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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.

Jan 6, 2015

Euro zone growth falters at end of 2014

LONDON (Reuters) – The euro zone economy ended 2014 with its worst quarter for over a year, according to surveys of activity that highlighted continuing downturns in France and Italy and a stuttering performance by paymaster Germany.

Britain, outside the currency union, experienced a similarly gloomy end to the year, with growth across services companies weakening to its slowest since mid-2013. That underscored a wider loss of pace in the economy as an election approaches.

Jan 6, 2015

Euro zone economy ended 2014 in poor shape: PMI

LONDON (Reuters) – The euro zone economy ended 2014 with its worst quarter for over a year as further price cutting failed to significantly drive up business activity, adding pressure on the European Central Bank to act, surveys showed.

Also of concern to policymakers, the surveys highlighted an ongoing downturn in France and Italy and only a stuttering performance in Germany, Europe’s largest economy.

Jan 2, 2015

Weak factory reports from Asia, Europe suggest more central bank action

LONDON/SYDNEY (Reuters) – The global economy ended 2014 in a fragile state as factories struggled to maintain growth across Europe and Asia, business surveys showed, adding to pressure on central banks to implement more stimulus.

Ebbing price pressures across the continents offers room for the People’s Bank of China and the European Central Bank to do more to drive up inflation and support growth.

Jan 2, 2015

Euro zone factory activity ends 2014 on subdued note: PMI

LONDON, Jan 2 (Reuters) – Euro zone manufacturing ended 2014 on a subdued note as output, new orders and employment all recorded sluggish growth, a survey showed on Friday, adding to pressure on the European Central Bank to boost the economy.

Also of concern to policymakers, who are struggling to nurture growth and ward off deflation, the survey showed factories cut prices for the fourth month running and activity was weak in Germany, Europe’s largest economy.

Dec 17, 2014

Global stock markets expected to rally in 2015 on more cheap cash: Reuters poll

By Rahul Karunakar and Jonathan Cable

(Reuters) – Global stock markets are expected to rally next year as central banks in Asia and Europe flood markets with fresh liquidity just as others begin tightening, Reuters polls showed on Wednesday.

Accommodative monetary policy drove a bull market in stocks in recent years, and as China, Japan and the euro zone struggle with disinflation and weak growth more cash is expected to flow into investors’ pockets.

Dec 17, 2014

Global stock markets expected to rally in 2015 on more cheap cash

By Rahul Karunakar and Jonathan Cable

(Reuters) – Global stock markets are expected to rally next year as central banks in Asia and Europe flood markets with fresh liquidity just as others begin tightening, Reuters polls showed on Wednesday.

Accommodative monetary policy drove a bull market in stocks in recent years, and as China, Japan and the euro zone struggle with disinflation and weak growth more cash is expected to flow into investors’ pockets.