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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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Thu, 02/07/2013 - 11:20 | 3222913 Punct
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?

Thu, 02/07/2013 - 11:38 | 3222994 achmachat
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!!!"

Thu, 02/07/2013 - 11:50 | 3223052 Say What Again
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!!!"

Thu, 02/07/2013 - 11:58 | 3223084 Boris Alatovkrap
Boris Alatovkrap's picture

Ad Nauseam!

Thu, 02/07/2013 - 15:44 | 3223861 Panafrican Funk...
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.  

Thu, 02/07/2013 - 11:23 | 3222918 Dr. Richard Head
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. 

Thu, 02/07/2013 - 11:32 | 3222972 derek_vineyard
derek_vineyard's picture

SPX is red today.  Wtf??

Thu, 02/07/2013 - 11:55 | 3223074 Say What Again
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!!!

Thu, 02/07/2013 - 12:32 | 3223203 astoriajoe
astoriajoe's picture

TURN THOSE MACHINES BACK ON!!!

--Mortimer Duke

Thu, 02/07/2013 - 12:40 | 3223232 forwardho
forwardho's picture

TO THE WAY BACK MACHINE!!

-Mr Peabody

Thu, 02/07/2013 - 14:32 | 3223588 Sophist Economicus
Sophist Economicus's picture

WHY IS THAT MELLON IN THAT VISE?

-New Jersey

Thu, 02/07/2013 - 11:24 | 3222930 fonzannoon
fonzannoon's picture

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

http://www.youtube.com/watch?v=2sVdXg0aYYw

Thu, 02/07/2013 - 11:24 | 3222932 thisandthat
thisandthat's picture

Fromage, putain!

Thu, 02/07/2013 - 11:24 | 3222934 NEOSERF
NEOSERF's picture

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

Thu, 02/07/2013 - 11:24 | 3222935 100pcDredge
100pcDredge's picture

Who cares? About industrial production. Anyway.

Thu, 02/07/2013 - 11:25 | 3222936 BandGap
BandGap's picture

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

Thu, 02/07/2013 - 11:26 | 3222944 John Law Lives
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.

EUFUBAR.

Thu, 02/07/2013 - 11:50 | 3223051 youngman
youngman's picture

And with their unions..their rules and regulations on labor....it 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

Thu, 02/07/2013 - 16:10 | 3223933 Panafrican Funk...
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".  

Thu, 02/07/2013 - 11:26 | 3222945 Notarocketscientist
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.

Thu, 02/07/2013 - 13:39 | 3223392 SeattleBruce
SeattleBruce's picture

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

Thu, 02/07/2013 - 11:27 | 3222948 Dr. Engali
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.

Thu, 02/07/2013 - 11:29 | 3222956 unrulian
unrulian's picture

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

Thu, 02/07/2013 - 11:58 | 3223086 GrinandBearit
GrinandBearit's picture

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

Thu, 02/07/2013 - 11:29 | 3222957 ghostzapper
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. 

Thu, 02/07/2013 - 11:30 | 3222962 GolfHatesMe
GolfHatesMe's picture

10:30 Pomo Bitchez

Thu, 02/07/2013 - 11:31 | 3222967 Dr. Richard Head
Dr. Richard Head's picture

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

Thu, 02/07/2013 - 11:30 | 3222963 A Man without Q...
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.

Thu, 02/07/2013 - 12:01 | 3223093 boogerbently
boogerbently's picture

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

Thu, 02/07/2013 - 12:36 | 3223207 forwardho
forwardho's picture

Agree!

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

We are all f-cked.

Thu, 02/07/2013 - 11:33 | 3222979 Bokkenrijder
Bokkenrijder's picture

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

Thu, 02/07/2013 - 11:36 | 3222982 Carl Spackler
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.

Thu, 02/07/2013 - 11:50 | 3223048 secret_sam
secret_sam's picture

I hate it when my core starts to soften.

Thu, 02/07/2013 - 11:52 | 3223059 devo
devo's picture

Pilates for men.

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

Thu, 02/07/2013 - 11:52 | 3223065 youngman
youngman's picture

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

Thu, 02/07/2013 - 11:52 | 3223058 From Germany Wi...
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.

Thu, 02/07/2013 - 11:53 | 3223067 devo
devo's picture

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

Thu, 02/07/2013 - 11:57 | 3223081 madcows
madcows's picture

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

Thu, 02/07/2013 - 12:00 | 3223087 Dan Conway
Dan Conway's picture

I don't see the problem.  Next!

Thu, 02/07/2013 - 12:00 | 3223092 ziggy59
ziggy59's picture

Core Corps Needed

Thu, 02/07/2013 - 12:03 | 3223108 eclectic syncretist
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.

Thu, 02/07/2013 - 12:18 | 3223172 TahoeBilly2012
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.

Thu, 02/07/2013 - 12:36 | 3223212 Non Passaran
Non Passaran's picture

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

Thu, 02/07/2013 - 16:18 | 3223961 Panafrican Funk...
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. 

Thu, 02/07/2013 - 12:05 | 3223109 madcows
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.

Thu, 02/07/2013 - 12:46 | 3223259 medium giraffe
medium giraffe's picture

Fetchez la vache!

Thu, 02/07/2013 - 12:17 | 3223167 TahoeBilly2012
TahoeBilly2012's picture

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

Thu, 02/07/2013 - 12:17 | 3223169 ghostzapper
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. 

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