Falling short of the mark

German patriots are already bemoaning the abolition of the Deutschmark after European monetary union; they should be concerned about the demise of the German capital market too. By Laura Covill

Why do the Germans appear so gloomy when apparently they have every reason to be cheerful? All the indicators are right; interest rates are at an historic low and there is little prospect of rate rises in the near future. The Dax index of leading German shares storms almost daily from one record to another, propelled by optimism about leaner management, better returns for shareholders and further consolidation in sectors like banking and car manufacturing.

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