French & Japanese GDP crash

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Not a great week for the French to report that Q2 GDP was 0.0% against expectations of 0.3% and from 0.9% in Q1 2011.

But that’s just what happened as the the screenshot from my Bloomberg above shows.

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The year on year data was equally disappointing coming in at 1.6% against market expectations of 2% and from last quarters 2.1% (revised from 2.2% at time of release).

Clearly French growth is rolling over and if markets want an excuse to go hunting France and French banks tonight – they just got one. The short selling ban will make it more problematic than usual but markets are nothing if not creative.

If that’s not enough, the Japanese also cut projected GDP today from the year beginning April 1st down 1% to just 0.5%. Growth and Europe worries combined today.

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