Made in Germany
Studio Guest: Klaus Deutsch
Studio Talk II
DW-TV: I've been joined now by Klaus Deutsch of Deutsche Bank Research. I don't know about you, but these scenes remind me of the problems Toll Collect first experienced, if you remember - so what is it about German companies, are they perhaps too bold, testing their new inventions in public, risking failure before the eyes of the world?
Klaus Deutsch: No, I don´t think so, they don´t have an alternative. They need to run these systems in the open and in this case there was no other way other than testing it in the field.
DW-TV: But how does it affect the reputation of German products?
Klaus Deutsch: The problem is not the mistake itself, it´s the way it´s handled now and if they can improve rapidly on it there´sno reputational risk at all.
DW-TV: Okay, like fortune favors the bold. We leave it here for the moment because we still have to talk about the DIX, of course. After this report....
Bildunterschrift: Großansicht des Bildes mit der Bildunterschrift: Studio Talk II
DW-TV: Klaus Deutsch of Deutsche Bank Research joins us again. Now, what do you think about that last statement? We just heard about longer working hours are necessary to keep the Oberhausen factory. Is that the right way to thank the workforce for a successful year?
Klaus Deutsch: Well, it depends on the circumstances, in this case it might be the way. But we have seen this as a general trend in Germany throughout the last three years that companies agreed with their workforce on very moderate wage increases or longer working hours in order to stay competitive or to improve upon the competitors in neighboring countries.
DW-TV: But eventually all this success and all the profit should trickle down, shouldn´t it?
Klaus Deutsch: Yes. It depends on the competitive situation. Sometimes you find German industries that do still have very high wage costs so they need a couple of years to improve as compared to their competitors.
DW-TV: Well, let´s take a look at what the rest of the world economy is doing. Here´s our monthly DIX. As we all know, the DIX is a business index exclusively created for Monika Jones-TV by Deutsche Bank Research, comprising three of the world´s major economies: that's Germany, Japan and the US. And clearly, the slight upturn we observed last month is continuing - the DIX has gained another fifth of a point since June. Klaus Deutsch, who is responsible this time? Is it still the US?
Bildunterschrift: Großansicht des Bildes mit der Bildunterschrift: Klaus Deutsch: No, it´s not only the United States. The US has got help from its friends in Germany and Japan. Particularly continental Europe is picking up and this is good news.
DW-TV: Indeed, indeed! I remember last time you told us that high oil prices are intimidating the rest of the world but not the US. So, no more intimidation here?
Klaus Deutsch: Well, we have recieved some relief from the euro exchange rate. And the consumer sentiments and the business indicators have improved worldwide again since last month. And so German companies sell much more to foreign countries now and domestic companies are ordering more as well and so it´s a broad-based uptake and I think the downturn is over now.
DW-TV: Well, everything is picking up and that´s good news indeed! Thank you very much, Klaus Deutsch.
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