DAX Index Gains as UAE Commits EUR40 Billion Investment in Germany
The blue-chip DAX index rebounded on Friday, closing 0.82% higher, after Germany secured a 40 billion-euro investment commitment from the United Arab Emirates.Announced during UAE President Mohamed bin Zayed Al Nahyan's ongoing state visit to Germany, the planned investment is intended to support the industrial competitiveness and "technological leadership" of the eurozone's largest economy.Meanwhile, global markets faced escalating geopolitical risks after Reuters reported that Iran-backed Houthi forces had seized the Yemeni Red Sea port city of Mocha and reached Perim Island in the Bab el-Mandeb Strait. The news outlet said Houthi control of the strategic waterway could give Iran a "critical advantage" in its conflict with the US by threatening a second major energy transit route.Back home, Germany posted a current account surplus of 21.2 billion euros in July, up 2.3 billion euros month over month. Bundesbank attributed the higher surplus to an increase in the trade surplus for goods, alongside a decline in the surplus from so-called invisible current-account transactions.On the corporate side, BASF (BAS.F) lost 2.83% after its unit agreed to sell 133 million shares in London-listed oil and gas company Harbour Energy at 2.66 pounds sterling each, lowering its voting rights to 16%. The deal includes a placement of 80 million shares and Harbour Energy's repurchase of 53 million shares at the placing price.Outside the main index, United Internet AG (UTDI.F) unveiled comprehensive restructuring initiatives across its core units, including Ionos Group (IOS.F) and 1&1 AG's (1U1.F) business enterprise subsidiary, 1&1 Versatel. Mwb Research noted the move as efficiency measures intended to support the companies' growth."The restructuring aims to improve competitiveness and fund future growth, resulting in approximately 800 job reductions and EUR 95m in one-off expenses in FY26. Once fully implemented, management expects annual savings of approximately EUR 55m. However, as the majority of these proceeds will be reinvested into AI and network modernization, the near-term uplift to profitability remains limited... We view these efficiency measures positively for the medium term, though near-term execution remains key," the research firm wrote. At the end of the trading day, United Internet AG was down 0.65%, while Ionos Group gained 1.94% and 1&1 AG was flat.
