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| Eurozone crisis live: US job figures could dent optimism | Eurozone crisis live: US job figures could dent optimism |
| (40 minutes later) | |
| 9.28am: Over to the UK. The services PMI has climbed to 56 from 54 in December, the highest since last March. | |
| 9.20am: The European PMIs are out. The situation has improved in the eurozone, where service industries returned to growth in January with a PMI reading of 50.4, compared with 48.8 in December. | |
| The composite PMI, which also includes manufacturing, rose to 50.4 from 48.3 in December. Markit, which compiles the surveys, talked of stabilisation, with the readings the highest in five months. | |
| Howard Archer, chief UK and European economist at IHS Global Insight, said: | |
| The overall return to modest growth in the eurozone services sector in January indicated by the purchasing managers' survey boosts hopes that eurozone economic activity is stabilising after GDP contraction that we estimate around 0.4% quarter-on-quarter in the fourth quarter of 2011. | |
| Among the individual eurozone countries, it was encouraging to see a marked pick up in services activity in December in Germany and, to a lesser extent, France. Services activity also saw significantly reduced contraction in Spain in January, but there was little reduction in Italy's decline. Ireland also saw further modest contraction in services activity in January. | |
| Nevertheless, a number of elements are still soft in the purchasing managers' surveys and it is very possible that the eurozone will suffer further overall contraction in the first quarter of 2012. Significantly, the purchasing managers survey showed that overall incoming new business still contracted in January as did outstanding business, albeit at reduced rates. In addition, overall employment edged down in the services and manufacturing sectors for the first time since April 2010. | |
| The region is still facing major headwinds, notably including increased fiscal tightening in many countries, rising unemployment and ongoing major concerns and uncertainties over the sovereign debt crisis which are likely to constrain businesses' investment decisions. Meanwhile, relatively muted global growth is limiting export orders. | |
| 9.04am: With the bankers still universally blamed for the current crisis, it seems relevant to mention that Sir Phillip Hampton, chairman of RBS, has gone on the Today programme to defend the decision to give Stephen Hester a £1m bonus. | |
| Jill Treanor, our city editor, was listening in and reports that although he conceded that bankers' pay has become too high, Hester deserved his bonus and that he was paid less than his peers. Hampton said that Hester had 'one of the most challenging demanding jobs in the world of business". | |
| Pay has been high for too long ... particularly in the banks, particularly in the investment banks, shareholders have done pretty badly and employees have done pretty well certainly over the last 10 years. | |
| That needs to be corrected. It actually isn't a society or fairness issue, it's a straightforward business issue. Too much of the money has not been going to the right place. | |
| 8.54am: The Hungarian airline Malev has gone bust, it has been announced this morning, in the latest symptom of the country's economic crisis. Malev, which has debts of £180m, says its has ceased operations and grounded all its flights to "minimize damage" after its financial situation became unsustainable. | 8.54am: The Hungarian airline Malev has gone bust, it has been announced this morning, in the latest symptom of the country's economic crisis. Malev, which has debts of £180m, says its has ceased operations and grounded all its flights to "minimize damage" after its financial situation became unsustainable. |
| It is a member of the Oneworld airline alliance which also includes American Airlines and British Airways, but made a loss of £75m in 2010. | It is a member of the Oneworld airline alliance which also includes American Airlines and British Airways, but made a loss of £75m in 2010. |
| It stopped all its flights as of 0500 GMT today, Reuters reports. Prime Minister Viktor Orban said on state radio that two Malev planes are still abroad – one in Tel Aviv, the other in Ireland. | |
| 8.25am: The market has opened pretty flat this morning with the FTSE100 currently down 1.7 points. Asian markets were similarly subdued overnight with the consensus being that traders are waiting for the US jobs figures at 1.30pm. Some 200,000 jobs were added in December so the January figures are unlikely to be repeated with forecasts in the 150,000 region and the overall unemployment rate expected to remain at 8.5%. | 8.25am: The market has opened pretty flat this morning with the FTSE100 currently down 1.7 points. Asian markets were similarly subdued overnight with the consensus being that traders are waiting for the US jobs figures at 1.30pm. Some 200,000 jobs were added in December so the January figures are unlikely to be repeated with forecasts in the 150,000 region and the overall unemployment rate expected to remain at 8.5%. |
| Even so, if Alex Ferguson was a US political commentator he would undoubtedly be saying that it's squeaky bum time for President Obama. Or maybe squeaky ass time, if we're talking American. (Wouldn't sound right from Ferguson though would it?) | Even so, if Alex Ferguson was a US political commentator he would undoubtedly be saying that it's squeaky bum time for President Obama. Or maybe squeaky ass time, if we're talking American. (Wouldn't sound right from Ferguson though would it?) |
| Anyway, let's say it will be closely watched by the White House where Obama's re-election hopes rest squarely with the performance of the economy. | Anyway, let's say it will be closely watched by the White House where Obama's re-election hopes rest squarely with the performance of the economy. |
| 8.05am: We're all set for another day in the life of the eurozone crisis and here are the main events in and around that today: | |
| • First we're expecting numbers on the services sector in Italy, Germany and others with the latest PMI surveys out shortly before 9am • Eurozone retail sales due at 10am and expected to be poor. • UK services PMI out at 9.30am. • And the markets will be waiting keenly for US jobs data in the form of non-farm payrolls at 1.30pm. • Finally we'll still be waiting for any news on what haircut Greece's private creditors will have to take. | • First we're expecting numbers on the services sector in Italy, Germany and others with the latest PMI surveys out shortly before 9am • Eurozone retail sales due at 10am and expected to be poor. • UK services PMI out at 9.30am. • And the markets will be waiting keenly for US jobs data in the form of non-farm payrolls at 1.30pm. • Finally we'll still be waiting for any news on what haircut Greece's private creditors will have to take. |