31 July 2023 – The top German economist and advisor to the Federal Ministry of Finance Lars Feld gave a fascinating interview on the development of the economic situation in Germany and spoke from the heart: “Hysteria is getting on the nerves”! And the reporting season in Great Britain has opened with convincing corporate data.
Top German economist: “Hysteria is getting on the nerves”
The top German economist Lars Feld clearly spoke from our economic soul last week. “So slowly the hysteria is getting on the nerves” was one of the most pithy statements of the personal representative of the Federal Minister of Finance (Christian Lindner, FDP) for the overall economic development in Germany in an interview with the magazine Capital.de.
Downfall of the Occident completely exaggerated
But also in other respects, the interview with economist Feld reads extremely excitingly and paints a picture of the economic situation that not only looks at the not-so-beautiful sides of reality, but also clearly shows that the discussions about the alleged de-industrialisation of Germany and the alleged “downfall of the Occident” have been completely exaggerated and blown up by the media.
Reduce unnecessary costs for businesses
At the same time, economist Lars Feld also takes the position that tax burdens, regulatory costs and bureaucracy urgently need to be reduced. In addition, he calls for innovations in Germany, which have recently been increasingly shifted abroad by the Green Ministry of Economics – e.g. with regard to the production of hydrogen – instead of promoting them in Germany itself.
No more subsidies to Thyssenkrupp
He urgently advises against further subsidies for the old industries, which usually call loudest for subsidies and thus only want to restructure their capital stock. As an example, he then very appropriately mentions the ageing and almost unsaleable steel giant Thyssenkrupp and that the federal government should put an end to subsidy billions especially for such companies.
Reduce excessive regulations, unleash economic potential
Using the example of the new German LNG terminals, which were planned and built in record time, the economist shows where state investments are being inhibited and where the enormous potential of the German economy could finally be fully exploited again and used for the urgently needed economic growth with simple legal changes.
Reporting season Great Britain: Companies convince
The reporting season in the UK is in full swing. While quarterly annual reports are mandatory in Germany and the USA, the UK abolished this requirement in 2014. As a result, many companies are presenting half-yearly figures. So far, 40 percent of the FTSE 100 has published figures, beating expectations for profits and sales by an average of 3.2 and 1.9 percent respectively. Healthcare companies have been particularly surprising, with profits exceeding forecasts by an average of ten percent.
If the reporting season continues to be encouraging, this could give a further boost to British equities.
- EU import quotas for some steel products already exhausted
- EU stainless steel producers signal rising prices
- US housing market continues to recover
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