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MNI ANALYSIS: SHOULD WE BE CONCERNED........>

GERMANY
GERMANY: MNI ANALYSIS: SHOULD WE BE CONCERNED ABOUT GERMAN AUTO PRODUCTION?
MAYBE NOT...
There has been a lot of debate about the impact of auto production on German
GDP. Indeed, EURUSD hit session lows following the release of weaker than
expected German export data on Thursday, in spite of the fact that the series is
notoriously volatile. This shows how concerned the market is about growth data,
and German growth data in particular. Expectations of auto production are still
falling, but production has not fallen so much yet. German auto equities are
splitting the difference and should be watched closely for impacts on growth and
hence the euro and Bunds going forward.
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