That is a recipe for market volatility, and I think it will increase rather than grow less in the months ahead.
It's the lowest level of growth for almost a decade and the government had indicated it was expecting something in the region of 3 percent,
In terms of fiscal policy very little is expected from the budget.
The (second-quarter) numbers are nothing to shout about, and they could have been worse, ... We can expect the third quarter to be subdued and possibly a better fourth quarter.
For the ECB to be hiking rates, they needed to see some clear signs of growth. And they are getting it now in abundance.
The signals were very explicit, given the weakness of the euro and pressure on inflation starting to come through,
The obvious focus for the market will be the core PPI, and given what we've seen for consumer prices, we should see a relatively modest increase there,
So the fact we got growth of about half a percent tells you how poor the performance was over the last year.
The U.S.-Europe story is getting played out and is fully discounted in the euro and bond markets.
This is going to be more of a newspaper headline budget rather than one for any macro economic changes,
