Stocks Fall, Euro Weakens on Surprise Drop in German Confidence

http://www.bloomberg.com/apps/news?pid=20601087&sid=aUC5RON4JcFk&pos=1

The Ifo institute’s business climate index dropped in January as the coldest winter in 14 years hurt retail sales and construction, adding to concern the global economic recovery is faltering. Federal Reserve Bank of San Francisco President Janet Yellen said yesterday the U.S. economy still needs “the support of extraordinarily low rates” as policy makers try to damp speculation that last week’s increase in the Fed’s discount rate signals a rise in borrowing costs.