* Eurozone economic growth ‘not enough’ to create jobs * Asian markets bank weekly gains after choppy trading session * Latest UK construction data due 9.09am BST How low could oil prices go? Much lower, according to analysts at Goldman Sachs, who suggest oil could slide to just $20 a barrel. Goldman analysts said: The oil market is even more oversupplied than we had expected and we now forecast this surplus to persist in 2016 on further OPEC production growth, resilient non-OPEC supply and slowing demand growth, with risks skewed to even weaker demand given China’s slowdown and its negative EM feedback loop... WHILE NOT OUR BASE CASE, THE POTENTIAL FOR OIL PRICES TO FALL TO SUCH LEVELS, WHICH WE ESTIMATE NEAR $20/BBL, IS BECOMING GREATER AS STORAGE CONTINUES TO FILL. Operational stress is a growing downside risk to our forecast. This further creates the risk that a slowdown in production takes place too gradually forcing oil markets to clear as they historically have, through a collapse to production costs once the surplus breaches logistical and storage capacity. WHILE NOT OUR BASE CASE, THE POTENTIAL FOR OIL PRICES TO FALL TO SUCH LEVELS, WHICH WE ESTIMATE NEAR $20/BBL, IS BECOMING GREATER AS STORAGE CONTINUES TO FILL. 8.28am BST Greece’s elections later this month raise the intriguing possibility of a coalition between the traditional conservative party New Democracy and leftist former governing party Syriza. Opinion polls have put Syriza and New Democracy neck and neck – far from the easy victory Syriza leader Alexis Tsipras imagined when he called the election to shore up support for the controversial bailout agreement. This is the country’s last chance...I am mature. I’m ready, with a plan, with the party’s top brass and a united parliamentary group, to pull the country out of the crisis. 8.11am BST ECONOMIC GROWTH IN THE EURO ZONE IS STILL TOO WEAK TO CREATE ENOUGH JOBS, ACCORDING TO A SENIOR FIGURE AT THE EUROPEAN CENTRAL BANK. Benoît Coeuré, a member of the bank’s executive board, told French newspaper group EBRA on Friday that growth was not sufficient for job creation. Growth is still not strong enough to create a sufficient number of jobs. Europe will first have to demonstrate its usefulness by creating more growth and more jobs. The important thing is that Greece and its partners trust each other again. On this basis, there will be room for manoeuvre when it comes to adapting the programme after the elections, for example in terms of labour market reforms and tackling vested interests, provided that the objectives of the programme are met. 7.56am BST GOOD MORNING, AND WELCOME TO OUR ROLLING COVERAGE OF THE WORLD ECONOMY, THE FINANCIAL MARKETS, THE EUROZONE AND THE BUSINESS WORLD. EUROPEAN STOCKS ARE SET TO MAKE THEIR BIGGEST WEEKLY GAIN SINCE JULY, AMID ONGOING VOLATILITY ON GLOBAL MARKETS. Continue reading...
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