Top-line inflation in Europe is easing, but central bankers are warning they do not expect to cut interest rates any time soon.
In September, 69,000 workers lost their jobs in the 20-nation Eurozone, nudging the jobless rate to 6.5 percent. More than 11 million people across the region are now out of work, 165,000 more than a year earlier, the Financial Times reported.
On 12 October, natural gas prices in Europe shot up to their highest since March as traders worried that the new Mideast war will sharpen global demand for fossil fuels. Also, Finland speculated that a leaking pipeline between it and Estonia had been sabotaged.
Investors in European bonds sold off last week on fears that the European Central Bank will hold rates higher for longer and because Italy’s budget deficit came in larger than expected.
In the first six months of this year, European equity markets saw the fewest initial public stock offerings—just 34—since 2009 during the Great Recession, according to the Financial Times.
Investors are adjusting their holdings in Europe in light of a growing conviction that the region faces a “painful economic downturn,” the Financial Times reported.
In the first six months of this year, London-based Barclays bank set aside £896 million, or about $1.2 billion, to cover loans likely to turn sour, the bank disclosed on 27 July. The amount is more than double that in the first half of 2022.
Slowing inflation in the Eurozone’s two largest economies have raised hopes that the European Central Bank (ECB) will not raise interest rates again when it meets in September after it raised its key rate by another quarter point on 27 July.
HSBC, Europe’s largest bank, announced on 26 June it will leave its self-named Canary Wharf headquarters and move its 8,000 staff members to smaller digs in “The City,” the London district equivalent to New York’s Wall Street.
The European Commission (EC), the European Union’s administrative body, has published draft rules that would govern the creation and implementation of a digital euro.