German wages rose at a record annual pace of 6.6 per cent in the second quarter, boosting consumer spending power but fuelling concerns about inflation being pushed up by rising labour costs
The increase, which compared with wage growth of 5.6 per cent in the previous quarter, was the highest since collection of the data began in 2008. It took German annual wage growth above the country’s consumer price inflation rate — 6.5 per cent in the period — for the first time since 2021. Source: FT
The demise of europe in one chart
Source: The Economist
Get ready for 0DTEs, Europe
Source: Markets Mayhem, Bloomberg
EU Composite PMI... monetary policy works with a long and variable lag...
Source: Macrobond, Nordea
The Bank of Japan is purchasing government bonds at a record pace this year
A factor that likely prompted its recent move to allow larger yield movements to reduce the strain on its control of longer-term #interestrates. Source: Bloomberg
Disinflationary forces are intensifying in Germany
Producer Prices drop for 1st time since 2020, a good leading indicator for Consumer Prices. In July, producer prices (PPI) fell by 6.0% YoY, the biggest decline since October 2009, when the financial crisis has caused prices to collapse. Last year, the prices received by manufacturers for their goods had at times risen at a record rate of 45.8%. Source: HolgerZ, Bloomberg
Advantage greece... A decade ago, Germany was giving lessons to Greece how to run its economy. Things can quickly change.
Source: Michael A.Arouet
In a stunning move, reminiscent of the first few months of Putin's invasion of Ukraine, European NatGas prices exploded a stunning 40% higher YESTERDAY ALONE
This comes as the possibility of worker strikes at some LNG plants in Australia threatens global supply..... This is the biggest daily increase since March 2022. Citigroup estimates EU natural gas prices could double. Meanwhile, oil hit 9 months high and coal is rising as well. The surge of energy prices will make the job of central-bankers more difficult. Source: The Kobeissi Letter, ICE, Bloomberg
