Booms, Busts, and Recoveries Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Booms, Busts, and Recoveries

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: sciAticA errAticA who wrote (31332)	4/11/2003 10:52:03 AM
From: sciAticA errAticA	Read Replies (1) of 74559

Eurozone economy 'may have shrunk' By Tony Major in Frankfurt Published: April 10 2003 19:19 \| Last Updated: April 10 2003 19:19 The eurozone economy may have contracted in the first quarter of the year, the European Commission said on Thursday. The Commission said on Thursday it had trimmed its estimates because of sluggish demand and uncertainty linked to the Iraq war, forecasting first quarter growth of minus 0.2 to 0.2 per cent and second quarter growth at 0.1 to 0.4 per cent. The gloomy estimates were released as the European Central Bank warned in its April monthly bulletin that the economic outlook was uncertain. The central bank said it expected "only a modest rate of economic growth for 2003" after recent data and surveys suggested the eurozone economy "remained weak" in the early part of this year. Economists said the tone of the bulletin signalled continued concern about the downward risks to growth and suggested the ECB was keeping the door open to another rate cut in coming months. Publication of the report, which echoed ECB president Wim Duisenberg's emphasis on the risks to growth at last week's central bank press briefing, also coincided with a Bank of England decision to keep interest rates steady. The bank opted to keep rates on hold at 3.75 per cent despite a deterioration in business and consumer confidence, although economists predicted a further cut soon. It last cut rates in February. Earlier this week the commission slashed its 2003 growth forecast for the 12-nation bloc to 1.0 per cent from 1.8 per cent and warned of recession if geopolitical tensions continued to depress business and consumer confidence. The ECB, which kept interest rates steady at 2.5 per cent last week, said its main scenario remained one of moderate economic recovery in the second half of the year as uncertainty started to fade. The bank said its present monetary stance was "consistent with the preservation of price stability over the medium term" but stressed "exceptional circumstances" were complicating its assessment of economic trends. It said it would continue to monitor events carefully and evaluate them in the light of its mandate. Most economists believe the ECB will cut rates again by the end of the first half of the year in a bid to kick-start sagging growth in the eurozone. But Luigi Buttiglione of Barclays Capital said a quick end to the war in Iraq could "delay the next move for a further month" while the bank assessed the impact on oil prices and the global economic outlook. He expects the ECB to cut rates by half a point at its June meeting. But Neville Hill of Credit Suisse First Boston said aspects of the bulletin suggested there was some resistance on the bank's governing council to further monetary easing. news.ft.com

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next