German Industrial production figures hit the buffers at the end of 2018moving from 6% monthly growth to – 4% monthly growth. That is 4% in a month and with the US about to introduce a 35% Tariff on German cars it is not looking good for Germany or for that matter Europe.
That contraction at the end of last year is the strongest since the financial crisis. Back then, it was China’s massive state-run stimulus programme that resuscitated the German economy. Today, it’s the other way round – a lack of Chinese stimulus is causing Germany’s economic pain. On top of that, the US is set to unveil new tariffs on EU car exports as early as next week. Not looking great BMW and Mercedes.