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Europe's Downturn Drags Down German Manufacturers

This week, Germany's Bundesbank central bank cut its growth forecast for the country's economy fell from 0.1% to 0.3%. German central bank (Bundesbank) also cut its 2014 growth forecast from the previous estimate of 1.9 to 1.5%, although this figure will prove to be higher than the current economic recession in Europe troubled environment better by leaps and bounds. Nonetheless, highlights appeared in Germany as Europe's largest economy trying to avoid open shrink its neighbors. April, the country's exports grew by nearly 2%, compared with March up 8.5% from the same period last year - for the nation's manufacturers a great news.
Nevertheless, Germany will have to play hard to dig the eurozone out of recession in the region hope. Combat debt-distressed countries, such as Italy, Spain, Greece and Germany, conservative fiscal policy and austerity measures. Former Italian leader Silvio Berlusconi said that Italy needs "to seek a test of strength," the German leader Angela Merkel.
With Italy's youth unemployment rate hovering around 40%, the country's economy to go anywhere but up, it will be difficult to Merkel talks with patience and fiscal conservatism mitigate Italy helpless. Italy, Europe's third largest economy, if it continues to remain in a recession, it will be more difficult to dig out of the eurozone in the big hole - and Germany to avoid the pitfalls of its neighbors.
Export growth will help some of Germany's largest companies and stocks, however. German car manufacturer has taken a beating in the recession, may not help: new car sales in the country dropped by nearly 10 percent, month after notching a rare gain in April. BMW (NASDAQOTH: BAMXY) and Daimler (NASDAQOTH: DDAIF) outperformed many car manufacturers in Germany this year, but have seen sales flattened in the early part of the year. Daimler's stock performed well this year so far, but to avoid any decline in the company - along with BMW - announced that it will not participate in the traditional summer break, in the meantime, the German car manufacturers closing plants for a few weeks . Right now, these two companies can afford.
Siemens (NYSE: SI) in stock and did not show so well: its shares have fallen 4.8 percent so far this year. Incrased exports should help, and if this trend continues, such as Siemens, Germany's pre-eminent engineering companies a significant amount of international business. Company leaders also predicted double-digit margins in 2014, despite the weak business climate in Europe, although Siemens has lowered its outlook for the current year solar-related losses and other expenses dragged down the bottom line. Siemens will need to recharge its energy business to succeed, the company expects to profit from the unit earlier full-year forecast is low.
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