Eurozone Business Downturn Points to Deeper Recession in Second-Quarter
The eurozone’s business downturn dragged on in April, suggesting the region may be falling deeper into recession this quarter, business surveys showed on Monday. The purchasing managers indexes (PMIs) also showed that Germany is now suffering a contraction in business activity that has long dogged France, Italy and Spain. Markit’s Eurozone Composite PMI, which gauges...
ECB Meets to Discuss Possible Rate Cut
The European Central Bank convened in the Slovakian capital of Bratislava on Thursday to discuss a rate cut or other possible policy measures. Most ECB watchers appear to be betting on a further reduction in the bank’s “refi” refinancing rate, held at an historic low of 0.75 per cent since July 2012. But others argue...
Euro-Area Inflation at 1.2 Per cent Increases Pressure for ECB Rate Cut
Euro-area inflation slowed more than economists forecast in April, adding to pressure on the European Central Bank to cut interest rates later this week to spur lending and growth. The annual inflation rate dipped to 1.2 per cent, the lowest since February 2010, from 1.7 per cent in March, the European Union’s statistics office in...
European Leaders’ Softening on Austerity May Accelerate
Europe may accelerate a shift away from its austerity-first agenda this week as the new Italian government changes course and a German-Spanish investment pact underscores a renewed focus on combating record unemployment. Yesterday’s swearing in of Italian Prime Minister Enrico Letta ends a political deadlock nine weeks after voters rejected the country’s budget-cutting course. German...
Euro-Area April Manufacturing, Services Contract
Euro-area services and manufacturing output contracted for a 15th month in April as the currency bloc struggled to emerge from a recession. A composite index based on a survey of purchasing managers in both industries held at 46.5, London-based Markit Economics said today. That’s in line with the median of 26 economists’ forecasts in a...
No Light at End of Tunnel Yet for Eurozone
An early peek this week at how the eurozone economy performed in April could cement the case for the next installment in an unprecedented campaign of monetary easing by the world’s major central banks. A preliminary survey of purchasing executives from the 17-country bloc is likely to furnish the new evidence of economic weakness that...
Europe to Face Washington Disbelief With Economic Progress Claim
A two-year slump, 19 million unemployed and five countries on emergency aid are no reason to take bold, immediate action to spur economic growth, according to European officials set to defend their handling of the debt crisis in Washington this week. Hot Deals Shrugging off the US Federal Reserve’s stimulus and the Bank of Japan’s...
Euro Ministers in Bid to Finalise Cyprus Bailout
Eurozone and EU finance ministers meet in Dublin from Friday to finalise the Cyprus bailout and consider extending debt repayment dates for Portugal and Ireland, while also tackling how to stamp out tax fraud. Hot Deals Their meeting comes a day after Cyprus made the shock announcement that the cost of its EU-IMF bailout had...
Sentix European Investor Confidence Falls After Cyprus Bailout
European investor confidence declined more than economists forecast in April, after the bail- in of Cypriot bank depositors rattled financial markets, the Sentix research institute said today. An index measuring sentiment in the euro-area fell to minus 17.3 from minus 10.6 in March, the Limburg, Germany-based institute said in an e-mailed statement. That’s the second...
ECB Seen on Hold, Markets Look for Signs of Later Cut
The European Central Bank is expected to keep interest rates unchanged on Thursday but investors will be looking for any signs it is preparing for a cut in coming months to help lift the eurozone out of recession. Despite a recent drop in economic sentiment and falling inflation, a Reuters poll of 73 economists showed...
Cyprus Seeks More Time to Meet Targets in Talks With Troika
Cyprus government officials will seek easier bailout terms in talks with representatives of the European Union and International Monetary Fund today, before a meeting of euro-area finance officials later this week. “Final outstanding issues in talks with the troika primarily relate to the wider financial sector and fiscal policy and adjustment,” Christos Stylianides, the government’s...
Germany Sees Itself as Europe’s Grown-up, Children Sullen
Buoyed by solid finances, roaring exports and low unemployment, Germany increasingly sees itself as the only grown-up in Europe, responsible for bringing wayward children into line to hold the family together. The children are not enjoying it. Some, such as the Cypriots and Greeks and many Italians and Spaniards, are openly resentful of “Mutti” (mum),...
