In a CNBC interview held in Frankfurt on Thursday, Goldman Sachs Chief Financial Officer (CFO) Stephen Scherr expressed his concerns on the German economic slowdown.
Key Quotes:
Germany is in the “early days of a slowdown”.
Economic trends in Germany are a big issue.
Uncertainty partly stemming from US-China trade war.
Bond market reflecting sentiment that there’s anxiety about prospect of a recession.
Some banks’ concerns about aggressive monetary policy easing are “understandable”.
Yield curve inversion reflects anxiety.
This comes amid growing German recession risks after a sharp slowdown in Germany’s Industrial and Construction sector activity. Meanwhile, the government expects economic growth to slow to 0.5% this year from 1.5% in the previous year.
EUR/USD holds the upside on the 1.10 handle, but lacks follow-through amid German economic weakness and trade progress.
Share
