Bundesbank remarks in its latest monthly report
- Services momentum to slow considerably, industrial supply chain issues to persists
- Full-year growth likely to be “significantly” below June forecast of 3.7%
- Inflation to continue rising for the time being, before gradually declining next year
This fits with the narrative surrounding the euro area economy at the moment, with the ECB also likely to tone down their optimistic take on the outlook derived during the summer. As supply and capacity constraints persist for a protracted period of time, expect that to weigh more heavily on the German economy going into next year.
China continues to try and address the power crunch
The energy crisis in China isn’t getting much better as they have ramped up electricity imports from its neighbours in a report late last week here
Local authorities are still doing what they can in order to try and prevent a surge in prices and keep it from impacting consumers and businesses especially, in fears that it will throw the economy out of whack even more than it has been as of late.
Xi speaking, aiming his comments at the US and its allies. Relations between the US and China are thawing a little but its not smooth sailing yet.
Xi speaking along the ,lines that:
- China has always worked together with people across the world in defending intl fairness and justice.
- China firmly opposes hegemony and power politics.
- Chinese people firmly support developing countries’ just fight for sovereignty, security and development interests.