The CBI’s December manufacturing survey was stronger than expected, signalling strength in the economy as 2016 draws to a close * Drugs company Actavis scrutinised for price hikes * Ifo raises forecasts for German growth * FTSE climbs back above 7,000 * Eurozone inflation confirmed at 0.6% in November * Insee: French business confidence rises 12.05pm GMT GREECE’S CENTRAL BANK HAS APPEALED FOR AN END TO THE STANDOFF BETWEEN THE GOVERNMENT AND THE COUNTRY’S CREDITORS. This emerging positive momentum in the economy needs to be supported and consolidated through adherence to the programme targets and an accelerated implementation of the reforms and privatisations agreed on. Specifically, the Bank of Greece expects GDP to grow by a marginal 0.1% in 2016, before picking up to 2.5 % in 2017 and further to 3% in 2018 and 2019, supported by investment, consumption and exports. There is not much time left, in the light of upcoming national elections in a number of euro area countries. Related: Greece under fire over Christmas bonus for low-income pensioners 11.35am GMT PAUL HOLLINGSWORTH, UK ECONOMIST AT CAPITAL ECONOMICS, SAYS THE CBI SURVEYS SUGGESTS THE WEAKER OFFICIAL MANUFACTURING DATA FOR OCTOBER WILL PROVE TO BE A BLIP. [It] suggests that the 1% monthly fall in manufacturing output in October, as revealed by the ONS figures earlier this month, was just a temporary blip. Accordingly, we continue to think that GDP growth will become better balanced over the coming quarters. Despite the decent December CBI industrial trends survey, there are significant potential problems for the manufacturing sector that look likely to build up in 2017. In particular, business confidence is likely to be hampered by mounting uncertainty over the Brexit process, constraining investment plans and limiting demand for capital goods. Continue reading...
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