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Feb 4, 2015

Price-cutting European firms enjoy buoyant January

LONDON (Reuters) – January was euro zone firms’ best month since mid-2014 but they also cut prices at the fastest rate in nearly five years, a survey found, lending support to the European Central Bank’s decision to scale up its stimulus program.

In Britain, outside the currency union and where markets are instead focusing on when monetary policy will be tightened, a sister survey showed activity in the dominant service industry expanded faster than anyone polled by Reuters had expected.

Feb 2, 2015

Deflation alarms ring as EU, Chinese factories struggle; US steady

LONDON/SYDNEY (Reuters) – European and Chinese factories slashed prices in January as production flatlined, heightening global deflation risks that point to another wave of central bank stimulus in the coming year.

While the pulse of activity was livelier in other parts of Asia – Japan, India and South Korea – they too shared a common condition of slowing inflation.

Feb 2, 2015

Deflation alarms ring louder as EU, Chinese factories struggle

LONDON/SYDNEY (Reuters) – European and Chinese factories slashed prices in January as production flatlined, heightening global deflation risks that point to another wave of central bank stimulus in the coming year.

While the pulse of activity was livelier in other parts of Asia – Japan, India and South Korea – they too shared a common condition of slowing inflation.

Feb 2, 2015

Global Economy: Deflation alarms ring louder as EU, Chinese factories struggle

LONDON/SYDNEY (Reuters) – European and Chinese factories slashed prices in January as production flatlined, heightening global deflation risks that point to another wave of central bank stimulus in the coming year.

While the pulse of activity was livelier in other parts of Asia – Japan, India and South Korea – they too shared a common condition of slowing inflation.

Feb 2, 2015

Euro zone factories post ‘meagre’ growth in activity in Jan – PMI

LONDON (Reuters) – Euro zone factory activity grew slightly last month as companies kept slashing prices, but a weakened currency did little to help drive new orders from abroad, a survey showed on Monday.

“Euro zone manufacturing showed signs of pulling out of the doldrums at the start of the year, but the rate of expansion remained disappointingly meagre, vindicating the ECB’s decision to take drastic action,” said Chris Williamson, chief economist at survey compiler Markit.

Feb 2, 2015

Euro zone factories post ‘meager’ growth in activity in January: PMI

LONDON (Reuters) – Euro zone factory activity grew slightly last month as companies kept slashing prices, but a weakened currency did little to help drive new orders from abroad, a survey showed on Monday.

“Euro zone manufacturing showed signs of pulling out of the doldrums at the start of the year, but the rate of expansion remained disappointingly meager, vindicating the ECB’s decision to take drastic action,” said Chris Williamson, chief economist at survey compiler Markit.

Jan 23, 2015

Evaporating inflation and growth put pressure on central banks

LONDON/BEIJING (Reuters) – Businesses across Asia and Europe have slashed prices at the start of the year to drum up trade, surveys showed on Friday, vindicating the European Central Bank’s decision to print money in a bid to revive inflation.

Euro zone firms cut prices at the fastest rate in nearly five years and Chinese factories cut them for the sixth straight month, while economic growth in South Korea slowed sharply, raising the prospect of more easing from central banks in Asia.

Jan 23, 2015

Euro zone starts 2015 better than thought as firms slash prices: PMIs

LONDON (Reuters) – The euro zone economy began 2015 in better shape than expected but firms were forced to slash prices, surveys showed on Friday, a day after the European Central Bank announced a money-printing plan in a bid to revive inflation.

Firms across the continent have been cutting prices at the fastest rate in nearly five years this month, in a trend that backs up the ECB’s decision on Thursday to embark on a program of quantitative easing.

Jan 15, 2015

First BoE hike pushed back to fourth-quarter, but close call: poll

LONDON (Reuters) – The Bank of England will still raise interest rates from a record low this year but whether it does so in the third or fourth quarter may be too close to call, according to a Reuters poll.

Twenty of the 39 economists quizzed this week do not expect any change before October whereas the other 19 predicted an increase. A Dec. 10 poll found around two thirds of economists expected the first rise to come in the third quarter.

Jan 7, 2015

Euro slide not over as pressure grows on ECB: Reuters poll

LONDON (Reuters) – The euro’s slide is not yet over because diverging monetary policies at the European Central Bank and the United States Federal Reserve will sink the currency to levels not seen since late 2003, a Reuters poll found.

Fears that cheap oil will tip the now 19-member bloc into a deflationary spiral have increased calls for the ECB to take urgent action, possibly as soon as the Governing Council’s Jan. 22 meeting.