Flash: Germany and Europe
Frankfurt, May 22 (Bloomberg) -- German companies were more pessimistic in April than any time in almost two years as slowing economic growth curbed demand for their products, a survey of 6,000 executives showed.
Italian inflation rose more than expected in May. Consumer prices in 11 cities gained 0.3 percent from April and 3 percent from a year ago. Prices also rose in May in the German state of Brandenburg, figures today showed.
Conclusion: Germany's weakness is another reason for the weak EURO ... Expect lower rates in Europe in the coming months to help the largest economy of the Eurozone. Unfortunately there will not be many decreases as inflation is still very present. Whereas the US has lowered rates 5 times so far (and will continue to do so), Europe has only lowered them once.