German exports and company spending plunged in the first quarter, dragging Europeâs largest economy into its deepest slump on record.
Exports dropped 9.7 percent from the fourth quarter and company investment declined 7.9 percent, the Federal Statistics Office in Wiesbaden said today. Gross domestic product fell a seasonally adjusted 3.8 percent from the previous three months, the office said, confirming an initial estimate from May 15. Thatâs the steepest drop since quarterly data were first compiled in 1970.
The Nikkei estimates that Japan passenger car production in fiscal 2009 will likely decrease to 1979 levels, mostly due to a plunge in exports.
The projection, which was compiled based on automakersâ data and interviews with company officials, calls for the eight Japanese passenger car firms to assemble 8.21 million vehicles in the year ending in March 2010, 14% fewer than last year and the second consecutive annual decline, following a 15% fall in fiscal 2008.
Welcome back in the 70th ! Any further comment needed ? V Recovery ? Dream on !
Nevertheless, with regards to fair value calculations of equities : you have always to keep in mind what the alternative is to equity investments . Real estate, bonds, infrastructure, real investments ? If inflation returns, stocks might actually be overpriced. If we stay at these levels on the long term bond yields, stocks may have some more upward momentum.
