Rolling business and finance news, as the EC admits that eurozone growth will be even slower than previously hopedLatest: EC autumn forecasts show slower growthUK construction growth hit five-month low 11.03am GMT How can we trust these new forecasts, given the previous ones were wrong?Excellent question.Can we trust @EU_Commission economic forecasts? "Nobody knows," says @jyrkikatainen optimistically.1st public dispute between @pierremoscovici & @jyrkikatainen? Mosco seems to think @EU_Commission econ forecasts may be reliable this time 10.55am GMT Pierre Moscovici says he is planning to visit Greece soon, probably before the next meeting of eurozone finance ministers in early December.That eurogroup meeting could be a significant moment in the crisis - ministers might agree a new precautionary credit line for Athens, to kick in when its bailout ends next year.#Moscovici: my first bilateral visit will be to Greece, before 8 Dec, #Katainen adds he will also go 10.51am GMT Commissioners Katainen and Moscovici argue that there is enough flexibility in the eurozone rules for struggling countries..@pierremoscovici says @EU_Commission thinks #eurozone not facing "exceptional" econ sit. No "get out of jail free" for #France, #Italy then#Katainen: rules are relatively flexible depending on economic environment in member states, core flexibility around structural adjustment 10.48am GMT Next question -- Can Germany still be a growth engine for the eurozone?Commissioner Katainen says that Germany can still play a significant role in stimulating the European economy. 10.47am GMT Nous devons prendre nos responsabilités à Bruxelles et ds les pays membres,pour la croissance et l'emploi #ECForecast pic.twitter.com/x9fXG7LO8S 10.44am GMT #Katainen cannot really explain why area is performing so weakly. 10.40am GMT Pierre Moscovici says the recent European elections show that the public can lose faith in the European project:EU Commissioner Moscovici warns 'people could despair of European project'. Stabilisation necessary but Europe needs results on growth/jobs 10.38am GMT Bruno Waterfield of the Daily Telegraph asks why membership of the eurozone leads to higher unemployment and lower growth rates.Commissioner Jyrki Katainen denies that the euro itself is to blame. Instead, he pins the blame on the financial markets.The financial markets did not do their job properly...they were lending money to all member states at similar rates. 10.32am GMT A Spanish reporter points out that the EC has also cut its growth forecast for Spain next year, from 2.1% to 1.7%. 10.32am GMT Moscovici: we will be working at full speed to put in place the EU's 300bn investment program which will be of decisive importance 10.31am GMT Moscovici concludes his statement in Brussels by insisting there is no magic bullet. Governments must work closely together, and their first priority is to boost investment and kick start growth.EU governments must mobilise both demand and supply-side policies to support the recovery in growth and employment. #ECForecast 10.29am GMT Commissioner Moscovici explains that France and Italy will only see very modest recoveries next year.France will suffer from a subdued pace of private consumption, and contracting investment.EU sees v modest recovery in France/Italy. 'Very slow growth' in France in 2015 of 0.7%. Italy will return to growth next yr but only 0.6%Over-view of EU economy. Reduction in deficits set to continue. Debt to reach peak next year but strong risks of stagnation. 10.25am GMT Commissioner Pierre Moscovici (the former French finance minister) has warned that there is no single, simple answer to the challenges facing the European economy.Moscovici adds:We must all assume our responsibilities, in Brussels, in national capitals and in our regions, to generate higher growth and deliver a real boost to employment for our citizens.#Moscovici: low investment has been on of the main causes of low growth, still considerably lower than pre crisis 10.23am GMT The EC has also slashed its growth forecast for this year, to just 0.8%EU cuts eurozone growth forecast for this year to 0.8% from 1.2%, and 2015's to to 1.1% from 1.7% http://t.co/81OCWmU0z0 10.20am GMT Katainen says that the UK will probably grow at 3.1% this year, or almost four times faster than the eurozone average of 0.8%.Ireland will be the fastest-growing member of the single currency, he adds, at 4.6%.Acc to @EU_Commission autumn forecast Irish real GDP growth will be 4.6pc in 2014, 3.6pc in 2015 and 3.7pc in 2016 10.18am GMT European commissioner Jyrki Katainen is explaining todays autumn forecasts now.He says eurozone growth forecasts were revised down due to the weakening European economy, and the impact of geopolitical crises (such as Ukraine, I imagine).Looking ahead we can see a gradual recovery 10.13am GMT Over in Brussels, the European Commission has just slashed its forecasts for growth and inflation.It also warned that unemployment will remain at its current high levels for longer than previously hoped.The slowdown in Europe has occurred as the legacy of the global financial and economic crisis lingers,We see growth ... coming to a stop in Germany ... protracted stagnation in France and contraction in Italy,Among biggest #eurozone forecast 2015 GDP downgrades from @EU_Commission: #Germany, from 2% to 1.1%. Also #France, from 1.5% to 0.7%. 10.02am GMT Despite the slowing growth in UK construction, sub-contractors managed to drive up their hourly pay rates at a near-record pace, according to CIPS.With the volume increases weve been achieving, its naturally putting a strain on the trades that are available.The turnover ... is very quick and were struggling to put more stock on the ground. 9.58am GMT David Noble, CEO at the Chartered Institute of Procurement & Supply, points out that UK builders still face a challenge getting new supplies -- a sign of robust demand.This month the construction sector maintained an impressive growth trajectory and true grit with continuing strong levels of new business, albeit at a slower pace. Though it appears that the euphoria of the last few months is now settling down to a slightly more modest level of expansion, delivery times continue to lengthen and suppliers of raw materials are in high demand, making the completion of construction projects more challenging and showing how the number of available suppliers has not yet reached pre-recession levels. 