Dynamic Wealth Management Headlines: Europe,China Manufacturing Drops on Impact of Crisis Economy
China’s manufacturing contracted in November for the first time since February 2009 as the property market cooled and Europe’s turmoil cut export demand. In Britain and the 17-nation euro area, manufacturing shrank at the fastest pace in about 2 1/2 years as the region edged toward recession.
This is “more evidence that the global economic recovery is running out of steam,” said Jonathan Loynes, chief European economist at Capital Economics Ltd. in London. “It’s clear that manufacturing across a range of countries is being affected by a renewed slowdown in global trade.”
While production slows in Asia and Europe, it probably grew in the U.S. in November at the fastest pace in five months, showing factories will keep supporting the economic expansion through the end of the year, economists said before a report today from the Institute for Supply Management.
The ISM’s factory index rose to 51.8 last month from 50.8 in October, economists surveyed by Bloomberg News forecast the Tempe, Arizona-based group’s data to show today. Fifty is the dividing line between growth and contraction. Jobless claims fell last week and construction spending increased in October, other data may show.
“The U.S. seems to be bumbling along OK,” Loynes said. “But clearly PMIs and other indicators are pointing to a recession in the euro zone,” he said. “We think it will be much more severe than a near-term technical recession. If the debt crisis escalates over next year or two and we see some form of breakup” of the single-currency area, “the economic effects associated with that will be pretty severe.”
Manufacturing declined across Europe, according to today’s reports. In the U.K., a gauge of factory output, based on a survey by Markit Economics and the Chartered Institute of Purchasing and Supply, fell to 47.6 from 47.8 in October. New orders fell for a fifth month.
A manufacturing gauge based on a survey of purchasing managers in the euro region fell to 46.4, the lowest since July 2009, according to Markit.
European companies are under increasing pressure to cut costs to protect earnings as faltering global demand erodes exports just as euro-region governments toughen spending cuts. Unemployment rose to 10.3 percent in October, the highest in more than 13 years and manufacturers were the most pessimistic in almost two years last month.
“We now expect a mild recession in first half of 2012 in the euro zone, ahead of a modest pickup in the second part of the year,” Standard & Poor’s chief economist in Europe Jean- Michel Six said today in an e-mailed statement.
“But we stress that the downside risk remains very significant,” he said. “We estimate that our baseline forecast of a mild recession has a 60 percent probability, while a more severe recession has a 40 percent probability.”
Norway’s manufacturing contracted for the first time in almost two years, while Sweden’s slumped for a fourth consecutive month as the export-dependent Nordic countries suffer from falling demand for their products.
In Asia, the Purchasing Managers’ Index for China fell to 49.0 in November from 50.4 in October, according to the China Federation of Logistics and Purchasing. A level above 50 indicates expansion.
China’s central bank last night announced the first cut in banks’ reserve requirements since 2008, moving two hours before the U.S. Federal Reserve led a global effort to ease Europe’s debt crisis. The move will add about 370 billion yuan ($58 billion) to the financial system and more reductions may follow as the government seeks to boost growth, Citigroup Inc. said.
South Korean manufacturing output also contracted last month, according to Markit.
In the Philippines, the central bank kept its benchmark interest rate unchanged at 4.5 percent for a fifth meeting today as persistent inflation prevented the country from joining Indonesia and Thailand in cutting borrowing costs to bolster growth.
“The global outlook has worsened,” said Christoph Weil, a senior economist at Commerzbank AG in Frankfurt. “We don’t see a global recession at the moment, however. Risks have increased with the escalating debt crisis.”
At the Dynamic Wealth Management Zurich, Switzerland, we realize that no two clients are the same. Every client has different financial needs, goals, and plans. For this
reason, the DWM offers a wide array of investment options to suit every client. We tailor your investment strategy to be as individual as you are.
Dynamic Wealth Management
Dynamic Wealth Management Zurich
11 Penn Plaza
New York City, New York 10001
212 946 2800
This release was published on openPR.
Permanent link to this press release:
Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.
