Home Today's Paper Most Popular Video Gallery Photo Gallery
Subscription Blog Signin Register
Logo
Saturday, September 22, 2018 02:17:06 PM
Follow Us On: Facebook Twitter Twitter Twitter Twitter
BREAKING NEWS:

Eurozone economy hits 'speed bump' amid uncertainty

By
10th-Mar-2018       
Comments
Share your thought
Post a comment »
Read all () »

AP, London :
The outlook for the 19-country eurozone appeared murkier Monday with the rise of populist parties in Italy and mounting fears of a global trade war after U.S. President Donald Trump backed tariffs on aluminum and steel and warned that more could come, even on European cars.
This shift comes after the eurozone has been one of the bright spots in the global economy for months, with growth and job creation picking up steam after years of crisis management and a lack of confidence.
The eurozone economy appears to have peaked at a historically high level. Financial information firm IHS Markit said Monday that the eurozone economy hit a "speed bump" in February, possibly due to heightened political uncertainty in Germany and Italy.
The firm's so-called purchasing managers index, a gauge of business activity, slipped to 57.1 points from January's 12-year high of 58.8. Chris Williamson, the firm's chief business economist, said it's "too early to read too much" into the monthly decline but noted that some pull-back was "always on the cards."
Although the political uncertainty in Germany has been lifted by the Social Democrats' decision to remain in a coalition government with Chancellor Angela Merkel's conservative bloc, the situation in Italy is far from clear.
Two populist and stridently anti-European Union political groups - both fierce rivals - surged in Italy's parliamentary election Sunday at the expense of the country's traditional powers, but neither gained enough support to govern alone. That will herald a period of fraught discussions on forming a coalition government.
Preliminary results released Monday by Italy's Interior Ministry showed the center-right bloc winning about 37 percent of the parliamentary vote and the populist 5-Star Movement getting about 32 percent. The center-left bloc was far behind with 23 percent support.
Both the center-right bloc and the 5-Stars insisted Monday that they should be given the right to form a government in Italy.
Analysts said it's too early to gauge the impact of the vote on the Italian economy, which has been improving over the past year. In 2017, it expanded by 1.5 percent. Though that's a full percentage point lower than the eurozone's overall growth, it was Italy's best performance since 2010.
"The prospect of a prolonged period of domestic political uncertainty risks weighing on the ongoing recovery," said Nicola Nobile, an economist at Oxford Economics. "For now, we are not making any changes to our forecast but we will revisit it once the dust has settled."
Italy's main stock market underperformed its peers, trading modestly lower at the close Monday. The euro currency was barely changed at $1.2335.
The longer-term worry for investors is that the Italian election may stoke renewed concern about populist forces in the eurozone, nearly a year after many of those were vanquished by the outcome of elections in the Netherlands and France.
At this time last year, the rise of populism was considered by many economists as the gravest cloud hanging over Europe's economic future, especially as worries over Greece had abated. The great fear for those overseeing the euro currency is that a party may come into government seeking to get out of the single currency and revert to the country's original currency.
Matteo Salvini, the head of Italy's anti-migrant, euroskeptic League party declared Monday that the shared European euro currency is "wrong" and is ultimately destined to end.
"It's a wrong currency and a wrong choice" for Italy, he said.
Salvini's party is one of the two demanding to form Italy's next government.
Externally, the eurozone economy faces another potential headwind from Trump, who said he planned to levy penalties of 25 percent on imported steel and 10 percent on aluminum imports from next week. Leading EU officials have warned of retaliation, which prompted Trump to warn he could go further and slap tariffs on European cars.
"This obviously raises the threat of a downwards spiral of tit-for-tat tariff barriers being imposed by the EU and the U.S., leading us to a genuine trade war, with spillover effects onto most other economies," said Michael Every, a strategist at Rabobank International.

END/AP/UNB/HM

Tariff
Add Rate

News Archive

Inside The New Nation

Editorial »

Rohingya crisis: UN is helpless without active cooperation of int'l community


THE United Nations was established with a mission to stop brutality and promotion of human rights across the globe but at present is apparently helpless to stop the Myanmar military atrocity on Rohingya ethnic community. Though the Universal Declaration of Human Rights, International Covenant on Civil and Political Rights, the ...

Cricket »

India rout Pakistan by eight wickets in Asia Cup


AFP, Dubai :India crushed Pakistan by eight wickets in their long-awaited Asia Cup match which failed to live up to its hype in Dubai on Wednesday.Pace spearhead Bhuvneshwar Kumar (3-15) and part time off-spinner Kedar Jadhav (3-23) sent Pakistan, who won the toss and batted, collapsing to just 162 all ...

