Sentences with phrase «euro zone economy»

The Italian banking system has been a problem for the third - largest euro zone economy since the financial crisis due to the high level of bad loans across all institutions.

A euro that continues to rise against the U.S. dollar is now the main danger being posed to fragile euro zone economies that are still recovering after the sovereign debt crisis of 2011, one economist has told CNBC.

Portugal's credit rating is set to return to the headlines Friday as Standard & Poor's updates its opinion on the southern euro zone economy.

Germany, for example, doesn't want to lose its credit rating to prop up troubled euro zone economies.

The European Central Bank (ECB) President Mario Draghi's concerns over the impact of a strong euro on a weak euro zone economy raise the prospect of monetary easing to dent the currency's appeal, an analyst told CNBC.

«It will make it harder to erect firewalls around struggling euro zone economies and convince investors that things are more sustainable,» said Simon Tilford, the chief economist for the Center for European Reform in London.

The instability in Catalonia is a major concern for the fourth largest euro zone economy, given that the region contributes to about 19 percent of the entire economic growth of Spain.

Germany might be the known as the powerhouse of the euro zone economy but it has its own banking problems to deal with.

The positive economic data, which included the release of better - than - expected purchasing managers» index (PMI) readings last Wednesday, and a large current account surplus in some euro zone economies, have given confidence to investors to buy euros.

Though Portugal is one of the fastest growing euro zone economies, problems with non-performing loans and high debt among businesses, individuals and government are a big hurdle - mainly at a time when the government's strategy is focused on consumer spending.

«We think that a gradual increase to 1.30 against the USD over 12 months is manageable for the euro zone economy, especially as the global economy is strong,» Garcia added.

Strong German economic numbers for the fourth quarter of 2017 underlined the strength of the euro zone economy.

The survey results will not have gone unnoticed by the European Central Bank (ECB), which continues to pump money into the euro zone economy via its quantitative easing program.

Economists polled by Reuters said they thought the euro zone economy grew 2.5 percent year - on - year in the first three months of 2018, compared with a 2.7 percent increase in the previous quarter.

The euro zone economy expanded at its fastest rate in a decade in 2017 and European equities are set to end January with gains of around 3 percent.

Both the euro and European shares later recovered from early selling, while German bond yields steadied near 1-1/2 week lows, as confidence about the outlook for the euro zone economy helped investors brush off worries about the risk of Germany going to the polls again soon.

CNBC's Seema Mody explains how this could impact the euro zone economy.

The euro has been one of the best performing major currencies this year, with its strength stemming partly from growing confidence about the outlook for the euro zone economy and partly from weakness in other major currencies such as the yen and British pound.

Italian 10 - year bond yields fell 2.5 basis points (bps) to 1.754 percent while other euro zone yields were pushed higher by a sell - off in U.S. Treasuries and data suggesting the euro zone economy was not as weak as expected.

Slack in the euro zone economy may be bigger than previously estimated and this could slow the rise of inflation but only temporarily and prices will eventually climb, European Central Bank President Mario Draghi said on Monday.

The euro held at the day's highs on Thursday after ECB President Mario Draghi presented a relatively confident outlook for the euro zone economy, contrary to some expectations that he would take a more cautious stance after recent weak data.

Greek equities took another battering Wednesday while its yields spiked, as concerns about the strength of the euro zone economy returned to spook investors.

U.S. protectionism would also hurt the euro zone economy and push Draghi back into the limelight.