New York, New York (PressExposure) July 29, 2009 -- "Mann International" sources say that news of France and Germany's emergence from economic recession has understandably shocked global markets and prompted the euro to strengthen against the US dollar.
Analysts suggest that a clear pattern is emerging in that countries with high levels of consumer indebtedness, like the US and the UK, are likely to remain in recession for longer than nations without.
France and Germany's exports are showing signs of picking up and their versions of America's "cash-for-clunkers" program have yielded encouraging results. Germans typically rent their homes until later in life when they consider purchasing property. They have a far lower level of consumer indebtedness and the country is still the world's largest exporter.
Both countries have spent large sums on boosting economic activity but "Mann International" analysts believe that the absence of crippling personal debt meant that many French and German consumers have been better able to cope with the downturn than their US and British counterparts.
"Mann International" analysts have cited recent announcements from the US Federal Reserve and the bank of England as evidence of a lack of confidence in the countries' fragile recoveries.
The Fed said it would extend its treasury buyback program into October - one month later than planned whilst the BoE said it would extend its quantitative easing program by an additional £50 billion ($85bn) . Both announcements illustrate the weakness of their recovery and point to the pain that the absence of consumption is having on both economies.
"Mann International" is thought to expect banks and financials in both the US and Britain to come under renewed pressure as unemployment continues to grow and hampers efforts to re inflate their real-estate markets.