• Uncertainty around economy is “unusually large”
  • Debt crisis, uncertainty weighing on German economy
  • Slowing Global economy, to dampen German exports
  • Sees considerable uncertainty around govt deficit in 2012, 2013
  • Deficit uncertainty relates to rescue funds, bank support
  • Assumes uncertainty from debt crisis will gradually recede
  • Domestic conditions still intact for long economic upswing
  • Economic growth should revive from Spring 2012
  • Domestic demand “robust” in coming years on strong labor market
  • Inflation to slow noticeably in 2012, 2013 on energy costs
  • Doesn’t expect noticeable drop in employment

Dow Jones reporting.

EUR/USD back at 1.3007, pretty much where it was when I first sat down.