Latest news with #Ifo


Qatar Tribune
5 days ago
- Business
- Qatar Tribune
Germany's business morale hits highest level in over a year
Agencies German business morale rose to its highest level in over a year in July, a closely-watched survey showed Friday, reinforcing hopes that Germany's struggling economy is slowly recovering. The Ifo institute's confidence barometer rose slightly to 88.6 points, up from 88.4 a month earlier, its seventh straight increase and the highest level since May 2024. The rise was, however, slightly smaller than that expected by analysts polled by financial data firm FactSet. 'Sentiment among German companies has improved somewhat,' Ifo president Clemens Fuest said. But 'the upturn in the German economy remains sluggish,' he added. Hit by high production costs as well as increasingly fierce Chinese competition for key exports such as cars, Europe's top economy was in the doldrums even before US President Donald Trump slapped it with new tariffs in April. But new Chancellor Friedrich Merz has pressed ahead with tax breaks and massive spending plans in a bid to revive growth, and an uptick in data since the start of the year has boosted hopes that the worst might be over. 'A wave of optimism seems to have caught the German economy,' ING bank analyst Carsten Brzeski said, though he cautioned that Germany was 'highly affected' by trade tensions in the short-term. US and European Union diplomats are currently negotiating ahead of the latest deadline set by Trump, who has threatened a further blanket duty of 30 percent on EU exports after August 1 if no agreement is reached.

Kuwait Times
5 days ago
- Business
- Kuwait Times
Germany's business morale hits highest level in over a year
BOTTROP: The coking plant of ArcelorMittal Bremen at the Bottrop site is pictured from the Tetraeder viewing platform in Bottrop, western Germany.- AFP FRANKFURT: German business morale rose to its highest level in over a year in July, a closely-watched survey showed Friday, reinforcing hopes that Germany's struggling economy is slowly recovering. The Ifo institute's confidence barometer rose slightly to 88.6 points, up from 88.4 a month earlier, its seventh straight increase and the highest level since May 2024. The rise was, however, slightly smaller than that expected by analysts polled by financial data firm FactSet. 'Sentiment among German companies has improved somewhat,' Ifo president Clemens Fuest said. But 'the upturn in the German economy remains sluggish,' he added. Hit by high production costs as well as increasingly fierce Chinese competition for key exports such as cars, Europe's top economy was in the doldrums even before US President Donald Trump slapped it with new tariffs in April. But new Chancellor Friedrich Merz has pressed ahead with tax breaks and massive spending plans in a bid to revive growth, and an uptick in data since the start of the year has boosted hopes that the worst might be over. 'A wave of optimism seems to have caught the German economy,' ING bank analyst Carsten Brzeski said, though he cautioned that Germany was 'highly affected' by trade tensions in the short-term. US and European Union diplomats are currently negotiating ahead of the latest deadline set by Trump, who has threatened a further blanket duty of 30 percent on EU exports after August 1 if no agreement is reached. — AFP
Business Times
6 days ago
- Business
- Business Times
Euro zone economy holds up even as ECB speakers look to temper market view of no more cuts
[FRANKFURT] The euro zone economy has remained resilient to the pervasive uncertainty caused by a global trade war, a slew of data showed on Friday (Jul 25), even as European Central Bank (ECB) policymakers appeared to temper market bets on no more rate cuts. The ECB kept interest rates unchanged on Thursday and its modestly upbeat assessment of the euro zone economy raised investors' expectations that a year-long easing cycle, which halved the bank's key rate to 2 per cent from 4 per cent, may be coming to a close. Supporting some of this optimism, lending data showed the fastest pace of expansion in two years, while a key ECB survey predicted quicker economic growth along with inflation right on target. A separate Ifo survey on Germany meanwhile showed the seventh consecutive rise, indicating that the bloc's biggest economy is still motoring along despite trade tensions holding back exports and corporate investment. The figures also back comments from ECB President Christine Lagarde that the bloc may have performed a 'little better' than expected last quarter. The fresh data, combined with Lagarde's comments, led investors to keep reducing their bets on further rate cuts. Markets now see just a 50 per cent chance of another move this year, a major retreat from earlier this week when another cut was fully priced in. Still, policymakers appeared to take a more cautious view than financial investors. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 'Risks to growth were still tilted to the downside, with uncertainty remaining very high,' French central bank chief François Villeroy de Galhau said. 'More than ever, in a volatile environment, agile pragmatism in light of data and forecasts is of the essence.' One key worry is that tepid growth, a strong euro and the hit from tariffs will all curb price pressures, raising the risk that inflation, now at the ECB's 2 per cent target, will fall too low, requiring stimulus from the central bank. 'US tariffs, the extent of which is still uncertain, are not expected to cause inflation to rise, while the appreciation of the euro is having a significant disinflationary effect,' Villeroy said. Finnish central bank chief Olli Rehn also appeared to caution against staying on the sidelines for too long. 'Taking more time for decision-making is now particularly useful - the option value of waiting is exceptionally high,' Rehn said in a blog post. 'However, we should not wait in vain for general uncertainty to diminish much, at least not under the current US administration.' Nevertheless, several major banks revised their ECB forecasts. Goldman Sachs, BNP Paribas, Nomura and Commerzbank have all scrapped their predictions for more policy easing, expecting no more rate cuts this year, while JPMorgan pushed back its call for one final rate cut to October from September. However, several others, including Bank of America, Barclays and UniCredit, continued to predict a move in September, even if some of them acknowledged that the chances of a move have diminished somewhat. REUTERS

