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SAP’s new leadership is not afraid of recession and trade wars

Summary

Will The U.S.- China Trade War Cause a Recession? Description video: The U.S. economy has grown for 122 consecutive months following the Great Recession, marking the longest economic expansion in American history. With interest rates low and inflation below Fed […]

Will The U.S.- China Trade War Cause a Recession?

Description video:
The U.S. economy has grown for 122 consecutive months following the Great Recession, marking the longest economic expansion in American history. With interest rates low and inflation below Fed targets, the trade war may be the scapegoat if the economy begins to contract. But will it really be the ultimate cause of a recession? Insights via @CMEGroup\nhttps://www.cmegroup.com/education/economic-research-reports.html?utm_source=twitter\u0026utm_medium=paid_media\u0026utm_campaign=tic_toc_econ

New SAP leadership is not afraid of recession and trade wars

New SAP executives told CNBC they see no slowdown in any of the regions in which they operate and denied recession fears and risks from the U.S.-China trade war.

Board members Jennifer Morgan and Christian Klein have been named CEOs with immediate effect as the software giant announced Thursday that Bill McDermott is stepping down as head of SAP..

To highlight the company’s strengths, in an interview with CNBC, both CEOs pointed to SAP’s third-quarter numbers, which show revenue growth of 13% year-over-year..

«First of all, when you look at our numbers… you will see really decent growth in all geographic regions. SAP is doing very well in both North America and Europe and of course strong growth in Asia as well», – said Klein. – Thus, we are also very confident in future quarters. We see good movement in all regions and do not see a decline in any of our countries».

When asked about the impact of the trade war, Klein said he was not concerned.

«We do most of our business outside of China, so we don’t really depend on just one country now», – said Klein.

McDermott joined SAP in 2002 and was promoted to CEO in 2010. After almost 10 years, he decided it was time to leave.

SAP's new leadership is not afraid of recession and trade wars

McDermott helped select his successors, following the in-house hiring tradition of the 47-year-old German software company.

Until Thursday, Klein was the chief operating officer of SAP, and Morgan was the head of the company’s cloud business group..

«We have a philosophy of leaving, McDermott told CNBC. – We have a very interesting culture. You must understand our company. You must understand the dynamism of the global economy».