Arab Today, arab today vw scandal sours german investor sentiment
Last Updated : GMT 21:45:49
Arab Today, arab today
Arab Today, arab today

VW scandal sours German investor sentiment

Arab Today, arab today

Arab Today, arab today VW scandal sours German investor sentiment

Traders work at the stock exchange in Frankfurt
Frankfurt - AFP

Investor sentiment in Germany slumped in October as the Volkswagen pollution cheating scandal and slowing emerging markets growth dampen the outlook for Europe's top economy, a leading survey said Tuesday.
The widely watched investor confidence index calculated by the ZEW economic institute sank 10.2 points from 12.1 last month to just 1.9 points, its lowest level since October 2014, the think-tank said in a statement.

"The exhaust gas scandal of Volkswagen and the weak growth of emerging markets has dampened economic outlook for Germany," said ZEW president Clements Fuest.

"However, the performance of the domestic economy is still good and the euro area economy continues to recover. This makes it rather unlikely that the German economy will slide into recession," Fuest said.

For the survey, ZEW questions analysts and institutional investors about their current assessment of the economic situation in Germany, as well as their expectations for the coming months.

The sub-index measuring financial market players' view of the current economic situation in Germany also declined, falling by 12.3 points to 55.2 points in October, its lowest level since March, ZEW said.

The latest drop in the headline index was steeper than analysts had expected, and came on the day Volkswagen said it would slash its annual investment budget by one billion euros ($1.13 billion) for its main VW brand.

It "confirms that concerns over the global environment and the scandal at Volkswagen are taking a toll on investor confidence, which might affect economic activity in the months ahead," said Jennifer McKeown of Capital Economics.

"The fact that the index is now only just above zero means that only a small majority of investors see economic conditions improving in the next six months."

- Has economy peaked? -

The data were a "warning that Germany's economic cycle may already have passed its peak. In all, the survey supports our view that German growth is likely to slow in the coming months," McKeown said.
The head of the German machine tool manufacturers' federation, Reinhold Festge, agreed.

"It's clear we're currently in a phase of weakening," he told a congress in Berlin.

McKeown at Capital Economics said she was pencilling in overall economic growth of 1.5 percent this year, to be followed by a slowdown to 1.2 percent next year -- considerably weaker than the government's expected new forecasts, which are set to published on Thursday.

Natixis economist Johannes Gareis also said the renewed decline in the ZEW index -- the seventh consecutive monthly drop -- "adds further downside risks to Germany's economic growth outlook".

"Despite the growing concerns over Germany's economy, however, we keep our growth forecast unchanged for now at 1.5 percent this year and next," Gareis said.

Germany's domestic fundamentals remained healthy, as reflected by a robust labour market and solid retail sales, the expert argued.

Moreover, many eurozone countries had been seeing an uptick in their economy, and solid growth in the US and other important export markets should help counter the weakness in trade with China and the wider emerging markets.

"In light of this, other sentiment readings and hard data for September should provide a clearer picture on Germany‘s true economic condition," Gareis concluded.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today vw scandal sours german investor sentiment Arab Today, arab today vw scandal sours german investor sentiment

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today vw scandal sours german investor sentiment Arab Today, arab today vw scandal sours german investor sentiment

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today A no-frills business success

GMT 07:00 2017 Wednesday ,20 September

A no-frills business success
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Israel sees benefits in independent Kurdistan

GMT 07:58 2017 Wednesday ,20 September

Israel sees benefits in independent Kurdistan
Arab Today, arab today Saudi Arabia to unblock internet calling apps

GMT 11:31 2017 Wednesday ,20 September

Saudi Arabia to unblock internet calling apps
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today New Zealand opposition looks

GMT 10:35 2017 Thursday ,14 September

New Zealand opposition looks
Arab Today, arab today Puerto Rico, Virgin Islands brace

GMT 12:01 2017 Wednesday ,20 September

Puerto Rico, Virgin Islands brace
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Intel chips loaded in Waymo

GMT 14:43 2017 Wednesday ,20 September

Intel chips loaded in Waymo
Arab Today, arab today Five trends at the Frankfurt auto show

GMT 12:04 2017 Monday ,18 September

Five trends at the Frankfurt auto show
Arab Today, arab today Horia Farghaly happy for success of “Case G”

GMT 12:14 2017 Monday ,18 September

Horia Farghaly happy for success of “Case G”
Arab Today, arab today France hopeful of persuading Trump

GMT 06:21 2017 Wednesday ,20 September

France hopeful of persuading Trump

GMT 06:31 2017 Saturday ,16 September

Eman Al Assy receives three offers

GMT 05:05 2017 Tuesday ,12 September

Pregnant woman's suicide roils China

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 19:18 2017 Monday ,18 September

5,000 'Dieselgate' deaths in Europe per year

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 04:26 2017 Wednesday ,20 September

Opioid overdose deaths take 2.5 months

GMT 11:40 2017 Monday ,18 September

Russia and Iraq restore air travel

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:56 2017 Friday ,15 September

Apple's grand plan in Ireland held up by a forest

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday