Latest news with #RiccardoMarcelliFabiani
Yahoo
01-08-2025
- Business
- Yahoo
Eurozone growth slows: Spain leads and Germany contracts
After a strong start to the year, the eurozone economy lost some steam in the second quarter of 2025, with fresh data showing a clear slowdown. Germany, the bloc's economic powerhouse, fell back into contraction territory, while Spain continued to outpace its peers. According to the preliminary flash estimate released on Wednesday, seasonally adjusted gross domestic product (GDP) rose by 0.1% in the eurozone and by 0.2% in the European Union in the second quarter of 2025, compared with the previous quarter. While the reading slightly surpassed economist expectations of a flat growth rate, this marks a notable deceleration from the 0.6% and 0.5% expansions seen in the eurozone and EU respectively in the first quarter. Year-on-year, growth also eased a little, with the eurozone up 1.4% and the EU up 1.5%, both slightly below the pace seen earlier in 2025. "Although the slowdown is to a large extent a by-product of a misleadingly healthy Q1 number, broad-based weakness across national data indicates that the economy lacks momentum, with only a handful of countries blowing into its sails," said Riccardo Marcelli Fabiani, senior economist at Oxford Economics. Spain and Portugal shine, Germany drags The slowdown wasn't uniform across the continent. Spain stood out with the strongest quarterly growth at 0.7%, thanks to solid consumer spending, a rebound in business investment, and rising exports. "Spain is in another league, showing stubbornly robust dynamism. The moderate Q2 decline in Irish GDP suggests that there is ample room for further correction," Marcelli Fabiani added. Portugal and Estonia also delivered solid results, expanding by 0.6% and 0.5%, respectively. On the other hand, Germany shrank by 0.1%, ending a run of modest growth. It marked the country's first contraction since mid-2024. Related IMF chief: European lifestyle is at risk if productivity isn't boosted Spain's economy grows 0.7% as it continues to outshine eurozone peers The decline was mainly due to weaker investment in machinery and construction, although household and government spending still offered some support. Italy's GDP contracted by 0.1% in the second quarter, reversing the 0.3% gain recorded in the first quarter and defying market expectations of a 0.2% increase. It was the country's first contraction since Q2 2023, reflecting weak domestic demand and softening industrial activity. There was some good news from France, where the economy picked up more than expected. GDP rose 0.3% — the best result in nearly a year — helped by stronger domestic demand. Yet Oxford Economics remains cautious, noting that France's expansion paints an overly rosy picture, driven largely by stockbuilding, while both domestic demand and net trade actually dragged on GDP. Markets steady as investors digest US-EU trade deal Financial markets responded calmly to the data, with eurozone assets stabilising following recent volatility tied to the US-EU trade deal, which analysts broadly view as tilting in Washington's favour over Brussels. The euro was steady at $1.1550, recovering slightly after enduring its worst two-day drop since February 2023. The EURO STOXX 50 index edged 0.1% higher, while the broader EURO STOXX 600 was flat. French consumer staples were among the top performers, with Danone rising 6.7% and L'Oréal up 4% after reporting strong quarterly earnings boosted by Chinese demand. Nokia also rallied 5.4%. In contrast, Adidas fell over 6% following a revenue miss and a profit warning, while Mercedes-Benz Group dropped 1% after reporting a halving of its first-half profits and cutting its full-year revenue forecast below last year's €146 billion. Germany's DAX index was unchanged at 24,200 points, about two percentage points below its all-time high, while Italy's FTSE MIB climbed 0.3% to 41,350 points, its highest since July 2007 and eyeing its ninth positive session in the last ten. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-07-2025
- Business
- Yahoo
Eurozone economic growth slows to 0.1% in second quarter
