European stocks are currently trading at their lowest valuation relative to U.S. Stocks in history
Source: Win Smart, IBES
Germany troubles in one chart. Retail sales have fallen by 4.4% in Dec YoY.
This means that even Christmas sales fell through. Germans have gone on a buyers' strike since the outbreak of inflation & have even cut back on gifts for children during the Christmas season. This also explains why Germany has some of the toughest competition in the retail sector and the lowest profit margins there. Source: Bloomberg, HolgerZ
Greece is the third country in Europe, after italy and spain, to see energy security affected by Houthi attacks to tankers in the Red Sea.
At least 3 Qatari LNG cargoes have been cancelled over the last days, impacting the Greek prospects of becoming a gas hub in europe. Source: Francesco Sassi
German inflation slows to 2.9% in January from 3.7% in December, lowest level since June 2021
Core CPI slows to 3.4% in January from 3.5% in December, lowest level June 2022. Energy in deflation, hashtag#energy prices dropped -2.8% YoY, while Food CPI slowed to 3.8% from 4.5% in December. Source: HolgerZ, Bloomberg
In France, 3 out of the 4 favorite political leaders are from the far right...
1) Marine Le Pen (RN) 40%; 3) Jordan Bardella (RN) 37%; and 4) Marion Marechal Le Pen (Reconquête) 29%. Source: Le Figaro Verian - EPOKA / February poll
The "Deutsche Mag 5" -> Germany has its version of Magnificent 7 stocks
An index consisting of SAP, Siemens, Allianz, Munich Re, and Deutsche Telekom has outperformed the Dax Price Index by almost 90ppts over a 10y period. Source: HolgerZ, Bloomberg, TME
Germany has its version of Magnificent 7 stocks">
Germany has its version of Magnificent 7 stocks">
Germany's Dax closed at fresh all-time-high just as hedge fund Qube built a $1bn short bet against top German stocks
Volkswagen, Deutsche Bank, Rheinmetall, Siemens Energy, Hellofresh, and Morphosys are among those being wagered against. Source: Bloomberg
German manufacturing had been in crisis well before Russia invaded Ukraine
Putin's invasion only made this structural decline worse. Europe has an easy offset to this: a weaker currency. Euro needs to fall well below parity to offset the crisis in European manufacturing... Source: Robin Brooks
