Juncker has to know better than this, he can’t be that sheltered?
From Mike Norman’s blog
“The debt level of the USA is disastrous,” Mr. Juncker said. “The real problem is that no one can explain well why the euro zone is in the epicenter of a global financial challenge at a moment, at which the fundamental indicators of the euro zone are substantially better than those of the U.S. or Japanese economy.”
Note the actual headline and how deep in the article the fact that the trade deficit actually widened is buried.
It’s almost like a US headline that might have reported, for example, the Texas trade surplus grew, when the overall US trade deficit widened and only got a minor mention.
European April Exports Rose on China, Defying Strong Euro
By Gabi Thesing
June 17 (Bloomberg) — European exports rose in April on greater demand from the U.S. and China, shrugging off the effects of a stronger euro.
Exports from the economy of the 17 nations that use the euro rose a seasonally adjusted 0.6 percent from March, when they increased by the same amount, the European Union’s statistics office in Luxembourg said today. Euro-region construction output rose 0.7 percent from the previous month, when it declined 0.1 percent, a separate report showed.
The European Central Bank revised up its growth forecast for this year on June 9, predicting expansion of 1.9 percent after a previous estimate of 1.7 percent on “the ongoing expansion in the world economy.” Even so, the recovery may struggle to maintain momentum as the 15 percent appreciation of the euro against the dollar makes goods manufactured in the euro region more expensive and higher oil prices boost companies’ input prices.
“Exports are particularly driven by Germany, which doesn’t compete solely on price but on highly specialized products,” said Carsten Brzeski, an economist at ING Group in Brussels. “At the same time, the stronger euro will start to bite in the coming months, damping growth, even though it won’t slide back into recession.”
The euro was little changed after the data were released, trading at $1.4168 at 11:03 a.m. in Brussels, down 0.3 percent.
‘Strong Global Demand’
The German economy, the main driver of the European economy, will expand at the fastest pace since the country’s reunification as domestic demand picks up, the RWI economic institute said yesterday.
German carmakers are hiring because of booming demand in China for high-end vehicles. Bayerische Motoren Werke AG Chief Executive Officer Norbert Reithofer said on May 12 that the Munich-based company will hire about 2,000 workers over the course of the year, more than half of them in Germany, “in light of strong global demand for BMW, Mini and Rolls-Royce brand vehicles.”
Euro-area imports rose a seasonally adjusted 1.1 percent in April and the trade deficit widened to 2.9 billion euros ($4.1 billion) from 2.2 billion euros in the previous month, today’s report showed.
Euro-area exports to the U.S. rose 20 percent in the year through March from the year-earlier period, while shipments to the U.K., the euro area’s largest market, increased 14 percent. Exports to China surged 31 percent.
China’s Customs General Administration reported on June 10 that imports from the European Union rose 28.5 percent in April.
It’s more than China’s ‘vital interests’ as over their a loss of public funds from a Greek default could mean heads roll- literally- as there is a history of actual execution for failure and disgrace.
And note the past tense- China had helped by buying their debt.
Also, note the anecdotal signs of weakness, highlighted below:
Headlines:
China President Hu: Global Economic Recovery ‘Slow And Fragile’
China’s ‘vital’ interests at stake over Greek crisis
China Yuan Band Widening Would Have ‘Political’ Meaning Only
Consumer Spending Fades in China Economy After ‘Peak Days’
China economy faces over-tightening risk – government economist
China President Hu: Global Economic Recovery ‘Slow And Fragile’
June 17 (Dow Jones) — Chinese President Hu Jintao said Friday that the global economic recovery is still “slow and fragile” and is threatened by a resurgence of protectionism in various forms.
“There still exist some lagging effects of the financial crisis,” he said at a keynote speech at an investment forum in Russia.
Despite failing to agree on a landmark deal for gas supplies from Siberia, Hu was upbeat on the outlook for bilateral trade with Russia, which is rich in other natural resources crucial to China’s economic development.
Hu said he hopes to raise the level of annual bilateral trade between the two countries to $100 billion by 2015, and $200 billion by 2020, compared with $60 billion in 2010.
In 2009, Russia and China agreed in principle to construct two pipelines that would export natural gas from Siberia to China, but a final agreement has been held up due to persistent differences on gas pricing.
Late Thursday, the two sides failed to reach an agreement during last-minute talks at Gazprom headquarters in Moscow.
China’s ‘vital’ interests at stake over Greek crisis
June 17 (Guardian) — China’s “vital” interests are at stake if Europe cannot resolve its debt crisis, the Chinese foreign ministry said on Friday as it voiced concern about the economic problems of its biggest trading partner.
At a media briefing ahead of Chinese premier Wen Jiabao’s visit to Europe next week, vice foreign minister Fu Ying made plain that China had tried to help Europe overcome its troubles by buying more European debt and encouraging bilateral trade.
“Whether the European economy can recover and whether some European economies can overcome their hardships and escape crisis, is vitally important for us,” she said.
“China has consistently been quite concerned with the state of the European economy.”
Wen is due to visit Hungary, Britain and Germany late next week, just months after he visited France, Portugal and Spain and offered to help Europe overcome its debt woes.
With Greece on the verge of a debt default, investors will focus on whether China promises to buy even more debt from beleaguered European nations including Greece, and increase its investment in the region.
China is a natural prospective investor in European assets and government debt because it has $3.05 trillion (£1.9tn) in foreign currency reserves, the world’s largest.
With a quarter of the reserves estimated to be invested in euro-denominated assets, it is clearly in Beijing’s interest to help Europe survive its debt turmoil.
“We have supported other countries, especially European countries, in their efforts to surmount the financial crisis,” Fu said. “We have, for example, increased holdings of euro debt and promoted China-European Union trade.”
Beijing has said in the past that it has bought Greek debt, but has never revealed the size of its investment.
Since eurozone debt worries first rippled through markets last year, China has repeatedly said that it has confidence in the single-currency region.
“We have hoped to help eurozone countries in overcoming the crisis, and this is also a measure that is beneficial to China’s own economic development,” Fu said.
But mirroring deteriorating market confidence on Europe, China’s central bank published a report this week saying the economic bloc risked worsening its problems if it did not contain debt levels.