The eurozone economy grew 0.1% in the second quarter of the year, coming in marginally better than the zero growth expected by economists. However, it was still a slowdown compared with the 0.6% growth seen in the first three months of 2025, as businesses had raced to get ahead of US tariffs by making more products and increasing exports to the country. Seasonally adjusted gross domestic product (GDP) also rose by 0.2% in the European Union in the second quarter of 2025, compared with the previous quarter. Year-on-year, growth eased a little, with the eurozone up 1.4% and the EU up 1.5%, both slightly below the pace previous pace. Riccardo Marcelli Fabiani, senior economist at Oxford Economics, said: "Although the slowdown is to a large extent a by-product of a misleadingly healthy Q1 number, broad-based weakness across national data indicates that the economy lacks momentum, with only a handful of countries blowing into its sails." The latest reading was better than expected due to Spain leading the way with a 0.7% expansion. This was a result of solid consumer spending, a rebound in business investment and rising exports. Read more: Gold prices steady as investors await Fed interest rate decision "Spain is in another league, showing stubbornly robust dynamism. The moderate Q2 decline in Irish GDP suggests that there is ample room for further correction," Fabiani added. There was also faster-than-expected growth in France, the second-largest economy in the EU. France significantly outperformed expectations, growing 0.3% during the period, according to the preliminary data. This was a surprise acceleration in growth from the 0.1% revised reading for first-quarter growth — and higher than the 0.1% expected by economists polled by Reuters. Portugal and Estonia also delivered solid results, expanding 0.6% and 0.5%, respectively. Meanwhile, the German economy contacted 0.1% in the second quarter of the year as companies adjusted to the impact of US president Donald Trump's tariffs. This marked the country's first contraction since mid-2024 due to weaker investment in machinery and construction. Read more: Trending tickers: Novo Nordisk, Starbucks, SoFi Technologies, BAE Systems and Taylor Wimpey Economists had expected the decline in output from the EU's largest economy and biggest exporter, with the country's federal statistics agency revising down growth in the first quarter to 0.3%, rather than the preliminary reading of 0.4%. Italy's GDP likewise shrunk 0.1% in the second quarter, reversing the 0.3% gain recorded in the first quarter and defying market expectations of a 0.2% increase. It was the country's first contraction since the second quarter of 2023. Nicholas Farr, emerging Europe economist at Capital Economics, added that the economies of Hungary and Czechia 'have held up reasonably well since the introduction of US tariffs in April', according to data published on Wednesday. Hungary's economy grew 0.4%, an improvement from a 0.1% contraction in the previous quarter. However, the Czech economy saw growth slow to 0.2% from 0.8% in the first quarter.
Yahoo
30-07-2025
- Business
- Yahoo
Eurozone economic growth slows to 0.1% in second quarter
The eurozone economy grew 0.1% in the second quarter of the year, coming in marginally better than the zero growth expected by economists. However, it was still a slowdown compared to the 0.6% growth seen in the first three months of 2025, as businesses had raced to get ahead of US tariffs by making more products and increasing exports to the country. Seasonally adjusted gross domestic product (GDP) also rose by 0.2% in the European Union (EU) in the second quarter of 2025, compared with the previous quarter. Year-on-year, growth eased a little, with the eurozone up 1.4% and the EU up 1.5%, both slightly below the pace seen previously. Riccardo Marcelli Fabiani, senior economist at Oxford Economics, said: "Although the slowdown is to a large extent a by-product of a misleadingly healthy Q1 number, broad-based weakness across national data indicates that the economy lacks momentum, with only a handful of countries blowing into its sails." The latest reading was better than expected thanks to Spain leading the way with a 0.7% expansion, thanks to solid consumer spending, a rebound in business investment, and rising exports. Read more: Gold prices steady as investors await Fed interest rate decision "Spain is in another league, showing stubbornly robust dynamism. The moderate Q2 decline in Irish GDP suggests that there is ample room for further correction," Fabiani added. There was also faster-than-expected growth in France, the second-largest economy in the EU. France significantly outperformed expectations, growing 0.3% during the period, according to the preliminary data. This was a surprise acceleration in growth from the 0.1% revised reading for first-quarter growth — and higher than the 0.1% expected by economists polled by Reuters. Portugal and Estonia also delivered solid results, expanding 0.6% and 