Deutschland: Its more of Debit than Credit...

First came the ignominy of corporate manipulation by Volkswagen in its software. German management principles are as much under stress as the economic firmament.

Then comes the news that exports fell hard and long - by 5.2% in August compared to July, according to Germany's  Statistics Office.  The imports in to Germany too had fallen ; so trade inwards and outwards were both affected.  

Then came the losses for 3rd quarter at Deutsche Bank where losses exceeded $ 6. 7 billion . 

If Europe's  big economy is weakening. markets will capture the economic seismic tremors. 
It seems a seller's day. 

The views expressed are without risk and responsibility. This blog recommends no investment. 

Indian Software industry and currency risk?

National Association of Software and Services Companies (Nasscom) has reportedly lowered its estimates for IT and back-office services exports to 12-14 per cent for the year ending March 31, 2016, as against the 13-15 per cent estimated for 2014-15.

(http://www.thehindubusinessline.com/features/smartbuy/tech-news/it-exports-seen-stumbling-on-geopolitical-forex-challenges/article6879293.ece?homepage=true)

While aggregate industry revenues for FY2015 are estimated at USD 146 billion, the export market is estimated at USD 100 billion,. With global slowdown and the economic upheaval in Europe and a declining euro, it may not be so good for IT companies having exposure to Europe and those who have invoiced in euro.

Indian companies who have not hedged foreign exchange receivables may be strained. Banks have to monitor  client receivables to avoid NPAs. 

Without any risk or responsibility

How should governments promote exports?

Source of article: World Economic Forum

http://forumblog.org/2014/11/how-should-governments-promote-exports/?utm_content=buffer43d4c&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer