More ominous news from the German economy. The country’s DAX index declined 3.5 percent yesterday. The index, which is highly exposed to changes in exports and the automotive industry, is seen as the primary equity measure for Germany. 2018 is shaping up to be the index’s worst year since 2008, having dropped by 20 percent since a record high at the beginning of January. The bad news doesn’t end there. Official government statistics show that October’s industrial output fell 0.5 percent, well below expectations of 0.3 growth, with manufacturing, energy and construction sectors all contracting. Volkswagen announced plans to cut $3.41 billion in operating costs by 2023. This will include discontinuing certain models and laying off an unspecified number of employees – all to ease the transition to electric car-making. We already knew that the German economy contracted in the third quarter. Analysts still expect a rebound despite these discouraging indicators, but a recession can
Daily Memo: Germany’s Economy, OPEC’s Future, the Balkans’ Volatility
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