9.53am GMT And on a long-term view, Britains construction sector is still enjoying one of its best periods in years (the higher the PMI, the stronger the growth)UK construction hits 5-month low! But, look at the last 10 years instead? http://t.co/fzFhsYHVzl pic.twitter.com/mZCNpXBPeo 9.48am GMT There is good news in todays survey -- UK construction firms still took on more staff last month. And more than half expect to grow their output over the next 12 months.But still, the slowing growth suggests that the tighter mortgage lending rules, and the prospect of interest rate rises, are hitting housebuilders.Octobers survey provides the first indication that the chill winds blowing across the UK housing market have started to weigh on the booming residential building sector.House building activity still increased at a strong pace overall, but the sharp growth slowdown since this summer reflects greater caution towards new development projects amid tighter mortgage lending conditions and renewed uncertainties about the demand outlook. 9.36am GMT Pound drops after the weaker-than-expected construction data pic.twitter.com/aOuxKfEdyG 9.34am GMT Growth in the UK construction sector has hit a five-month low, as housing activity growth slows sharply.Thats according to the monthly Purchasing Managers Index survey just released by data firm Markits. 9.28am GMT The Geek shall inherit the Irish earth this week with the opening of one of the biggest tech-summits on the planet in the Republics capital, as Henry McDonald reports from Dublin:Some of the biggest players in the technology world will be at the Web Summit in Dublin this morning with more than 18,000 visitors from 109 countries attending.Among those mingling with the hi-tech industry will be U2s Bono, Desperate Housewives star Eva Longoria and Rio Ferdinand.Rumours that Bono is standing outside the RDS with free copies of the U2 album are proving to be unfounded so far. #WebSummit2014The Republics tourism body Failte Ireland estimate that the influx of techno-entrepreneurs, inventors and investors will generate 79 million in advertising revenue alone for the country as well as an injection of millions in hotel bookings with 13,000 rooms booked across 87 venues in Dublin.A number of new foreign investments into the Irish hi-tech sector are expected to be announced this week at the summit by Taoiseach Enda Kenny. 9.09am GMT Stock market flotations are back on the agenda in the City, in a sign that confidence is returning after last months volatility.Given more stable market conditions, we now plan to move forward with our IPO.Posh tonic maker #Fevertree puts extra fizz in IPO market - announces £154m Aim float 8.53am GMT *SPAIN OCT. JOBLESS DATA SHOW ECONOMIC IMPROVEMENT, GUINDOS SAYS 8.52am GMT The number of unemployed people in Spain rose by 79,000 in October, according to figures released this morning, worse than the 73,000 expected.But on a seasonally adjusted basis, it actually fell by 19,393 people. Thats the biggest decline for an October in 16 years, according to the Labour Ministry.This is the largest decrease in seasonally adjusted unemployment in the month of October since 1998.Spain unemployment continues to fall, sa drop of 19k in Oct. Unadjusted UP 79k. pic.twitter.com/9nghcrrvFv 8.42am GMT The unseasonably warm UK autumn hasnt hurt discount fashion chain Primark, unlike some of its more upmarket rivals.Primarks sales and profits are up around 10% in the last six weeks, according to the boss of its parent company, AB Foods.Im really not concerned (by the weather) and we havent had to delay or cancel any orders,Yes, theres been an (weather) effect, but ... every year you get unseasonal weather at some point. 8.25am GMT Shares in German fashion group Hugo Boss have tumbled by 6.5% in early trading after it hit investors with a profit warning.Over the last few weeks, our business has been increasingly feeling the effects of the weak performance of the sector in Europe and uncertainties in Asia. 8.19am GMT Theres a new sheriff in town. Well, in Europes banking sector, anyway.The European Central Bank has just taken supervisory responsibility for banks in the euro area, following last months stress tests and asset quality reviews.Today the @ECB becomes direct supervisor of most of Europe's banking system #RegimeChange #BankingUnion 8.07am GMT The Tokyo stock market rally came as prime minister Shinzo Abe welcomed the Bank of Japans new stimulus measures.He told a parliamentary session that the BoJs plan to create an additional 10 to 20 trillion yen per year had been broadly welcomed by the financial markets. 8.00am GMT The Japanese stock market has surged to new seven-year highs today, as the stimulus measures announced by the Bank of Japan on Friday cheer investors.Inflatie. #Print RT @W7VOA: #Japans benchmark stock index closes the day at 7-year high after 536 point surge (~3.3%). #NikkeiThe impact of the BOJs additional easing was big, so it couldnt be priced in during just one day....There is a risk in not holding Japanese shares, and those that sold them off will have to buy them back.This is changing the risk-weighting psyche. You cant ignore a $1.2 trillion fund. 8.00am GMT Good morning, and welcome to our rolling coverage of the financial markets, the world economy, business and the eurozone.Coming up today....Autumn Economic Forecast #ECForecast press conference at 11:00 today. Live on EbS http://t.co/FQNuo9xswh w. @jyrkikatainen @pierremoscoviciEquities set to extend dip, resource-related shares in focus as iron ore drops to near 5-yr lows and Brent crude falls to $84 a barrel.On present indications, the most prudent course is likely to be a period of stability in interest rates. Continue reading...
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