By Stefanie Haxel
Dec. 15 (Bloomberg) -- German stocks gained for the first time in three days as European Union regulators approved the country’s revised bank-rescue plan and U.S. President George W. Bush signaled a swift decision on a carmaker bailout.
Deutsche Bank AG gained the most in a week after Germany’s largest bank was also granted a wholesale banking license in the United Arab Emirates. Commerzbank AG, the country’s second- largest lender, snapped a three-day decline. Daimler AG and Bayerische Motoren Werke AG, the world’s biggest luxury carmakers, rose for the first time in three days.
The benchmark DAX Index climbed 79.27, or 1.7 percent, to 4,742.64 as of 12:48 p.m. in Frankfurt. DAX futures expiring on Dec. 19 gained 1.6 percent. The broader HDAX Index added 1.7 percent to 2,349.3.
President Bush said deliberations on tapping the U.S. bank bailout fund to keep General Motors Corp. and Chrysler LLC afloat “won’t be a long process.”
“We are talking about really big companies of the U.S. economy and no one actually knows what consequences would follow if one of the Big Three goes bust uncontrolled,” Michael Scholz, an equity strategist at WestLB AG in Dusseldorf said on Bloomberg Television. “Therefore it’s very important that governments also look at the car industry. Bush’s announcement should give positive impulses in the short run.”
BMW, the world’s biggest luxury carmaker, increased 1.6 percent to 22.36 euros. Daimler rose 3.1 percent to 24.80 euros.
American Market
The U.S. is the No. 1 market for BMW and the second-biggest for Daimler’s Mercedes-Benz division. Both carmakers have factories there, and while they and other German brands control about 7 percent of the American market, they compete more with each other than with GM and Ford Motor Co.
European Union regulators approved changes to Germany’s bank-rescue plan and accepted recapitalization conditions for Commerzbank AG. The German fund has granted 90 billion euros ($120 billion) in guarantees, as well as 8.2 billion euros in capital for the country’s second-largest bank by assets.
Commerzbank climbed 2.1 percent to 6.80 euros. Deutsche Bank gained 5 percent to 27.84 euros, the steepest advance since Dec. 8. The U.A.E. central bank will formally announce licenses for Deutsche Bank as well as Mitsubishi UFJ Financial Group Inc. and Industrial & Commercial Bank of China Ltd. at a function in Abu Dhabi today, it said in an e-mailed statement.
Continental AG advanced 6 percent to 36.14 euros. Maria- Elisabeth Schaeffler, owner of Schaeffler Group, which is buying Europe’s second-largest car-parts maker, denied speculation the deal may collapse in an interview with Frankfurter Allgemeine Sonntagszeitung. The company will continue with the takeover and has enough money, she was quoted as saying by the newspaper.
Siemens AG climbed 2.6 percent to 48.59 euros, snapping a two-day slide. U.S. prosecutors proposed a fine of $800 million to settle bribery charges against Europe’s largest engineering company, smaller than analysts and investors had estimated.
E.ON AG rose 1.6 percent to 26.85 euros. Germany’s biggest utility is among the four companies that won rights to search for oil and natural gas in Algeria, potentially helping the European Union diversify its energy sources away from Russia.
The following stocks also rose or fell in German markets. Symbols are in parentheses.
Curanum AG (BHS GY) dropped 3.6 percent to 3.79 euros after WestLB AB lowered its recommendation on the nursing-home operator in which investor Guy Wyser-Pratte owns a stake to “hold” from “buy.”
Demag Cranes AG (D9C GY) gained 5.4 percent to 15.86 euros. The world’s largest maker of mobile harbor cranes said full-year profit rose 66 percent and forecast “sustained steady demand” in all divisions for the current fiscal year.
Draegerwerk AG (DRW3 GY) plunged 11 percent to 23.51 euros. The maker of the Infinity ACS patient-monitoring system cut its full-year earnings forecast because of lower revenue and profitability at the medical division.
Conergy AG (CGY GY) surged 9.3 percent to 94 cents. General Electric Co. joined with Germany’s second-largest solar company to form a renewable-energy trust to target as much a $250 million in investments in Asia.
To contact the reporter on this story: Stefanie Haxel in Frankfurt at shaxel@bloomberg.net.
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