Do not expect a significant budget boost in Germany



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The German economy needs new sources of growth. Investors should not rely on fiscal stimulus, even if the government is loosening up the strings of the portfolio.

On Monday, the Bundesbank said the German economy could contract again between July and September for the second consecutive quarter, officially driving Europe's engine into a recession. Expectations that the European Central Bank will have to lower interest rates further pushed German 10-year bond yields to around minus 0.7%.

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