European Economy Slows More Than Forecast as Debt Crisis Saps German Might

[bemildred]

Source: Bloomberg

European economic growth slowed more than economists forecast in the second quarter as Germany’s recovery almost ground to a halt amid the worsening sovereign- debt crisis.

Gross domestic product in the 17-nation euro area rose 0.2 percent from the first quarter, when it increased 0.8 percent, the European Union’s statistics office in Luxembourg said in a statement today. That’s the worst performance since the euro region emerged from a recession in late 2009. Economists had forecast the economy to expand 0.3 percent, according to the median of 34 estimates in a Bloomberg News survey.

Europe’s economy may struggle to gather strength as governments from Italy to Spain step up budget cuts to fight the debt crisis. In Germany, Europe’s largest economy, growth almost stalled in the second quarter. German Chancellor Angela Merkel will meet French President Nicolas Sarkozy today in Paris under pressure to do more to combat the fiscal crisis.

“Growth may virtually stagnate in the second half and there’s a threat of a renewed recession,” said Martin van Vliet, senior economist at ING Groep NV in Amsterdam. “It’s up to Merkel and Sarkozy to prevent further contagion to the economy; the longer the turbulences persist, the higher the risk of a recession.”

Read more: http://www.bloomberg.com/news/2011-08-16/europe-s-second-quarter-expansion-slows-more-than-forecast-on-debt-crisis.html

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More failed economist-Nostradamuses.

[bemildred]

1. US STOCKS-Wall St to resume slide as German economy stalls

NEW YORK, Aug 16 (Reuters) - U.S. stocks were set to open lower on Tuesday after three days of gains as data showed sluggish German growth hobbled the euro zone, rekindling fears over a stagnant global economy.

In the latest U.S. data, July housing starts fell, reflecting a sector continuing to bounce along the bottom. For details see

But a better-than-forecast industrial output report could give some support to equities and help shave some losses.

Germany recorded its weakest quarterly growth rate since 2009, fueling concerns about an European economy already weakened by a fiscal crisis. German stocks .GDAXI fell 2.1 percent.

http://www.reuters.com/article/2011/08/16/markets-stocks-idUSN1E77F0BI20110816

[Poll_Blind]

2. World stocks, euro slide on poor German data

Source: Reuters

NEW YORK, Aug 16 (Reuters) - Global stocks slipped and the euro slid on Tuesday after weak German and euro zone growth data rekindled concerns about the world economy and boosted demand for safe-haven assets like bonds and gold.

U.S. Treasuries prices gained and gold rose to $1,773.90 an ounce as concerns over the financial health of the euro zone resurfaced ahead of a summit in Paris between French President Nicolas Sarkozy and German Chancellor Angela Merkel.

Weak German data -- gross domestic product growth in Europe's powerhouse economy slowed to 0.1 percent in the second quarter -- overshadowed the outlook for the two leaders to reach a credible solution to the bloc's debt crisis.

The euro fell more than 1 percent against the Swiss franc.

Read more: http://www.reuters.com/article/2011/08/16/markets-global-idUSN1E77F0K420110816

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The dollar doesn't have to outrun the bear, just the euro. Last major currency standing gets the investors. A grim economic tontine.

PB

[BNJMN]

3. And so it begins...

[enlightenment]

4. Grim news - but you just taught me a new word.

Had to look up tontine - now I just need to figure out how to use it in speech a few times (and it's mine . . . bwahahaha!)

Thanks! :)

[GillesDeleuze]

5. Germany and Swiss in currency war

over valuation of EUR/CHF

swiss central bank floats rumors of pegging, germany unloads.

[rfranklin]

6. Budget cuts, no growth....any connection? Naw! We need moire tax breaks for the wealthy!

They just aren't sure they have enough money to create jobs.

[tpsbmam]

7. And here we have it, our generation's US & international cabal of Herbert Hoover wannabes

In-fucking-credible. It's beyond clear what's going to happen with all of these cuts to the 95% of "regular" people in these countries while the pigs at the trough stuff themselves even more. Read Galbraith's conditions for the "Great Crash." Most of them are present in living color today. What a passel of morons we who could choose our "leaders" have "chosen" to lead the world. Say hi to the next "great" depression.

:grr:

ETA missing apostrophe