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
German business model was based on:
1. Cheap energy from Russia; 2 Cheap subcontractors in Eastern Europe; 3. Steadily growing exports to China. All three are gone by now Source: Michel A.Arouet, Bloomberg
US vs. Europe: equity returns were very much similar before 2009...
Source: FT
US vs. Europe in one chart
Source: Michel A.Arouet
