CEOs across the globe are concerned with Europe’s deteriorating state.
Andrew N. Liveris, CEO of Dow Chemical, said: “The new reality is that this world is not in a normal growth mode. And it does now appear that we will see this for at least 12 to 24 months.”
Wall Street analysts, investors and other finance experts have taken scores of phone calls and comments from CEOs across the board- all of which stating that Europe is ‘making them nervous’.
“The steady drumbeat of negative news emanating out of Europe is certainly having an impact,” said Richard D. Fain of Royal Caribbean.
Daimler AG CEO Dieter Zietsche also expressed concern, referring to “economic clouds in the sky, which are floating especially over Europe.”
Major companies have discussed the situation and its impact on their business. McDonald’s, for example, saw a 4% drop in the second quarter. Chief Financial Officer Peter Bensen explained that the fact that economies have remained weak for this long is especially disheartening.
“People are staying at home. And the magnitude of the issues in Europe is having ripple effects around the world.”
The United Parcel Service, commonly known as UPS, added to McDonald’s statement, saying:
“Economies around the world are showing signs of weakening and our customers are increasingly nervous.”
UPS, however, showed their determination and a more upbeat outlook:
“I wouldn’t say we’re pessimistic about the future. We’re just a lot more uncertain about how much the economy will grow,” said Chairman and CEO Scott Davis.
Other companies are even more optimistic despite the recessions.
“Our strong position on world markets will help us exceed the development of the overall market despite the challenging environment,” said Martin Winterkorn, CEO of Volkswagen.
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