IFO Economist: There will be GDP stagnation in Q2

IFO economist, Klaus Wohlrabe commented on Monday's disappointing reading of German IFO business climate index, which fell to 94.3 in August and recorded its weakest reading since November 2012.

Key quotes:

   •  German industrial sector is in a recession, the services sector is now following.
   •  There will be GDP stagnation at most in Q2 at most.
   •  The last time industrial companies demonstrated such pessimism was back in 2009.
   •  Latest developments in trade war not yet reflected by the latest survey.
   •  The business climate has improved in the auto sector but has significantly worsened in engineering, chemicals and electrics.