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You can find the current article at its original source at https://www.theguardian.com/business/live/2018/jan/30/eurozone-gdp-france-growth-recovery-market-business-live
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| Eurozone GDP: Europe outpaces UK and US with strongest growth in a decade - business live | Eurozone GDP: Europe outpaces UK and US with strongest growth in a decade - business live |
| (about 1 hour later) | |
| Investors in US healthcare firms may need a lie-down, possibly with a cold flannel.... | |
| Absolute bloodbath in insurance and pharmacy stocks in premarket after #Amazon, Berkshire, JPMorgan announce plans to start a healthcare company https://t.co/fEBbqaaBpl pic.twitter.com/C6uNyeqFta | |
| In other news....retail giant Amazon, Warren Buffett’s Berkshire Hathaway and Wall Street titan JPMorgan have announced a curious tie-up. | |
| The three companies are going to create a not-for-profit company to give their own staff high-quality and transparent healthcare. | |
| Veteran investor Warren Buffett suggests the trio are keen to shake up the way healthcare is provided in America. | |
| Buffett says: | |
| “The ballooning costs of healthcare act as a hungry tapeworm on the American economy. | |
| Our group does not come to this problem with answers. But we also do not accept it as inevitable. Rather, we share the belief that putting our collective resources behind the country’s best talent can, in time, check the rise in health costs while concurrently enhancing patient satisfaction and outcomes.” | |
| JUST IN: UnitedHealth shares down 4.2 percent premarket after Amazon, Berkshire Hathaway, JPMorgan to partner on healthcare. $UNH pic.twitter.com/Yks5QH05nF | |
| Pan Pylas of Associated Press has a good take on today’s growth figures: | Pan Pylas of Associated Press has a good take on today’s growth figures: |
| The eurozone economy, for so long a source of uncertainty, has enjoyed its best year in a decade, clear evidence it has broken out of its prolonged and acute debt crisis that raised fears about the very survival of the euro currency. | The eurozone economy, for so long a source of uncertainty, has enjoyed its best year in a decade, clear evidence it has broken out of its prolonged and acute debt crisis that raised fears about the very survival of the euro currency. |
| In its first estimate for the fourth quarter, Eurostat, the European Union’s statistics agency, said Tuesday that the eurozone expanded by 0.6 percent in the October-December period from the three months before. | In its first estimate for the fourth quarter, Eurostat, the European Union’s statistics agency, said Tuesday that the eurozone expanded by 0.6 percent in the October-December period from the three months before. |
| That more-than-healthy level of growth means that for the whole of 2017, the eurozone economy expanded by 2.5 percent, its best performance since 2007, when it grew 3 percent. The eurozone even grew faster than the U.S., which expanded by 2.3 percent. | That more-than-healthy level of growth means that for the whole of 2017, the eurozone economy expanded by 2.5 percent, its best performance since 2007, when it grew 3 percent. The eurozone even grew faster than the U.S., which expanded by 2.3 percent. |
| In the decade since 2007, the eurozone has had to grapple with one crisis after another, starting with the financial crash of 2008 that prompted the deepest worldwide recession since World War II. That exposed the weak underbelly of the eurozone the state of the public finances in a number of member economies. | In the decade since 2007, the eurozone has had to grapple with one crisis after another, starting with the financial crash of 2008 that prompted the deepest worldwide recession since World War II. That exposed the weak underbelly of the eurozone the state of the public finances in a number of member economies. |
| Four countries Greece, Ireland, Portugal and Cyprus had to be bailed out by their partners in the eurozone and the International Monetary Fund, and in return they made deep budget cuts to get their public finances into shape, hitting their economies hard. | Four countries Greece, Ireland, Portugal and Cyprus had to be bailed out by their partners in the eurozone and the International Monetary Fund, and in return they made deep budget cuts to get their public finances into shape, hitting their economies hard. |
| The Greek economy, for example, shed around a quarter of its output, and saw unemployment and poverty levels ratchet higher. | The Greek economy, for example, shed around a quarter of its output, and saw unemployment and poverty levels ratchet higher. |
| It’s only recently that fears of a eurozone break-up have eased. Greece, notably, is set to emerge from its bailout era this summer, eight years after it first faced potential bankruptcy. | It’s only recently that fears of a eurozone break-up have eased. Greece, notably, is set to emerge from its bailout era this summer, eight years after it first faced potential bankruptcy. |
| Another chart showing how the eurozone outpaced its major rivals last year: | Another chart showing how the eurozone outpaced its major rivals last year: |
