German defence stocks down after report of freeze on new Ukraine military aid
BERLIN, Aug 19 (Reuters) -German defence stocks fell on Monday, after the Frankfurter Allgemeine Sonntagszeitung (FAS) newspaper on Saturday said the finance ministry would not approve additional applications for Ukraine military aid due to budget constraints.
Shares in weapons maker Rheinmetall RHMG.DE were down 3% at 0923 GMT, the biggest losers in the German blue chip index Dax .GDAXI. Hensoldt HAGG.DE, a maker of radars for IRIS-T air defence system and tank gearbox maker Renk R3NK.DE were down 6% and 4%, respectively.
No new requests for money for Ukraine will be approved at the request of Chancellor Olaf Scholz, FAS reported on Saturday, citing a finance ministry letter from Aug. 5. The German chancellery and the finance ministry did not immediate reply to requests for comments.
Around 8 billion euros ($8.8 billion) is already earmarked for Ukraine's military in 2024, and the budgeted 4 billion euros for 2025 is already overbooked, according to the weekly. "The pot is empty," FAS quoted a government source as saying.
The 2024 and 2025 budget plans have not changed, German government sources told Reuters. The planned financial aid for Ukraine would be halved to around 4 billion euros in 2025 because additional funds from the G7's $50 billion loan plan should be available from November, the sources said.
A spokesperson for Hensoldt said the FAS report was "blown out of proportion" and that the firm did not see any backlash from it for its business.
The German government has said that instead of spending taxpayers' money, it wants to use proceeds from frozen Russian assets for further Ukraine aid, in coordination with its Group of Seven (G7) partners.
Budget negotiations between Germany's three-party coalition were difficult and protracted as large spending requirements for climate, social measures and infrastructure clashed with constitutionally enshrined limits for new debt.
Last month, the leaders of the Social Democrats, the Greens and the Liberals agreed on a 481 billion euros draft budget and only on Friday reached a deal to narrow its deficit target.
($1 = 0.9061 euros)
Reporting by Andrey Sychev, additional reporting by Paolo Laudani, Editing by Miranda Murray, Kirsti Knolle and Conor Humphries
Mga Kaugnay na Asset
Pinakabagong Balita
Disclaimer: Ang mga kabilang sa XM Group ay nagbibigay lang ng serbisyo sa pagpapatupad at pag-access sa aming Online Trading Facility, kung saan pinapahintulutan nito ang pagtingin at/o paggamit sa nilalaman na makikita sa website o sa pamamagitan nito, at walang layuning palitan o palawigin ito, at hindi din ito papalitan o papalawigin. Ang naturang pag-access at paggamit ay palaging alinsunod sa: (i) Mga Tuntunin at Kundisyon; (ii) Mga Babala sa Risk; at (iii) Kabuuang Disclaimer. Kaya naman ang naturang nilalaman ay ituturing na pangkalahatang impormasyon lamang. Mangyaring isaalang-alang na ang mga nilalaman ng aming Online Trading Facility ay hindi paglikom, o alok, para magsagawa ng anumang transaksyon sa mga pinansyal na market. Ang pag-trade sa alinmang pinansyal na market ay nagtataglay ng mataas na lebel ng risk sa iyong kapital.
Lahat ng materyales na nakalathala sa aming Online Trading Facility ay nakalaan para sa layuning edukasyonal/pang-impormasyon lamang at hindi naglalaman – at hindi dapat ituring bilang naglalaman – ng payo at rekomendasyon na pangpinansyal, tungkol sa buwis sa pag-i-invest, o pang-trade, o tala ng aming presyo sa pag-trade, o alok para sa, o paglikom ng, transaksyon sa alinmang pinansyal na instrument o hindi ginustong pinansyal na promosyon.
Sa anumang nilalaman na galing sa ikatlong partido, pati na ang mga nilalaman na inihanda ng XM, ang mga naturang opinyon, balita, pananaliksik, pag-analisa, presyo, ibang impormasyon o link sa ibang mga site na makikita sa website na ito ay ibibigay tulad ng nandoon, bilang pangkalahatang komentaryo sa market at hindi ito nagtataglay ng payo sa pag-i-invest. Kung ang alinmang nilalaman nito ay itinuring bilang pananaliksik sa pag-i-invest, kailangan mong isaalang-alang at tanggapin na hindi ito inilaan at inihanda alinsunod sa mga legal na pangangailangan na idinisenyo para maisulong ang pagsasarili ng pananaliksik sa pag-i-invest, at dahil dito ituturing ito na komunikasyon sa marketing sa ilalim ng mga kaugnay na batas at regulasyon. Mangyaring siguruhin na nabasa at naintindihan mo ang aming Notipikasyon sa Hindi Independyenteng Pananaliksik sa Pag-i-invest at Babala sa Risk na may kinalaman sa impormasyong nakalagay sa itaas, na maa-access dito.
