Gavekal Capital: Not To Pick on France or Anything, BUT...

Monday, December 16, 2013

Not To Pick on France or Anything, BUT...

Important survey data out of Europe today points to a growing disparity between the region's two largest economies. While the Eurozone and Germany both surpassed consensus estimates, France's flash PMI came in at a disappointing 47.1 (versus expectations for a small rise to 49.1 from last month's 48.4):

Meanwhile, business confidence has stalled...

Consumer confidence isn't showing much life...

Unemployment continues to climb...

While labor cost increases have dramatically outpaced those of Germany over the last two decades...

Industrial production remains well below pre-recession levels...

Exports are falling in the face of a rising euro...

Debt as a percent of GDP shows no sign of slowing...

And the CAC lags both the German and Swiss exchanges year to date-- not to mention stock markets in the GIPSIs...

But, hey-- inflation doesn't appear to be much of a problem these days!

About Gavekal Capital

Gavekal Capital is a US registered investment advisory firm that manages the Gavekal Knowledge Leaders Strategy. Knowledge Leaders are a group of the world’s leading innovators with deep reservoirs of intangible capital. These companies often possess competitive advantages such as strong brand, proprietary knowledge or a unique distribution mechanism. Knowledge Leaders are largely service-based and advanced manufacturing businesses, often operating globally. Gavekal Capital seeks to identify the world’s leading knowledge companies through a proprietary process that analyzes corporate knowledge investments.
We offer the Gavekal Knowledge Leaders Strategy in multiple products for global investors. For more information about our product offerings please visit http://www.gavekalcapital.com.
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