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Germany...Gloomy Days To Come?

The German economy at the moment is not looking too good. With Volkswagen's emissions scandal that is likely to cost them upwards of th 7 billion dollars that the company plans to set aside for it has caused the stock to tank. The reaction to this scandal has been a massive selloff of the companies stock with the five days after the scandal it had dropped 30%. This coupled with Deutsch Bank announcing that it plans to cut 25% of its global workforce, around 23,000 jobs in 2016. This surprise massive layoff in the German bank powerhouse shows that this economy is weaker than it has been looking lately (Lehman Brothers deja-vu anyone??). These two companies are on the downturn and the road to recovery seems as if it is a long time away gives me the opinion that the German economy has some rough days ahead of it. The european economy is being supported by this german economy, counting on it to pull europe out of this recession. I cannot see that happening anytime soon with these two companies in the state they are in.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.