It adds to the recent spate of weaker data
coming out of the eurozone and really underlines the fact that the ECB can afford to be a little bit patient in terms of ramping up its hawkish rhetoric when it comes to its QE policy, said Bipan Rai, director of foreign exchange strategy at CIBC Capital Markets in Toronto.
Not exact matches
Since over 80 %
of the company's revenues
came from outside the
Eurozone, he expected that SMS would be able to ride
out the debt crisis unscathed.
The news
of missed debt payments by Espirito Santo International also
comes on the heels
of discouraging economic data
out of the
eurozone.
Still, the good news on that front is Europe: The
eurozone has formally crawled
out of recession, the U.K. is
coming along at modest but positive pace, and Eastern Europe is being buoyed by growth in Germany.
His comments, made to the U.K.'s Daily Mail,
came on the same day as a «raft
of dismal economic news from around the world, with manufacturing output falling in Britain and Europe, unemployment jumping in the
eurozone and America, and fast - emerging economies such as Brazil and China showing signs
of running
out of steam.»
As usual, a correction has
come out of the blue (I'm writing in May 2010, where the
Eurozone debt woes have spooked investors).
Paris and Berlin made clear in recent weeks that the European candidate had to
come from a
eurozone member — basically France or Germany — because the IMF is playing a key role in bailing
out troubled members
of the currency.
The study
comes at a pivotal moment for Europe, with many still reeling from an intensely bad tempered loan negotiation process which saw Greece nearly thrown
out of the
eurozone.