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Brexit: euro zone resists Britain's pain

Thursday, July 28, 2016 - 01:49

The aftershocks of Britain's Brexit referendum are running through British jobs and consumer confidence. But not in the euro zone, where the economy is proving surprisingly resilient to the UK's decision to leave the EU. Laura Frykberg reports.

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A month on, and Britain's Brexit is beginning to bite. And the teeth are sinking much deeper into the UK, than Europe. Britain's biggest bank, Lloyds, says it's cutting thousands of jobs. Predicting growth will stall in the month's ahead. (SOUNDBITE) (English) INDEPENDENT MARKET ANALYST, DARREN SINDEN, SAYING: "At the moment, it's to early to say, but I think people are having a good, hard think about what Brexit might mean to them and their businesses." Britons' consumer confidence has also crashed. Dropping to its lowest monthly level in six years in July, says a new survey. People appear particularly concerned with property prices. Property transactions are stalling, according to one of the UK's biggest property agencies. Is a recession in the making? Maybe. SOUNDBITE) (English) PANMURE GORDON, CHIEF ECONOMIST, SIMON FRENCH, SAYING: "It's a possibility in Q4, going in to Q1 next year." On the continent, things are chipper. Germany remains the engine of euro zone growth. Consumer prices look set to rise further in July. Employment data, too, remains stronger than ever. (SOUNDBITE) (English) CHIEF ECONOMIST, WORLD FIRST JEREMY COOK SAYING: "For the wider euro zone economy, you don't really want too much German employment data peeking higher, we want to see employment in Spain running high, employment in Greece, Portugal and Italy running higher." In Spain at least that seems to be happening. Unemployment has fallen to twenty percent - its lowest quarterly level in almost six years. Portugal is also a rosier picture, business confidence there is up. Once Britain leaves once and for all, economist warn Europe won't escape completely unscathed. For the moment though, it appears you're better together than alone.

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Brexit: euro zone resists Britain's pain

Thursday, July 28, 2016 - 01:49