Question in Germany Is: Who Will Govern with Merkel Next?
Nick Ottens via Atlantic Sentinel |German chancellor Angela Merkel could renew her alliance with the center-left or switch to a pact with either the liberals or Greens.
Germany
German Or US Bonds: Who Is Following Who?
Analysts at Julius Baer think it is “comforting” to see that the bond market is efficient. In other words, they say that for German bond investors it is basically the same whether they invest in negative- yielding German Bunds or buy US bonds and pay for the hedging of the currency risk.
The Eurozone has geared up
Suprising as it may be, 18 of the 19 members of the Eurozone saw an increase in GDP in Q1’17 with respect to Q4’16. Spain’s GDP improved by 0.6%; Italy managed to grow (0.2%); Germany and France clocked up a 0.4% rise. Only Greece remained in the red. The unemployment rate in the region has officially fallen to 9.6%…there is growth.
Germany’s Exports: Must It Ask Forgiveness For Its Strength?
There are those who believe, like Macron, that Germany’s 8.8% trade surplus is damaging the Eurozone economy. “4% could be justified; but not 8%”, says IMF head Christine Lagarde. The problem is not that Germany exports a lot, but that it imports very little.
Trump is Right about Germany, for the Wrong Reasons
Francesco Saraceno | I share with Donald Trump the belief that Germany is harming the world economy. (Ok, ok, it is not bad Germany, it is bad German trade. ). Yet, I think it is worth pointing out something trivial that is not emphasized enough. Trump is right about Germany, but for the wrong reasons. The problem is not the number of German cars circulating in the US, but the number of American cars not circulating in Germany.
The Economy’s Strength Weakens German Voters Desire For A Radical Change
The damping of the refugee crisis and the strength of the economy have weakened German voters’ desire for a radical change. If Angela Merkel is re-elected as chancellor, the financial markets are likely to function normally.
France Distances Itself From The Worst-Case Scenario, But Also From The Best-Case
A political risk scenario is not taking shape in Europe, but that doesn’t mean there are no problems. They are still there and in France they will rear their head under the concept of “cohabitation.” The new president of the French Republic, more than likely, will have to live with the National Assembly being dominated by the traditional parties.
Germany: flexing its muscles in the face of an uncertain labour market
With a very low jobless rate (5,8%), Germany is growing for the eighth year in a row. This is allowing it to attract capital and qualified workers. Even so, the future of the jobs market is a concern, and a key issue in this Autumn’s elections.
Immigration in Germany resurfaces as an opportunity to boost potential growth
Inmigration in Germany is not a new topic. The country is the second most popular migration destination in the world, after the United States. In fact, some 11 million of the people currently living in Germany were actually born elsewhere. The controversial refugee movement and last poor German demographic trends published make immigration resurface as an opportunity to boost German’s potential growth.
Spain, The Nucleus Of Europe: How Realistic An Idea Is This?
Recently there’s again been talk of a two-speed Europe. During the mini-summit two weeks ago, Merkel, Hollande, Italy, Rajoy, gave the green light to this latest spin. The Spanish PM has said the country would be at the nucleus of this.