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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Jim Willie CB who wrote (6929)	2/4/2004 1:24:11 PM
From: yard_man	Read Replies (1) \| Respond to of 110194

very nice summary by Russell -- thanks for posting.

To: Jim Willie CB who wrote (6929)	2/4/2004 1:28:27 PM
From: mishedlo	Read Replies (3) \| Respond to of 110194

Eurozone recovery picks up in January By Tony Major in Frankfurt Published: February 4 2004 12:18 \| Last Updated: February 4 2004 17:41 The eurozone recovery showed signs of picking up speed in January with the dominant services sector expanding for the seventh month running, according to a leading business survey. But the improvement in business activity failed to dispel fears that the strong euro could hurt the fragile rebound in the 12 nation bloc by curbing employment growth and depressing domestic demand. The Reuters/NTC Research purchasing managers index for the services sector rose more than expected to 57.3 in January from 56.6, well above the 50 mark that separates growth from contraction. But the survey, which is closely monitored by the European Central Bank, showed employment contracting for the second month in a row despite companies' growing optimism about the economic outlook. The strong euro, which has risen about 20 per cent against the dollar over the last year, has intensified pressure on companies to keep costs down to remain competitive in global markets, economists said. As a result European companies have proved reluctant to hire staff and some have continued to shed jobs to offset their weak pricing power. Economists said the decline was of concern as unemployment, which has risen to around 8.8 per cent in the eurozone, was depressing consumer confidence across the region. James Carrick of ABN Amro said the contraction in employment suggested that domestic demand would "remain subdued" as consumers stepped up their savings in the face of economic uncertainty. Feeble domestic demand is seen as the eurozone's weak spot. Consumer spending and investment are too weak to sustain the upturn if US growth slows later this year and the current export-led recovery falters. With surveys showing the upturn still on track and the global recovery more than offsetting the impact of euro appreciation, the ECB is expected to keep interest rates steady when it meets on Thursday. news.ft.com