Hi Guys! It still exists, the good news between the catastrophic news. You just have to look for it. This morning there were not only lousy Corona numbers and terrifying Kabul images, but at least a few reports with a positive sign that especially investors may like.
The Federal Statistical Office, for example, reported thick order books: The order backlog in the manufacturing sector grew by 2.8 percent in June compared to the previous month and has now reached “its highest level since the statistics were introduced in January 2015”! Open orders from within Germany increased by 4.0 percent and those from abroad by 2.2 percent. The chemistry is right again: The German chemical industry is leaving the corona crisis behind. According to the VCI, the industry was able to build on the good start to the year in the second quarter and is heading for a record year. And the global economic recovery is giving German mechanical engineering companies a strong boost. In the first half of 2021, exports were 11.2 percent above the level of the same period of the previous year.
When we look across the borders, however, the subject of inflation – more precisely: fears of inflation – has us again. So a survey lands on my screen, according to which professional investors from the leading industrial countries are increasing their exposure to cryptocurrencies, gold and other asset classes in order to hedge against inflation. Around half of the respondents believe that institutions will invest in cryptocurrencies for the first time in order to counter the risk of inflation. According to the survey, the expectation that active crypto investors will increase their shares in Bitcoin & Co. is similarly high. Around 47 percent want to increase their allocation to gold. 37 percent say they will increase their exposure to real assets such as real estate, raw materials and infrastructure.
Oh yes, today the same crap from the media as in almost every month – but this time at a relatively low level: In the euro zone, the inflation rate rose above the 2 percent mark in July (= final figure). Plus 2.2 percent – the number was known to us for a long time, but will be played up again. Only in the last paragraph of the agency reports do you read the “good” information: The annual rate for core inflation, which excludes prices for energy and food, has fallen from 0.9 percent to 0.7 percent. The first survey was thus also confirmed. Core inflation is considered by many economists to be more indicative of the basic price trend.