Monday, June 16, 2014

Eurozone Recovery Remains Lackluster (excerpt)


The Eurozone’s PMIs and leading economic indicators continue to show a solid economic recovery in the region. The latter may be misleading because they’ve been boosted by rapidly rising stock prices, which have been fueled by the ECB’s ultra-easy monetary policies.

So far, such easing hasn’t provided all that much lift to the Eurozone’s industrial production. It did rise 0.8% during April, but that’s after it fell 0.4% the month before. On a y/y basis, it is up only 1.4%. The recovery is considerably stronger in Spain (4.3%), and slightly stronger in Germany (1.8) and Italy (1.6), but much weaker in France (-2.0).

Today's Morning Briefing: Something to Worry About? (1) Geopolitical crises that spike oil prices tend to lead recessions. (2) A serious threat to the bull or yet another relief rally? (3) Caliph al-Baghdadi is bad and meaner than a junk yard dog. (4) The end of complacency? (5) A dangerous situation in Iraq. (6) Oil prices didn’t spike on Libyan and Iranian output cuts. (7) Feuding Caliphates: ISIS vs. Iran. (8) Will Fed taper tapering if oil prices spike? (9) Upgrading S&P 500 Energy to market weight. (10) Happy indicators for S&P 500 revenues. (11) Q2 real GDP is looking up according to latest retail sales and inventories data. (12) Eurozone’s recovery remains lackluster. (More for subscribers.)

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