Mark Rickard (Columnist)
GERMANY gave Spain’s Economic Minister, Luis de Guindos, the thumbs up last week, with Angela Merkel and Wolfgang Schaeuble praising him for his management of the economic crisis.
They particularly highlighted his implementation of austerity over the last five years, with Spain reporting its 4th quarter of growth this year!
Unfortunately other Eurozone economies have been underperforming with flat unemployment numbers, and Germany’s business confidence indices declining.
The European Central Bank’s policy statement will be closely monitored this Thursday when they make their interest rate decision, which is expected to remain unchanged at 0.15%.
As always the Bank of England will be announcing their interest rate 45 minutes earlier on the same day.
Their considerations, however, are far less crucial, as the UK’s forecasts are moving in the right direction.
Consumer confidence has been reported at its highest since 2005, and a nationwide house price survey has reported a 0.8% monthly house price growth.
We’ll keep an eye on sterling this week to head back toward 1.27 against the euro.
The Greenback raced in front of both the pound and the euro, as the US economy continues to grow. Sentiment is high and forecasting is bold for GDP, durable goods and home sales.
The Fed are considering their next interest rate rise sooner rather than later.
Good to see the fourth quarter of growth in Spain this year. But there are doubts as to whether this can be sustained. The tourist industry is full to bursting and exports are rising less quickly as a result of the slowdown in other EU countries. The good news is that internal demand and house sales are at long last improving, so maybe things can keep mproving.
Ah yes, Luis de Guindos. Didn’t he head up Lehman Brothers? Remember that disaster? Perfect qualifications for a finance job in the Spanish government lol.