In the first post sundance points to a the bad news for Germany in a Reuters article--Recession risks rise for Germany as industrial orders plunge:
But then he goes on to ask: Why? And it's not exactly rocket science. Trump has forced China into a currency devaluation, and that has had serious consequences for a major economy like Germany's that's heavily export dependent:
China has: (1) less income; and (2) less value within their own currency.
Where does this dynamic show up?…. Anytime China is going to buy something.
China’s currency devaluation makes their exports cheaper; however, at the same time it makes any of their imports more expensive. As a consequence China buys less… and that now exhibits in lower purchases of German stuff.
Next question, Will this translate into Trump leverage to push Brexit through? I won't pretend to be able to read Trump's mind, but nothing would surprise me less. Mike Pence--remember, the Vice President?--is in London telling everyone that the US is ready, willing, and able to do a trade deal with a post-Brexit UK. I don't believe any of this is happening in a vacuum.
UPDATE: For those who are fascinated by the Brexit "crisis"--or whatever it is--currently gripping UK news, here's a fun article: There will still be an election in the UK, and Brexit will still happen.
