ECB Stresses Current Inflation Hump Shaped Not Stagflation

ECB accounts of its October monetary policy meeting addressed a lot of key questions. The big one, is inflation transitory and are we headed for stagflation? The Bank recalled that stagflation experiences in the 1970s occurred in a different environment, in which indexation allowed wages to react to energy prices. The shortage of critical supplies including energy and other commodities has “seen market-based measures of inflation compensation in the euro area had surged to their highest levels in over seven years, … Continue reading “ECB Stresses Current Inflation Hump Shaped Not Stagflation”

The German DAX Stock Market Expanded to 40 Stocks with MDAX Reduced to 50 in Revamp

Germany’s benchmark Blue Chip DAX 30 index (Deutscher Aktienindex) expanded to 40 companies on 20 September adding 10 new members to the German stock index from the MDAX which will be reduced from 60 to 50 members.

Germany Inflation Steady as Deflation Pressures Weigh

Germany’s states; Saxony, Brandenburg, Hesse, Bavaria, North Rhine Westphalia and Baden Wuerttemberg all released their monthly inflation rates showing continued deflationary pressures, though there is some inflationary pricing in the core, particularly in Saxony to bring a smile to the ECB.

Fitch Affirm Germany Rating at AAA With Stable Outlook

Fitch Ratings affirmed Germany’s Sovereign rating and long term IDR’s and unsecured foreign and local currency bonds at ‘AAA’ with a stable outlook as expected. Germany ran a surplus last year and Germany’s fiscal position is expected to continue to improve.

SAP Earnings Look Towards Continued Cloud Growth

German software giant SAP report fourth quarter earnings on Tuesday. Last quarter cloud related sales were up 37% and $SAP gave robust guidance as it takes on cloud giants Amazon (AWS) and Microsoft however global economy risks have increased since.

Number One Risk for 2018 Is A Brutal Correction of Stock Prices Says French Watchdog

France’s market watchdog Autorite des Marches Financie (AMF) sees as the number risk for 2018 a brutal correction of stock prices. Goldman Sachs Bull/Bear Index is at the highest in almost 50 years. Analysts preach this time its different, is it?

German Household Consumption Driving Expansion says Bundesbank

The German Bundesbank in it’s monthly report said that Germany’s growth in the third quater may be somewhat slower than the first half of the year. The central bank said the economy is on a ‘sound’ path driven by household consumption’