Germany: Industrial output softened in December - BBH

German industrial output softened in December (-0.6%), but yesterday's strong factory orders and the recent PMI suggest this is noise and likely a response to the outsized 3.1% (initially 3.4%) gain in November, according to analysts at BBH. 

Key Quotes

“Meanwhile, efforts to forge a new coalition after last September's election overcame the immediate obstacles and the distribution of ministries between the CDU/CSU and the SPD have reportedly been agreed.  The euro's failure to respond positively suggest that 1) it has been accepted that despite overrunning self-imposed deadlines, that a deal was going to materialize, and 2) the powerful uptrend seen from mid-December to late January has been broken.”