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German Investor Confidence Jumps to 21-Year High on Vaccines


German Investor Confidence Jumps to 21-Year High on Vaccines
May 12 2021, 12:25 PM
May 11 2021, 3:12 PM
May 12 2021, 12:25 PM
(Bloomberg) Discover what’s driving the global economy and what it means for policy makers, businesses, investors and you with The New Economy Daily. Sign up here.
(Bloomberg)
Discover what’s driving the global economy and what it means for policy makers, businesses, investors and you with The New Economy Daily. Sign up here.
Investor confidence in Germany’s economic recovery jumped to the highest level in more than 21 years after the country’s vaccine rollout gained speed.
The ZEW institute’s gauge of expectations rose to 84.4 in May from 70.7 the previous month. A measure of current conditions improved, as did prospects for the euro zone. ....

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Finance Minister Paschal Donohoe warns taxes will rise after Covid


Taxes will have to rise and borrowing to fund services be brought under control after Covid to avoid spooking the bond market, Paschal Donohoe has said.
The warning comes just a day after UK chancellor Rishi Sunak announced the country’s biggest hike in corporation tax in a generation in a bid to cover the cost of its stimulus spending.
At an event on Thursday, Paschal Donohoe said the government here will need to reduce the budget deficit over time to keep markets on side.
“The idea that deficits don’t matter, especially for a small economy without the possibility to print its own currency, is so far off the mark as to be dangerous in evaluating policy options in the future,” Mr Donohoe told an event organised by the Economic and Social Research Institute (ESRI). ....

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Traders on Yield Watch in Bond Markets 'Not for Faint-Hearted'

(Bloomberg) After last week’s market turmoil, there’s really just one question on traders’ minds: how central banks will react to the jump in bond yields.The manner in which markets anticipate the likely policy response will be key to determining risk appetite Monday following a week in which 10-year Treasury yields, a benchmark for global borrowing costs, surged to almost triple their levels of August. The move underscored how investors are starting to fret about an acceleration in inflation that might prompt the Federal Reserve and other central banks to tighten policy sooner than expected. The S&P 500 had its first back-to-back weekly decline since October, while implied volatility in Group-of-Seven currencies rose the most since June.“We are moving to a type of market condition that’s not for the faint-hearted,” said Nader Naeimi, the head of dynamic markets at AMP Capital Investors in Sydney, adding that he will continue betting aga ....

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