But thanks to Mr Seifert's quick switch to electronic trading and a push to create new markets for smaller firms, Frankfurt now boasts the world's biggest derivatives exchange, Europe's busiest market for hi-tech firms, and a pivotal role in shaping the trading and clearing of Europe's blue-chip shares.

ECONOMIST: Frankfurt��s impatient maestro

The dour news followed other similar profit warnings from the likes of electronics retailer JB Hi-Fi last week, underscoring that Europe's debt crisis could be fast spreading to far corners of the world as many consumer keep their wallets shut.

WSJ: Asian Shares Fall

But these improvements have not been seen in Europe, according to the IMF's analysis, largely because of the failure to push through labour-market reforms, which has prevented Europe from benefiting as much as it should have from the hi-tech boom.

ECONOMIST: A time for caution | The