Spain’s economy minister: third Greek rescue inevitable Eurozone PMI surveys signal 0.3% growth in Q1Greece pushes through T-bills saleEurozone retail sales surge in January UK services sector growth slows 11.37am GMT Spain’s economy minister is happily wading in on the Greek debate again today after getting in to a bit of hot water earlier in the week. We have given ourselves these four months to one, see what the real situation is, to see how Greece has met conditions and to try and establish what happens next ... which is fundamentally a third rescue. 11.05am GMT Athens has managed to sell €1.138bn (£825m) of six-month Treasury bills, allowing it to refinance a maturing issue.It was a test of the county’s ability to raise funds as at critical time for Greece. #Greece successfully sells 1.14bn euro worth of 26-week T-bills at yield of 2.97% - up from 2.75% last month#Greece sold 26-Week T-bills Uniform Yield at a pricey 2.97% vs 2.75% on Feb 4. 10.44am GMT Consumers in the eurozone did their bit to boost the flagging economy in January.EU retail sales figures up by much more than expected at 1.1% (expected to be up by only 0.1%). 10.15am GMT More reaction to the UK services PMI now, which revealed a slight slowdown in growth in February.The detail of the survey was more positive than the headline number suggested, with employment, new business and optimism among firms all up at a stronger rate than January.The slight deterioration in February’s CIPS/Markit report on services is a bit of a disappointment, but hardly a disaster. Contrary to expectations of a rise, the headline business activity index dipped from 57.2 in January to 56.7.But this reversed only part of the previous month’s rise and left the index still consistent with decent quarterly growth of services output of just below 1%. And the drop looks likely to be temporary, given that the new business, business expectations and employment indices all rose.Despite a small dip, the UK services PMI points to strong growth. The services PMI fell to 56.7 in February from 57.2, below consensus expectations for a rise. Some correction had been on the cards given the large jump in the index last month, so it is hardly anything to start worrying about or pinning ‘UK slowing’ statements on. At 56.7, the survey continues to point to strong, probably above trend growth. That reading is above the pre-crisis average, pointing to a rapid pace of expansion. Data from the UK services sector remained solid in February and continues the belief that any dip in fortunes seen towards the end of last year was merely a blip.The services sector continues to add jobs, with February’s additions coming at the second highest rate on record. Higher wages are also being seen for sector participants which is a necessary and welcome reaction to tightness in the labour market and competition between companies. 9.56am GMT Continued growth in the UK services sector - accounting for three quarters of the economy - suggests the chancellor is not in store for a nasty shock in the run-up to the election.According to Markit, it puts the economy on course for solid growth of 0.6% in the first quarter, following 0.5% growth in the fourth quarter of 2014. UK all-sector PMI edged higher to 57.0 in Feb. On course for +0.6% GDP rise in Q1. Near-record job growth also seen. pic.twitter.com/t6zJ7MWNqn 9.41am GMT The Markit/CIPS PMI survey for the UK has disappointed City forecasts.The headline index came in at 56.7 in February, down from 57.2 in January. But with anything above 50 signalling growth, it is still a pretty decent result. 9.32am GMT The detail of the February composite services PMI for the eurozone shows that bailout countries Spain and Ireland continue to enjoy the fastest expansion.The much more competitive euro, sharply reduced oil prices and ECB stimulus seems to be increasingly fostering a more favourable growth environment, and it is notable that overall business and consumer confidence across the eurozone rose for a second successive month in February to be at seven-month high. The marked retreat in the euro to recently hit an 11-year low of US$1.1098 is very helpful for eurozone competitiveness and growth prospects while much reduced oil prices are helping companies’ margins as well as consumers’ purchasing power. 9.08am GMT Markit’s composite PMI for the eurozone - measuring services and manufacturing activity across the region - indicates the fastest economic growth in seven months in February.The composite headline index increased to 53.7 in February from 52.7 in January.#Eurozone PMI at 7-month high in Feb. Signals +0.3% GDP in Q1. Job creation at 3½-year high http://t.co/1o3JkWKxlH pic.twitter.com/rjc5GOF2Xd 8.59am GMT The remaining eurozone services PMI’s are starting to roll in and reveal mixed fortunes.Headline indices: 8.53am GMT Investors across Europe have a spring in their step this morning, with all major indices up slightly. 8.42am GMT Bosses at Standard Chartered have revealed they will not take a bonus following a sharp fall in profits at the Bank last year.Standard Chartered board directors waive bonuses as profits slump by more than a quarter for 2014 8.28am GMT The detail of Markit’s Spanish services PMI survey shows that despite the drop in the headline number, there were some positives.New orders rose at the fastest pace in seven months, while jobs in the sector were created at the fastest rate since November 2007, before the eurozone’s meltdown.The Spanish service sector maintained its recent run of growth in February, and there were several causes for optimism within the underlying data. Companies took on extra staff at a solid pace, and one that was the strongest since November 2007. Moreover, business sentiment improved to the highest in 11 years, signalling that companies expect recent growth to be sustained in the near- term at least.Still-elevated all-sector PMI of 56.0 in Feb means #Spain looks set for 0.7% GDP growth in Q1 pic.twitter.com/lbbB2ATDJM 8.19am GMT The headline index measuring acticvity in Spain’s services sector fell to 56.2 in February from 56.7 in January.It’s not a big fall, and still indicates the sector is growing (anything above 50), but the number is lower than economists were forecasting. 8.10am GMT Meanwhile overnight in China, the HSBC/Markit services PMI suggested activity grew modestly in February. New orders rose at the fastest pace in three months.The headline index picked up to 52 from 51.8, where anything above 50 indicates expansion, so no horror stories there.China February HSBC services PMI edges up to 52.0 as orders improve http://t.co/pxgz5I13rF 7.52am GMT Good morning, and welcome to our rolling coverage of the world economy, the financial market, the eurozone, and business.The main data out this morning are the February services PMI surveys from around Europe.We have seen some silver linings in this week’s European economic data so far and today’s services data could well add to those with improvements expected in the latest Spain, Italy, France and Germany services PMI’s for February.In the wake of yesterday’s blow out German retail sales numbers, we are expecting a similarly positive improvement from the broader eurozone January retail sales numbers as well, with a rise of 2.5% expected. Continue reading...
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