Latest news with #Euroarea
Yahoo
5 days ago
- Business
- Yahoo
EU economic growth slows to 0.2% in second quarter
Euro area GDP growth hit 0.1% quarter-on-quarter for the period between April and the end of June, according to new figures, while the EU's economy grew 0.2%. The print confirms earlier estimates. The figures represent a slowdown in growth for the bloc. The EU saw economic growth of 0.5% in Q1 and 0.6% growth for the euro area, according to official figures. Year-on-year, growth was 1.4% for the euro area in the second quarter and 1.5% in the EU. Read more: UK economic growth slows between April and June Spain's growth led the pack on an individual country basis, with its economy growing 0.7%. Meanwhile, unemployment ticked up by 0.1% in both the euro area and the EU in the second quarter, compared with the previous quarter. In the first quarter of the year, employment had increased by 0.2% in the euro area and had remained stable in the EU. Meanwhile, the US economy grew 0.7% in the second quarter, while economic growth in the UK slowed to 0.3%, per figures released on Thursday. The latest data comes as traders scale back bets of ECB rate cuts in the longer-term. A de-escalation in trade tensions with the US alongside a bump in fiscal spending in Germany has kept the need for further reductions at bay. Reuters reported on Thursday that several investment banks, including Goldman Sachs (GS), have revised their forecasts, now anticipating that the European Central Bank (ECB) has ended its current easing cycle. While trade risks could still weigh on growth and inflation, these banks believe the ECB, which offered an upbeat assessment of the euro zone economy after its latest meeting, is likely to hold rates at 2% for the foreseeable future, Reuters said. Read more: Sterling hits one-month high as UK growth better than expected Trending tickers: Cisco, AMD, Bullish, Webtoon Entertainment, Carlsberg and Aviva Bitcoin price hits record high of $124,000 amid crypto rally
bnok24
10-08-2025
- Business
- bnok24
Egypt's Economic Outlook Remains Resilient Amid Global Headwinds, Says Standard Chartered
Amidst global shifts particularly in the United States, China and the Euro-area, Egypt's economic outlook remains robust, characterised by sustained macroeconomic stability, according to Standard Chartered's ('the Bank') latest report, Global Focus – Economic Outlook H2-2025 Strong foreign exchange inflows from portfolio investments and official sectors are bolstering confidence in the Egyptian pound (EGP). Significant investment pledges from Qatar and Kuwait, totaling USD 12.5 billion, are expected to be at least 50% disbursed by year-end. Despite the Central Bank of Egypt's (CBE) easing cycle, the carry trade continues to attract interest, further supported by the successful testing of FX convertibility At the same time, the International Monetary Fund (IMF) is likely to shift its focus towards structural reforms, advocating for tighter fiscal policies and increased privatisation efforts. These reforms are set to complement Egypt's investment inflows, laying the groundwork for sustainable growth. Standard Chartered maintains a GDP growth forecast of 4.5% for FY26, emphasising the critical role of private investment in driving Egypt's economic recovery 'The Egyptian economy is on a promising path,' said Mohammed Gad, CEO, Standard Chartered, Egypt.'We expect the current account deficit to narrow, driven by surging remittances—up approximately 60% year-on-year in March—and a recovering export sector While inflation remains sticky in the 13-17% range, the Bank anticipates the CBE will approach rate cuts cautiously, projecting a policy rate of 19.25% by year-end. Inflation for FY26 is forecast to average 11%, reflecting ongoing cost pressures in healthcare, food, and transport. Nonetheless, Egypt's proactive policy measures are expected to help navigate these challenges, fostering long-term economic resilience. The Bank has revised its global growth forecast for 2025 to 3.1%, down slightly from 3.2%, reflecting persistent downside risks primarily driven by heightened trade policy uncertainties. Despite a softening global outlook, Standard Chartered sees several bright spots. Growth in the Middle East is expected to benefit from the reversal of OPEC+ production cuts and ongoing efforts to diversify away from oil dependence. In Sub-Saharan Africa, growth is forecast at 4.1%, supported by reduced exposure to global trade volatility, though reforms remain key to unlocking full potential. Asia is projected to lead global growth at 4.9%, with the MENAP region following at 3.4%, in contrast to just 1.3% for major developed economies Google News تابعونا على تابعونا على تطبيق نبض
Irish Times
01-08-2025
- Business
- Irish Times
Euro zone inflation holds at 2%, backing ECB caution on rates
