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Siemens chief warns on investment after Paris attacks

One of the restaurants that was targetted during the recent multiple terrorist attacks in Paris.

One of the restaurants that was targetted during the recent multiple terrorist attacks in Paris.

Syndicated News
Written by Syndicated News
PARIS — November 23, 2015: Companies may put investment plans on hold in the wake of Paris attacks which have sapped investor confidence, the head of industrial giant Siemens said in remarks published today.

“The biggest economic damage from these attacks is on confidence, and confidence is a crucial element in this phase,” Siemens chief executive Joe Kaeser told the Financial Times.

“My biggest (business) concern is the fallout of the geopolitical distress,” he said.

“Investment is about believing, about the future, and (when) events like that happen, people will wait,” Kaeser warned.

The warning by Kaeser, who heads up Europe’s largest industrial conglomerate, is the first by a major industrial figure, the FT said.

It echoes remarks by Italian Finance Minister Carlo Padoan who said the Paris attacks could do serious damage to the eurozone recovery, it said.

Another report said that French private-sector business growth slowed this month, according to a survey also published today, with some business leaders blaming the attacks.

Financial services company Markit said its latest data indicated an easing of private sector output growth during November, when its Flash France Composite Output Index slipped to 51.3, a three-month low, from 52.6 in October.

An index level over 50 means that business is still expanding.

“French private sector output growth weakened slightly in November, with the Paris attacks reported to have hit activity among some service providers,” Markit senior economist Jack Kennedy said in a statement.

“The longer-term economic impact following the attacks remains uncertain,” Markit said, but French gross domestic product is still on course for another modest expansion in the fourth quarter after growing 0.3 per cent in the previous three months. — AFP

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