January 31, 2020

France, Italy Drag Euro-Area Economy to Worst Quarter Since 2013
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. The euro-area economy barely grew at the end of 2019 as unexpected contractions in France and Italy dealt the bloc its weakest quarter in almost seven years.The surprise slump in two of the region’s biggest nations is yet another blow for their governments. President Emmanuel Macron is already under fire amid protests over controversial pension reforms, while Italy’s fragile coalition is scarred by internal skirmishes.Output in the 19-nation region rose just 0.1% in the fourth quarter, down from 0.3% in the previous period, and underlying inflation slowed in January to the weakest in three months. The French economy shrank 0.1%, and Italy posted a 0.3% contraction. Germany has previously said it posted slight growth at the end of 2019 -- the official reading is due next month.The economic gloom may prove to be temporary. Surveys have suggested that the rot has been stemmed for now. The European Central Bank says the risks to the outlook have become “less pronounced,” and more signs of improving momentum came Thursday when the European Commission reported a marked rise in sentiment in January, led by manufacturing and construction.What Bloomberg’s Economists Say“Growth momentum is set to build into 2020 reflecting fewer risks from the global economy -- trade tension between the U.S. and China have eased somewhat and the worst type of Brexit should be avoided. We see quarterly growth of 0.3% through 2020.”\-- Jamie Rush. Read the EURO-AREA REACTStill, the reports could revive calls for more spending by countries that have fiscal space, such as Germany. The ECB has repeatedly called for action, and the European Union’s executive arm is planning to publish a document next week asserting that the euro zone’s fiscal rules are too convoluted.The yield on German 10-year debt has slipped in recent days and fell below -0.4% for the first time in three months. The euro was little changed at $1.1031 at 11:57 a.m. Frankfurt time on Friday.Trade risks have returned to the fore with the U.S. renewing threats last week to raise duties on imports of cars from the EU, and France only narrowly avoiding American tariffs on wine and cheese in a dispute over digital taxation. The U.S. just reported the biggest drop in imports since 2009, and new concerns are emerging such as the coronavirus and the hit to Chinese and global growth.Read our Virus UpdateFrench cognac maker Remy Cointreau has already sounded a note of caution over the impact of the virus on its business in China and ditched its guidance for the year. Airlines including Germany’s Lufthansa cut flights, and Finnish elevator-maker Kone expect a hit on bottom lines amid factory closures.French Finance Minister Bruno Le Maire blamed his economy’s poor results on disruptions in ports, the rail network and fuel deposits and highlighted resilient consumption and business investment.“This temporary slowdown does not call into question the fundamentals of French growth,” he said. Without the curb from companies using up stocks rather than increasing production, the economy would have expanded about 0.3%.One bright spot was Spain, where the government woke up to more evidence that the economy is one of Europe’s outperformers. Faster-than-anticipated growth of 0.5% was driven by buoyant exports and a strong increase in services.\--With assistance from Harumi Ichikura, Kristian Siedenburg, Jeannette Neumann, John Follain and Zoe Schneeweiss.To contact the reporters on this story: William Horobin in Paris at whorobin@bloomberg.net;Jana Randow in Frankfurt at jrandow@bloomberg.netTo contact the editors responsible for this story: Fergal O'Brien at fobrien@bloomberg.net, Paul GordonFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Related Stories
Latest News
Top news around the world
Coronavirus Disease

Coronavirus disease (COVID-19) is an infectious disease caused by a newly discovered coronavirus.

Most people infected with the COVID-19 virus will experience mild to moderate respiratory illness and recover without requiring special treatment. Older people, and those with underlying medical problems like cardiovascular disease, diabetes, chronic respiratory disease, and cancer are more likely to develop serious illness.

