Just looking a little more into that....>

GERMAN DATA: Just looking a little more into that German GDP number. Although

the headline was in line with the flash estimate, we had consumption contract

for the first quarter since 2013 (it was expected to contract 0.1% Q/Q but

contracted 0.3%). While net exports were much weaker than expected with exports

falling -0.9% Q/Q (exp -0.3%) and imports rising 1.3% (exp 0.7%). To counteract

this we had stronger capital investment and construction.

- Overall this breakdown looks disappointing as it points to lower demand from

the end user: both consumers and exporters.

- The focus will now switch to the flash PMIs with France at 8:15, Germany at

8:30 and the Eurozone at 9am (all GMT). These will be closely watched for

further signs of a slowdown in growth and any anecdotal evidence on the extent

of temporary weakness due to the auto emissions changes.