Germany Stuck in Economic Weakness But Rate Cuts Should Be Gradual, Nagel Says

Germany is stuck in a period of economic weakness but central bank interest rates need to come down only gradually to make sure inflationary pressures are fully extinguished, Bundesbank President Joachim Nagel said on Monday, Reuters reported. The euro zone's biggest economy has been the bloc's laggard in recent years and the outlook is bleak as export demand is lacklustre, its oversized industry is in recession and consumers are proving too cautious, building up savings instead of spending cash buffers.
Germany
Read more

Some Danish Lenders Face Risks From CO2 Tax, Central Bank Says

Denmark’s plan to tax agriculture emissions will lead to rising impairment charges for some of the nation’s financial institutions but won’t threaten financial stability, the central bank in Copenhagen said, Bloomberg News reported. A few “medium-sized” banks are most exposed to a higher risk of losses from loans to farmers, who “already have a vulnerable economy and must pay the additional tax for their CO2 emissions,” Nationalbanken said in a financial stability report on Tuesday.
Denmark
Read more

U.K. Shop Prices Might Have Reached End of Falling Inflation Period, Report Says

Annual U.K. shop-price deflation lost steam in November, driven by higher fresh-food prices on increased winter-related costs, while retailers’ additional costs next year suggest the end of falling inflation, a report said, the Wall Street Journal reported. Prices at U.K. stores decreased 0.6% on year in November, up from deflation of 0.8% recorded in the previous month, the report by NielsenIQ and the British Retail Consortium showed Tuesday. This is the first time in 17 consecutive months that inflation was higher than the previous month.
United Kingdom
Read more

Advent Revives €1 Billion Sale of Medical Supplier Mediq

Advent International is considering reviving the sale of Dutch medical supplier Mediq as the private equity firm looks to cash out from the business, Bloomberg News reported. The US buyout firm is speaking to potential advisers and could seek a valuation of about €1 billion ($1.1 billion) for Utrecht-based Mediq, the people said. An auction process could be launched in the first half of next year, the people said, asking not to be identified as the information is private. Deliberations are preliminary and Advent could still opt to keep the asset for longer, the people said.
Netherlands
Read more