European CEOs Prepare for Recession Risk Amid Greek Flipflopping
November 04, 2011, 4:53 AM EDT
By Tara Patel and Matthew Campbell
Nov. 4 (Bloomberg) — The squabbling over Greeces future in the euro zone may push Europes economy into recession and reduce companies ability to compete internationally, according to executives of some of the regions biggest corporations.
There are legitimate reasons to be worried, Alexey Mordashov, CEO of Russias second-biggest steelmaker OAO Severstal, said yesterday in an interview in Cannes, France, where the Group of 20 leaders are meeting this week. We expect it to undermine growth in Europe.
Europes financial crisis deepened yesterday as the European Central Bank unexpectedly lowered interest rates and President Mario Draghi said the region is heading toward a mild recession. Political leaders raised the prospect of the euro area splintering as Greeces government veered on collapse. Business leaders held a parallel summit in the French southern resort city on competitiveness and economic growth that was dominated by questions on Greece and the future of the euro.
We would have to prepare for a slower economy and maybe even a slight recession in Europe, Peter Voser, CEO of Royal Dutch Shell Plc, Europes largest oil company, said in an interview in Cannes. We need a fast solution and then we deal with the consequences. From a business perspective, if this goes on too long, so much uncertainty, investment will be delayed.
Unsettling
Bayerische Motoren Werke AG is already planning for slower economic growth next year and possibly a recession which may lead the worlds largest maker of luxury vehicles to reduce production, Chief Financial Officer Friedrich Eichiner said on an earnings conference call yesterday.
Growth has slowed for high-end carmakers from a record pace in the first half as Europes debt crisis unsettles consumers. Daimler AG, maker of Mercedes-Benz, last month reported its first earnings decline since the third quarter of 2009, burdened by expenses for new models.
The problem that we see is that the debt crisis risks unsettling consumers, and unconfident consumers dont buy premium cars, Eichiner said. We are already seeing signs of weakness in southern Europe.
The euro tumbled after the ECB cut its benchmark interest rate yesterday and erased losses after Greek Prime Minister George Papandreou signaled he wont call a referendum on the rescue plan. Volatility in the currency market may cause banks to cut loans for developers, Vestas Wind Systems A/S CEO Ditlev Engel said Nov. 2. Vestas is the worlds biggest maker of wind turbines.
Forecasts Cut
We are now investing about 15 percent in Europe of the total of $30 billion overall which is much lower historically, Shells Voser said. The competitiveness of the European economy is suffering and that has consequences in the medium and long term in terms of investment levels.
The Organization for Economic Cooperation and Development on Oct. 31 lowered its growth forecast for the euro area, saying it will grow 1.6 percent in 2011, slowing to 0.3 percent in 2012.
As Group of 20 leaders began their talks in Cannes, their focus was on Athens where Papandreou was clinging to power after abandoning a referendum that would have triggered a suspension of European aid. Amid concern Italy may be the next domino to fall as its bond yields jumped to an euro-era record, Prime Minister Silvio Berlusconi was pushed by Germany and France to accelerate an austerity drive.
We see a certain lack of competitiveness, lack of productivity in European countries, said Mordashov, Russias second-richest man with an estimated fortune of $18.5 billion. We see a much stronger situation in some other countries and this is what needs to be resolved.
–With assistance from Maryam Nemazee and Nicholas Comfort in Cannes, France, and Chris Reiter in Berlin. Editors: Kenneth Wong,
To contact the reporters on this story: Tara Patel in Cannes, France via [email protected] Matthew Campbell in Cannes, France via [email protected]
To contact the editors responsible for this story: Will Kennedy at [email protected] Jacqueline Simmons at [email protected];
This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.
Royal Dutch Shell conspired directly with Hitler, financed the Nazi Party, was anti-Semitic and sold out its own Dutch Jewish employees to the Nazis. Shell had a close relationship with the Nazis during and after the reign of Sir Henri Deterding, an ardent Nazi, and the founder and decades long leader of the Royal Dutch Shell Group. His burial ceremony, which had all the trappings of a state funeral, was held at his private estate in Mecklenburg, Germany. The spectacle (photographs below) included a funeral procession led by a horse drawn funeral hearse with senior Nazis officials and senior Royal Dutch Shell directors in attendance, Nazi salutes at the graveside, swastika banners on display and wreaths and personal tributes from Adolf Hitler and Reichsmarschall, Hermann Goring. Deterding was an honored associate and supporter of Hitler and a personal friend of Goring.
Deterding was the guest of Hitler during a four day summit meeting at Berchtesgaden. Sir Henri and Hitler both had ambitions on Russian oil fields. Only an honored personal guest would be rewarded with a private four day meeting at Hitler’s mountain top retreat.
IN JULY 2007, MR BILL CAMPBELL (ABOVE, A RETIRED GROUP AUDITOR OF SHELL INTERNATIONAL SENT AN EMAIL TO EVERY UK MP AND MEMBER OF THE HOUSE OF LORDS: 
MORE DETAILS:
A head-cut image of Alfred Donovan (now deceased) appears courtesy of The Wall Street Journal.
