The European Implosion Continues, Horrible News Everywhere. Italy Warned of ‘Sudden Changes’ in Market Sentiment
April PMI for Germany came in at 48.1, which is down from 49.0 last month. Anything below 50 is contraction.
What’s worse, there was a reduction in staffing levels, and total manufacturing output had its first drop all year.
Here’s a quick summary.
The Eurozone’s PMI manufacturing reports for April are out and it’s clear that the economy remains in deep depression.
The good news is that in many countries things imploded at a less-worse rate than they did the month before.
The bad news is that manufacturing is still shrinking very rapidly, and the signs are minimal that things are going to turn around.
All of the reports can be found on this page, but here’s the quick rundown.
Italian PMI rose slightly to 45.5, up from 44.5 last month. But that’s still far below 50, and it makes 21 months of economic contraction.
Spanish PMI again rose slightly, from 44.2 to 44.7, hardly anything to get excited about.
French PMI rose to a 4-month high of…. 44.4. Bad.
The German situation actually got even worse, falling from 49.0 to 48.1.
A distressing number came yesterday from Ireland, which clocked in at 48.0, down from 48.6. Ireland is supposed to be one of Europe’s strong recovery countries.
And finally Eurozone total PMI hit a four month low of 46.7.
Is this a warning of things to come? Bank of Ireland doubles tracker rate mortgages overnight affecting 13,500 UK customers
- Huge hike despite Bank of England base rate at historic low of 0.5%
- Consumer group Which? describes move as ‘wholly unfair’
- Urges customers to complain to bank and Financial Ombudsman
Thousands of homeowners are facing a huge increase in their mortgage repayments after the Bank of Ireland doubled rates overnight.
Borrowers are being urged to complain to the bank and the Financial Ombudsman after the move which comes despite the Bank of England base rate remaining at a historic low of 0.5%.
Consumer group Which? says the change, which will affect some 13,500 UK customers, is ‘wholly unfair’.
The Bank of Ireland (BOI) has been contacting those affected – most of whom have a buy-to-let loan – about the changes, which take affect from today.
- Gross Says Central-Bank Policies Impose ’Haircuts’ on Investors
- Spain Almost Doubled Contingent Liabilities
- Portugal announces plan to prolong austerity beyond bailout
- Greece suffers more misery as retails sales slump by nearly a third
- Moody’s downgrades Slovenia to ‘junk’ bond rating
- Bad Economy Sends Spaniards Packing for Latin America
In its annual report on Italy, the OECD appeared to tacitly warn the country’s new leadership that any changes to its reform policies could damage the country’s recovery.
“Italy has embarked on a wide-ranging strategy to restore fiscal sustainability and improve long-term growth… However, with the public debt-to-GDP ratio nearing 130 percent and a heavy debt redemption schedule, Italy remains exposed to sudden changes in financial market sentiment,” the report published on Thursday said.
On taking office this week, Italy’s new prime minister Enrico Letta said Italy would “die of fiscal consolidation alone, growth policies cannot wait any longer.” He said that Italy must focus immediately on reviving its economy and would reconsider austerity measures and spending cuts while managing to bring down Italy’s public deficit.
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