20120427 1008 Global Market Related News.

Most Asian Stocks Rise on U.S. Housing Growth, Earnings (Source: Bloomberg)
Most Asian stocks rose as companies including Samsung Electronics Co. posted earnings that beat estimates and signs that the U.S. housing market is stabilizing overshadowed Standard & Poor’s downgrade of Spain’s sovereign- credit rating. James Hardie Industries SE, a building-materials supplier that counts the U.S. as its biggest market, added 0.4 percent in Sydney. Samsung Electronics, Asia’s largest consumer electronics maker, gained 2.3 percent in Seoul. Nintendo Co. sank 4.9 percent in Tokyo after the world’s largest maker of video-game machines forecast earnings this fiscal year that missed analysts’ estimates. “We still believe that there will be good growth in the U.S., with GDP picking up in the second half of the year,” said Daphne Roth, the head of Asian-equity research at ABN Amro Private Banking in Singapore, which manages about $217 billion for clients. “The global economic growth picture is quite good. We’ve been getting a lot of positive surprises in the earnings reports.”

Japan, Australia Stock Futures Rise on U.S. Housing Data (Source: Bloomberg)
Japanese stocks rose for a third day after better-than-estimated U.S. housing data boosted the outlook for Asian exporters and on speculation the Bank of Japan will announce fresh stimulus after a meeting today. Nissan Motor Co. (7201), a carmaker that gets a third of its sales from North America, climbed 1.7 percent. Kyocera Corp. jumped 2.9 percent after the electronics manufacturer said profit would rise on growing sales. Nintendo Co., the world’s largest maker of gaming consoles, sank the most in seven months after forecasting net income that lagged analysts’ expectations. “We still believe that there will be good growth in the U.S., with GDP picking up in the second half of the year,” said Daphne Roth, the head of Asian-equity research at ABN Amro Private Banking in Singapore, which manages about $217 billion for clients. “The global economic growth picture is quite good. We’ve been getting a lot of positive surprises in earnings reports.”
The Nikkei 225 Stock Average (NKY) gained 0.2 percent to 9,580.21 as of 10:03 a.m. in Tokyo, heading for a weekly rise of 0.2 percent. Volume was almost 25 percent below the 30-day average ahead of the Bank of Japan’s release of economic growth and inflation forecasts. The broader Topix Index rose 0.1 percent to 810.59.

European Stocks Little Changed as Autos Offset Jobless (Source: Bloomberg)
European stocks were little changed after a rally in automakers helped offset a drop in euro-area confidence and a report that showed more Americans than forecast filed for jobless benefits last week. Volkswagen AG (VOW) rallied 8.7 percent after reporting a jump in operating profit. Porsche SE climbed 7.4 percent. Rhoen Klinikum AG (RHK) surged 44 percent after receiving a 3.1 billion euros ($4.1 billion) takeover offer. Deutsche Bank AG (DBK) and Banco Santander SA (SAN) paced financial shares lower. The Stoxx Europe 600 Index climbed 0.1 percent to 257.2 at the close in London, after swinging between gains and losses today. The gauge has advanced 5.2 percent this year as the European Central Bank disbursed more than 1 trillion euros to the region’s lenders to spur credit and boost the economy.
“After the euphoria of the ECB capital injection, we’ve come back to reality,” said Matthieu Giuliani, who helps manage $4 billion at Paris-based Banque Palatine SA. “Economic statistics will continue to be difficult considering countries’ deficits and the fact that they aren’t attacking the problem. Growth in the macroeconomy won’t be found soon.”

U.K. Stocks Advance on Earnings; Unilever, Shell Climb (Source: Bloomberg)
U.K. stocks advanced for a third day, after swinging between gains and losses, as Unilever Plc and Royal Dutch Shell Group Plc posted financial results that beat forecasts, outweighing worse-than-expected economic reports in the U.S. and Europe. Unilever, the world’s second-biggest consumer goods company, and Shell, Europe’s largest oil producer, climbed more than 2.5 percent each. AstraZeneca (AZN) Plc fell the most since 2010 after the drugmaker cut its profit forecast. Admiral Group Plc (ADM) dropped after reporting a slowdown in sales. The FTSE 100 (UKX) Index rose 29.83 points, or 0.5 percent, to 5,748.72 in London after fluctuating between gains and losses at least 12 times. The measure has dropped 3.6 percent from its 2012 high in March as concern resurfaced that some countries in Europe will struggle to reduce deficits and service their debt. The FTSE All-Share Index added 0.5 percent today, while Ireland’s ISEQ Index slipped 0.4 percent.
“Indecision reigned today where a volatile session indicated just how investors are still unsure as to whether the good corporate earnings season is enough to discount the overriding storm clouds that still shroud the macro picture,” said Angus Campbell, head of market analysis at Capital Spreads in London.

