By Paul Hannon The Wall Street Journal Tues., Oct. 30, 2018 The eurozone economy slowed sharply this summer, posting the weakest quarter in five years, as the region begins to suffer from a slowdown in China and turmoil in Italy takes a toll. Tuesday’s figures also suggest that the outlook for the bloc remains uncertain. With China’s growth slowing, the global economy seems set to cool this year, even as the U.S. enjoys a spurt of activity driven by robust consumer and government spending. While the eurozone economy kept pace with the U.S. in 2016 and 2017, it has fallen behind it this year and the divergence between the two is growing more stark. The European Union’s statistics agency Tuesday reported that gross domestic product in the currency area’s 19 members rose at an annualized rate of 0.6% in the three months through September, a slowdown from the 1.8% in the second quarter and well below the 3.5% registered in the U.S. during the same … [Read more...] about Eurozone economic growth falls further behind U.S.
Eurozone economic crisis
Asian markets tumbled and the Turkish lira dived almost eight percent Monday on fears that the economic crisis gripping Turkey could spill over into the global economy. With investors already on edge over the China-US trade war, the lira's collapse sparked a sell-off in Europe and New York at the end of last week, with safe haven assets including the Japanese yen and Swiss franc rallying. The lira dived to a record low of 7.2362 to the dollar at one point overnight before recovering slightly after the country's finance minister said Ankara was planning to roll out an "action plan" on Monday in response to the crisis. "Our institutions will take necessary action from Monday in order to relieve the markets," Berat Albayrak said, adding that the plan would centre on "the state of our banks and the small and medium size enterprises" most affected by the lira's plunge. The lira has been hammered this year, having started January at around 3.70 to the dollar, while it was also sharply … [Read more...] about Turkish lira hammered again as crisis spills into Asian markets
ATHENS: The Greek government on Friday (Jun 22) said the country was "turning a page" after eurozone ministers declared its crisis over as they granted Athens debt relief under a bailout exit strategy.The eurozone ministers' agreement comes nearly a decade after Athens stunned the world with out-of-control spending, sparking three bailouts and a near collapse of the euro single currency."Greece is turning a page, its debt is now viable," government spokesman Dimitris Tzanakopoulos said. "I think the Greek people can smile, they can breathe again.""This is a historic decision," Tzanakopoulos told state TV ERT.Following the eurozone ministers' hard-fought agreement declared earlier Friday, Greece is slated to leave its third financial rescue since 2010 on Aug 20."The Greek crisis ends here tonight," said EU Economic Affairs Commissioner Pierre Moscovici, after marathon talks in Luxembourg.The deal was expected to be an easy one, but last-minute resistance by Germany's long bailout … [Read more...] about Greece ‘turning a page’ as eurozone declares crisis over
source REUTERS/Peter Macdiarmid The Bank of England has been criticised by a leading think-tank for being “dangerously ill-equipped” to deal with the next recession to hit the UK. A report from the Institute for Public Policy Research (IPPR) argues that the bank has kept interest rates too low for too long, and is setting itself for a “car crash” when the economy hits trouble. Rates need to be much higher – as high as 5% – it argues. LONDON – The Bank of England has been criticised by a leading think-tank for being “dangerously ill-equipped” to deal with the next recession to hit the UK. A report from the Institute for Public Policy Research (IPPR) argues that the UK’s base rate of interest is far too low to give the central bank breathing room to lower rates in the event of an economic crisis. Generally speaking central banks cut interest … [Read more...] about The Bank of England is heading for ‘a car crash’ when the next financial crisis starts
BRUSSELS: Europe's economic recovery is gaining pace, with eurozone unemployment at its lowest level since December 2008 and inflation on the rise, official figures showed Wednesday. The EU's official statistics agency said that the jobless rate in the single currency area fell to 8.5 percent in February, down from 8.6% in Jan. Eurostat said inflation in the eurozone jumped to 1.4% in March, a leap from Feb's 1.1%. That edges inflation closer to the European Central Bank's (ECB) target although it is still a way off the desired 2.0%. The data are in line with other recent statistics that suggest the European economy is growing at a solid pace after years of weak recovery following the debt crisis. The steady decline in joblessness comes on the back of three years of massive support from the ECB to help the 19-country single currency zone survive the eurozone debt crisis. The ECB has bought more than two trillion euros (RM9 trillion) worth of bonds during that time, helping trigger … [Read more...] about Eurozone unemployment falls, strengthening recovery