German problems caused by domestic, uncertainty-driven weakness - Berenberg

GERMAN PROBLEMS CAUSED BY DOMESTIC, UNCERTAINTY-DRIVEN WEAKNESS - BERENBERG

Factories across Asia and the euro zone reported a general loss of momentum last month that speaks volumes about the need for more policy stimulus on top of Japan's latest efforts to ignite growth. Berenberg Senior Economist Christain Schulz says it is domestic, uncertainty-driven weakness that is causing problems for Germany.
SHOWS: LONDON, ENGLAND, UK (NOVEMBER 3, 2014) (REUTERS - ACCESS ALL)
1. BERENBERG, SENIOR ECONOMIST, CHRISTIAN SCHULZ, SAYING:
JOURNALIST ASKING CHRISTIAN SCHULZ: "I want to kick off with the PMIs. Mixed, I guess is an improvement from uniformly bad, which we've seen in the past, no?"
SCHULZ: "Indeed. It's mixed in all kinds of dimensions across countries of course. We had a bit of a rebound in Germany which is a bit of a contrast to the much wider IFO survey for October so maybe some mixed news there for Germany itself. In France, an upward revision but still down on September as you mentioned and on the periphery, some good news actually for Ireland and Spain, countries which are relatively far away from Germany which is ultimately the trigger of all the weakness. But then some bad news in Italy. So, mixed overall but as you say, that is an improvement over the previous months. So maybe, just maybe, we are reaching the trough of the current rough patch."
JOURNALIST: "Okay. All right, the trough of the current rough patch. I want to get back to Germany though. You mentioned IFO. They did miss today on the PMIs but we're at this two-month high export order growth. It looks pretty decent, should we take heart from that and how much actually should we take from that?"
SCHULZ: "Well, I think this is really important because when you look at the German economy at the moment, the problems are coming from elsewhere. They are external problems but they are not affecting Germany via exports so it's Russia, which has triggered uncertainty which is making German manufacturers invest a little less or postpone some of their investment projects. That's a...