I am the Global Editor at MoneyShow.com and each week I interview an investing expert. This week, I spoke with Christoph Scherbaum, editor of the German edition of Personal Finance, who says German investors are cautious, but optimistic about their market.

Q. Christoph, some experts predict the beginning of a prolonged slowdown that will push consumer price inflation in Germany to as low as 2% next June. What do you think?

A. Consumer prices are not really a problem. August inflation was less than 4% and is estimated at 3% until year-end. The delayed effects of rising commodity prices will have a steeper decline. In addition, second-round effects through higher wage developments are now more visible. Therefore, the European Central Bank-despite poor economic data-will wait for a reassessment of its inflation target for 2010 until the second half of 2009

Q. To what extent do you think the US's financial worries are extending to German financial institutions?

A. It's a difficult question, but we have no big problem with our banks. German Finance Minister Peer Steinbrueck recently stated: "Although this financial crisis undoubtedly is the biggest economic risk for the German economy, I think the potential impact on us-after inquiries and interviews with the Bundesbank president-to be limited". He also reaffirmed the intent of a balanced federal budget in 2011.

Continue reading Global Q&A: Guten Tag to Germany

Global Q&A: Guten Tag to Germany originally appeared on BloggingStocks on Tue, 23 Sep 2008 12:20:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• The Financial Times reported that Bain Capital, The Blackstone Group LP (NYSE: BX) and General Electric Company's (NYSE: GE) NBC universal will acquire The Weather Channel properties from Landmark Communications for approximately $3.2B in a leveraged buy-out. The Weather Channel will be run separately.
• A top Goldman Sachs Group Inc (NYSE: GS) trader is defecting to GLG Partners Inc (NYSE: GLG), the UK's second-largest hedge fund. Goldman's Driss Ben-Brahim, a partner in the firm and the head of its emerging market trading business, will take over GLG's $1.2B emerging markets special situations fund, the Financial Times reported.

• Take-Two Interactive Software Inc (NASDAQ: TTWO), which makes video games, will probably sign video game creator Ken Levine to a new contract. The deal would bolster Take Two's argument that its value exceeds the $25.74 per share that Electronic Arts Inc (NASDAQ: ERTS) has offered as a takeover price for the company, The New York Post believes.

• Reuters reported that Deutsche Bank AG (NYSE: DB) is the only bidder remaining for Citigroup Incorporated's (NYSE: C) German retail operations. Sources said Commerzbank AG (OTC: CRZBY) dropped out of the running on Friday.

Newspaper wrap-up: NBC Universal and consortium to acquire The Weather Channel originally appeared on BloggingStocks on Mon, 07 Jul 2008 10:50:00 EST. Please see our terms for use of feeds.

The head of German banking giant Commerzbank (OTC: CRZBY) says that there are more rough seas ahead for the banking industry, particularly in the US. "Bankers did not adequately understand these (mortgage) investments and relied too heavily on high-grade credit ratings from agencies that helped put together the products, then rated them," Klaus-Peter Müller told The New York Times. "This ignorance of the risks extended to the top echelons of the banks."

Not a very pleasant way to talk about your peers, but probably accurate nonetheless.

Commerzbank has already admitted to $1.8 billion in subprime exposure, but Müller fears that US banks are being selective in their disclosures in the hopes that some of the problems will go away. He is also concerned that US banks used the opinions of ratings agencies to make investment decisions instead of doing their own risk management.

In general, Müller is probably right. If his hint about US banks being slow in disclosing problems is true, he may feel that there is another shoe to drop in the form of more big write-offs before the end of the year.

That would put much more pressure on banking stocks.

Douglas A. McIntyre is an editor at 247wallst.com.

Head of Commerzbank says financial woes not over originally appeared on BloggingStocks on Tue, 27 Nov 2007 09:44:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• JP Morgan upgraded shares of UBS AG (NYSE: UBS) to Overweight from Neutral on valuation, as they believe the risk/reward is now attractive.
• Commerzbank AG (OTC: CRZBY) was upgraded to Equal Weight from Underweight at Morgan Stanley, as they believe the company has eliminated much of the uncertainty on asset quality.
• Jefferies upgraded shares of Trico Marine Services Inc (NASDAQ: TRMA) to Buy from Hold and raised their target to $46 from $40 to reflect the growth potential brought on by the company's purchase of Active Subsea ASA.
• B. Riley raised its rating on Optimal Group Inc (NASDAQ: OPMR) to Buy from Neutral to reflect the company's proven management team, acquisition of WowWee and strong balance sheet.
• Citigroup upgraded shares of Mediacom Communications Corporation (NASDAQ: MCCC) to Buy from Hold on valuation following the recent pullback, as they now think the stock is oversold. Citigroup thinks Mediacom will generate free cash in 2008 and they like the pace of buybacks.

• Citigroup upgraded shares of The Allstate Corporation (NYSE: ALL) to Buy from Hold.
• UBS upgraded UnitedHealth Group Incorporated (NYSE: UNH) and Northrop Grumman Corporation (NYSE: NOC) to Buy from Neutral.
  
• Wachovia raised Performance Food Group Company (NASDAQ: PFGC) to Outperform from Market Perform.

Analyst upgrades: UBS, CRZBY, TRMA, OPMR and MCCC originally appeared on BloggingStocks on Wed, 07 Nov 2007 10:20:00 EST. Please see our terms for use of feeds.

A government bail-out of UK mortgage bank Northern Rock sent Europe banking shares sharply lower and set similar trouble for US bank shares. Northern Rock was down 27% on news that the Bank of England had to supply it emergency funding.

Barclays was off 3.2% Commerzbank fell almost 5%. BNP Paribas and Societe Generale were of about 3.5%.

Flash: Europe banking shares collapse on mortgage problem originally appeared on BloggingStocks on Fri, 14 Sep 2007 07:12:00 EST. Please see our terms for use of feeds.