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A bad time to be jobless?

Tuesday, June 03, 2014 - 01:50

June 3 - Euro zone's inflation has unexpectedly fallen again, prompting fears over the bloc's recovery. As Ivor Bennett reports it makes action from the European Central Bank later this week almost a certainly.

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One more on the jobless list - the Spanish King is not alone. As many as 1 in 4 in Spain are still out of work. While the numbers are improving - 110,000 returned to work in May - many have had enough. De Vere's Tom Elliot says the growing anger is a reason behind the king's abdication. (SOUNDBITE) (English): TOM ELLIOTT, INVESTMENT STRATEGIST, DE VERE GROUP, SAYING: "It's a sense of we need to change the political structure that got us into this mess. And if you like, the current king with all the recent revelations of scandals epitomises that." Across the euro zone, unemployment is in fact falling. down 0.1 percent to 11.7. But the headline figure is hiding huge variations. In France the jobless rate is a record high; while Greece is even worse off than Spain. The bloc's other concern is inflation. which unexpectedly fell last month from 0.7 percent to 0.5 percent. That's back to where it was in March. Firmly within the ECB's dangerzone, it piles pressure on bank chief Mario Draghi to act. (SOUNDBITE) (English): TOM ELLIOTT, INVESTMENT STRATEGIST, DE VERE GROUP, SAYING: "Draghi has a couple of options - sits on his hands, do nothing and watch continued stagnation in much of the euro zone periphery. But I think he will engage in something. And a number of options are available. the most obvious is to cut interest rates perhaps by 25 basis points." Like the King of Spain, the ECB doesn't always do the obvious. It might look at more long term refinancing options instead. But either way markets should be happy - for them, anything right now is better than nothing.

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A bad time to be jobless?

Tuesday, June 03, 2014 - 01:50