Eurozone: ECB minutes and German manufacturing data – Danske Bank

Next week, in the Eurozone, a key event will be the release of the minutes from the latest European Central Bank meeting. According to analysts from Danske Bank the minutes will reveal the degree of disagreement about the new easing package and potential future policy responses.

Key Quotes:

“We get minutes from the September ECB meeting on Thursday. Since the meeting there have been some frictions within the Governing Council which peaked with the resignation of ECB board member Sabine Lautenschläger. Furthermore, we have seen conflicting comments in the media in which Chief Economist Philip Lane said that he did not believe that the ECB had delivered a big package and that it could cut rates further. This stands in contrast to Bundesbank President, Jens Weidmann, who stressed the need to adhere to the current rules of the ECB’s asset purchases and thus lashed out after Draghi’s recent call for more unity among board members. Hence, we look mainly at the discussions and different views in the minutes and furthermore any reflections on potential future stimulus packages (including the ISIN limit reflections).”

“In Germany, we get August industrial production figures on Tuesday. These are not likely to bring any cheer since the German manufacturing slump does not seems to have bottomed out yet from looking at the manufacturing PMIs, with truck toll mileage also pointing to a further m/m decline.”