All the latest business and financial news, including warnings from Austria’s central bank chief over eurozone economyLatest: Nowotny backs Draghi’s balance sheet planSays QE could be valuableEuro hits new 28-month low 11.24am GMT Over in Brussels, eurozone finance ministers have convened for the monthly Eurogroup meeting.They’ll be considering what to do about Greece. The Greek government passed its 2015 budget last night but has not yet reached agreement with its lenders to unlock its last aid payment from Europe.#Eurogroup meeting today to assess eurozone member states' draft budget plans for 2015 and to discuss Greece's economic adjustment programme#Germany finance minister #Schaeuble expects #EU governments to 'find a way' for #Greece #EUROGROUP #ecofinEU's Moscovici: No decision on today on #Greece bailout extension - @reuters 11.07am GMT The oil price is weakening this morning, hitting new five-year lows on speculation that a supply glut is building up.Last night’s high jump in China’s trade balance figures has seen commodity and mining stocks in the FTSE lose some of their appeal. 10.43am GMT Austria’s Ewald Nowotny has gone on to express support for a full-blown quantitative easing programme in the eurozone:Reuters has the details: Extending European Central Bank asset purchases to government bonds, or quantitative easing, can play a valuable role in addressing the economic weakness of the euro zone, a senior ECB policymaker and head of Austria’s central bank said on Monday.Asked whether a programme of quantitative easing would be sensible in addressing the weakness of the euro zone’s economy, Ewald Nowotny said: “As a supportive measure in the context of a comprehensive plan, it can certainly be valuable.”Euro lower as #ECB's Nowotny changes language. Says ECB sees massive weakening of Eurozone economy. pic.twitter.com/pzzUc0tu1o 10.19am GMT Ewald Nowotny also warned that there is a “high probability” that eurozone inflation would slow further in the coming months, from 0.3% in November.That makes sense, given recent tumbles in energy prices. Credit Agricole suggested last week that eurozone inflation could dip briefly below zero in early 2015. 10.06am GMT This chart shows how Ewald Nowotny’s dovish comments has pushed the euro down to its lowest point since August 2012: 9.47am GMT A senior European Central Bank policymaker has warned that the eurozone economy is suffering a “massive weakening”, sending the euro down to a new two-year low.“We see a massive weakening in the euro zone economy.”“The balance sheet of the ECB should reach the levels at the start of 2012, a level which is around 1 trillion euros higher than it is now,”Very bearish comments from Nowotny. Did the dog eat the recovery again?EUR/USD moving lower this morning on dovish comments from #ECB Nowotny, though seemed largely in line with Draghi pic.twitter.com/qk2pCa7nXL 9.25am GMT Shares in Marks & Spencer have fallen over 3% this morning, after it made a stumbling start to the crucial Christmas period.Problems at M&S’s Castle Donington distribution centre has forced it to delay online orders for several days, up to a fortnight in some cases.Disappointed customers have been complaining on social media about delays to their orders which have been caused by problems at the retailer’s distribution centre in Castle Donington, Leicestershire, which opened in May last year.While some orders have been delayed by up to two weeks, next-day deliveries to customers’ homes have been taking up to two or three days and M&S has withdrawn its next-day deliveries to stores.@marksandspencer poor service from M&S who supposedly prides itself on delighting it's customers !!ordered Xmas tree 24th nov STILL WAITING! 9.04am GMT Jasper Lawler of CMC Markets confirms that the gloomy news from Asia has dampened the mood in Europe’s markets: An implosion in Chinese trade data and a bigger than expected Japanese contraction in the third quarter demonstrate the constraints that Asia’s two largest economies are putting on global growth.Japanese GDP confirmed that Q3’s recession is worse than previously estimated (annual and quarterly) along with a worsening October Trade deficit and decline in November business sentiment surveys.This is coupled with a Chinese November Trade Surplus rising to an unexpected record high, but at the expense of growth in both exports and import, with the former slowing markedly and the latter actually dropping into contraction suggesting a worsening of the slowing growth trend in the world’s second largest economy. 8.42am GMT China’s stock market spiked after its disappointing trade data hit the wires.The main Shanghai index leapt by over 4%, driven by predictions that the Beijing government might launch more stimulus measures.One scary chart as China stock mkt surges on. Up 50% since summer and highest for nearly 4 yrs. chart via @FT pic.twitter.com/MaPGhGq5orRetail investors just opened the most new accounts in China in 3 years last week. http://t.co/Y5tHxC9gWl pic.twitter.com/EBB9SG6Iqc 8.36am GMT The triple-whammy of bad news from Japan, China and Europe has hit Europe’s stock markets.The main indices are all in the red:Europe opens in the red with DE Industrial Production miss adding to bigger JP Q3 recession and CN trade data adding to slowing growth fears 8.25am GMT The third piece of gloomy news this morning comes from China.The decline in trade numbers probably was due in part to a crackdown aimed at ending misreporting by traders as a way to evade Chinese capital controls, but also indicates the underlying activity is weakening, said Julian Evans-Pritchard of Capital Economics in a report.“The magnitude of the fall suggests that underlying export growth has weakened too,” said Evans-Pritchard. As for imports, “the sharp fall also hints at a further cooling of domestic demand. 8.12am GMT Carsten Brzeski, economist at ING, is hoping that Germany’s “soft spell” is coming to an end, despite October’s small rise in industrial production.The German economy should soon benefit from the weak euro and falling oil prices, something he dubs “a very special stimulus package”: As experienced in the past, the German economy is one of main beneficiaries from lower energy prices and a weaker exchange rate. This positive effect should start to kick in in the coming months. 8.01am GMT The early news from Europe isn’t too cheery either; German industrial production rose by less than expected in October.New figures showed that industrial output rose by just 0.2% in October, missing forecasts of growth of up to 0.4%.“German industry had a weak start to the fourth quarter but given the better order levels, we expect a strong development in the coming months.”German industrial frustration. 7.54am GMT Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.A new week begins with bad news from Japan, which is deeper in recession than first feared.“We are exiting the era when bond markets were closed to us and we needed bailout loans to survive”. Continue reading...
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