Banks

BoE stress tests: all you need to know

The Bank of England has released the results of its latest round of its annual banking stress tests and its semi-annual financial stability report this morning. Used to measure the resilience of a bank’s balance sheet in adverse scenarios, the stress tests measured the impact of a severe slowdown in Chinese growth, a global recession […]

Continue Reading

Economy

Draghi: Eurozone will decline without vital productivity growth

It’s productivity, stupid. European Central Bank president Mario Draghi has become the latest major policymaker to warn of the long-term economic damage posed by chronically low productivity growth, as he urged eurozone governments to take action to lift growth and stoke innovation. Speaking in Madrid on Wednesday, Mr Draghi noted that productivity rises in the […]

Continue Reading

Currencies

Asia markets tentative ahead of Opec meeting

Wednesday 2.30am GMT Overview Markets across Asia were treading cautiously on Wednesday, following mild overnight gains for Wall Street, a weakening of the US dollar and as investors turned their attention to a meeting between Opec members later today. What to watch Oil prices are in focus ahead of Wednesday’s Opec meeting in Vienna. The […]

Continue Reading

Banks, Financial

RBS emerges as biggest failure in tough UK bank stress tests

Royal Bank of Scotland has emerged as the biggest failure in the UK’s annual stress tests, forcing the state-controlled lender to present regulators with a new plan to bolster its capital position by at least £2bn. Barclays and Standard Chartered also failed to meet some of their minimum hurdles in the toughest stress scenario ever […]

Continue Reading

Banks

Barclays: life in the old dog yet

Barclays, a former basket case of British banking, is beginning to look inspiringly mediocre. The bank has failed Bank of England stress tests less resoundingly than Royal Bank of Scotland. Investors believe its assets are worth only 10 per cent less than their book value, judging from the share price. Although Barclays’s legal team have […]

Continue Reading

Categorized | Economy

France revises down growth forecast for 2016


Posted on November 18, 2016

The French government has revised down its growth target for this year to 1.4 per cent from 1.5 per cent previously as the eurozone’s second largest economy is hampered by terrorism and strikes.

The decision comes after France ground to a halt in the second quarter and grew by a 0.2 per cent in the third quarter, less than expected, writes Anne-Sylvaine Chassany.

“What matters is, does it have any consequences on unemployment? No. We haven’t created so many jobs on a net basis since the (financial) crisis,” Michel Sapin, finance minister and a Hollande loyalist, told Europe 1 radio station.

Mr Sapin said the slowdown would not affect the government’s target to narrow its deficit to 3.3 per cent of gross domestic product. The French government has kept its forecast of 1.5 per cent GDP growth for next year, when France is choosing a new president.

The revision is another blow to the deeply unpopular French socialist president François Hollande, who has hinged his decision to seek reelection on his capacity to reduce unemployment. While the French economy has started to create jobs on a net basis, it has not been enough to compensate for the cohorts of youngsters who enter the job market every year.

Joblessness rose by 0.1 per cent to 10 per cent of the workforce in the third quarter, according to Insee, the national statistics institute.