Franklin Templeton's Zahn sticks with German and Spanish debt as European growth slows
Franklin Templeton's Zahn backs German and Spanish bonds, sees European growth slowing and UK Budget headroom as the key risk.
Franklin Templeton's Zahn backs German and Spanish bonds, sees European growth slowing and UK Budget headroom as the key risk.
Schnabel noted that high costs pass through more quickly in a resilient economy, but the ECB can be patient if inflation expectations remain anchored.
Germany's preliminary September CPI rose to 3.3% year on year, above the 3.1% forecast and up from 2.9%; core inflation held at 2.4%.
All four German state CPI readings accelerated in September, raising the likelihood that national inflation will again exceed 3%.
France's September HICP increased to 3.4% y/y, exceeding expectations, and CPI rose 3.0%, adding to euro area inflation worries.
French CPI rose to 3.0% y/y in September, above expectations of 2.8%, while HICP came in at 3.4%, also above forecast.
German import prices rose 1.0% month-on-month in August, pushing the annual rate to 8.3%, the highest since December 2022.
Germany's retail sales rose 1.3% in August from July, missing the 1.5% forecast, after a steep 3.4% monthly drop.
German import prices rose more than expected in August, with both monthly and annual readings exceeding forecasts.
German September CPI is seen accelerating to 3.1% y/y, driven by energy costs. Focus falls on core inflation for signals on the ECB's policy path.
Euro area economic sentiment fell to 97.9 in September, missing forecasts, while consumer and selling price expectations rose, signaling persistent inflation…
Spanish inflation accelerated to 4.9% in September, the highest since February 2023, while core price growth picked up to 3.1%.
Spain's preliminary September CPI rose 4.9% y/y, above the 4.6% expected, while HICP increased 5.0%.
ECB's Lagarde says gradual policy response is appropriate as inflation outlook has risen for 2027-2028.
Europe aims to keep the euro central as finance moves onto blockchain, facing the challenge of dollar-dominated stablecoins.