German economy unexpectedly shrinks in Q4, reviving spectre of recession – The German economy unexpectedly shrank in the fourth quarter, data showed on Monday, a sign that Europe’s largest economy may be entering a much-predicted recession, though likely a shallower one than originally feared.
Gross domestic product decreased 0.2% quarter on quarter in adjusted terms, the federal statistics office said. A Reuters poll of analysts had forecast the economy would stagnate.
How could their economy be in relatively good shape? They were BAD(compared to head of the class Germany) because they didn’t do that COVID-19 lockdown thing. I don’t understand.
The 18 members of the DAX 30 index of Germany’s biggest firms that have already reported swung from a healthy profit in the second quarter of 2019 to a loss almost as big this year. For many companies, including Volkswagen, a giant carmaker, and BASF, the world’s biggest chemicals concern, results were even worse than analysts had expected. The income of the 27 Swedish firms in Stockholm’s OMX 30 that have reported so far fell by 49%, bad but much better than the DAX. If you include adjusted earnings of two opaque investment vehicles in the OMX, income actually rose…
In public, CEOs of big German companies generally praised their government’s tougher policies. Privately, though, some shared the fears expressed openly by the BVMW, the association of Mittelstand firms that represents 3.5m businesses with up to 250 employees. In an open letter in May the BVMW called on the government to lift the lockdown “before it is too late” and criticised it for lacking an exit strategy.
For the first time, a DAX company, Wirecard, has gone broke but won’t be kicked out of the index until September.
Wirecard has filed for insolvency, just days after a $2 billion accounting scandal at the company burst into the open, crashing its stock and leading to the arrest of its former chief executive.
The digital payments company said in a statement Thursday it had opened legal proceedings in Munich “due to impending insolvency and over-indebtedness.” Share
Mit Wirecard ist zum ersten Mal ein Dax-Konzern pleite gegangen. Aus dem Leitindex fliegen dürfte der Konzern aber erst im September.
Observing Hermann 