A worker on the assembly line for the new Audi TT. Photo: Retuers/Laszlo Balogh

The euro and German government bond yields rose this morning after the release of the MARKIT Manufacturing purchasing managers’ index for Germany, showing that 59.3% of respondents were expanding. EUR/USD rose from 1.188 at 4:00 a.m. to 1.922 at 8:00 a.m.

Die Welt reports that German factories are stretched to capacity: there simply aren’t enough qualified workers to do the required jobs. The influx of refugees hasn’t helped. As author Tuvia Tenenbom reports in his new book “Hello Refugees,” Daimler Benz managed to employ exactly one Syrian refugee of the 1.2 million who turned up in the past year and a half.

His job is to screw the Mercedes star onto the hood of new cars. That doesn’t bode well for industrial profit growth: If the Germans can’t hire, they can’t grow. German monetary officials say they aren’t worried about the dampening effect of a rise in interest rates, because the economy is already stretched to capacity. Germany needs more savings to get investment, and to get the savings, it has to offer something better than the negative interest rates that German savers now receive.

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