| The Eurozone rules! #GDP pic.twitter.com/bJ40RGIzFD | The Eurozone rules! #GDP pic.twitter.com/bJ40RGIzFD |
| ING’s Bert Colijn is also impressed that the eurozone grew by 2.5% during 2017. | ING’s Bert Colijn is also impressed that the eurozone grew by 2.5% during 2017. |
| He writes: | He writes: |
| Economic growth has shifted to a substantially faster growth path over the course of 2017, and current GDP data confirms that. Eurozone growth for 2017 as a whole was stronger than many advanced markets, like the US and UK for example. | Economic growth has shifted to a substantially faster growth path over the course of 2017, and current GDP data confirms that. Eurozone growth for 2017 as a whole was stronger than many advanced markets, like the US and UK for example. |
| While detailed breakdowns have yet to be released, it seems that the Eurozone economy continues to fire on all cylinders. Investment has yet to recover from the crisis fully but has been an essential contributor to growth during the year. | While detailed breakdowns have yet to be released, it seems that the Eurozone economy continues to fire on all cylinders. Investment has yet to recover from the crisis fully but has been an essential contributor to growth during the year. |
| However, Colijn is also concerned that the strong euro could hold back growth in 2018 (as exports will be less competitive) | However, Colijn is also concerned that the strong euro could hold back growth in 2018 (as exports will be less competitive) |
| Eurozone GDP rounds up a very strong year, but ING's @BertColijn says the big question is if the strong euro will offset the effects of improving external demandhttps://t.co/tGa3DZmJCI | Eurozone GDP rounds up a very strong year, but ING's @BertColijn says the big question is if the strong euro will offset the effects of improving external demandhttps://t.co/tGa3DZmJCI |
| Analysts at Ulster Bank are hopeful that the eurozone will continue to grow robustly in 2018. | Analysts at Ulster Bank are hopeful that the eurozone will continue to grow robustly in 2018. |
| Eurozone GDP rose 0.6% q/q in Q4 (in line with consenus) following 0.7% in both Q3 and Q2 - consistent with a very strong 2.5% in 2017 as a whole following 1.8% in 2016, while the latest data suggest that very positive momentum is being sustained in the early stages of 2018 pic.twitter.com/moMAUanyUO | Eurozone GDP rose 0.6% q/q in Q4 (in line with consenus) following 0.7% in both Q3 and Q2 - consistent with a very strong 2.5% in 2017 as a whole following 1.8% in 2016, while the latest data suggest that very positive momentum is being sustained in the early stages of 2018 pic.twitter.com/moMAUanyUO |
| Jacob Deppe, Head of Trading at online trading platform, Infinox, is impressed by Europe’s growth last year: | Jacob Deppe, Head of Trading at online trading platform, Infinox, is impressed by Europe’s growth last year: |
| “Anything the US economy can do the Eurozone economy can do, slightly better it seems. | “Anything the US economy can do the Eurozone economy can do, slightly better it seems. |
| “This is the best economic growth the Eurozone has seen since before the Global Financial Crisis. | “This is the best economic growth the Eurozone has seen since before the Global Financial Crisis. |
| “Where we go from here is anyone’s guess. But with both the US and Eurozone growing in tandem and with Asian economies on a roll, the hope is that 2018 delivers continued growth, further confidence and economic stability for the first time in a decade. | “Where we go from here is anyone’s guess. But with both the US and Eurozone growing in tandem and with Asian economies on a roll, the hope is that 2018 delivers continued growth, further confidence and economic stability for the first time in a decade. |
| “There remain issues on the horizon. Unemployment in the Eurozone, while falling, is still too high, particularly among the young. | “There remain issues on the horizon. Unemployment in the Eurozone, while falling, is still too high, particularly among the young. |
| We now have confirmation that Europe and America both grew much faster than Britain last year. | We now have confirmation that Europe and America both grew much faster than Britain last year. |
| Economists Rupert Seggins has tweeted a handy chart: | Economists Rupert Seggins has tweeted a handy chart: |
| Economic growth in 2017 (Q4/Q4 % change):UK: 1.5%US: 2.5%Euro Area: 2.7% pic.twitter.com/86zcfYdZpA | Economic growth in 2017 (Q4/Q4 % change):UK: 1.5%US: 2.5%Euro Area: 2.7% pic.twitter.com/86zcfYdZpA |
| Aila Mihr of Danske Bank says Europe’s economy is expanding strongly: | Aila Mihr of Danske Bank says Europe’s economy is expanding strongly: |
| 🇪🇺Solid expansion continues: Q4 17 #eurozone #growth at 0.6% q/q, leaving 2017 annual euro area GDP growth at 2.5%, highest since 2007. No contribution breakdown yet, but slowdown in Q4 potentially due to lower positive contribution from net exports due to #EUR headwind. pic.twitter.com/Cj4BR7lGLi | 🇪🇺Solid expansion continues: Q4 17 #eurozone #growth at 0.6% q/q, leaving 2017 annual euro area GDP growth at 2.5%, highest since 2007. No contribution breakdown yet, but slowdown in Q4 potentially due to lower positive contribution from net exports due to #EUR headwind. pic.twitter.com/Cj4BR7lGLi |
