Rolling economic and financial news, as the latest survey of eurozone factories shows a worrying drop in new orders 9.29am GMT France and Italy both remain serious sources for concern, says Howard Archer of IHS Global Insight, who has rapidly digested todays PMI reports.Archer adds:Heightened geopolitical tensions particularly related to Russia/Ukraine have weighed down on confidence across the Eurozone, reinforcing still challenging conditions in many countries and this has likely caused some orders to be delayed or even cancelled. Meanwhile, credit conditions are currently still tight in many countries, unemployment is still elevated and seems likely to creep down at best over the coming months, private and public debt levels remain high in several countries, while consumer purchasing power is constrained by generally limited wage growth. 9.15am GMT The eurozone manufacturing sector remains wedged in near-stagnation, according to analysis of this mornings surveys from firms across the region.The growth in Germany and Spain (details start here) was wiped out by Italys disappointing return to contraction, and the ongoing weakness in France.Weak demand continued to restrict growth of both output and employment across the currency union.....The downturn in France accelerated and Italy fell back into contraction. The rate of deterioration in Greece eased, while Austria fell further from the rest of the pack as its PMI sank to a two-year low Manufacturing is unlikely to provide any meaningful boost to the currency unions anaemic GDP growth.Perhaps most worrying is the trend in new orders, a key bellwether of future output growth, which declined for the second month running. It is hard to see any significant near-term boost to performance while market demand remains insipid and beset by lacklustre domestic conditions, slowing export growth and ongoing economic uncertainties. 9.05am GMT Greeces factory sector suffered another decline in output last month. Its manufacturing PMI rose slightly to 48.8, from 48.4 in September, with export orders picking up. Further contraction in Greek manufacturing: #PMI at 48.8 in Oct (48.4 in Sep) http://t.co/j2xi36570D 8.59am GMT Its a better picture in Germany, where factories reported a rise in activity last month, and an increase in job creation, despite a small drop in new orders.The German manufacturing PMI rose to 51.4 for October, up from Septembers 49.9 (which showed a very slight contraction). 8.56am GMT French factories continued to cut staffing levels last month, Markit reports:French manufacturers cut jobs again in October and for the 7th consecutive month - Markit 8.53am GMT Frances factory sector has shrunk again -- with its manufacturing PMI coming in at 48.5 in October. That shows a sharper contraction than in September (when the PMI was 48.8), but its better than feared. 8.52am GMT Bad news from Italy -- its factory sector has suffered a decline in activity, adding to fears that that country is sliding into recession.The Italian manufacturing PMI fell back to 49.0 last month, down from 50.7 in September, indicating that it contracted (50 is the cut-off point between growth and contraction).The manufacturing PMI resumed its worrying slide seen since May after having ticked up slightly in September. Falling back below 50.0, the index points to Italys manufacturing sector returning to contraction. The survey showed that output dipped in October and, furthermore, a drop in new orders, rapidly shrinking backlogs of work and further accumulation of finished goods bodes ill for Novembers output prospects. 8.41am GMT Spains factory sector has expanded for the 11th month running, but - disappointingly - job creation has slowed.The Spanish PMI was unchanged at 52.6 in October, showing that factories grew at the same pace as in September.The recent solid performance of the Spanish manufacturing sector continued in October in spite of a challenging economic environment. Further rises in output and new orders provide some cause for optimism that the sector wont head into another downturn as 2014 draws to a close. 8.34am GMT Banking giant HSBCs results have just been released, and profits have has missed expectations.#HSBC misses on earnings, reports Q3 profit of $4.61bn vs. $5.47bn expected. $HSBA $FTSE ROHSBC shares how down 2.3% following earnings, probes and provisions 8.27am GMT Back to todays factory data, and theres good news from Poland.Its manufacturing PMI rose to 51.2, showing growth after three months of contractions. 8.19am GMT Europe opens flat ahead of euro zone PMI data, Ryanair up over 6% http://t.co/JjdJy7UpmJShares in Ryanair have jumped by 6% after it raised its profit forecasts this morning.Im a very shy, retiring, Irish farmer. "I'm a shy and retiring Irish farmer" - so says @Ryanair Michael O'Leary on #bbcbreakfast - company profits are up by a thirdThis being nicer to customers is a new and winning strategy. 8.02am GMT HSBCs survey of the Chinese factory sector also found signs of deflation; factory bosses reported a fall in the cost of raw materials, and in their own finished goods.China HSBC Manufacturing #PMI signals marked declines in both input and output prices http://t.co/9qXAnYDadS 7.57am GMT Ireland has bucked the trend of weak growth in Europe and Asia, with factory output growing at a faster rate last month.The Irish manufacturing PMI rose to 56.6 in October, from 55.7 in September, showing that growth accelerated.The latest Investec Manufacturing PMI report for Ireland shows a substantial strengthening in business conditions in October....Octobers improvement is chiefly attributed to a combination of inventory building and resilient client demand . 7.37am GMT The latest manufacturing surveys from Asia have suggested that Chinas economic growth slowed last month, with manufacturers in South Korea and Indonesia also reporting tough times in October.Asias factories are reporting a generalised loss of momentum that speak volumes about the need for more policy stimulus, on top of Japans latest efforts to ignite growth.A raft of regional manufacturing surveys on Monday were littered with unwelcome landmarks, including a five-month low for activity in China, a four-month trough for South Korea and a 14-month low for Indonesia.Even Chinas long resilient services sector saw growth ebb to the slowest in nine months as the cooling property sector weighed on demand. We still see uncertainties, given the property downturn as well as the slow pace of global recovery, and expect further monetary and fiscal easing measures in the months ahead, said Hongbin Qu, chief economist for China at HSBC.HSBCs own version of the purchasing management index (PMI) compiled by Markit was a whisker firmer at 50.4 in October, from the Septembers 50.2, but showed growth slowing in output and new orders, while companies trimmed staff levels for the 12th straight month.Beijing has already cut taxes, quickened some investment projects, offered short-term loans to banks, instructed local governments to spend their budgets and reduced the amount of deposits that some banks hold as reserves to spur lending. 7.33am GMT Good morning, and welcome to our rolling coverage of the financial markets, the world economy, business and finance.Theres lots of economic data coming up this morning, with the publication of Octobers manufacturing Purchasing Managers Indexes (PMIs) for many European countries.Todays latest October manufacturing PMI numbers for Spain, Italy, France and Germany could well serve to increase pressure for additional action on the ECB, particularly if the recent trend of poor Italian and French data continues. Expectations are for slightly weaker numbers of 50.6 and 47.3 respectively, while Spain and Germany are expected to be slightly firmer at 52.4 and 51.8.Expect a neutral opening & a touch of indigestion for European opening after such a euphoric rally last week - FTSE -2, DAX +4, CAC+4 Continue reading...
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