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Ifo says more than half of German firms have been hit by fallout from the virus outbreak

  
  Analysis
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Ifo institute with their latest survey among 3,400 German firms

Germany
  • 56% are suffering from negative effects from the virus outbreak
  • 63% of manufacturing and trade companies said they were negatively affected
  • Problems from postponement of business trips, supply chain issues, lower demand
  • 96% of firms in the tourism sector, 79% in hospitality sector said they were affected
It is but a small sample size and I would argue that the negative implications don’t just apply to one particular country. It is pretty much the same all across the globe and the impact is much worse on countries like Italy, Japan and South Korea.

Germany July Ifo business climate index 95.7 vs 97.2 expected

  
  Analysis
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Latest data released by Ifo – 25 July 2019

  • Prior 97.4; revise to 97.5
  • Expectations 92.2 vs 94.0 expected
  • Prior 94.2; revised to 94.0
  • Current assessment 99.4 vs 100.4 expected
  • Prior 100.8; revised to 101.1
Slight delay in the release by the source. A measure of business conditions and sentiment/expectations towards the German economy. Do be reminded the Ifo changed the indicator measurement to take into account of services data too as of April 2018.
That’s the weakest headline reading since April 2013 with expectations and current conditions both also seen slumping further in July. This continues to reaffirm weakness in the German economy as we begin Q3.
I reckon concerns about a recession won’t be too far off now. EUR/USD holds steady near the lows for the day at 1.1130 after hitting a session low of 1.1122 briefly, with anticipation still on the ECB policy decision later today.
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