Don Ke nobi
/ 83.5.234.* / 2009-08-18 10:59
The economic rebound “may not be sustainable,” said Heinrich Bayer, an economist at Deutsche Postbank AG in Bonn. “Scrappage programs and world trade are helping, but will they have a lasting impact?”
The ZEW index unexpectedly fell in July and the DAX has dropped about 4 percent in the past week. German luxury clothing maker Escada AG filed for bankruptcy last week, affecting more than 2,200 workers. Department-store owner Arcandor AG, which employs 43,000 people, went insolvent in June.
Rising joblessness “will have a bearing on the evolution of growth,” European Central Bank President Jean-Claude Trichet said on Aug. 6 after the bank left its benchmark interest rate at a record low of 1 percent. There are nevertheless some “clearly less negative” economic signs, he said.