German automaker Mercedes has reported a 50% decline in profits for the January-September period (Q1-3), compared with the same period last year. The decline in Q3 is even bigger, with 70%, confirming a worsening of the crisis in the automotive sector, which reported an 18% production drop in August. The main markets for Mercedes, China, U.S.A. and Europe, have prompted a drop in sales: apparently, wealthy Chinese customers are shifting to premium Chinese cars, U.S. tariffs have reduced sales and Europe has become a black hole, thanks to the Green Deal and the recession.
Surprise surprise: While the real economy collapses, the financial economy booms. Following record results, Deutsche Bank is on track for significantly higher profits in the current year. After a jump in profits at the start of the year and the best half-year results since 2007, Germany’s largest financial institution achieved its highest pre-tax profit in a third quarter since at least 2007, at €2.4 billion in the summer.
The cases of Mercedes and Deutsche Bank are a microcosm that perfectly reproduces Lyndon LaRouche’s famous Triple Curve Collapse Function.
