BETTER GERMAN CONFIDENCE:

After two consecutive months of decreases, the Ifo business sentiment index increased. The Gfk’s consumer sentiment index rose to 6.5 in June, making six months of increases. This increase is positive considering private consumption contributed 0.4% to Germany’s 0.1% growth in Q1. These fi gures are in line with our view that the Germany economy will lead the Economic and Monetary Union (EMU) out of recession this year.