Among European Businesses

U.S. Review Modest Growth on a Broadening Base - The underlying tone of the recent economic reports remains consistent with modest economic growth. Consumer spending ended the first quarter on a solid note and spending is now on track to grow at a 2 percent pace in the second quarter. - Reports from the regional manufacturing surveys showed some weakness but the National ISM report came in stronger than expected. The nonmanufacturing survey, however, came in below expectations. - Nonfarm employment rose by 115,000 jobs in April and the unemployment rate fell 0.1 percent to 8.1 percent. Modest Growth on a Broadening Base This week's ISM report came in better than expected, rising 1.4 points to 54.8 in April, which greatly relieves fears built up from the weaker factory orders ...

(Reuters) - The dollar briefly fell to a two-month low against a basket of currencies on Monday, hurt by signs that the U.S. economic recovery was losing momentum, which keeps alive the chances of further monetary easing by the Federal Reserve. Despite the dollar's problems, the euro failed to gain much traction, with investors looking to sell at higher levels as harsh austerity measures take a toll on economic activity across the region. Spain slipped back into recession as gross domestic product shrank 0.3 percent in the January to March quarter, data showed on Monday. Traders were likely to be wary of the euro ahead of the second round of the French presidential vote as well as elections for a new Greek parliament next weekend. The dollar .DXY touched 78.638 against a basket of ...

(Reuters) - The dollar fell to a two-month low against a basket of currencies on Monday, weighed down after modest first quarter growth in the U.S. economy kept alive chances of further monetary easing by the Federal Reserve. The dollar is likely to come under more pressure if data, including U.S. jobs numbers, this week disappoints. U.S. growth cooled in the first quarter partly due to businesses cutting back on investments, reinforcing the central bank's contention that interest rates should be kept near zero through 2014. The slowdown fuelled speculation that the Fed may eventually launch another bond buying program, or a third round of quantitative easing. That would likely have a negative effect on the dollar while giving riskier assets like stocks, commodities and higher-yielding ...

(Reuters) - Gold rose for a fourth consecutive session on Friday and posted its biggest weekly gain since late February, as disappointing U.S. growth and European debt jitters boosted investment demand for the precious metal. Bullion buying accelerated after a report showed U.S. economic growth cooled in the first quarter as businesses cut back on investment. Some safe-haven demand also supported prices after a credit downgrade of Spain's sovereign debt by Standard & Poor's. Gold's four-day rise was underpinned by option-related buying and after Federal Reserve Chairman Ben Bernanke said on Wednesday the U.S. central bank would not hesitate to launch another round of bond purchases to boost growth if necessary. "The GDP data may confirm ongoing stimulatory U.S. monetary policies, which ...

Weekly Economic and Financial Commentary U.S. Review First-Quarter GDP Growth Slows The U.S. economy grew at a 2.2 percent annual rate in the first quarter, somewhat slower than the consensus had expected. Consumption remained the primary driver of growth as business spending slowed and the government sector continued to scale back spending. In our U.S. review section this week, we discuss the GDP report in the context of the big miss in durables and consider what it means for business spending going forward. We also look at a very small change in the Fed statement this week that reflects an improving view on the troubled housing sector. Business Spending Poised for a Slowdown? Durable goods orders for March were ugly. The 4.2 percent drop was the largest decline since the U.S. ...

(Reuters) - Disillusioned by the unfulfilled promise of the cities and feeling stifled by tough austerity measures aimed at coping with an economic downturn, some Portuguese are opting out and returning to the land. Jose Diogo, who spent two years in Lisbon working as a technical advisor at a meat company, was one who fled at the beginning of Portugal's debt crisis in 2009, and has no regrets. "I lived in Lisbon and decided to go back home to the interior to grab the opportunity of exploring the land my father owned," Diogo said on the porch at his stone farm house, looking out over apple orchards and grazing fields for his 30 cows. Far from discouraging people like Diogo, the government is trying to get others to follow in his footsteps. In February it launched an initiative to map ...

(Reuters) - Spain's government met regional officials on Wednesday to agree ways to cut state healthcare, an attack on a treasured welfare system that will fuel anger among a population weary of EU-enforced austerity to tackle a ballooning deficit. The conservative government has warned Spaniards they would have to start paying more for prescriptions, part of the welfare system that has provided state-financed health and education since the country's transition to democracy began in the 1970s. Although protests against cuts have been mostly peaceful and polls show that many Spaniards are resigned to reining in costs to fight the debt crisis, violent flashes during a recent national general strike may suggest patience is wearing thin. "It's time we end the culture of everything for free," ...

Fundamental News Today’s highlights: MPC Meeting Minutes + Claimant Count Change (GB, 08:30 GMT) BoC Monetary Policy Report (CAD, 14:30 GMT) Crude Oil Inventories (U.S, 14:30 GMT) The International Monetary Fund raised its global growth projections for this year and next on Tuesday, citing improvements in the U.S. economy and emerging economies. However, the Washington-based lender expects growth to be relatively weak, as risks remain elevated, especially from Europe. The geopolitical uncertainties linked to the oil market also weigh on the outlook, the IMF's biannual World Economic Outlook report said. A report released by the Federal Reserve on Tuesday, showed that industrial production remained unchanged in March after coming in flat in February. New housing ...

Weekly Economic and Financial Commentary U.S. Review A Rough Start To April Another week of softer U.S. economic data weighed on market sentiment this week. More hints of slower economic growth are appearing in the data, consistent with our forecast that U.S. GDP growth slows to a 2.8 percent annualized pace in the first quarter and continues slowing to a sub 2 percent annualized pace in the second. Initial jobless claims jumped by 13,000 in the first week of April. February imports plunged 2.7 percent, small business confidence fell in March for the first time in seven months and core inflation is on the rise. A Rough Start to April United States economic data releases so far this month have not been kind to the bulls on Wall Street. The poor March payroll report rattled some ...