Global economy: Germany shrinks, China worsens2019|01:40
A pullback in the euro zone's biggest economy. It was expected in Germany's new data for Q2. But still has shock value even so. Point one per cent down quarter on quarter is a contraction - another negative quarter would put it into official recession. Annual growth has eased back to just 0.4 per cent. Exports are a drag as manufacturers continue to suffer a global slowdown, itself made worse by tariff conflicts. Construction - previously one of the stronger performers - was also weaker. Germany's influential BDI industry lobby is now calling on the government to ditch its cherished 'balanced budget' rule to boost spending. German investors are pushing government bond yields to new record lows, as they pile into safe havens.