German spanner in EMU works
Saturday 09 August 1997
Rumours, later squashed, that Chancellor Helmut Kohl had died of a heart attack hit sentiment, coming on top of worries stemming from the failure of his tax reform measures. Even so, most observers' trepidation still centres on what the Bundesbank will do with interest rates in the next few weeks.
Julian Jessop of Nikko Europe says speculation about an imminent announcement has been a little over-cooked, but he still expects an increase to come in September or October.
Even an uptick of as little as 0.1 per cent would be psychologically significant, coming as the first rise for five years. That could throw a spanner into the EMU works, particularly for investors who have made fat profits on the reducing yield gap between the Mediterranean currencies and Germany.
Stephen King of James Capel is more sanguine about the impact of higher rates, pointing out that German money costs are still well below the 4 per cent or so indicated as required after a European monetary area comes into effect. "But politically, it could stiffen rising resistance to EMU within Germany."
- 1 Venezuela Expo Tattoo 2015: Extreme body art from 'Vampire Woman' to 109mm earlobes
- 3 Ball pool for adults opens in London
- 4 Game of Thrones season 5 trailer: The first full-length look is here
Boris Johnson claims porn-obsessed Islamic jihadists are 'literally w*****s'
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Putin opponent reveals Russian President's daughter's secret identity
Ball pool for adults opens in London
Amal Clooney gives excellent response to fashion question at European Court of Human Rights
9 reasons Greece's experiment with the radical left is doomed to failure
Have we reached 'peak food'? Shortages loom as global production rates slow
Greece elections: Syriza and EU on collision course after election win for left-wing party
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Liberal Democrat minister defends comments suggesting immigration causes pub closures
King Abdullah dead: We can't afford not to hold Saudi Arabia's royals to account
iJobs Money & Business
£40000 - £50000 per annum: Recruitment Genius: This is an exciting opportunity...
£30000 - £35000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...
£13000 per annum: Recruitment Genius: This Pension Specialist was established ...
£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...