Europe needs a huge investment drive and that can only come from the breadbasket of Germany. Something similar to the Marshall Plan would benefit everyone, even Germany, as new markets could be opened, while the income of stagnating countries would be increased.
The Spanish economy is in the “champions league” in terms of GDP growth, but has failed the deficit, unemployment and debt exams. The autumn forecasts from the European Commission raised the deficit non-compliance to 4.7% of GDP for this year and 3.6% for 2016, well off the levels of 4.2% and 2.8%, respectively, previously agreed with Brussels.
UBS | Several oil companies shared their views on refining margins over the 3Q reporting season and CMDs over the past month and we find these often contrast with investors’ views as companies were generally reasonably positive about the outlook for margins for the next few months. Several companies (BP, Neste) highlighted that the global refining supply/demand outlook is fairly balanced for 2016.
Peter Lundgreen via Caixin | Back in 2013, British Prime Minister David Cameron promised a referendum about the country’s future in the European Union if he got re-elected in a national election this year, and now a vote on the issue is set for 2017 at the latest.
ViEUws | In November 2014, Jean-Claude Juncker became leader of the EU’s most powerful body – the European Commission. Backed by a large majority of MEPs, the former Luxembourg Premier promised an “agenda of reform”.
BARCLAYS | Headline inflation surprised slightly to the downside while core prices increased more than we had expected. At the non-core level, energy inflation remains weak (-8.7%). At the core level, both non-energy industrial goods (NEIG) and services prices increased by 0.1pp, to +0.4% and +1.3%, respectively, and leading the unexpected 0.1pp rise in core inflation.
Fernando Barciela | Is the banking crisis over? I don’t think so. There is a lot of very bad news coming out from some of the biggest European banks these days. Deutsche Bank said on Thursday it would shed 35,000 jobs. The German lender reported a $6.6 billion quarterly net loss. So it will trim its investment banking operations and close operations in 10 countries.
France’s proposal to move forward with eurozone fiscal and political integration, with a single government for the area, one budget…is still at at a very early stage. As German experts point out, the reality is that none of the 19 parliaments involved are currently considering giving up any more sovereignity.
BBVA Research | The current economic recovery in Europe is atypical and fragile. Domestic demand is strengthening, the external environment is more negative. But what about other figures?