EU exports its way

So the news is out that European Companies have been gaining an ever large percentage of exports to developing countries. For many of you a light went off in your head: now it makes some sense why European stock markets have out performed in the face of higher interest rates and stagnant local economies with shrinking populations, high unemployment and large entitlement costs. For years some European economies like Germany and Italy have been known as export machines deriving a significant portion of there GDP’s from exports. The latest data runs counter to what many had suspected given the strength of the Euro. EU economist have worried for some time that a stronger Euro would make EU exports uncompetitive. My theory is a bit different, frequent readers of this blog are aware that I often view the EU as the weaker and most trouble some of the worlds economic trading blocks .There are however some very first rate companies in the EU. Many of them particularly some of the Spanish banks and Telecoms have used the strong Euro to buy assets in emerging markets and as these markets prosper so does the EU.