Friday Morning Coffee Nr. 76: Cheaper, cheaper, Europe

111019 Friday Morning Coffee

Friday Morning Coffee Nr. 76: Cheaper, cheaper, Europe

The Eurozone manufacturing business sentiment numbers published last week were hardly encouraging, especially the ones coming out of Germany. In Germany, the IFO manufacturing business expectations have fallen to levels last seen in recessions. It is clear Germany has specific challenges as the ‘German Wirtschaftswunder’ is facing disruption in the automotive sector and is particularly sensitive to deteriorating global trade relationships. The current pessimism appears extreme to us.