SAGGING MORALE: Germany’s manufacturers are struggling with weaker foreign demand, as well as tariff disputes and business uncertainty linked to Britain’s decision to part ways with the EU. Picture: Bloomberg/Rolf Schulten
SAGGING MORALE: Germany’s manufacturers are struggling with weaker foreign demand, as well as tariff disputes and business uncertainty linked to Britain’s decision to part ways with the EU. Picture: Bloomberg/Rolf Schulten

German business sentiment deteriorated more than expected in August, in a further sign that escalating trade disputes are pushing Europe’s largest economy towards a recession. "The last time that companies demonstrated such pessimism was in the crisis year of 2009. Not a single ray of light was to be seen in any of Germany’s key industries," said Clemens Fuest, president of the Munich-based Ifo Institute.

Reuters

Yankee go home

Mark Carney, the Bank of England governor, has said the world’s reliance on the dollar "won’t hold" and needs to be replaced by a new international monetary and financial system based on many more global currencies. In a speech at the annual Jackson Hole gathering of central bankers, he called for the International Monetary Fund to take charge of a new system of currencies, protecting emerging economies from destructive capital outflows in dollars and removing their need to hoard US currency.

Financial Times