Productivity shortfall against the US is one thing, but Germany falling behind France is remarkable. What happened?
Source: Bloomberg, Michel A.Arouet
Germany has the shortest average working hours of any advanced economy, with the annual figure falling 30% in the past 50 years and now a quarter below US levels, per FT.
Source: unusual_whales, FT
German 10y yields jump to 2.64%, highest since Nov, following a somewhat hotter inflation report.
German Harmonized CPI rose to 2.8% in May YoY from 2.4% in Apr, above the 2.7% median estimate in a BBG poll of economists. German national CPI rose to 2.4% from 2.2% as expected. Source: Bloomberg, HolgerZ
Germany's inflation rose to 2.4% in May from 2.2% in April while Core CPI remains unchanged at 3%.
Uptick was driven by base effects related to the introduction of a cheap public-transportation ticket (so-called 49€ ticket), which pushed prices down 12 months ago. But also food price inflation quickened (for a 2nd month). Source: HolgerZ, Bloomberg
Deflationary forces are intensifying again in germany.
Producer prices fell by 3.3% YoY in April. In March, the decline was 2.9%. PPI is a good leading indicator for CPI. Source: Bloomberg, HolgerZ
The issue with europe:
1) Over-regulation; 2) Too much bureaucracy: 3) Lack of hashtag#innovation. As shown below, Tech champions are lacking. Source: Bloomberg
Germans already work much less than others, but German unions and some left politicians are seriously requesting move to four days workweek without pay cut
Source: FT, Michel A.Arouet
European companies feeling less positive about investing in China.
Source: Bloomberg
