Even As Periphery Languishes, Stronger Core Eurozone Growth Sends Euro Higher

Tyler Durden's picture

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vipobviously's picture

1st Bitchez

Another 40 oz physical ag yesterday

Tail Dogging The Wag's picture

Confetti Euro? it's FRIDAY THE 13TH, folks... oh, and btw

Agricultural properties in Panama, bitchez!



Re-Discovery's picture

Numbers out today are Germany's (and France, they never really fought in the big one) economic Battle of the Bulge.


uhb's picture

Diesmal funktioniert alles...

Germany, Bitchez ;)



Just kidding

Tic tock's picture

This 'growth', where is it? Industrial orders are down, China is tightening, fuel is tight, nevermind for inflation - what sectors are seeing turnover increase?

Phat Stax's picture

"No possibility?"  Isn't that Bernank-speak?

Sean7k's picture

So, with the 2.5% inflation rate, how much GDP growth was there? Especially with a bloated public sector making up such a large percentage? 

Does anyone else get tired of the statistical mayhem and monetary madness? 

The best economic ETF in the world of fiat banksters would be the BSETF. All leverage and never a margin hike. 

All is chosen's picture

I'm worried that Portugal's renewable growth could send the Euro even higher. The demand for cork here is enormous. I've just sold the cork from all my trees. This is an eco-economy guys, sustainability & all that. None of this German industrial, planet-polluting nonsense here.


Caviar Emptor's picture

How is this different than the USA? 

Core doing well (NYC, DC)

Everywhere else is in some stage of economic decline, with the usual occasional oasis of growth in the vast desert of decay(South East, South West, Midwest, Great Lakes, Rust Belt, New England, North West, West, Cali, Mountain states, )

HTZMR's picture

"the continued pegging of Germany's red hot economy to such weaklings as Greece is the only factor that matters for the country's export-led growth."

As much as i like reading this site, the idea that the Germans will keep bailing out the Greeks because their exports depend on it is nothing short of ludicrous. The predominant reason why the German government will continue to guarantee losses with their tax revenue is an understandable fear of contagion and their deep commitment to the European project that has kept the peace here on the continent since the horrors of the second world war.

Below are figures from yesterday's IMF regional report. EU4 refers to Portugal, Ireland, Greece and Spain. The data shows the share of exports from each major country in 2009. With a fraction of the 5.9 percent being Greece, Germany has no problem decoupling itself from an economy where payments on goods bought were notoriously late anyway. With imports to Greece almost certainly declining amid the harsh recesssion, the share is unlikely to have grown last year.

Even German lenders' exposure vis a vis Greece was around 34 billion as of the end of 2010, the latest data provided. (source: BIS data http://www.bis.org/statistics/provbstats.pdf#page=66) This mainly resides at Hypo Real Estate, a ward of the state now following its collapse. Germany's second largest lender Commerzbank, also propped up by state aid, has only 3 billion euros in exposure to Greece - less than it has for indebted ball bearing maker Schaeffler alone presumably.


Germany               France   United Kingdom Sweden                 Switzerland

EA4¹                                        5.9                          10.6        12.2                        3.9                          5.1

Central&Eastern Europe    8.8                           4.8           3.5                         6.0                          3.5

Asia excl. Japan                   7.0                           4.7           5.2                         6.1                          5.8


source: http://www.imf.org/external/pubs/ft/reo/2011/eur/eng/ereo0511.pdf 



anvILL's picture

The Euro is a classic "Stay irrelevant longer than you can stay solvent" thing.
The yields on bonds doubled in a year but the currency is still pretty strong.
I have shorted the Euro last year in May only to close it 2 weeks later.
I was pretty certain that the yields will get pretty high, and I sure got that right...only to gain some self satisfaction to offset my losses.

Of course, I know I am/was missing something.
But the FX markets are way too complex to understand its fundamentals.
So, I would never trade FX on fundamentals.
Only technicals, and it works fine unlike the PM markets.

AldoHux_IV's picture

Well as long as France and Germany have their economies who cares if the rest of europe falls to slavery under the euro system-- afterall what's a couple of cracked skulls courtesy of imposed austerity and flawed policy worth when compared to the all mighty and precious core economies-- yeah it's totally worth it.