Eastern Europe will recover more slowly than other emerging economies as the euro region’s recession curtails export demand and bank funding, according to Capital Economics Ltd.
The U.K.’s recovery from recession is “doomed to disappoint” as the weakness of the pound fails to spur exports, Deloitte LLP economic adviser Roger Bootle said.
The Bank of England halted expansion of its bond-buying program as officials shifted focus to stimulating bank lending to support a recovery that remains lackluster.
Paul McCairn says the pound’s appreciation to a more than 3 1/2-year high against the euro is cutting profit at the machinery manufacturer his father set up near Birmingham, England, in 1984.
The pound rose to its strongest level against the dollar in more than two weeks after U.K. retail sales in July increased more than analysts forecast and June data were revised upward.
Italy’s debt , the highest in the euro region last year, remains a “potential time bomb” and the country is at risk of default unless it boosts productivity, Capital Economics said.
U.K. house prices will decline to levels seen in 2004 as the economic recovery struggles to gain traction and consumers limit spending, Capital Economics Ltd. said in a report today.
Spain may hold the key to Slovenia needing a bailout for its banks, as contagion from the region’s fourth-largest economy threatens to engulf one of its smallest.
U.K. stocks gained as markets opened after an extended holiday weekend amid optimism that earnings growth will drive equities higher.
The breakup of the euro area would save the 16-nation region from years of economic stagnation by boosting weaker members’ competitiveness as well as domestic demand in Germany to spark growth, Capital Economics said.
"It's been devastating."
- Roger Bootle on Nov 14, 2014