14 Aug 2015
EZ disappointing - BBH
FXStreet (Guatemala) - Analysts at Brown Brothers Harriman explained that yesterday's record (minutes) of the ECB meeting expressed disappointment with the eurozone's recovery.
Key Quotes:
"Today, the three biggest economies reported weaker than expected growth. German growth was put at 0.4%, not the 0.5% the market expected, though still a tad faster than the 0.3% growth recorded in Q1. The French economy unexpectedly stagnated, whereas the consensus was for a 0.2% expansion.
The upward revision in Q1 to 0.7% from 0.6% makes the slow down even more pronounced. Italy had been expected to have expanded by 0.3%, but instead grew 0.2%. This expands the streak to three-quarters without a contraction, which is the longest since Q4 10-Q2 11. Growth in the eurozone as a whole slowed to 0.3% from 0.4% in Q1. The consensus was for the pace to have remained the same."
Key Quotes:
"Today, the three biggest economies reported weaker than expected growth. German growth was put at 0.4%, not the 0.5% the market expected, though still a tad faster than the 0.3% growth recorded in Q1. The French economy unexpectedly stagnated, whereas the consensus was for a 0.2% expansion.
The upward revision in Q1 to 0.7% from 0.6% makes the slow down even more pronounced. Italy had been expected to have expanded by 0.3%, but instead grew 0.2%. This expands the streak to three-quarters without a contraction, which is the longest since Q4 10-Q2 11. Growth in the eurozone as a whole slowed to 0.3% from 0.4% in Q1. The consensus was for the pace to have remained the same."