Salient to Investors:

German factory orders fell for a second straight month and by the most since September 2011.

Thomas Harjes at Barclays said today’s data are a catastrophe – the huge problem in the rest of the euro area seems to be reaching Germany and its labor market. Harjes said the economic outlook is gloomy for the coming quarters.

Euro-area services and manufacturing output contracted for a ninth month in October.

The IMF predicts:

  • Germany will grow 0.9 percent in 2012 and 2013
  • The Euro area will fall 0.4 percent in 2012 but grow 0.2 percent in 2013.
  • The US will grow more than 2 percent in 2012 and 2013
  • Emerging Asia will grow 7.2 percent in 2013.

Nick Matthews at Nomura Intl said Germany is performing better than most of the euro area, but a contraction is more likely in Q4.

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