LONDON—The economic recovery in the 19-country eurozone lost steam in January, a closely watched survey found Wednesday, a sign that the turmoil in global financial markets is beginning to weigh on business activity.
Financial information company Markit said its purchasing managers’ index — a broad gauge of activity across both the manufacturing and services sectors — fell to a four-month low of 53.6 points in January from 54.3 the previous month.
According to Markit, that means the region has started off the year growing at a modest 0.4 percent quarterly tick. Rates of growth also diverged, with Spain once again leading the pack, followed by Germany. France appears to be stagnating.
Prospect of US interest rates hike and weakness in China contributing to uncertainty and higher market volatility, says Christine Lagarde
A marked slowdown in big emerging market countries will cut global growth to its lowest level since the deep recession of 2009, the head of the International Monetary Fund has warned.
Christine Lagarde, the IMF’s managing director, said forecasts to be published by her organisation next week would show activity expanded by less than the 3.4% recorded in 2014 – the joint weakest since the world economy came to a standstill six years ago. Continue reading
America has had the wind knocked out of its sails this year.
Volatile stock markets, weak economic growth and a hiring slowdown have created a perfect storm for nearly flat growth. The question is whether the U.S. economy and markets can right the ship in May and beyond. There’s reason to believe they can start to this week.
“We’re in a slow growth economy,” says Dorothy Weaver, former chair of the Miami Federal Reserve branch and CEO of Collins Capital. “I don’t think we’re heading for a capsized economy, but that doesn’t mean we couldn’t be hitting low winds and a doldrum.” Continue reading
America’s economy is starting to see cracks after closing out 2014 with Superman strength.
The U.S. job market had its best year of gains last year since 1999, and economic activity hit a whopping 5% in the third quarter — the best quarter since 2003.
Three months later, the U.S. economy is looking a little tired. It’s losing momentum in puzzling ways. Hiring is still strong, but experts are starting to scale back their growth forecasts. Continue reading
One week ago, when previewing what may be the first lockout of the West Coast Ports since 2002, we cited the Retail Industry Leaders Association who, realizing that failure to reach an agreement between the dockworker union and their bosses, the Pacific Maritime Association representing port management would lead to devastating consequences for the US retail industry, had several very damning soundbites:
- “a work slowdown during contract negotiations over the past seven months has already created logistic nightmares for American exporters, manufacturers and retailers dependent on an efficient supply chain. A complete shutdown would be catastrophic, with hundreds of thousands of jobs at risk if America’s supply chain grinds to a halt.“ Continue reading
Faber’s bearish market calls have been followed closely since 1987 when he warned his clients to cash out before Black Monday.
And in a live interview on CNBC’s Fast Money Halftime Report, Faber again warned that economies of the world may be on the brink of a serious slowdown.
Faber indicated that while investors remain focused on Greece and Europe – other issues, bigger issues are looming. And they’re more threatening.
“As an observer of markets – whenever everyone focuses on one thing – like Greece and Europe – maybe they miss issues that are far more important – such as a meaningful slowdown in India and China.”
“I think we could have a global recession either in Q4 or early 2013.” When asked what were the odds, Faber replied, “100%.”However, in the near term Faber also sees potential for a market rally.
Faber said the bullish catalyst would be Greece exiting the EU.
It’s worth noting that Faber is talking hypothetically; he does not think Greece exits the EU in the near future.
“What I think will happen is that Germany will show more flexibility and issue more euro bonds.”
Full article: Marc Faber: 100% Chance of Global Recession (CNBC)