Sentiment at German companies edged lower this month, as Europe’s largest economy shows little sign of a recovery amid a persistent manufacturing slump, the Wall Street Journal reported. The Ifo Institute’s business-climate index fell to 86.6 in August, from 87.0 in July, data showed Monday. It marked the fourth decline in as many months. “The German economy is increasingly falling into crisis,” Clemens Fuest, president of the Ifo Institute, said. Companies assessed their current situation as worse, and expectations for the future were more pessimistic, he said.
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German chipmaker Infineon has settled a more than decade-long legal dispute over insolvent former unit Qimonda, agreeing to pay a higher than initially planned 753.5 million euros ($837 million), both companies said on Thursday, Reuters reported. The settlement with Qimonda insolvency administrator Michael Jaffe will not affect Infineon's operating profitability, a company spokesperson said, adding that it had already taken provisions amounting to 221 million euros over the case.
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The German government on Friday announced plans to provide about 3.3 billion euros ($3.7 billion) in funding for projects to make industry more climate-friendly, including by storing carbon dioxide underground at offshore sites, the Associated Press reported. Germany, which has Europe's biggest economy and is home to many energy-intensive industries, aims to cut its emissions to “net zero” by 2045. The new program is aimed largely at medium-sized companies. The Economy Ministry plans to launch the program, which also covers projects to shift to more climate-friendly production, next month.
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German authorities have seized almost 25 million euros ($28 million) in cash in a nationwide operation targeting cryptocurrency ATMs, the country's financial regulator BaFin said in a statement on Tuesday, Reuters reported. Authorities seized 13 machines that had been operating without the necessary permits, posing a risk of money-laundering, according to the regulator. The ATMs had been used to trade bitcoin and other cryptocurrencies and were located in 35 different locations, the statement said.
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In a picturesque wine town about 100 kilometers (62 miles) from Frankfurt lies a hidden bunker that for decades was one of Germany’s best-kept secrets. Built in 1962, the cavernous structure housed alternative deutsche marks, should West Germany’s Cold War foes flood the market with counterfeit banknotes in a bid to trigger hyperinflation. In the end, the back-up currency wasn’t needed and was destroyed in 1988. Concern among Germans over the security of their money persists, however.
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Weltbild, once one of Germany’s largest bookselling operations, is closing down on 31st August. The remaining 14 brick-and-mortar stores and Weltbild’s online shop will be affected, with 440 employees being laid off, The Bookseller reported. Owner WBD2C Group, itself a subsidiary of Düsseldorf-based private equity investor Droege Group, called in insolvency administrator Christian Plail in early June. However, while Plail talked to several possible suitors, none were prepared to buy the loss-making company.
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SG Investments, America, Inc., the U.S. subsidiary of German-based manufacturer Dürkopp Adler (DA), has acquired ICON Aircraft assets — the result of a chapter 11 § 363 sale in ICON’s chapter 11 case filed in the U.S. Bankruptcy Court for the District of Delaware, according to a Procopio press release. Procopio Restructuring and Bankruptcy Partner William Smelko represented DA in the transaction with the assistance of Procopio’s Asia Pacific team. Local Delaware Counsel Evan Miller of Saul, Ewing also assisted SG in acquiring the assets.
The German economy has lost momentum, inevitably leading to the collapse of many businesses, the Daily Wrap reported. According to Deutsche Welle, in July, the number of bankruptcies declared by German companies reached its highest level in a decade. One sector has been particularly hard hit. According to data from the Halle Institute for Economic Research (IWH), the economic slowdown has contributed to an increase in the number of company bankruptcies in Germany, reaching the highest level in about ten years.
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