Salient to Investors:

Germany’s council of economic advisers said:

  • The German economy will expand 0.8 percent in 2013, the same as this year, as the euro region’s sovereign debt crisis saps demand for German exports.
  • The ECB’s bond-purchasing plan is a last resort at best and should be ended as quickly as possible because it blurs the line between monetary and fiscal policy.
  • The euro region needs an improved mechanism to ensure budgetary discipline, a banking union to stabilize the financial sector and insolvency rules for states.
  • Germany’s labor market will remain very stable with unemployment at 6.9 percent on average in 2013 versus 6.8 percent in 2012.
  • Germany’s budget will be close to balance this year and next.

GfK said consumer confidence will climb to a 5-yr high this month even as the economy cools.

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