Football »

We aim to play SAFF U-16 Women's final: Choton


Bangladesh U-18 national women's football team head coach Golam Rabanni Choton said they aim to play the final of the SAFF U-18 Women's Championship which is scheduled to be held from September 28 to October 7 in Thimpu, Bhutan.He was speaking at a pre-departure press conference on Thursday at the ...

International »

US-North Korea relations making 'tremendous progress': Trump


President Donald Trump on Wednesday said US relations with North Korea are making "tremendous progress" from the days before his presidency when the two countries appeared close to "going to war."Trump said a recent letter from North Korean leader Kim Jong Un confirmed the positive track, which he said has ...

City »

Newly elected executive members of Bangladesh Photo Journalists Association paid a courtesy call on Shipping Minister Shajahan Khan at his ministry on Thursday.


Entertainment »

Not always necessary to do issue-based films: Yami Gautam


Actress Yami Gautam, who stars in Batti Gul Meter Chalu, says it is neither necessary nor possible for an actor to do issue-based films all the time. Yami was interacting with the media here on Wednesday at a promotional press conference of the film that releases on Friday. She was ...

Football »

Japanese MMA star Norifumi 'Kid' Yamamoto dies at 41


Tributes flowed Wednesday for charismatic Japanese Mixed Martial Artist ( MMA) Norifumi "Kid" Yamamoto, who died at age 41, three weeks after announcing a battle with cancer.Born to a family of wrestlers and martial artists, the wiry, tattoo-covered Yamamoto took on larger opponents in a wide range of MMA events, ...

Editorial »

Ecological danger for destroying forest by Rohingyas


A STUDY has revealed that 4,300 acres of hills and forests have been razed in Cox's Bazar to set up refugee camps and cooking fuel for Rohingyas who fled ethnic cleansing in Myanmar. Quoting the study, news media reported that about 3,000-4,000 acres of hill land at Teknaf and Ukhia ...

International »

Kim agrees to dismantle main nuke site if US takes steps too


AP,  Pyongyang :The leaders of North and South Korea announced a wide range of agreements Wednesday which they said were a major step toward peace on the Korean Peninsula. But the premier pledge on denuclearization contained a big condition, with North Korean leader Kim Jong Un stating he'd permanently dismantle ...

International »

Sex with Trump 'least impressive' she's ever had: Daniels


Stormy Daniels, the porn star who claims to have slept with Donald Trump over a decade ago, says in her upcoming tell-all book that it may have been the "least impressive sex" she'd ever had, The Guardian reported Tuesday.In her book, "Full Disclosure," Daniels also provides a graphic description of ...

Entertainment »

I`m seen as a fierce and opinionated woman post Bigg Boss: Hina Khan


Actor Hina Khan believes Bigg Boss helped her showcase her real personality, which is that of a woman who does not shy away from speaking her mind. The actor became one of the most talked about contestants on the 11th edition of the reality TV show, which has just begun ...

City »

Dhaka University teachers formed a human chain programme on the campus on Wednesday demanding release and proper treatment of BNP Chairperson Khaleda Zia.


Editorial »

We welcome Islamabad for awarding Bangladeshi-origin refugees Pakistan`s nationality


PAKISTAN government has decided to grant nationality to all Pakistan-born refugees of Bangladeshi and Afghan origins staying there for decades. Prime Minister Mr Imran Khan on Sunday made this announcement during his maiden visit to Karachi, saying the Bangladeshi and Afghan refugees who were born in Pakistan would get National ...

Sports »

Argentina's Facundo Conte (left) and teammate Alexis Gonzalez celebrate during the Men's World Championships' volleyball match between Argentina and Slovenia, in Florence, Italy on Monday.


Football »

FIFA president Infantino has doubts about La Liga match in Miami


AFP, Barcelona :FIFA president Gianni Infantino has expressed concern about La Liga's proposal to stage a fixture between Girona and Barcelona in the United States.The two clubs have each approved a request submitted to the Spanish Football Federation for the match to be played at the Hard Rock Stadium in ...

 
Items that you save may be read at any time on your computer, iPad, iPhone or Android devices.
 
Are you new to our website? Do you have already an account at our website?
Create An Account Log in here
Email this news to a friend or like someone
Email:
Write a comment to this news