Currencies

Renminbi strengthens further despite gains by dollar

The renminbi on track for a fourth day of firming against the dollar on Wednesday after China’s central bank once again pushed the currency’s trading band (marginally) stronger. The onshore exchange rate (CNY) for the reniminbi was 0.28 per cent stronger at Rmb6.8855 in afternoon trade, bringing it 0.53 per cent firmer since it last […]

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Financial

Sales in Rocket Internet’s portfolio companies rise 30%

Revenues at Rocket Internet rose strongly at its portfolio companies in the first nine months of the year as the German tech group said it was making strides on the “path towards profitability”. Sales at its main companies increased 30.6 per cent to €1.58bn while losses narrowed. Rocket said the adjusted margin for earnings before […]

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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

Nomura rounds up markets’ biggest misses in 2016

Forecasting markets a year in advance is never easy, but with “year-ahead investment themes” season well underway, Nomura has provided a handy reminder of quite how difficult it is, with an overview of markets’ biggest hits and misses (OK, mostly misses) from the start of 2016. The biggest miss among analysts, according to Nomura’s Sam […]

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Banks

RBS falls 2% after failing BoE stress test

Royal Bank of Scotland shares have slipped 2 per cent in early trading this morning, after the state-controlled lender emerged as the biggest loser in the Bank of England’s latest round of annual stress tests. The lender has now given regulators a plan to bulk up its capital levels by cutting costs and selling assets, […]

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Categorized | Economy

French GDP growth confirmed at 0.2% in third quarter


Posted on November 29, 2016

Back to growth.

France’s economic growth accelerated by 0.2 per cent in the three months to the end of September as attention turns to the country’s presidential elections next year, a second reading of the data confirmed today.

The French economy has been struggling to generate any sustained momentum in 2016, having slipped into a surprise 0.1 per cent contraction in the middle of the year.

The figures for the third quarter from stats office Insee on Tuesday, means French GDP growth matched that of Germany over the same period and came in line with expectations.

On Sunday, former prime minister François Fillon was elected to stand for the opposition right-wing Republican party in presidential elections held in April and May next year.

Mr Fillon is promising a dose of shock economic medicine for the French economy, including 500,000 public sector job cuts, a raising of the retirement age and a hike to the 35-hour working week (read more on his plans here).

According to Insee, imports rebounded to grow by 2.5 per cent in the quarter, from a contraction of 1.7 per cent, while consumer spending growth stagnated and investment edged up by 0.2 per cent.

The French economy is set to be driven by higher consumer demand at the end of the year, with Insee reporting a strong 0.9 per cent rise in October consumer spending numbers – bouncing back from a 0.4 per cent contraction in the previous month.