Forget Europe's Periphery, The Core Is Collapsing

Tyler Durden's picture

A glance at headlines over the past few months and there is little mention of anything but Europe's periphery struggling but market performance implying that a turnaround is about to occur. Most of this is based on a belief that the core is doing 'well' and that the periphery is gradually becoming more competitive. However, as if elections were not enough to worry Frau Merkel, it turns out, as Diapason's Sean Corrigan notes, Germany's Industrial Production, stymied by a surging EUR, has just suffered its third biggest quarterly decline on record - plunging back to 2007 levels. Furthermore, France's Industrial Production is back at levels first seen in 1997 - also plunging (perhaps explaining Hollande's recent exclamations at EUR strength); as the core is starting to soften significantly.




Charts: Bloomberg

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Punct's picture

Oh, that's just nothing. It's not like the two countries are based on their industry. We should still buy the markets. Ad infinitum, ok?

achmachat's picture

today the French finance minister is going to call President Hollande and proudly say:

"on Zerohedge, they called us part of The Core!!!"

Say What Again's picture

Sorry, but there appears to be a problem in translation.

They really said; "on Zerohedge, they called us a WHORE!!!"

Panafrican Funktron Robot's picture

The real fun begins around late March/early April when Japan's "competitive currency operations" more fully manifest.  Assuming Japan still exists by then.  

Dr. Richard Head's picture

Germany double top formation? France inverted cup and handle formation?  Both to break out lower?  Quick, everyone run to US treasuries. 

Say What Again's picture

There is a lot of "VWAP History" for ES right around 1495.

...  and as I write this note, it appears that the sellers are gonna push ES down through that  1495 level.  and there appears to be NO real BAD news!!!

astoriajoe's picture


--Mortimer Duke

forwardho's picture


-Mr Peabody

Sophist Economicus's picture


-New Jersey

fonzannoon's picture

This was the part of the Draghi press conference that I must admit had me somewhat concerned.

NEOSERF's picture

Uhmmm, looks like a head and shoulder shrug on its way to new highs...cmon ZH get with the spin.

100pcDredge's picture

Who cares? About industrial production. Anyway.

BandGap's picture

Need a couple more data points. More like a slow fizzle than a collapse at this point.

John Law Lives's picture

The EU has no chance unless millions of new private sector jobs with good wages and benefits are created.  Central planning is nothing more than a ruse to enrich the elite.


youngman's picture

And with their unions..their rules and regulations on will NEVER happen...Socialists do not create many jobs....they will reduce them to the lowest common denominator of a job...where everyone works for the same low amount...FOREVER

Panafrican Funktron Robot's picture

I honestly think the main purpose of these periodic purges/resets is essentially eugenics, with the primary purpose of not creating a "master race", but actually a "slave race".  

Notarocketscientist's picture

It's not like the global economy is based on any sort of fundamentals.   Corporate profits drop - stock market rallies ...  unemployment hits new records in the EU - stock market rallies....  record numbers onto food stamps month after month - stock market rallies.

The ONLY thing that matters is HOW MUCH and HOW FAST central banks print.

SeattleBruce's picture

But this will necessitate that they accelerate that, and further down the rabbit hole we go...Prepare wisely.

Dr. Engali's picture

That's not wht the TV or the "markets" told me. I'll believe it when MSNBS tells me to believe it.

unrulian's picture

Keep it afloat... i need more Sig can't get those bastards anywhere

GrinandBearit's picture

Those things were expensive even before all the gun-ban nonsense.

ghostzapper's picture

Ahem - excuse me but this can't possibly be true.  The experts keep saying "everything is fine".  Move along sheeple Bernanke can print out unicorns that fart magic dust so nothing to be concerned about. 

GolfHatesMe's picture

10:30 Pomo Bitchez

Dr. Richard Head's picture

To bad they weren't printing up HOMO bitchez.  Lipstick lesbian type, that is.

A Man without Qualities's picture

France is fucked.


Massive loss-making state owned businesses, local governments and banks - all hiding losses and understating debts through "clever" financial engineering.

A population that knows things need to change, but refuse to accept that means for them too.

A paralyzed government, elected on promises they cannot deliver, but too timid to confront the voters, or even themselves in the mirror.

A private sector drowning under massive costs, restrictive labour laws and terrified of powerful unions.

France has been living in a fantast land for decades but nobody has the guts to admit the reality.

boogerbently's picture

Why is it everyone description of other countries "lame, broke, corrupt, inept...." governments, sounds like the USA???

forwardho's picture


 Indeed every point made could be said of U.S.

We are all f-cked.

Bokkenrijder's picture

FrAAnce a "core" country? Right, heh heh heh.

Carl Spackler's picture

Clearly, the graphs are not a good sign, for pragmatic thinkers, but all they do is cry out "status quo."

Real change will not even enter the convesation, let alone begin to take hold, until that German IP index drops below 95.

Until then, it's the old same as it ever was approach...more falsehoods and false hope from the mouths of Eurocrats.

secret_sam's picture

I hate it when my core starts to soften.

devo's picture

Pilates for men.

You feel slightly gay but after the first ten minutes it's really not that bad.

youngman's picture

That happened to me when I hit 40.....

From Germany With Love's picture

Under the assumption that 2007 was already an artificially inflated production level, I don't consider this one too bad, sorry. France, indeed, is worrisome though.

devo's picture

I love how Europe has become an issue right at an obvious market top. And by love I mean hate.

madcows's picture

Job 4:8 - Even as I have seen, they that plow iniquity, and sow wickedness, reap the same.

Dan Conway's picture

I don't see the problem.  Next!

ziggy59's picture

Core Corps Needed

eclectic syncretist's picture

CALPERS should convert at least 50% of funds into physical gold TODAY, along with other pension funds.  Unfortunately, the pension fund managers are in all probability beholden to Wall Street banks and will let the clients funds be pillaged again.  Sue the bastards.....Send them to Greece.

TahoeBilly2012's picture

Dude I live in Sac, give it a rest. You have be a certified nimrod to work for the Cal Gubmint. They test you for it.

Non Passaran's picture

I would very much prefer if they waited a bit...
Haven't finished shopping yet...

Panafrican Funktron Robot's picture

Calpers.  Just a big ass version of all the other captured state pension funds.  I'll tell you exactly what Calpers should do.  Liquidate their holdings and return the remaining money to the pensioners, as soon as humanly possible. 

madcows's picture

French Pig-Dogs!  I fart in your general direction.  Your mother was a Draghi and your father smelt of Keynes.  No go away or I will taunt you a 2nd time.

TahoeBilly2012's picture

Short the FINE WINE index, but go long the French WHINE index!

ghostzapper's picture

AMZN below the 50 DMA.  All hands on deck fire up the POMO nobody at any primary dealer allowed to move or leave their desk to take a shit until that bloated pig is back above the 50DMA.