Straits Times
6 days ago
- Business
- Straits Times
Business morale in Germany hits highest level in over a year
Find out what's new on ST website and app. FRANKFURT, Germany - German business morale rose to its highest level in over a year in July, a closely-watched survey showed on July 25, reinforcing hopes that Germany's struggling economy is slowly recovering. The Ifo institute's confidence barometer rose slightly to 88.6 points, up from 88.4 a month earlier, its seventh straight increase and the highest level since May 2024. The rise was, however, slightly smaller than that expected by analysts polled by financial data firm FactSet. 'Sentiment among German companies has improved somewhat,' Ifo president Clemens Fuest said. But 'the upturn in the German economy remains sluggish,' he added. Hit by high production costs as well as increasingly fierce Chinese competition for key exports such as cars, Europe's top economy was in the doldrums even before US President Donald Trump slapped it with new tariffs in April. But new Chancellor Friedrich Merz has pressed ahead with tax breaks and massive spending plans in a bid to revive growth, and an uptick in data since the start of the year has boosted hopes that the worst might be over. Top stories Swipe. Select. Stay informed. Singapore SMRT to pay lower fine of $2.4m for EWL disruption; must invest at least $600k to boost reliability Singapore MRT service changes needed to modify 3 East-West Line stations on Changi Airport stretch: LTA Singapore S'pore could have nuclear energy 'within a few years', if it decides on it: UN nuclear watchdog chief Asia Live: Thailand-Cambodia border clashes continue for second day Life 'Do you kill children?': Even before independence, S'pore has always loved its over-the-top campaigns Singapore Lung damage, poor brain development, addiction: What vaping does to the body Singapore Fine for couple whose catering companies owed $432,000 in salaries to 103 employees Singapore Kopi, care and conversation: How this 20-year-old helps improve the well-being of the elderly 'A wave of optimism seems to have caught the German economy,' ING bank analyst Carsten Brzeski said, though he cautioned that Germany was 'highly affected' by trade tensions in the short-term. US and European Union diplomats are currently negotiating ahead of the latest deadline set by Mr Trump, who has threatened a further blanket duty of 30 per cent on EU exports after Aug 1 if no agreement is reached. AFP


Local Germany
6 days ago
- Business
- Local Germany
German business morale hits annual high following tax cuts
The Ifo institute's confidence barometer rose slightly to 88.6 points, up from 88.4 a month earlier, its seventh straight increase and the highest level since May 2024. The rise was, however, slightly smaller than that expected by analysts polled by financial data firm FactSet. "Sentiment among German companies has improved somewhat," Ifo president Clemens Fuest said. But "the upturn in the German economy remains sluggish," he added. Hit by high production costs as well as increasingly fierce Chinese competition for key exports such as cars, Europe's top economy was in the doldrums even before US President Donald Trump slapped it with new tariffs in April. But new Chancellor Friedrich Merz has pressed ahead with tax breaks and massive spending plans in a bid to revive growth, and an uptick in data since the start of the year has boosted hopes that the worst might be over. READ ALSO: More and more German companies declare insolvency Advertisement "A wave of optimism seems to have caught the German economy," ING bank analyst Carsten Brzeski said, though he cautioned that Germany was "highly affected" by trade tensions in the short-term. US and European Union diplomats are currently negotiating ahead of the latest deadline set by Trump, who has threatened a further blanket duty of 30 percent on EU exports after August 1st if no agreement is reached. EXPLAINED: How product warranties can save you money in Germany