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Property

Spanish construction rebuilds after market collapse

Property developer Olivier Crambade founded Therus Invest in Madrid in 2004 to build offices and retail space. For five years business went quite well, and Therus developed and sold more than €300m of properties. Then Spain’s economy imploded, taking property with it, and Mr Crambade spent six years tending to Dhamma Energy, a solar energy […]

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Currencies

Euro suffers worst month against the pound since financial crisis

Political risks are still all the rage in the currency markets. The euro has suffered its worst slump against the pound since 2009 in November, as investors hone in on a series of looming battles between eurosceptic populists and establishment parties at the ballot box. The single currency has shed 4.5 per cent against sterling […]

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Banks

RBS falls 2% after failing BoE stress test

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Currencies

China capital curbs reflect buyer’s remorse over market reforms

Last year the reformist head of China’s central bank convinced his Communist party bosses to give market forces a bigger say in setting the renminbi’s daily “reference rate” against the US dollar. In return, Zhou Xiaochuan assured his more conservative party colleagues that the redback would finally secure coveted recognition as an official reserve currency […]

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Categorized | Economy

Eurozone consumer confidence rides to 2016 high


Posted on November 22, 2016

Brexit? What Brexit?

A gauge of consumer confidence in the eurozone has soared to its highest level of the year, beating economists’ forecasts in November.

The European Commission’s measure of sentiment in the single currency area climbed to hit -6.1 this month, a rise of 1.9 points and beating forecasts of a leap to -7.8.

November’s figures are the latest sign that buoyant consumers are likely to drive the eurozone’s economic recovery, helped along by low inflation and shrugging off any adverse side-effects from the Brexit vote and the election of Donald Trump as US president.

Growth in the 19-country bloc slowed to just 0.3 per cent in the third quarter of the year and is expected to remain at a steady pace over the following quarters.

Political risks loom on the horizon, however, with Italy’s referendum next month and elections due in Austria, the Netherlands, France and Germany in the next 12 months.

This month’s confidence numbers suggest the “eurozone is on course for improved GDP growth in the fourth quarter”, said Howard Archer at IHS, who expects GDP growth to accelerate by 0.4 per cent at the end of the year.

Daniel Christen at Capital Economics noted the confidence numbers suggested consumer spending would moderate slightly in the fourth quarter.

Amid still weak inflation, the European Central Bank is set to extend its landmark bond-buying to support growth and prices in the eurozone beyond March 2017 at its latest policy meeting next month.

“Despite the prospect of monetary policy being loosened even further in December, we expect the recovery in the consumer sector to slow into 2017″, said Mr Christen.