Is the eurozone at a turning point? The bloc’s GDP grew by just 0.1% in the fourth quarter of 2019, the slowest pace in almost seven years, says Elliot Smith for CNBC. Weak German manufacturing has weighed on wider performance and the coronavirus is more bad news for an economy where exports account for roughly 45% of GDP. Yet better survey data and sentiment indicators since the new year suggest that the slump could be bottoming out.
Fabio Balboni of HSBC points out that German wage growth has hit a 20-year high and unemployment is falling across the eurozone, so consumption could be in for a pick-up. That mildly positive outlook is buttressed by extremely loose monetary policy from the European Central Bank, which has cut interest rates and started buying bonds again last September.
For investors the most encouraging sign is a return to earnings growth. European businesses averaged around a 5% contraction in earnings per share during the first three quarters of 2019, according to Morgan Stanley. Yet the fourth-quarter earnings season looks encouraging, with earnings per share on track to rise 2.1% year on year.
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And there may be better news ahead. Germany’s January Purchasing Managers’ Index expanded at it quickest pace in five months, reports Michael Searles for City AM. Throw in reasonable valuations, and the region’s equities are hardly a write-off.
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UK inflation slowed again in March – but a rate cut could be some months awayThe latest Consumer Price Index (CPI) data came in at 3.2% for March, taking us closer to the Bank of England’s 2% inflation target.
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Pension vs property: which option provides the best income for your retirement?News With the cost of a comfortable retirement on the rise, future retirees need to weigh up which strategy offers the best returns. But is a pension a better bet than property?
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Halifax: House price slump continues as prices slide for the sixth consecutive monthUK house prices fell again in September as buyers returned, but the slowdown was not as fast as anticipated, latest Halifax data shows. Where are house prices falling the most?
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Rents hit a record high - but is the opportunity for buy-to-let investors still strong?UK rent prices have hit a record high with the average hitting over £1,200 a month says Rightmove. Are there still opportunities in buy-to-let?
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Pension savers turn to gold investmentsInvestors are racing to buy gold to protect their pensions from a stock market correction and high inflation, experts say
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Where to find the best returns from student accommodationStudent accommodation can be a lucrative investment if you know where to look.
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UK recession: How to protect your portfolioAs the UK recession is confirmed, we look at ways to protect your wealth.
