The ZEW index has dropped to 8.6 almost 10 points lower than expectations. This is not a surprise as the increased US sanctions on Russia. Tension is rising and Russia has placed import bans on variety of Australian agricultural products and shown the first signs of push back causing an export loss of AUD$700m to the already hurting Australian economy. Germany is Russia’s largest trading partner in Europe and Germany has expressed mixed values towards the USA and whilst having supported Obama’s sanction have expressed grave relationship problems by expelling CIA from Berlin based on intelligence activity discoveries. Reports place a CIA operative in the German Intelligence Service known as Bundesnachrichtendienst (BND). A second suspect who was engaged in the German Defense Ministry is currently being investigated.