Europe Crisis spread to core?

Euro zone manufacturing data: doesn't look good! After the financial crisis then we move focus to manufacturing sectors.

1.) From peripheral to core: Germany/France experience downturn in manufacturing sectors.

France has weaker position as their exposure to southern european countries are larger. (than Germany) However, as placed in a major leader and a lender position, Germany cannot be left intact.

I recall another day I had another conversation with frineds, saying that Germany can "purposely" keep the EU-crisis go on to be benefit from devalued EURO, which can boost their export sector. I doubted about it then. My argument is that the weak banking sector would rise the funding cost, not even mention the demand shrinkage from the other member states.

The latest data pretty much shows that is not likely for Germany benefit too much from the weak EURO. Everybody gets burned, just to different degrees.

2.) rounds of bailouts to continue?

Not likely. ECB has pumped enough money into banking systems. They project a likely rebound in the second quarter but no one can say for sure. Unlike Fed, which pretty much left inflation behind and focus on growth and revival of economy, ECB has more inflation-sensitive attitude. The 2.6% inflation rate is in their vigilance zone.

The show will be on in the second quarter~