Germany’s Bundesbank strikes a cautious tone in its latest monthly report, noting a “noticeably weaker dynamism” in fourth quarter data for Europe’s largest economy. But these things are relative. The German central bank says the recovery had continued – which is more upbeat that the country’s statistical office. It last week noted “stagnation” in the fourth quarter. The weakness, the Bundesbank argues, was largely the result of the ending of subsidies for new car sales. Look at export expectations and orders levels in sectors not dependent on the automobile industry, and the underlying recovery appears “intact,” it concludes.
The European Central Bank has, meanwhile, provided another sign of things getting back to normal. In joint announcement with the Swiss central bank, it said it would not longer be providing emergency Swiss franc liquidity. (NB. Switzerland, Hungary and Poland are also to stop trading Swiss-franc denominated forex swaps.) Read more