Market Commentary: Made in Germany

Markets are trading higher this morning as the Bank of Japan begins a two-day monetary-policy review today after Japan’s industrial output increased 0.7% in May from the previous month, faster than than an earlier estimate of a 0.5% expansion, according to final figures released today.
China will report second-quarter economic-growth figures this week. China’s economy, the world’s second-largest, probably expanded 7.4% in the three months to June 30 from a year earlier, before data scheduled for July 16. Reports on retail sales and industrial production in June are also due on the same day.
In Europe, Mario Draghi’s newest stimulus tool will hand banks more than €700 billion of cheap funding, economists say. The European Central Bank president’s targeted lending program for banks will boost credit for the real economy as planned, and at the same time help keep the financial system flush with cash. Draghi may address the topic today when he testifies at the European Parliament in Strasbourg for the first time since elections in May.
Alcoa Inc. started the second-quarter financial reporting season last week, with banks including Citigroup, JPMorgan Chase & Co. and Goldman to announce results this week later this week as Citigroup Inc. and Goldman Sachs Group Inc. report earnings.
Home Depot Inc., the world’s largest home-improvement chain, will start selling 3-D printers today in stores for the first time, pushing deeper into a market that was once the domain of engineers and hobbyists. Home Depot is selling devices from MakerBot, a 3-D printer maker acquired by Stratasys Ltd. last year, in 12 locations as part of a pilot project, the companies said.
Germany, Europe’s biggest economy, is the world’s third-largest exporter, behind China and the U.S. Consignments from Mercedes-Benz automobiles to Adidas AG sporting apparel and Siemens AG power-plant technology drove the sale of German goods and services abroad to €1.09 trillion last year, about €2 billion shy of the record in 2012. supplied by the Federal Statistics Office.

Adidas, as the official sponsor of Germany and its contender Argentina, had a headstart going into yesterday’s duel as “the most visible brand” in the final.
In the 2014 World Cup of sporting goods companies, Adidas has beaten Nike hands down. The mechanics of that victory are remarkably similar to those of Germany's success on the field. Nike's team has had a dismal World Cup. France's Franck Ribery was out of the tournament before it started because of an injury.

England's Wayne Rooney, Spain's Andres Iniesta and Ronaldo went home in disgrace after the group stage. David Luiz captained Brazil in its 7-1 loss to Germany, in which Neymar did not play, having been injured in the previous game. Adidas, by contrast, looked incredibly lucky with its bets on Argentine genius Lionel Messi ($3.34 million a year) and German playmaker Mesut Ozil ($4.9 million a year).
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