While U.S. citizens might have increasingly sleepless nights, with a shutdown of their government and upcoming debt ceiling debates hanging over their heads, Europeans are gradually trying to pick up the pieces of their post-crisis life. A good amount of ongoing newsflow has strongly improved soft indicators, which point increasingly to economic growth. Nevertheless, several hard indicators still stubbornly deny the cheerful mood: falling retail sales and industrial production, record-high unemployment rates, and negative credit growth. Even ECB president Draghi classified the green shoots as “very very green”. Whereas his fellow Italian Berlusconi tried to put an end to his government, German voters expressed their satisfaction with their leader last month. They asked Mutti Merkel to stay another term as mater familias of the 82 million-headed German family. Unrelated, we assume, but as we speak, the Germans should be finishing their last 1Liter beers at 2013’s Oktoberfest – two excellent reasons, along with its status of Europe’s healthy backbone, to make this October's issue of Europe Watch partly a DeutschlandWatch, especially on page two.
Source : CBRE Global Investors