0.5%, respectively. Meanwhile, the German economy contacted 0.1% in the second quarter of the year as companies adjusted to the impact of US president Donald Trump's tariffs. This marked the country's first contraction since mid-2024 due to weaker investment in machinery and construction. Read more: Trending tickers: Novo Nordisk, Starbucks, SoFi Technologies, BAE Systems and Taylor Wimpey Economists had expected the decline in output from the EU's largest economy and biggest exporter, with the country's federal statistics agency revising down growth in the first quarter to 0.3%, rather than the preliminary reading of 0.4%. Italy's GDP likewise shrunk 0.1% in the second quarter, reversing the 0.3% gain recorded in the first quarter and defying market expectations of a 0.2% increase. It was the country's first contraction since the second quarter of 2023. Nicholas Farr, emerging Europe economist at Capital Economics, added that the economies of Hungary and Czechia 'have held up reasonably well since the introduction of US tariffs in April', according to data published on Wednesday. Hungary's economy grew 0.4%, an improvement from a 0.1% contraction in the previous quarter. However, the Czech economy saw growth slow to 0.2% from 0.8% in the first in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-07-2025
- Business
- Yahoo
Eurozone growth slows: Spain leads and Germany contracts
After a strong start to the year, the eurozone economy lost some steam in the second quarter of 2025, with fresh data showing a clear slowdown. Germany, the bloc's economic powerhouse, fell back into contraction territory, while Spain continued to outpace its peers. According to the preliminary flash estimate released on Wednesday, seasonally adjusted gross domestic product (GDP) rose by 0.1% in the eurozone and by 0.2% in the European Union in the second quarter of 2025, compared with the previous quarter. While the reading slightly surpassed economist expectations of a flat growth rate, this marks a notable deceleration from the 0.6% and 0.5% expansions seen in the eurozone and EU respectively in the first quarter. Year-on-year, growth also eased a little, with the eurozone up 1.4% and the EU up 1.5%, both slightly below the pace seen earlier in 2025. "Although the slowdown is to a large extent a by-product of a misleadingly healthy Q1 number, broad-based weakness across national data indicates that the economy lacks momentum, with only a handful of countries blowing into its sails," said Riccardo Marcelli Fabiani, senior economist at Oxford Economics. Spain and Portugal shine, Germany drags The slowdown wasn't uniform across the continent. Spain stood out with the strongest quarterly growth at 0.7%, thanks to solid consumer spending, a rebound in business investment, and rising exports. "Spain is in another league, showing stubbornly robust dynamism. The moderate Q2 decline in Irish GDP suggests that there is ample room for further correction," Marcelli Fabiani added. Portugal and Estonia also delivered solid results, expanding by 0.6% and 0.5%, respectively. On the other hand, Germany shrank by 0.1%, ending a run of modest growth. It marked the country's first contraction since mid-2024. Related IMF chief: European lifestyle is at risk if productivity isn't boosted Spain's economy grows 0.7% as it continues to outshine eurozone peers The decline was mainly due to weaker investment in machinery and construction, although household and government spending still offered some support. Italy's GDP contracted by 0.1% in the second quarter, reversing the 0.3% gain recorded in the first quarter and defying market expectations of a 0.2% increase. It was the country's first contraction since Q2 2023, reflecting weak domestic demand and softening industrial activity. There was some good news from France, where the economy picked up more than expected. GDP rose 0.3% — the best result in nearly a year — helped by stronger domestic demand. Yet Oxford Economics remains cautious, noting that France's expansion paints an overly rosy picture, driven largely by stockbuilding, while both domestic demand and net trade actually dragged on GDP. Markets steady as investors digest US-EU trade deal Financial markets responded calmly to the data, with eurozone assets stabilising following recent volatility tied to the US-EU trade deal, which analysts broadly view as tilting in Washington's favour over Brussels. The euro was steady at $1.1550, recovering slightly after enduring its worst two-day drop since February 2023. The EURO STOXX 50 index edged 0.1% higher, while the broader EURO