Contact | Open Account | Account Login  
ABN AMRO   Dorman   KCG   GAIN   RCG   RJO
Headline News |  Ag News |  Weather

Headline News

Germany Cuts 2

03/19/2019 07:36:00 AM

» Return to News Index

Germany Cuts 2019 Economic Forecast 03/19 07:35 BERLIN (AP) -- The German government's panel of economic advisers nearly halved its German growth forecast for this year to 0.8 percent --- the latest in a long list of downgrades for Europe's biggest economy. In a regular update Tuesday, the panel cut its 2019 forecast from the previous 1.5 percent but said growth should accelerate next year to 1.7 percent. The downgrade follows cuts in the German outlook by the European Commission and the International Monetary Fund. The independent experts said in a statement that the lower forecast was strongly influenced by the after-effects of the economy's weak performance at the end of last year, when it was dragged down largely by one-time factors related to new car emissions standards. German carmakers faced bottlenecks getting vehicles certified under new, more realistic emissions tests that came into force Sept. 1. They also noted high risks for the future from factors such as Brexit uncertainty and global trade disputes. Christoph Schmidt, the group's chairman, said that "the peak of the German recovery is over. A recession however is not expected in view of robust domestic demand." The German slowdown complicates the Europe's economic picture. While falling unemployment and rising wages are supporting consumer spending at home, the economy faces external headwinds from slowing trade and worries that U.S.-China trade talks will fail and lead to higher tariffs and further increasing the drag from trade. The European Central Bank took added steps to support the recovery at its last meeting March 7, pushing back the earliest date for an interest rate increase and announcing a new round of cheap loans for banks to enable them to lend to businesses. The bank had ended a 2.6 trillion-euro ($2.9 billion) bond purchase stimulus in December after almost four years. But the worsening outlook pushed the bank to shift course toward maintaining existing stimulus rather than withdrawing it. (KA)

» Return to News Index

The risk of loss in trading futures and options can be substantial, therefore only genuine "risk" funds should be used in such trading. Futures and options may not be a suitable investment for all individuals and individuals should carefully consider their financial condition in deciding whether to trade. Option traders should be aware that the exercise of a long option will result in a futures position. Past performance is not indicative of future results.

All information, communications, publications, and reports, including this specific material, used and distributed by HighGround Trading LLC ("HTG") shall be construed as a solicitation for entering into a derivatives transaction. HTG does not distribute research reports, employ research analysts, or maintain a research department as defined in CFTC Regulation 1.71.