You can edit or delete your press release Dynamic Wealth Management Headlines: Europe,China Manufacturing Drops on Impact of Crisis Economy here
News-ID: 206434 • Views: 1444
More Releases from Dynamic Wealth Management Zurich
Dynamic Wealth Management Headlines: Nigeria’s Economic growth and Statistics: …
Governor Sanusi Lamido Sanusi of the country’s apex Federal Reserve Institute, the Central Bank of Nigeria and its monetary policy committees retained the benchmark interest rate at 12 percent. The market did not anticipate any change of the monetary interest rate; therefore there was no negative or positive reaction to the outcome. Sanusi’s CBN cannot be accuse of not trying its best possible to utilize the tightening of the monetary
Dynamic Wealth Management Headlines: German Bunds Advance as French Borrowing Co …
German bonds rose as French borrowing costs climbed at an auction, stocks declined and European industrial orders increased less than analysts predicted, fueling concern the debt crisis is feeding an economic slump. Italian and Spanish bonds slid as Europe’s bailout fund sells notes at a yield spread almost seven times its first issue a year ago. Greek Prime Minister Lucas Papademos said his nation faces “the immediate risk” of a default
Dynamic Wealth Management Headlines: Opportunities for Africa from the global ec …
The recent global economic crisis has provided us in Africa with an opportunity to review how we do business and think about the future, a future that needs to be grounded in fairness, integrity and sustainable development as opposed to greed and cronyism that has all too often been the case in the past. I believe that a key factor for the future will be the role played by the
Dynamic Wealth Management Headlines: AIG Share Sale Raises $8.7 Billion
The U.S. Treasury Department and American International Group Inc. (AIG) raised $8.7 billion in a share offering, bringing the insurer a step closer to independence after its 2008 bailout. The Treasury sold 200 million shares yesterday at $29 each, compared with the closing price of $29.46 on the New York Stock Exchange. The government, which retains a majority stake, needs to sell shares at an average of about $28.73 to recover
More Releases for Europe
Synthetic Biology Market – Europe
Synthetic Biology Market Europe is expected to reach USD XX Billion by 2026 from USD XX Billion in 2016 at a CAGR of XX% (Detailed analysis of the market CAGR is provided in the report). Synthetic biology has expanded into various interdisciplinary fields that may be defined as the combination of artificial design and engineering to produce biological systems, chemicals or living organisms. Synthetic biology is also used for improving applications
Europe Wooden Doors Market
Europe Wooden Doors Market https://www.qandqmarketresearch.com/reports/wooden-doors-market-78 This report studies the Wooden Doorsmarket status and outlook of Europe and major countries, from angles of players, countries, product types and end industries; this report analyzes the top players in Europe and major countries, and splits the Wooden Doors market by product type and applications/end industries. The global Wooden Doors market is valued at XX million USD in 2018 and is expected to reach XX million
Europe Radiotherapy Market
The Europe Radiotherapy Market research report consists of a primary and secondary research along with an in-depth analysis of the quantitative and qualitative aspects by the expert industry analysts and professionals, leading management bodies, to gain a profound insight of the industry as well as the industry performance. The Europe Radiotherapy Market report presents a lucid picture of the current industry landscape, including the historical and projected market size, based
Europe Business Assembly
The Europe Business Assembly (EBA) is an international corporation for the evolution and implementation of economic and social development. The company was established in April 2000 and its history shows a plethora of promising initiatives, creative growth and professional victories. EBA’s activity demonstrates the capabilities and power of professional partnership. The year 2000 saw the beginning and the foundation of EBA with the signing of the memorandum of cooperation and
Smartsourcing in Eastern Europe
In 2008 the outsourcing business of Eastern Europe was estimated at nearly $2 billion, representing just a tiny fraction of the global IT outsourcing market, estimated at about $386 billion. According to the Gartner Dataquest predictions, in the next four years Eastern Europe is expected to outstrip the rest of the offshore market concentrated mainly in the “classical” locations like India. By 2010 Eastern Europe’s IT outsourcing market share is
Home Control conquers Europe
European Home Control Summit attracts participation from leading International companies and organizations 29. February 2008 - Copenhagen/Frankfurt - The first European Wireless Home Control Summit on 9 April 2008, taking place parallel to Light + Building, features leading companies such as Merten, Horstmann, Danfoss, and market researcher Parks Associates as well as publicly funded organizations like the Danish Energy Saving Trust (DEST) presenting the newest trends, products and market strategies pertaining