German exports plunged in November to record their biggest fall in nearly two decades, new data shows, as the deepening world economic downturn hits Europe's biggest economy. The Wiesbaden-based national statistics office said Thursday, Jan. 8, that the world's leading exporter posted in November a month-on-month 10.6 percent drop in exports when adjusted for working days and seasonal factors. [...] On an annual basis, German exports dropped by 12 percent in November, while imports recorded a steep 5.6-percent month-on-month decline and a 0.9-percent fall on the year. The country's trade surplus narrowed to 9.7 billion euros ($13 billion) from 16.4 billion euros in October.
The Wiesbaden-based national statistics office said Thursday, Jan. 8, that the world's leading exporter posted in November a month-on-month 10.6 percent drop in exports when adjusted for working days and seasonal factors.
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On an annual basis, German exports dropped by 12 percent in November, while imports recorded a steep 5.6-percent month-on-month decline and a 0.9-percent fall on the year.
The country's trade surplus narrowed to 9.7 billion euros ($13 billion) from 16.4 billion euros in October.
Cliffs are so last year... The fact is that what we're experiencing right now is a top-down disaster. -Paul Krugman
The German government has stepped in to salvage a multibillion-euro merger between two of the country's largest banks, Commerzbank and Dresdner Bank, with a €10bn (£9bn) cash injection. The announcement, in effect a partial nationalisation of the combined group, came after several days of tense negotiations between executives from the two banks and state officials. "The government just couldn't afford to let this deal fail," one insider said [Deja vu all over again? -ed.].Commerzbank had been under intense pressure to strengthen its balance sheet as it prepared to buy its loss-making rival. It is understood that the deal, agreed last year, would have collapsed had the government refused to invest through its Financial Markets Stabilisation Fund (Soffin). The merger is now expected to complete by the end of the month.Commerzbank would have survived had the merger collapsed, but there was speculation yesterday that Dresdner would have had to be nationalised in full. Instead, the state will take a 25 per cent and one share holding - a minority blocking stake - in the "new Commerzbank" in return.This brings the government's financial support for Commerzbank to €18.2bn in just over two months. On 2 November, Soffin injected €8.2bn through a "silent participation" - equivalent to preference shares in the UK - in a bid not to dilute the company's value. Yesterday's move involved a further €8.2bn silent participation, and a €1.8bn investment to take the 25 per cent stake.
The German government has stepped in to salvage a multibillion-euro merger between two of the country's largest banks, Commerzbank and Dresdner Bank, with a €10bn (£9bn) cash injection.
The announcement, in effect a partial nationalisation of the combined group, came after several days of tense negotiations between executives from the two banks and state officials. "The government just couldn't afford to let this deal fail," one insider said [Deja vu all over again? -ed.].
Commerzbank had been under intense pressure to strengthen its balance sheet as it prepared to buy its loss-making rival. It is understood that the deal, agreed last year, would have collapsed had the government refused to invest through its Financial Markets Stabilisation Fund (Soffin). The merger is now expected to complete by the end of the month.
Commerzbank would have survived had the merger collapsed, but there was speculation yesterday that Dresdner would have had to be nationalised in full. Instead, the state will take a 25 per cent and one share holding - a minority blocking stake - in the "new Commerzbank" in return.
This brings the government's financial support for Commerzbank to €18.2bn in just over two months. On 2 November, Soffin injected €8.2bn through a "silent participation" - equivalent to preference shares in the UK - in a bid not to dilute the company's value. Yesterday's move involved a further €8.2bn silent participation, and a €1.8bn investment to take the 25 per cent stake.
