• Producer’s price index increased in July by 0.2% which is the smallest rise this year. This is due to more moderate prices growth in refinery production and metals. Year-on-year growth of industrial prices slowed down to 4.1% from June’s 4.6%.
• Government coalition did not agree on reform proposal last night. ODS agreed with Vlastimil Tlusty but MP Hovorka’s support is not certain yet as he wants to limit payments for visit of a doctor.
• Slovakia’s economy is continuing in its fast pace. In the 2Q07 GDP increased by 9.2% while market expected 9.4%.
• Hungary’s economy is growing much slower. In the 2Q07 it added 1.4% after 2.7% in the 1Q07.
• Also, inflation in Hungary remains high. In July, consumer prices rose by 8.4% y/y while core inflation reached 5.6%.
• Germany’s GDP in the 2Q07 increased by 0.3% which is slightly higher than market expectations. After adjusting for cars and fuels, revenues increased by 0.4%.
• Former Fed chairman, Alan Greenspan, will become a (95 EUR, -2,09%) advisor. Greenspan is now advising at (156 EUR, -0,24%) SE with asset management.