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    This past Thursday marked the one-year anniversary of the US stock market’s death when stocks saw their last high. Market bulls have spent a year looking like the walking dead. They’ve...

Europe's Cleanest Dirty Shirt Sees Exports Collapse & Production Plunge

Tyler Durden's picture


Just when the jawboning from Europe is reaching its climax that Portugal is fixed again, Greece is fixed, and the core is showing green shoots from the near-depression, Germany (the corest of the core) comes out with its worst exports data since 2009. While imports remained stable - suggesting domestic demand is sustained for now - YoY export growth collapsed 3.2%, the worst tumble since November 2009 "illustrating that Germany's economy still has difficulties shifting into higher gear."



The details are a horror-story. Exports to the euro-zone, where 40% of Germany's exports are sent, fell by a stunning 9.6% (while exports to the rest of the world dropped 1.6%). To add to the misery for the 'things are getting better' crowd, Germany's industrial production data missed expectations are dropped back into the negative YoY following the 'hope' inspiring positive YoY print in April that signaled all-is-well.


Of course, none of that matters, the DAX is up a stunning 2.4% today on the back of this dismal-is-great data. So much for those green shoots...


Charts: Bloomberg

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Mon, 07/08/2013 - 09:09 | 3730397 pachanguero
pachanguero's picture

Real bad stuff

Mon, 07/08/2013 - 10:06 | 3730534 Sudden Debt
Sudden Debt's picture



Mon, 07/08/2013 - 09:11 | 3730402 Dr. Engali
Dr. Engali's picture

Should be good for another 2% on the DAX.

Mon, 07/08/2013 - 09:11 | 3730403 NoDebt
NoDebt's picture

Every time I feel negative about what's happening in the US, I look at Europe and I feel better. 

Mon, 07/08/2013 - 09:21 | 3730411 Dr. Engali
Dr. Engali's picture

Every time I feel negative about the U.S I go to watch the shoppers at Walmart and confirm the fact that I am right.

Mon, 07/08/2013 - 09:43 | 3730478 jmcadg
jmcadg's picture

:) +1 Good Dr.

Same here, but they are in Poundland.

Mon, 07/08/2013 - 09:44 | 3730480 SheepDog-One
SheepDog-One's picture

You can stand to actually GO to Walmart? You must be one tough dude!

Mon, 07/08/2013 - 09:45 | 3730486 jmcadg
jmcadg's picture

Europe's actually no worse, they're just shit liars.

Mon, 07/08/2013 - 10:15 | 3730561 Sudden Debt
Sudden Debt's picture

to stupid and lazy to tell lies. And when they do lie, it's uber obvious.

When the Americans lie, it's so complex and bad that everybody says: "There must be something behind it because it's so complex"

At least we know who to hang on a tree when the shit finally crumbles down and we need a fallguy.

Mon, 07/08/2013 - 09:13 | 3730408 Lady Heather...UNCLE
Lady Heather...UNCLE's picture

Dax up 2.4% eh? On the terrible data it should be up much MOAR

Mon, 07/08/2013 - 09:15 | 3730413 slaughterer
slaughterer's picture

Germany has been trying to shift into the service economy revolution for years now.  Who needs German "industrial production"?

Mon, 07/08/2013 - 09:16 | 3730416 fonzannoon
fonzannoon's picture

we should print some bartenders for them.

Mon, 07/08/2013 - 09:33 | 3730461 Debugas
Debugas's picture

i need german industrial production, every chinese needs it too.

the only problem - neither i nor the majority of the people can afford it NOT

Mon, 07/08/2013 - 10:16 | 3730573 Sudden Debt
Sudden Debt's picture

a service economy like the dutch? :)

They are the worst off in Europe! Those dikes won't hold much longer!

Mon, 07/08/2013 - 11:36 | 3730839 Ghordius
Ghordius's picture

Germany "trying to shift into service economy"? well, the problem is that the German government can "try" - or, better, talk about (I'm not even sure they do), but what the economy does - particularly that half that is the SME/"Mittelstand" is a different thing altogether. And they account for half of the story. In short: only something that British and American newspapers take seriously

"Exports to the euro-zone, where 40% of Germany's exports are sent, fell by a stunning 9.6% (while exports to the rest of the world dropped 1.6%)"

I'm used to look at trade statistics, and usually Germany's exports were half/half between the eurozone and the rest of the world. Last time those stats shifted in the other direction, this was taken as a sign that bad, bad Germany is taking advantage from the EUR. Now the story goes that the victims are bled dry. sure, right...

the real truth, i.e. that endless supply chain criss-cross the eurozone for many end-products that are then finished in Germany is too boring to contemplate for most. A BMW or a Mercedes - somehow at the end everybody talks only of such widely known products - are German, aren't they? Who cares that components are made in Croatia or Spain or in many other places

fact is that the eurozone is a trade & monetary zone for which we nevertheless have lots of national statistics. I doubt Detroit at the times when American car production was the "locomotive of the world" would have been over-analyzed this way, with a Dr.Krugman-equivalent asking for separate currencies for those states, or similar bollocks

fact is, same as then, whenever Germany exports less - particularly out of the eurozone - a lot of other industries delivering to Germany make less, too, all over the eurozone. As in the old adage: "when GM sneezes, America get's a cold"

But the "Mittelstand" has no stock ticker, and many of their eurozone partners are family-owned, too. and so they fly right under every typical Wall Street & City analyst's radar

Mon, 07/08/2013 - 09:24 | 3730433 falak pema
falak pema's picture

So in the world of beggar thy neighbour some take solace where ever they can find it! 

Mon, 07/08/2013 - 09:26 | 3730444 yogibear
yogibear's picture

Lies are finite. More ghost cities, food stamps and section 8's for everyone. Just print money. It's worked for 4 years. 

Production of goods and services is so yesterday.

Mon, 07/08/2013 - 09:40 | 3730471 jmcadg
jmcadg's picture

DAX 8000, all the better to short.

Mon, 07/08/2013 - 10:12 | 3730556 asteroids
asteroids's picture

The DAX should be down around 6000, not 8000. I'm sure some suker bought it today.

Mon, 07/08/2013 - 09:42 | 3730479 SheepDog-One
SheepDog-One's picture

LOOK! Oh my fuck it's good enough for +20 S&P points! 

Mon, 07/08/2013 - 09:55 | 3730513 sunny
sunny's picture

These production numbers explain why DAX is up 2.3+% as I type.


Mon, 07/08/2013 - 10:09 | 3730542 Sudden Debt
Sudden Debt's picture

The best joke today was from the Italians :)



Mon, 07/08/2013 - 13:44 | 3731243 KnightTakesKing
KnightTakesKing's picture

Caveat emptor, MF!

Mon, 07/08/2013 - 10:30 | 3730620 Motorhead
Motorhead's picture

Prost, Ihr Säcke!

Mon, 07/08/2013 - 15:11 | 3731569 WVO Biker
WVO Biker's picture

For a few years I kept the track record of Commerzbank market trading recommendations and if their research work is any clue, their book must be really fucked and that is for a very long time - their prop trading must be burning funds like hell. At the same time, they cut credit lines for small and medium companies. Last time I checked, their stock was down more than 97% from the former high. And now they deal with their customers in a mutha fuckin arrogant way. Only a couple of years ago they invited customers to their second floor plush rooms suggesting to buy Allianz financial products on credit financing. Now its sit down in noisy cashier room. "we can cut your entire entire line immediately - yes, we can do that". And they did offer usury 15,5% debt interest rates to an unsuspecting long time female customer with excellent account and employment history. (She was planning a foreign country RE purchase.)  

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