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Friday, Sep 6
Moody's upgrades German banking sector
- Germany's banks are better capitalized and able to withstand shocks, says Moody's, lifting the outlook for the country's banking system to stable for the first time since the financial crisis. Both Deutsche Bank (DB +0.7%) and Commerzbank (CRZBY.PK +2.6%) - Germany's largest banks - have boosted capital this year, and the regional Landesbanken have consolidated and cut costs over the last few years.
- Also leading to the boost is Moody's expectation for GDP growth to speed up next year - 1 to 2 percent in 2014 vs. just 0.4% predicted this year.
- Moody's does warn about the downturn in the global shipping market as a potential threat - German lenders are historically big lenders to the sector (don't miss The Shipping Man).