Thursday, September 30, 2010

Brazil, China, and the Low Euro Boost Germany's Employment to Highest Since 1992

German unemployment declined for a 15th month, boosted by car makers and other manufacturers.
The number of people out of work declined a seasonally adjusted 40,000 to 3.15M. The rate is now 7.5%, from a post-World War II high of 12.1% in March 2005.

Germans love the low Euro, in spite of all the rhetoric. Companies such as Daimler AG and Volkswagen AG are adding jobs to accommodate fast economic growth in countries such as China and Brazil.

Americans do not like a low Euro, so we await the next shot in the currency wars.

Says Bloomberg: "German economic growth has shown signs of slowing after gross domestic product jumped a record 2.2 percent in the second quarter, the fastest since records for a reunified Germany began in 1991. Factory orders unexpectedly declined in July and manufacturing expansion eased for a second month in September.

"For now, exports are driving growth. Bayerische Motoren Werke AG, the world’s largest maker of luxury cars, said Sep. 16 it plans to add models and start a vehicle-leasing business in China. Car exports to China tripled in the first half of the year to 128,000, the Federal Statistics Office said last week, exceeding the 122,000 cars shipped to China in 2009".

Wage Inflation

Not all is good though, although some countries would love to have some inflation these days. "As exports fuel the recovery and companies’ profits, workers are seeking higher wages. The IG Metall union said today it secured a 3.6 percent wage increase for 85,000 steel workers at companies such as ThyssenKrupp AG and Salzgitter AG".

Stumble Upon Toolbar

No comments:

Financial TV

Blog Archive

// adding Google analytics