As previously discussed, action was taken after the disease began infecting the core.
Germany backs Draghi bond plan against Bundesbank
Bundesbank Says German Economy May Cool Further in Second Half
Spain Home Rents Rise, First Time Since January, Fotocasa Says
And, also as previously discussed, I’m watching for signs deficits may be high enough for
euro zone GDP stability this quarter.
By Ambrose Evans-Pritchard
August 20 (Telegraph) — “A currency can only be stable if its future existence is not in doubt,” said Jrg Asmussen, the powerful German member of the ECB’s executive board. Mr Asmussen told the Frankfurter Rundschau that the surge in Club Med bond yields over recent months “reflects fears about the reversibility of the euro, and thus a currency exchange risk” rather than bad economic policies in struggling states. Mr Asmussen confirmed that purchases may be “unlimited” in scale, a far cry from the half-hearted intervention of the past two years, which failed to stem capital flight. The Daily Telegraph can confirm reports in Der Spiegel that ECB technicians are examining plans to cap Spanish and Italian bond yields, among other options.
By Stefan Riecher
August 20 (Bloomberg) — “The prevailing uncertainty in the euro area could have a more negative impact on economic activity in Germany in the second half of the year,” the Bundesbank said in its monthly report. “However, as long as demand for German products from non euro-area countries remains essentially intact, a reversal of the cyclical trend in Germany is highly unlikely.” Growth in Europe’s largest economy slowed to 0.3 percent in the second quarter from 0.5 percent in the first as demand from euro-area trading partners waned. “In addition to ongoing strong construction activity, the outlook for private consumption remains favorable,” the Bundesbank said.
August 21 (Bloomberg) — Rental prices for Spanish homes rose 0.8 percent in July from June, recording the first monthly increase since January, real-estate website Fotocasa.es and IESE Business School said in an e-mailed statement.
Average rental prices stood at 7.56 euros ($9.38) per square meter, up from 7.49 euros per square meter in June, according to the statement.