Euro area inflation held at the European Central Bank's target, supporting the case for officials who say there's no rush to keep lowering interest rates. Consumer prices rose an annual 2 per cent in July, the same pace as in the previous month, Eurostat said Friday. In Ireland, prices rose by an estimated 1.6 per cent, according to the Eurostat measure. That was the same pace of inflation as in June and marginally up on a year earlier. Economists polled by Bloomberg had expected a slowdown to 1.9 per cent in euro area inflation. The figures on Friday were a flash estimate, with the July data set to be confirmed on August 20th. A core measure stripping out volatile energy and food costs increased 2.3 per cent on the year, while closely-watched services inflation was the weakest since early 2022. The report underscores how the price shock that started during the pandemic is continuing to fade. The ECB is confident that inflation has been largely tamed, and cut rates eight times in the span of a year to the point where they are judged to neither restrict nor stimulate growth. With inflation hovering around its goal and the economy so far holding up to the US tariff push, many officials have signalled they don't see strong grounds to continue the ECB's easing campaign. Investors also see less than a 50 per cent chance for another move this year. 'We have reached a point in our easing cycle where we can wait and see whether the data and evidence indicates the need for a change in our monetary policy stance,' Central Bank of Ireland governor Gabriel Makhlouf said this week. Mixed national reports aren't likely to change that view. While German price growth slowed more strongly than anticipated last month, numbers from France, Italy and Spain came in slightly higher than expected. US President Donald Trump's trade policy has long been the key question mark for the economic outlook. But his recent agreement with the European Union – which foresees 15 per cent duties on most imports from the bloc – removed the risk of near-term escalation while providing some more clarity to companies. Euro area growth slowed in the second quarter, after higher activity at the start of the year, when firms rushed to get ahead of Trump's April tariff announcements. Output still grew 0.1 per cent in the three months through June, and some economists pointed to evidence of recovering domestic demand. While the ECB predicts that inflation will start undershooting its goal this quarter, officials are confident that it will return to 2 per cent in 2027 as higher government spending on infrastructure and defence supports the economy. Bank of France Governor Francois Villeroy de Galhau has still urged colleagues to remain 'completely open' on the next steps, warning that a strengthening euro could have disinflationary effects. The euro, which climbed above $1.18 at the start of last month has lost more than 3 per cent since then and stood around $1.14 before the publication of the inflation data. – Bloomberg
Bloomberg
01-08-2025
- Business
- Bloomberg
Euro-Zone Inflation Holds at 2%, Backing ECB Caution on Rates
Euro-area inflation held at the European Central Bank's target, supporting the case for officials who say there's no rush to keep lowering interest rates. Consumer prices rose an annual 2% in July, the same pace as in the previous month, Eurostat said Friday. Economists polled by Bloomberg had expected a slowdown to 1.9%.
Finextra
10-07-2025
- Business
- Finextra
Deutsche Börse to re-evaluate banking licences of Eurex Clearing and Clearstream
Following recent regulatory developments, Group currently evaluates and prepares steps to reduce regulatory complexity and increase efficiency. 0 This concerns specifically the re-evaluation of the banking licenses of Eurex Clearing AG and Clearstream Banking AG. Therefore, Deutsche Börse Group welcomes the related announcement by the Governing Council of the European Central Bank (ECB) on 30 April 2025 to remove the discretionary activation for Central Counterparty (CCP) access to overnight credit under the Target guideline. Eurex Clearing AG, the leading central counterparty in the Euro area, intends to make use of the revised Eurosystem overnight credit facility for CCPs. The CCP facility is intended to provide access to Central Bank liquidity during stressed market conditions. Based on the ECB's announcement and still subject to the ECB's final decision and terms granting CCPs access to the dedicated overnight credit facility, Eurex Clearing has started preparations to access the CCP facility and return its banking license, which would be no longer required. The new set-up will have no impact on the status of Eurex Clearing AG as a licensed CCP under EMIR. Further, Clearstream Banking AG will be able to focus on its core business as a Central Securities Depository (CSD) for new issuance services, safekeeping, asset servicing, and settlement resulting out of the regulatory changes brought by amendments made to the CSD Regulation (CSDR Refit). Against this background, but subject to certain operational requirements and approval by the competent authorities for the new set-up, Clearstream Banking AG, the German CSD, also intends to return its banking license. Clearstream Banking S.A., the Luxembourg licensed ICSD, will continue to leverage its CRR license (Capital Requirements Regulation) for Commercial Bank Money settlements and function as the Service CSD of the Group following CSDR refit. Stephan Leithner, CEO of Deutsche Börse Group, commented: "As a full-service Financial Market Infrastructure group, we continually seek opportunities to reduce regulatory complexity and increase efficiency. This is beneficial not only for our clients and shareholders, but also for the broader financial ecosystem. We welcome in this context the efforts for simplification and global competitiveness undertaken at European level. We are engaged in a constructive dialogue with our regulators to identify solutions that preserve the safety and integrity of our services and processes for our clients, while simultaneously simplifying structures and improving efficiency."