Around the World

Celebrity News

> Latest News in Media

Watch It
Julia Fox defends viral ‘Uncut Gems’ interview moment: ‘I was stoned’ | Page Six Celebrity News
February 17, 2022
4m-p0_-ePd8
Alexia Echevarria pushed ‘RHOM’ producers to show more of son Frankie’s recovery | Page Six
February 17, 2022
E-wTaN9NfkI
Pete Davidson rejoins Instagram amid Kanye West drama | Page Six Celebrity News
February 17, 2022
SsC3dmsI6t4
Aaron Rodgers And Shailene Woodley Reportedly Break Up | TMZ LIVE
February 17, 2022
FoErdRE8Qe4
Chet Hanks Done Talking About Famous Parents, Becoming Personal Trainer | TMZ
February 16, 2022
5_UrULOkQ6o
Woman Stabbed at Foot Locker During Nike Shoe Release
February 16, 2022
TfuXMs1JdVg
Steph's Freaky Side, "Summer House" & "Love During Lockup"
February 17, 2022
9W_raO0zlA8
Tay or Nay, Offset's Sushi Anxiety & Nick on Monogamy
February 17, 2022
PauYHpJRA6o
Kim Kardashian & North West TWINNING in Matching Pajamas | E! News
February 17, 2022
b-_Oib6R108
Adam McKay - Hollywood Walk of Fame Ceremony
February 17, 2022
tYtzsHoOZzo
Tom Holland, Mark Wahlberg, and the Cast of 'Uncharted' Talk Most Challenging Stunts
February 15, 2022
d3ksX-SKi8c
Ryan Reynolds and Walker Scobell on ‘The Adam Project’, ‘Deadpool’, and Possible ‘Star Wars’ Role
February 16, 2022
5TxJsbJr9Dk
TV Schedule
Late Night Show
Watch the latest shows of U.S. top comedians

Sports

Latest sport results, news, videos, interviews and comments
Latest Events
04
May
CONCACAF CHAMPIONS LEAGUE: Playoffs
Seattle Sounders - Pumas
04
May
USA: Major League Soccer
FC Cincinnati - Toronto FC
03
May
ENGLAND: Championship
Bournemouth - Nottingham Forest
02
May
ENGLAND: Premier League
Manchester United - Brentford
02
May
ENGLAND: Championship
Fulham - Luton
02
May
SPAIN: La Liga
Getafe - Real Betis
02
May
GERMANY: Bundesliga
Bayer Leverkusen - Eintracht Frankfurt
02
May
GERMANY: Bundesliga
Borussia Monchengladbach - RB Leipzig
02
May
ITALY: Serie A
Atalanta - Salernitana
01
May
ENGLAND: Premier League
Tottenham Hotspur - Leicester City
01
May
SPAIN: La Liga
Barcelona - Mallorca
01
May
ITALY: Serie A
Roma - Bologna
01
May
ENGLAND: Premier League
West Ham United - Arsenal
01
May
ENGLAND: Premier League
Everton - Chelsea
01
May
ITALY: Serie A
Udinese - Inter Milan
01
May
ITALY: Serie A
AC Milan - Fiorentina
01
May
ITALY: Serie A
Juventus - Venezia
01
May
SPAIN: La Liga
Rayo Vallecano - Real Sociedad
30
Apr
GERMANY: Bundesliga
Mainz - Bayern Munich
30
Apr
GERMANY: Bundesliga
Borussia Dortmund - Bochum
30
Apr
ENGLAND: Premier League
Newcastle United - Liverpool
30
Apr
SPAIN: La Liga
Athletic Bilbao - Atletico Madrid
30
Apr
ENGLAND: Premier League
Leeds - Manchester City
30
Apr
SPAIN: La Liga
Real Madrid - Espanyol
30
Apr
ITALY: Serie A
Napoli - Sassuolo
28
Apr
ENGLAND: Premier League
Manchester United - Chelsea
27
Apr
CHAMPIONS LEAGUE: Semifinal
Liverpool - Villarreal
27
Apr
ITALY: Serie A
Bologna - Inter Milan
26
Apr
CHAMPIONS LEAGUE: Semifinal
Manchester City - Real Madrid
25
Apr
ITALY: Serie A
Sassuolo - Juventus
24
Apr
SPAIN: La Liga
Barcelona - Rayo Vallecano
24
Apr
ITALY: Serie A
Lazio - AC Milan
24
Apr
ENGLAND: Premier League
Liverpool - Everton
24
Apr
ENGLAND: Premier League
Chelsea - West Ham United
24
Apr
ITALY: Serie A
Empoli - Napoli
23
Apr
ENGLAND: Premier League
Brentford - Tottenham Hotspur
Find us on Instagram
at @feedimo to stay up to date with the latest.
Featured Video You Might Like
zWJ3MxW_HWA L1eLanNeZKg i1XRgbyUtOo -g9Qziqbif8 0vmRhiLHE2U JFCZUoa6MYE UfN5PCF5EUo 2PV55f3-UAg W3y9zuI_F64 -7qCxIccihU pQ9gcOoH9R8 g5MRDEXRk4k
Copyright © 2020 Feedimo. All Rights Reserved.