Ulf Sommer reports for Handelsblatt on companies and financial markets. He studied history and politics and earned a PhD. on East Germany's history of political parties. He has worked for Handelsblatt since 1996.
German multinationals face declining earnings, but that isn't stopping them from making investments overseas.
The economy may be cooling but German firms remain desperate for workers, saying the shortage of skilled staff is a bigger business risk than a cyclical slowdown. This doesn't mean wage are rising, though.
Growing profits and rosy futures are helping US companies outpace outdated European peers
Many German firms have overpaid for acquisitions. On their balance sheets, the excess is listed as “goodwill,” a highly intangible asset. If the economy slows, that could mean big trouble.
Many German firms have overpaid for acquisitions. On their balance sheets, the excess is often listed as “goodwill,” a highly intangible asset. If the economy slows, that could mean big trouble.
With the blue-chip DAX index tumbling and Germany's biggest companies slashing their profit forecasts this year, there are growing signs that the country's business boom is coming to an end.
DAX-listed companies have profited more from globalization than their foreign rivals, generating four-fifths of sales abroad. For some, the US and China have become their single-biggest markets.
Investments, a strong euro and a certain US president are putting the brakes on earnings growth in Europe's biggest economy.
The dynamic TecDAX has enjoyed enormous gains in the past few years but the introduction of several more cumbersome DAX-listed firms this month is likely to weigh it down in the future.
But US tech giants continue to top the global rankings as they leverage investment into strong growth and higher stock prices.