German government sees recession but doesn't see need for short-term stimulus

Spiegel citing government documents

The German government now expects a contraction in growth in the third quarter but doesn't foresse a severe economic crisis so long as trade conflicts don't escalate and no hard Brexit.

"We therefore see no reason for short-term measures to stabilize the economy," the document read, according to Der Spiegel.

The euro has come off the highs on this report. Of course an escalation in trade conflicts might be right around the corner.