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Economy
In reply to the discussion: STOCK MARKET WATCH -- Monday, 11 November 2013 [View all]xchrom
(108,903 posts)23. Euro Zone’s Fizzling Growth Seen to Back Draghi Cut Case
http://www.bloomberg.com/news/2013-11-11/euro-zone-s-fizzling-growth-seen-to-back-draghi-cut-case.html
Euro-area growth data this week may show the regions nascent recovery slowing to a crawl, supporting Mario Draghis case for an interest-rate cut to help the economy get back to its feet.
Gross domestic product in the region rose just 0.1 percent in the third quarter, according to the median forecast of 41 economists in a Bloomberg News survey. In the 3 1/2 hours before that report on Nov. 14, economists predict a series of data releases to show growth slowing in Germany and stalling in France, with Italy remaining mired in an unprecedented slump.
Such an outcome would confirm that the recovery is grinding after a second-quarter growth spurt of 0.3 percent that ended the regions record-long recession. The data are due one week after the European Central Bank presidents surprise rate cut to 0.25 percent. Draghi said at the time that the euro zone faces the danger of a prolonged period of low inflation.
There are a few minor bright spots, for example Spain, (SPNAGDPQ) but Italy will continue to remain in contraction and growth in France will likely be flat at best, said Nick Matthews, a London-based economist at Nomura International Plc. That plays into the scenario the ECB is seeing, which is a very weak and fragile recovery.
Euro-area growth data this week may show the regions nascent recovery slowing to a crawl, supporting Mario Draghis case for an interest-rate cut to help the economy get back to its feet.
Gross domestic product in the region rose just 0.1 percent in the third quarter, according to the median forecast of 41 economists in a Bloomberg News survey. In the 3 1/2 hours before that report on Nov. 14, economists predict a series of data releases to show growth slowing in Germany and stalling in France, with Italy remaining mired in an unprecedented slump.
Such an outcome would confirm that the recovery is grinding after a second-quarter growth spurt of 0.3 percent that ended the regions record-long recession. The data are due one week after the European Central Bank presidents surprise rate cut to 0.25 percent. Draghi said at the time that the euro zone faces the danger of a prolonged period of low inflation.
There are a few minor bright spots, for example Spain, (SPNAGDPQ) but Italy will continue to remain in contraction and growth in France will likely be flat at best, said Nick Matthews, a London-based economist at Nomura International Plc. That plays into the scenario the ECB is seeing, which is a very weak and fragile recovery.
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