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16 Aug 2013
Flash: Europe Economic Weekly – BAML
FXstreet.com (Barcelona) - Research teams at BofA and Merrill Lynch offer highlights for the EZ.
Key Quotes:
“EZ, Still a slow healing economy, despite surprises. Although we don't think the upside Q2 GDP surprise means a significant change in the outlook and we think the economy will still gain momentum very gradually, positive risks have emerged and risks are now more balanced”.
“UK, The path to the 7% unemployment rate threshold. The BoE's decision when to raise rates will be driven by a wide assessment of the state of the economy, not just by when the unemployment rate reaches 7%, in our view. But incoming data this week was again stronger than expected”.
“Peripheral Watch: Portugal surprises. GDP releases provided positive surprises across the periphery, most notably in Portugal. We still expect the economy to grow at positive rates not too far from zero for the rest of the year but political risks will remain elevated”.
“The week ahead: Next week, we expect further improvements in euro-area PMIs. German GDP details are likely to reveal a rebound in investment and exports, while we expect private consumption to have slowed from Q1”.
Key Quotes:
“EZ, Still a slow healing economy, despite surprises. Although we don't think the upside Q2 GDP surprise means a significant change in the outlook and we think the economy will still gain momentum very gradually, positive risks have emerged and risks are now more balanced”.
“UK, The path to the 7% unemployment rate threshold. The BoE's decision when to raise rates will be driven by a wide assessment of the state of the economy, not just by when the unemployment rate reaches 7%, in our view. But incoming data this week was again stronger than expected”.
“Peripheral Watch: Portugal surprises. GDP releases provided positive surprises across the periphery, most notably in Portugal. We still expect the economy to grow at positive rates not too far from zero for the rest of the year but political risks will remain elevated”.
“The week ahead: Next week, we expect further improvements in euro-area PMIs. German GDP details are likely to reveal a rebound in investment and exports, while we expect private consumption to have slowed from Q1”.