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Dour PMIs Point To Entrenched Stagflation In Europe
The eurozone economy is in a recession. Or something that looks a lot like a recession.
Flash PMIs released on Tuesday painted a bleak picture ahead of this week's ECB meeting, where Christine Lagarde will almost surely keep rates on hold, marking the unofficial end to a frantic tightening campaign that brought the policy rate from negative territory to 4% in the short space of 14 months.
S&P Global's composite PMI for the bloc printed just 46.5 for October, a 35-month low.
If this mont
How much consideration does the Fed give to the fact that Europe and China are both looking at considerable problems. It seems particularly important for large US corporations that have significant European sales.
Not much, I think. There isn’t much (anything?) the Fed can do about Europe and China’s problems. Neither Europe, nor China, nor large US corporations’ European sales, are the Fed’s mandate.
I was thinking in terms of US corporations ability to maintain growth and margins when the number 2 and 3 largest economies are slowing.