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Jul 24, 2015

Global economy – Second half of 2015 begins on shaky note

LONDON/SYDNEY (Reuters) – The global economy started the second half of the year on shaky ground as business activity in the euro zone was weaker than expected and China’s vast factory sector appeared to be contracting at the fastest pace in 15 months in July.

The surveys come just months after the European Central Bank embarked on a 60 billion euro a month bond-buying programme and as Beijing said it would allow its yuan currency to fluctuate more widely within its trading band as a way to support trade.

Jul 24, 2015

Second half of 2015 begins on shaky note

LONDON/SYDNEY (Reuters) – The global economy started the second half of the year on shaky ground as business activity in the euro zone was weaker than expected and China’s vast factory sector appeared to be contracting at the fastest pace in 15 months in July.

The surveys come just months after the European Central Bank embarked on a 60 billion euro a month bond-buying program and as Beijing said it would allow its yuan currency to fluctuate more widely within its trading band as a way to support trade.

Jul 24, 2015

Euro zone business growth wanes at start of second half: PMI

LONDON, July 24 (Reuters) – Euro zone business activity started the second half on a less secure footing than expected, even with continued price cutting, as euro weakness failed to boost export demand, a survey showed on Friday.

The purchasing managers’ index (PMI), one of the earliest monthly economic indicators, could dampen hopes that European Central Bank bond-buying and the tumbling euro are boosting growth and driving inflation higher.

Jul 20, 2015

UK rate hike still seen in first-quarter 2016; BoE’s Carney brushed off

LONDON, July 20 (Reuters) – - It will be early 2016 before the Bank of England raises interest rates from a record low, according to economists who largely brushed off hawkish talk last week from officials suggesting a rate rise might come earlier.

The British economy’s strong momentum despite extremely low inflation now meant the decision on when to raise rates from 0.5 percent would come into sharper focus around the end of this year, Governor Mark Carney said on Thursday.

Jul 3, 2015

Euro zone businesses shrug off Greek fears; growth reaches four-year high – PMI

LONDON (Reuters) – - Euro zone business activity expanded at its fastest pace in four years last month as the European Central Bank’s stimulus package more than offset fears Greece could crash out of the currency union, surveys showed.

Speculation that Athens would miss a 1.6 billion-euro repayment to the International Monetary Fund on Tuesday heightened expectations Greece would have to abandon the euro, keeping manufacturing activity in check last month.

Jul 3, 2015

European service industry enjoys June bounce, shrugs off Greek woes

LONDON, July 3 (Reuters) – Europe’s vast service industry
expanded faster than initially thought last month, surveys
showed on Friday, speeding ahead despite warning signs that
Greece might crash out of the euro zone.

Firms across the currency union enjoyed a better June than
predicted by a preliminary reading, growing at a four-year
record pace, while British firms ramped up activity more than
anyone in a Reuters poll had forecast.

Jul 1, 2015

Asian factory growth stays weak, Europe and U.S. sluggish

By Jonathan Cable

(Reuters) – Global manufacturing growth slowed last month with most Asian economies remaining weak, while Greece’s woes kept euro zone factories in check and U.S. manufacturing turned in a mixed performance, business surveys showed on Wednesday.

JPMorgan’s Global Manufacturing Purchasing Managers’ Index, produced with private data vendor Markit, slipped to 51.0 in June from 51.3 in May, matching April’s near two-year low.

Jul 1, 2015

BoE to hike in first quarter as wage growth surpasses its expectations: Poll

LONDON (Reuters) – The Bank of England will hike its benchmark interest rate from a record low of 0.5 percent early next year, according to a Reuters poll of economists who also said wages will rise faster in 2015 than the central bank thinks.

Average earnings was one of the key planks of Governor Mark Carney’s 2013 forward guidance as to when Bank Rate would increase. The Reuters poll suggested wage growth will pick up faster this year than the 2.5 percent the Bank predicted in May.

Jul 1, 2015

BoE to hike in first quarter as wage growth surpasses its expectations

LONDON (Reuters) – The Bank of England will hike its benchmark interest rate from a record low of 0.5 percent early next year, according to a Reuters poll of economists who also said wages will rise faster in 2015 than the central bank thinks.

Average earnings was one of the key planks of Governor Mark Carney’s 2013 forward guidance as to when Bank Rate would increase. The Reuters poll suggested wage growth will pick up faster this year than the 2.5 percent the Bank predicted in May.

Jul 1, 2015

Euro zone factory growth stutters as China, Japan heals

By Jonathan Cable and Ian Chua

(Reuters) – Asia’s largest economies showed hints of healing last month but euro zone factory growth remained tepid as Greek debt talks, and the country’s possible departure from the bloc, dominated debate in Europe.

Speculation Athens would fail to make June 30′s 1.6 billion euro repayment to the International Monetary Fund, heightening expectations Greece would crash out of the currency union, kept the bloc’s manufacturing output check.