| NEWSFLASH: The eurozone and the wider EU have both posted their strongest annual growth since the financial crisis. | NEWSFLASH: The eurozone and the wider EU have both posted their strongest annual growth since the financial crisis. |
| New GDP figures from Eurostat confirm that the European recovery remains on track, with annual growth of 2.5% during 2017 in the EU and the narrower single currency block. That’s the strongest annual growth in a decade. | New GDP figures from Eurostat confirm that the European recovery remains on track, with annual growth of 2.5% during 2017 in the EU and the narrower single currency block. That’s the strongest annual growth in a decade. |
| In comparison, the UK grew by around 1.8% during 2017 (according to figures released last week) | In comparison, the UK grew by around 1.8% during 2017 (according to figures released last week) |
| Eurostat also reports that the eurozone and the EU both grew by 0.6% in the final three months of 2017, partly thanks to France’s 0.6% growth and Spain’s 0.7%. | Eurostat also reports that the eurozone and the EU both grew by 0.6% in the final three months of 2017, partly thanks to France’s 0.6% growth and Spain’s 0.7%. |
| Compared to Q4 2016, seasonally adjusted GDP rose by 2.7% in the euro area and by 2.6% in the EU28. | Compared to Q4 2016, seasonally adjusted GDP rose by 2.7% in the euro area and by 2.6% in the EU28. |
| In another boost, Eurozone and EU growth in the third quarter of last year has been revised up, from +0.6% to +0.7%. | In another boost, Eurozone and EU growth in the third quarter of last year has been revised up, from +0.6% to +0.7%. |
| There may be some celebrations in Brussels as this data filters through. Three years ago, the eurozone was being rocked by the Greek debt crisis. Now, the region is looking calmer and more secure, despite Brexit. | There may be some celebrations in Brussels as this data filters through. Three years ago, the eurozone was being rocked by the Greek debt crisis. Now, the region is looking calmer and more secure, despite Brexit. |
| Over in Frankfurt, the European Central Bank might feel vindicated after launching a massive stimulus programme to ward off deflation, drive down unemployment and keep the economy growing. | Over in Frankfurt, the European Central Bank might feel vindicated after launching a massive stimulus programme to ward off deflation, drive down unemployment and keep the economy growing. |
| Economists are concerned by the rise in UK consumer borrowing: | Economists are concerned by the rise in UK consumer borrowing: |
| The UK unsecured credit boom which we have been assured is slowing in fact accelerated to an annual rate of 9.5% in December #BoE | The UK unsecured credit boom which we have been assured is slowing in fact accelerated to an annual rate of 9.5% in December #BoE |
| Food for thought for the @bankofengland MPC next week. Mortgage approvals lowest since Jan 2015, but unsecured consumer credit reverses recent slowdown with £1.52bn of new borrowing in December (+9.5% YoY). V difficult balancing act for UK policymakers pic.twitter.com/wOQ5ct62q4 | Food for thought for the @bankofengland MPC next week. Mortgage approvals lowest since Jan 2015, but unsecured consumer credit reverses recent slowdown with £1.52bn of new borrowing in December (+9.5% YoY). V difficult balancing act for UK policymakers pic.twitter.com/wOQ5ct62q4 |
| Breaking; The number of new mortgages approved in Britain has hit its lowest in almost three years. | Breaking; The number of new mortgages approved in Britain has hit its lowest in almost three years. |
| Just 61,039 mortgages were signed off in December, a drop of over 3,000 compared to November. That’s the smallest number since January 2015. | Just 61,039 mortgages were signed off in December, a drop of over 3,000 compared to November. That’s the smallest number since January 2015. |
| #UnitedKingdom Mortgage Approvals at 61.04K https://t.co/xjNGJUUXea pic.twitter.com/cYefMMRst2 | #UnitedKingdom Mortgage Approvals at 61.04K https://t.co/xjNGJUUXea pic.twitter.com/cYefMMRst2 |
| Bank of England figures also show that UK consumers borrowed an extra £1.5bn on credit last month. | Bank of England figures also show that UK consumers borrowed an extra £1.5bn on credit last month. |
| That pushed the annual growth in credit to 9.5%, up from 9.3%. | That pushed the annual growth in credit to 9.5%, up from 9.3%. |
| So, people are finding it harder to buy a new house, and borrowing more on credit to make ends meet. Not a good sign for the UK economy in 2018. | So, people are finding it harder to buy a new house, and borrowing more on credit to make ends meet. Not a good sign for the UK economy in 2018. |
| Poland’s economy accelerated last year, according to new data. | Poland’s economy accelerated last year, according to new data. |
| Poland’s GDP expanded by 4.6% in 2017, up from 2.9% in 2016. | Poland’s GDP expanded by 4.6% in 2017, up from 2.9% in 2016. |