May 24, 2005

BERKSHIRE HALFWAYHOUSE:

Fears over eurozone spark call for rate cut (Gary Duncan, 5/25/05, Times of London)

GLOOM over the eurozone economy deepened yesterday as a leading international think-tank sharply cut its growth forecast for the 12-nation bloc and issued a powerful call for urgent cuts in interest rates.

In the latest blow to hopes for European economic revival, the Organisation for Economic Co-operation and Development cut its forecast for eurozone growth this year to just 1.2 per cent — down from its previous 1.9 per cent projection.

Giving warning of an “abrupt weakening” in activity and “sagging consumer and business confidence”, the OECD ratcheted up pressure on the European Central Bank to make early and steep cuts in eurozone interest rates.


So all those euros are worth as little as the oil futures? Who'da dreamt...

Posted by Orrin Judd at May 24, 2005 10:59 PM
Comments

Just this Sunday, the Philadelphia Inquirer ran a front-page story on the coming EU economic colossus. I tried to read it, but I just couldn't finish it.

Posted by: jim hamlen at May 24, 2005 11:22 PM

Just this Sunday, the Philadelphia Inquirer ran a front-page story on the coming EU economic colossus. I tried to read it, but I just couldn't finish it.

Posted by: jim hamlen at May 24, 2005 11:23 PM

Over at ChicagoBoyz they are running the intrade quote on the French referendum. Its 40-43 and there are only 5 days to go.

Posted by: Robert Schwartz at May 25, 2005 1:22 AM

If you absolutely insist on thinking about exchange rates, remember that they are dependent upon the money supply and that, unless an economy is absolutely tanking, an currency with a tight money policy will raise in value against a currency with an easy money policy. This is one of the many reasons that exchange rates are useless as an economic indicator.

Posted by: David Cohen at May 25, 2005 8:01 AM

David:

Bloody marvellous for holidays though.

They've started doing cheap flights from Bristol to NY. Which city must prepare to be invaded by hordes of squawking British mothers-in-law armed with umbrellas, KitKats, flasks of tea....and fistfuls of dollars which cost them about 50p each.

Posted by: Brit at May 25, 2005 9:47 AM

All to the good, Brit. Send them to me and I'll gladly squire them around New England, carefully pointing out the various battelgrounds where we kicked British ... but I should be gracious in victory.

Posted by: David Cohen at May 25, 2005 10:03 AM

Oh, I've already had all that, following that sodding little red line all over Boston.

There's nothing we Britishers love more than being introduced to the glorious 'history' of the States.

"And this is America's oldest x, built all the way back in...1922."

Cue gasps of astonishment from the Mid-West hicks, flashes from the Japanese cameras, and gallic sneers from the Old Europeans.

Posted by: Brit at May 25, 2005 10:17 AM

Brit - Yes, you Europeans certainly have a glorious...

past.

Posted by: Tom at May 25, 2005 10:40 AM

Who are you calling a European?

Posted by: Brit at May 25, 2005 10:56 AM

Yes, yes, the two thousand year history of Londinium. We Jews are very impressed by that. Hang on for another couple of millenia and you'll really have something there.

Posted by: David Cohen at May 25, 2005 10:58 AM

Yawn.

We've got a whole rugby team composed entirely of Neanderthals.

Posted by: Brit at May 25, 2005 11:04 AM
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