An unusual cocktail of optimism, upbeat data and political instability

The Eurozone economy continues to make headway as the economy in the single bloc currency grew to a 6 year high in February, according to the latest PMI data from IMS Markit released on February 21.
www.markiteconomics.com/Survey/PressRelease.mvc/70d3f937a9084891a38652f82f318477

The latest data from Markit is flattering.
"Job creation was the best seen for nine and a half years, order book growth picked up and business optimism moved higher, all boding well for the recovery to maintain strong momentum in coming months."
In February Eurozone Services PMI Activity Index posted 55.6 ( that is a 69 month high), manufacturing sector did even better with Eurozone Manufacturing PMI at 57.2 (70 months high)
Germany and France saw new orders rise at the steepest past since May 2011.
Germany's upturn was spurred on by manufacturing while France saw the biggest jump in service activity.
So the Business optimism detected towards the end of 2016 appears to be now building momentum in early 2017, despite all the political uncertainty in the bloc.

However, political uncertainty in Europe is being played out in the foreign exchange market with the Euro dipping below $1.05.
It might be prudent for traders/investors to keep their optimism in check. In a few words, the Euro is likely to face one of its biggest challenges since its conception with the French elections 7 May fast approaching. Should far-right French presidential candidate Marine Le Pen secure election victory traders/investors could be staring down the barrel of a financial apocalypse. Le Pen wants to leave the EU and the Euro. But that might be the catalyst for a financial fusion (meltdown) starting with the almost certain collapse of the Euro, then peripheral spreads blow up, next, the collapse of Deutsche Bank with $46 trillion derivatives exposure. If DB (Europe's largest bank) goes down the drain who will honour its derivative losses (which could amount to $ trillions). Put another way the other banks on the other side (winning side) of DB trades could be left holding worthless paper.
DB is too big to fail but equally, it's too big to save, even for (cash strapped) governments.

In other words, a Le Pen victory could be the financial fusion that blows the collateral chains off the European banking system.
So with the stakes so high a rigged French election looks likely, unless the “fixers” are planning a reset and need an excuse.
No doubt the secretive Bilderberg Group would be able to write the conclusion, frankly, the rest of us are all left speculating.

The EU CPI reading for January is scheduled for toady. Fears of deflation in the eurozone are well behind in the rear mirror and the ECB target of 2% now looks like a reality. The depreciation of the euro and recovery of oil prices could all add to a higher inflation reading.

Meanwhile, on the financial markets, the German Dax is testing its 12,000 resistance price level (as a write this piece)

It is an unusual cocktail of optimism, relatively upbeat data mixed with political turmoil. Indeed, Even U.K. Q4 GDP has been revised up to 0.7% from 0.6% preliminary, despite the risk of Brexit.

Across the pond, the Trump administration is locked in a bitter fight with Intel, mainstream media and the globalist elites (the shadow government). Nevertheless, household and business optimism remains buoyant. New job creation in the US is an under-reported story.
Thousands of new auto jobs are expected in west Alabama for current and future automotive parts suppliers for companies like Mercedes-Benz US International.
“There's a couple of new suppliers building plants just down the street from us. That's going to provide more employment opportunities for the local area," according to MBUSI President and CEO Jason Hoff. Those jobs are expected to come available in the next 18 to 24 months.
www.wbrc.com/story/34561271/thousands-of-new-auto-jobs-expected-in-west-alabama

Thousands of new auto jobs expected in west Alabama

www.wbrc.com

Thousands of automotive jobs are coming to west Alabama but to get those jobs, you will require technical skill and training.

Delta Air will be adding 25K jobs
Delta CEO Ed Bastian said in a statement Thursday that the Atlanta-based company is growing its ranks as it expands and upgrades its hubs at several of the nation's airports. Hiring could be contingent on the support of the government in establishing "a level playing field."
www.postandcourier.com/business/briefcase-delta-air-to-add-k-jobs/article_5ddecc68-efe3-11e6-933f-c32f3b3a71d5.html

Briefcase: Delta Air to add 25K jobs

www.postandcourier.com

Delta CEO announces job growth plan

Newport News Shipyard to add 3,000 jobs
Just a year ago the company laid off 700 workers at the shipyard due to diminishing workload.
The shipbuilder is seeing an increase in contracts (business is cyclical) that started end of September, so they are hiring.
For the latest job hiring stories (that the mainstream likes to under-report) see the link below.
www.dailyjobfix.com

DailyJobFix - Job Hiring 2017, Job Search/Postings ...

www.dailyjobfix.com

DailyJobFix / Job Hiring 2017/2016 - Source for Online Jobs, Job Listings / Posting. Looking for a Job / Job Hunting? Daily List of Jobs, / Places hiring near Me / You

It is still early days to know the full impact of Trump's policies but it's fair to say (remaining apolitical) so far, so good. Time will tell.