RBS share drop accelerates on stress test flop

Stressed. Shares in Royal Bank of Scotland have accelerated their losses this morning, falling over 4.5 per cent after the state-backed lender came in bottom of the heap in the Bank of England’s latest stress tests. RBS failed the toughest ever stress tests carried out by the BoE, with results this morning showing the lender’s […]

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Capital Markets, Financial

BGC Partners eyes new platform to trade US Treasuries

BGC Partners plans to launch a new platform to trade US Treasuries early next year, in a bid to return to a market in the middle of evolution, according to people familiar with the plans.  The company, spun out of Howard Lutnick’s Cantor Fitzgerald in 2004, sold eSpeed, the second-largest interdealer platform for trading Treasuries, […]

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Sales in Rocket Internet’s portfolio companies rise 30%

Revenues at Rocket Internet rose strongly at its portfolio companies in the first nine months of the year as the German tech group said it was making strides on the “path towards profitability”. Sales at its main companies increased 30.6 per cent to €1.58bn while losses narrowed. Rocket said the adjusted margin for earnings before […]

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Renminbi strengthens further despite gains by dollar

The renminbi on track for a fourth day of firming against the dollar on Wednesday after China’s central bank once again pushed the currency’s trading band (marginally) stronger. The onshore exchange rate (CNY) for the reniminbi was 0.28 per cent stronger at Rmb6.8855 in afternoon trade, bringing it 0.53 per cent firmer since it last […]

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Nomura rounds up markets’ biggest misses in 2016

Forecasting markets a year in advance is never easy, but with “year-ahead investment themes” season well underway, Nomura has provided a handy reminder of quite how difficult it is, with an overview of markets’ biggest hits and misses (OK, mostly misses) from the start of 2016. The biggest miss among analysts, according to Nomura’s Sam […]

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Categorized | Economy

German producer prices show signs of life

Posted on November 18, 2016

Producer price inflation faced by German businesses remained stuck in deflation in October, but showed encouraging signs of picking up on the back of weaker energy price declines.

Year-on-year producer price inflation, which is considered an early gauge of inflationary pressures in an economy, fell 0.4 per cent last month – an uptick from the -1.4 per cent hit in September and in line with economist forecasts. The gauge has been stuck below zero since 2013 but last month’s fall was the smallest since September 2013 for Europe’s largest economy.

On a month-on-month measure, producer price inflation accelerated by 0.7 per cent in October compared to September – far exceeding forecasts of just a 0.2 per cent climb.

Destatis, Germany’s statistics agency, said energy prices slipped by 2.2 per cent in the month while consumer goods prices rose 1.1 per cent and durable goods costs rose 1.2 per cent.

Headline inflation in the German economy hit a two-year high of 0.7 per cent last month as the effects of last year’s global oil price slump fades out of the annual inflation basket.

Chart courtesy of Bloomberg