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Euro zone data beats Brexit blues for now

Tuesday, June 14, 2016 - 01:33

Euro zone industrial production rebounded in April on a monthly basis after two consecutive falls. As Hayley Platt reports, the better than expected data was largely due to a surge in output of durable consumer goods, like cars.

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Europe's been buying more durable goods. Fridges, freezers top of the list and cars. France and Germany, the biggest movers after two months of falls. Even Italy managing a small rise (0.5 percent) For an economy so long stuck in the slow lane, evidence it's picking up a gear - even if still loaded with many other challenges. SOUNDBITE (English) CCLA, CHIEF INVESTMENT OFFICER, JAMES BEVAN, SAYING: "I think the recovery in the euro zone will be hesitant, slow and be a long time in coming through. Unemployment in the euro zone is a significant and ongoing problem particularly amongst younger people. Therefore not surprisingly we should expect rising unrest in the democracies of europe when it comes to voting and I worry that there may be a shift towards protectionism." For the European Central Bank, the problem is deflation. But the first week of its corporate bond buying scheme seems to have started in top gear. The ECB buying 348 million euros worth of corporate bonds in a single day. SOUNDBITE (English) CCLA, CHIEF INVESTMENT OFFICER, JAMES, BEVAN, SAYING: "Mr Draghi has been a man of his word attempting to do everything that he can to keep the euro zone part alive. What he has not been able to address are the global deflationary trends associated with excess inventory and over production, the dumping of cheap goods and services below the rational cost of production." UK inflation meanwhile held steady in May despite expectations for a small rise. The data coming as the British economy heads into a Brexit vote that could, say pessimists, put Europe back in the slow lane.

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Euro zone data beats Brexit blues for now

Tuesday, June 14, 2016 - 01:33