BERLIN/FRANKFURT, March 27 (Reuters) - The following are some of the factors that may move German stocks on Friday:
The number of confirmed cases of coronavirus in Germany has risen to 42,288 and 253 people have died of the disease, statistics from the Robert Koch Institute for infectious diseases showed on Friday.
Germany views the euro zone bailout fund as the main instrument to help other European countries fight the social and economic impact of the coronavirus crisis, Chancellor Angela Merkel said following a European Union leaders summit.
European Union leaders failed to agree on the scale of support for their economies battered by the coronavirus, but gave themselves two more weeks to work out details in a dispute between the ailing south and the fiscally conservative north.
Deutsche Bank chief economist David Folkerts-Landau told Focus magazine that the coronavirus pandemic could cost Germany up to 1.5 trillion euros and said the economy would contract by around 7-8% in 2020. He said he expected a recovery from the fourth quarter, with notable growth in 2021.
The rating agency S&P says the coronavirus epidemic leads to downgrades of BMW and Daimler and the outlook on VW is now negative.
The carmaker is in talks with lenders for a credit facility of at least 10 billion euros to help the car company cope with the coronavirus outbreak, Bloomberg reported on Thursday.
The German lender is pausing future job cuts to give employees “additional certainty” during the outbreak, a company spokesman said on Thursday.
Management and labour have reached a 24-month wage agreement that covers 60,000 workers, the Verdi union said on Thursday.
The broadcaster said on Thursday Chief Executive Officer Max Conze had left the company with immediate effect.
The world’s biggest carmaker said on Thursday that it will extend stops to production in Germany as it deals with fallout from the coronavirus outbreak.
Moody’s placed the company on review for a downgrade.
The chief of the airport operator told a German newspaper he expects that traffic will not have recovered fully even in 2021.
The company withdrew its outlook for 2020, reduced its dividend, postpone its annual general meeting, and further shutter production.
Annual report due. In February the company said revenues rose by 1.2% to 2.93 billion euros in 2019.
Dow Jones +6.4%, S&P 500 +6.2%, Nasdaq +5.6% at close.
Nikkei +2.2%, Shanghai stocks +0.9%.
Time: 6:15 GMT
* LUFTHANSA AG: BERENBERG CUTS TO HOLD FROM BUY, CUTS TARGET PRICE TO EUR 12 FROM EUR 18
* DEUTSCHE TELEKOM AG: BERENBERG RAISES TO HOLD FROM SELL; CUTS TARGET PRICE TO EUR 12 FROM EUR 12.70
No major economic data scheduled.
REUTERS TOP NEWS (Reporting by Berlin Speed Desk and Frankfurt Newsroom)