Euro drops on record German inflation
Today's Financial News - Posted August 19, 2008
The European Central Bank (ECB) considers inflation its biggest enemy. How successfully are they fighting it? Well, with the German PPI up a whopping 9%, they seem to be doing a bang-up job!
by Nina Koeppen, Wall Street Journal
Baltimore — (TFN): German gross domestic product fell 0.5% in the second quarter from the first three months of the year, official data showed earlier this month. Most economists now expect German GDP to grow about, or just below, 2% this year, compared with a calendar-day-adjusted 2.6% in 2007.
But the European Central Bank shouldn’t cut interest rates on weakening real economic activity, given the threats of excessive wage settlements in the area, ZEW’s Mr. Franz said.
Separately, German producer prices jumped 8.9% year-to-year in July, which marks the fastest rise in nearly 27 years, data from the Federal Statistics Office showed Tuesday.
The euro initially rose on the data, before losing its gains. By midmorning in Europe, the euro traded at $1.4659, compared with $1.4668 ahead of the ZEW survey. German government bond futures initially dipped, but quickly recovered losses, with September bunds up 0.28 at 114.69.
****Make sure you sign up for our FREE TFN News Feed for breaking news, special reports and new financial videos. Sign up through your favorite reader here. Or, if you prefer, have the feed delivered to your email.
Next Article: This alternative energy company is turning plastic back into crude oil
Be the first to leave a reply.
Your comments are welcome
Follow TFN via RSS or Twitter |
 |
 |
 |
Advertisement
Latest Headlines
- The Big Picture for Sinobiopharma, Inc. (SNBP)
- Beazer Homes USA, Inc. (BZH) and Hovnanian Enterprises, Inc. (HOV) up despite horrid housing news
- The FDA catalyst: 2010 moves in MannKind (MNKD), Roche Holding (RHHBY), Acorda Therapeutics (ACOR) show it still works!
- Steepest drop since Feb. 2009: Here we go again!
- Is the silver run over? Coeur d’Alene Mines (CDE), Silver Wheaton (SLW), Alto Group (ALTO), Hecla Mining (HL), Endeavour Silver (EXK) close down