An indicator assessing the state of the German economy fell to a four-year low, while analysts in January revealed a slightly less negative sentiment for their outlook, according to a key survey. The Zew survey’s assessment of the current economic situation in Germany dropped 17.7 points to 27.6 points, the lowest reading since January 2015, the research group revealed on Tuesday, the Financial Times reported.
If you’re looking for one of the worst ideas in contemporary banking, look no further than Germany. The mooted merger between Deutsche Bank AG and Commerzbank AG would make a mockery of any notion that EU governments are serious about ending the “too big to fail” problem, a Bloomberg View reported. It would also turn back the clock on a guiding principle of European regulation over the past decade: The promotion of a “banking union,” where risks are shared widely across the continent on the basis of jointly decided rules.
Germany is examining whether it can fix its two largest lenders -- Deutsche Bank AG and Commerzbank AG -- by combining them into a national champion that’s once again able to challenge foreign rivals, Bloomberg News reported. History suggests it’s a recipe for more trouble. Spain encouraged the merger of seven failed savings banks into Bankia SA in 2010, only to bail out the combined entity two years later when it collapsed. The U.K. pressed Lloyds Banking Group Plc to swallow failing HBOS Plc in 2008 and a month later had to rescue Lloyds. The U.S.
Investor expectations for Germany’s economy darkened at the start of 2019, according to a new survey released on Monday that suggests sentiment has failed to brighten after a gloomy performance at the end of last year, the Financial Times reported. A reading by Frankfurt-based research house Sentix fell for the third straight month, with the overall index at its lowest since October 2014. Expectations for Europe’s biggest economy fell to minus 19, the lowest level since August 2012.
Four of insolvent carrier Hansa Heavy Lift's ships have been arrested. Legal action taken by bunker company World Fuel Services has led to the arrest of the heavy lift shipping company's ships, preliminary administrator Dr. Christoph Morgen tells ShippingWatch. Hansa Heavy Lift filed for bankruptcy protection last week, ShippingWatch reported. "As of today four Hansa Heavy Lift ships have been arrested due to legal action of World Fuel Services. Despite this fact preliminary insolvency administrator Dr.
Improvement in German manufacturing orders has yet to feed through to production, with the latest industrial production data indicating an unexpected month-on-month decline, the Financial Times reported. Industrial orders have increased on a month-on-month basis in each month since August, according to data published by the national statistics agency on Thursday. Output, however, declined in October from September, after edging 0.1 per cent higher in each of the previous two months.
German steelmaker Thyssenkrupp AG’s most opaque division has gone from hero to zero in the space of four short years, a Bloomberg View reported. The not-very-sexily-named “Industrial Solutions” unit builds plants for cement, chemical and mining customers. Until last month, it also included its ship-making and submarines business. When sales boom, industrial contractors like this generate cash thanks to the advance payments they get from customers for long-term projects. But if orders evaporate or the contractor misjudges the cost of finishing complex tasks, they bleed cash instead.
The chief executive of Germany’s Lufthansa said he expects the company to take part in more consolidation in the industry that will eventually leave three global carriers in Europe, Reuters reported. “There are way too many players in Europe,” Carsten Spohr told a meeting of the Centre for Aviation in Berlin on Tuesday, noting that six airlines had gone bankrupt in the last few months. “It is obvious that consolidation will act further and we as Lufthansa want to be part of that,” he said.
In a car park near Berlin’s unfinished Brandenburg airport, 10,000 unsold Volkswagens are testament to the woes of the eurozone’s largest economy — and to a conundrum for Mario Draghi and the European Central Bank, the Financial Times reported. The German economy contracted 0.2 per cent in the three months to September, the first time it has gone into reverse in three years, after its car industry — normally such a smooth engine of growth — sputtered badly.