And general business conditions

This is from the same Wall Street Breakfast as my last post

Confidence among large Japanese manufacturers seems to have swept back in Q3, according to the Business Survey Index, which jumped to +11, from -6 in Q2…

Italian industrial output grew at the fastest pace for a year in July, rising 1.1% after falling 1% in June and topping consensus. “It’s very positive data, consistent with most recent indications we got from businesses…After a long contraction, manufacturing can now rise thanks to higher domestic demand and the resilience of foreign demand.”

German CPI was flat on month in August as falling energy costs continued to have an impact on the overall rate. Wholesale prices were firmly stuck in deflation, dropping 0.8%. In Spain, final CPI was -0.3%. (As deflation is even worse than inflation this means that there is plenty of room for more stimulus and no threat at all of inflation. This should add to the increasing calls for an end to misguided austerity.)