Eurozone losing battle against new recession October 6, 2014 A WAVE of disappointing data released yesterday showed the Eurozone was struggling to stave off another recession, with the European Central Bank’s lacklustre statement on Thursday failing to lift confidence. Market inflation expectations (based on swaps prices) fell to 1.83 per cent, their lowest since 2010. ECB president Mario Draghi disappointed investors last week when he failed [...]
German factory orders add to Eurozone woes October 6, 2014 German factory orders haven't fallen this far since January 2009. Orders for August dived by 5.7 per cent month on month after a bullish 4.7 per cent jump in July. The fall was far worse than a group of economists polled by Bloomberg had anticipated. As a measure taken in isolation it wouldn't be as [...]
UK manufacturing catches a cold from Eurozone October 1, 2014 Britain’s strong recovery is under threat from the economic troubles in Europe, as data released yesterday showed the UK’s manufacturing sector continuing a sharp decline that began at the start of summer. The purchasing managers’ index compiled by Markit fell to 51.6 for September, below market expectations and a drop from August’s 52.2. Any figure [...]
Weak Eurozone data puts focus on ECB decision on asset purchase programme October 1, 2014 September was a month to forget for the Eurozone as survey data released yesterday shows growth in the manufacturing sector was at a 14-month low over the month. The purchasing managers index (PMI) compiled by Markit scored a 50.3. A score above 50 indicates growth but this very weak growth suggests the Eurozone economy is [...]
Eurozone woes give Draghi leeway on QE September 30, 2014 THE EUROZONE is still flirting with deflation while unemployment remains stubbornly high, opening up the possibility that the European Central Bank (ECB) will deliver further monetary easing when it announces its latest policy decision tomorrow. Figures published yesterday by official database Eurostat showed that unemployment in August came in at 11.5 per cent – the [...]
Eurozone inflation falls to 0.3 per cent as euro hits two year low against the dollar September 30, 2014 Eurozone inflation has dropped again, falling from a sluggish 0.4 per cent to 0.3 per cent. Expectations of the fall pushed the Euro to a two-year low of $1.2659 against the dollar in morning trading. While the figure was in line with expectations, it was nevertheless disappointing, and is likely to increase pressure on the [...]
Eurozone economic sentiment falls to 10-month low September 29, 2014 Eurozone economic sentiment has fallen to its lowest level in 10 months, and below the long-term average, on the back of falling consumer confidence. Sentiment in the region dropped by 0.7 points to 99.9 – below the long-term average of 100 – while sentiment from within the EU also fell, by 1 point to 103.6, [...]
Weak German outlook bodes ill for Eurozone September 24, 2014 German businesses are at their most downbeat in almost two years, influential survey data showed yesterday, indicating the driving force behind any Eurozone recovery may itself be running out of steam. European Central Bank boss Mario Draghi offered further reassurance that interest rates would remain at rock bottom. His intervention helped push up shares and push the [...]
The Eurozone optimists are playing a dangerous game – Investment Comment September 23, 2014 Despite a continuing stream of woeful economic data from the Eurozone, a number of investors and fund managers have become more sanguine about the currency bloc in recent months. Writing in these pages in August, JP Morgan’s Blake Crawford argued that a combination of economic revival, continued low interest rates and supportive monetary policy should [...]
Draghi hits out at Eurozone’s lack of reform September 22, 2014 EUROPE’S sick economies need massive structural reforms if they ever hope to become competitive once more, European Central Bank (ECB) boss Mario Draghi urged yesterday. “Courageous structural reforms and improvements in the competitiveness of the corporate sector are key to improving the business environment,” Draghi told the European Parliament’s economic and monetary affairs committee. “This [...]