STOXX 600 was flat. French consumer staples were among the top performers, with Danone rising 6.7% and L'Oréal up 4% after reporting strong quarterly earnings boosted by Chinese demand. Nokia also rallied 5.4%. In contrast, Adidas fell over 6% following a revenue miss and a profit warning, while Mercedes-Benz Group dropped 1% after reporting a halving of its first-half profits and cutting its full-year revenue forecast below last year's €146 billion. Germany's DAX index was unchanged at 24,200 points, about two percentage points below its all-time high, while Italy's FTSE MIB climbed 0.3% to 41,350 points, its highest since July 2007 and eyeing its ninth positive session in the last ten. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Euronews
30-07-2025
- Business
- Euronews
Eurozone growth slows: Spain leads and Germany contracts
After a strong start to the year, the eurozone economy lost some steam in the second quarter of 2025, with fresh data showing a clear slowdown. Germany, the bloc's economic powerhouse, fell back into contraction territory, while Spain continued to outpace its peers. According to the preliminary flash estimate released on Wednesday, seasonally adjusted gross domestic product (GDP) rose by 0.1% in the eurozone and by 0.2% in the European Union in the second quarter of 2025, compared with the previous quarter. While the reading slightly surpassed economist expectations of a flat growth rate, this marks a notable deceleration from the 0.6% and 0.5% expansions seen in the eurozone and EU respectively in the first quarter. Year-on-year, growth also eased a little, with the eurozone up 1.4% and the EU up 1.5%, both slightly below the pace seen earlier in 2025. "Although the slowdown is to a large extent a by-product of a misleadingly healthy Q1 number, broad-based weakness across national data indicates that the economy lacks momentum, with only a handful of countries blowing into its sails," said Riccardo Marcelli Fabiani, senior economist at Oxford Economics. Spain and Portugal shine, Germany drags The slowdown wasn't uniform across the continent. Spain stood out with the strongest quarterly growth at 0.7%, thanks to solid consumer spending, a rebound in business investment, and rising exports. "Spain is in another league, showing stubbornly robust dynamism. The moderate Q2 decline in Irish GDP suggests that there is ample room for further correction," Marcelli Fabiani added. Portugal and Estonia also delivered solid results, expanding by 0.6% and 0.5%, respectively. On the other hand, Germany shrank by 0.1%, ending a run of modest growth. It marked the country's first contraction since mid-2024. The decline was mainly due to weaker investment in machinery and construction, although household and government spending still offered some support. Italy's GDP contracted by 0.1% in the second quarter, reversing the 0.3% gain recorded in the first quarter and defying market expectations of a 0.2% increase. It was the country's first contraction since Q2 2023, reflecting weak domestic demand and softening industrial activity. There was some good news from France, where the economy picked up more than expected. GDP rose 0.3% — the best result in nearly a year — helped by stronger domestic demand. Yet Oxford Economics remains cautious, noting that France's expansion paints an overly rosy picture, driven largely by stockbuilding, while both domestic demand and net trade actually dragged on GDP. Markets steady as investors digest US-EU trade deal Financial markets responded calmly to the data, with eurozone assets stabilising following recent volatility tied to the US-EU trade deal, which analysts broadly view as tilting in Washington's favour over Brussels. The euro was steady at $1.1550, recovering slightly after enduring its worst two-day drop since February 2023. The EURO STOXX 50 index edged 0.1% higher, while the broader EURO STOXX 600 was flat. French consumer staples were among the top performers, with Danone rising 6.7% and L'Oréal up 4% after reporting strong quarterly earnings boosted by Chinese demand. Nokia also rallied 5.4%. In contrast, Adidas fell over 6% following a revenue miss and a profit warning, while Mercedes-Benz Group dropped 1% after reporting a halving of its first-half profits and cutting its full-year revenue forecast below last year's €146 billion. Germany's DAX index was unchanged at 24,200 points, about two percentage points below its all-time high, while Italy's FTSE MIB climbed 0.3% to 41,350 points, its highest since July 2007 and eyeing its ninth positive session in the last ten.
