp has considered a sale of its shipbuilding unit Marine Systems in the past, the subsidiary’s management said in a internal note to staff obtained by Reuters on Friday.

Separately, activist U.S. hedge fund Elliott has repeated criticism of Thyssenkrupp’s plans for its joint venture with rival Tata Steel, Frankfurter Allgemeine Zeitung reported.

UNIPER

Uniper on Friday denied a media report that had said the energy group was delaying writedowns on its troubled Datteln 4 power plant to extract a higher takeover price from Finland’s Fortum.

VOLKSWAGEN

Volkswagen said production of up to 250,000 cars from its group brands in the second half will be delayed because of effects from new mandatory lab tests for emissions and fuel economy.

Separately, its sport car maker Porsche will name its first all-electric car model the Taycan, it unveiled a year before it plans to launch serial production of a vehicle that will compete with Tesla’s Model S.

DIALOG SEMICONDUCTOR

Dialog Semiconductor is in early talks to merge with U.S. touch-pad technology company Synaptics Inc, Bloomberg reported on Friday, citing people familiar with the matter.

TELEFONICA DEUTSCHLAND

Telefonica Chief Executive Alvarez-Pallete told Handelsblatt that he is neither planning to sell its German unit nor planning to divest shares of the unit or look for a partner.

EPIGENOMICS

The biotech company is to issue a press release on Monday about rates set in the United States for its cancer screening tests, it said in an ad hoc on Saturday.

STEICO

The maker of environment-friendly building insulation foresees “dynamic growth” to continue in coming quarters, managing director Udo Schramek said in Euro am Sonntag interview on June 10, citing demand for wood fibre materials.

DEUTSCHE BAHN

Germany’s railway operator does not rule out accepting private investment in its logistics unit Schenker and British subsidiary Arriva after it shelved plans for a partial listing of the two in November 2016 in the wake of Britain’s decision to exit the European Union, CEO Richard Lutz told FAS. Jan-April passenger numbers grew 3 percent and sales 7 percent.

AUTOS

The head of car industry association, Bernhard Mattes, told Sueddeutsche Zeitung’s Monday edition he was “very concerned” about the G7 summit disarray in which U.S. president Trump threatened punitive tariffs and protectionism. This could hurt German carmakers. However, Mattes said that U.S. consumers did not choose cars by price but also by quality which gave him hope.

ECB

European Union member states will soon decide on a backstop for the European Union bank rescue fund, the chairwoman of the Single Resolution Board (SRB) Elke Koenig said in the Frankfurter Allgemeine Zeitung’s (FAZ) Monday edition.

IPOs

Stuttgart-based engineering and project management group M+W is looking into stock listing possibilities, chief executive Wolfgang Buechele, formerly Linde chief, said in an interview with FAS. The company which delivers plants to the chemical, pharmaceuticals, and semi-conductor industries as well as data centres, says it had core sales of 2.5 billion euros in 2017.

“We are assessing further strategic options,” said Buechele.

ANALYSTS’ VIEWS DEUTSCHE POST: BARCLAYS CUTS TARGET PRICE TO EUR 40 FROM EUR 45 SAP: COWEN AND COMPANY RAISES TARGET PRICE TO $118 FROM $114 DEUTSCHE BOERSE: MORGAN STANLEY RAISES PRICE TARGET TO EUR 105 FROM EUR 103.35 DEUTSCHE BOERSE: MORGAN STANLEY CUTS TO UNDERWEIGHT FROM EQUAL-WEIGH

OVERSEAS STOCK MARKETS

Dow Jones +0.3 pct, S&P 500 +0.3 pct, Nasdaq +0.1 pct at close.

Nikkei +0.6 pct, Shanghai stocks -0.4 pct.

Time: 5.19 GMT.

GERMAN ECONOMIC DATA

No economic data scheduled.

DIARIES

REUTERS TOP NEWS (Reporting by Maria Sheahan, Vera Eckert and Arno Schuetze)

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