Here’s another reason Jean-Claude Trichet’s next move will likely be some sort of cut rather than a tightening of interest rates: The recession, which is most pronounced on Europe’s periphery, is heading inward.The latest sign: German business confidence unexpectedly fell for the first time in 11 months, according to Bloomberg.
As health as Germany is (relatively), it’s got to be frustrating to realise that all of Europe could at some point be hanging onto it as a liferaft, and that the country is part of a monetary system whose future is no in doubt.
On the other hand, some business leaders are citing a snowy winter. We hope that’s what it was.
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