U.S. Stocks Rise on Home Sales Increase; Treasuries Gain (Source: Bloomberg)
U.S. stocks rose for a third day as pending home sales increased more than forecast and technology companies rallied on better-than-estimated earnings. Metals led commodities higher, while 10-year Treasury yields approached a two-month low. The Standard & Poor’s 500 Index (MXEF) closed up 0.7 percent to 1,399.98, capping its best three-day rally since February. (SPX) Futures on the benchmark index slid 0.4 percent at 5:32 p.m. in New York after S&P cut Spain’s sovereign credit rating. The Stoxx Europe 600 Index rose 0.1 percent, reversing a drop of 0.7 percent. Ten-year note yields lost four basis points to 1.94 percent, gold futures increased 1.1 percent and the dollar weakened versus 11 of 16 major peers amid bets the Federal Reserve won’t hesitate in providing more stimulus if the economy weakens. Oil closed at a three-week high.
The S&P 500 reversed early losses as the National Association of Realtors reported that pending home purchases rose 4.1 percent to the highest level since April 2010, tempering concern about the economy after an earlier government report showed jobless claims topped estimates last week. Citrix Systems Inc. and Xilinx Inc. (XLNX) led technology shares higher after posting earnings that topped estimates by at least 16 percent. “We’re more confident,” Andrew Milligan, who helps oversee about $240.7 billion as the Edinburgh-based head of global strategy at Standard Life Investments Ltd., said in a telephone interview. “The market got into this earnings season a little too pessimistic. The economy has surprised a little more positively. The underlying concept of an economy moving forward is pretty much accepted by people.”

Emerging-Market Stocks Rise as U.S. Outlook Boosts Assets (Source: Bloomberg)
Emerging-market stocks had their biggest advance in two weeks as Brazil gained on increased optimism about Vale SA (VALE5)’s performance.  Vale SA, the world’s second-largest mining company, jumped 1.7 percent in Sao Paulo after saying it will meet its sales target for this year. Brazil’s Bovespa added 0.7 percent. The MSCI Emerging Markets Index (MXEF) advanced 0.4 percent to 1,015.94 in New York. Fenerbahce Sportif Hizmetler Sanayi & Ticaret (FENER) AS rose to its highest since August, lifting Turkey’s stock gauge by 1.2 percent. U.S. data showed pending home sales increased more than forecast in March as low interest rates drew more buyers into the market. The index of pending home purchases rose 4.1 percent, compared with the 1 percent median forecast of 43 economists surveyed by Bloomberg.
Vale’s production and sales “rebounded in March and should continue strong in the second quarter,” Bruno Piagentini, an equity analyst at Coinvalores Corretora de Valores, said. “The market realized the drop in sales and the rise in costs in the first quarter was temporary. Vale is returning to the company that we’re familiar with.”

S&P 500 Caps Biggest Three-Day Advance Since February (Source: Bloomberg)
U.S. stocks gained, giving the Standard & Poor’s 500 Index its biggest three-day advance since February, after better-than-estimated housing data overshadowed disappointing earnings at United Parcel Service Inc. A measure of homebuilders in S&P indexes rose 4.8 percent as PulteGroup Inc. rallied 10 percent amid a narrower loss. Chevron Corp. (CVX) advanced 2.3 percent as the energy company lifted its dividend. Amazon.com Inc. (AMZN), the largest Internet retailer, surged 12 percent at 4:57 p.m. New York time as revenue beat estimates. UPS (UPS), the biggest package-delivery company that is considered a proxy for the economy, retreated 1.8 percent. The S&P 500 increased 0.7 percent to 1,399.98 at 4 p.m. New York time. It has advanced 2.4 percent in three days. The Dow Jones Industrial Average climbed 113.90 points, or 0.9 percent, to 13,204.62 today. About 6.7 billion shares changed hands on U.S. exchanges, almost in line with the three-month average.
“Things are better,” said Michelle Gibley, director of international research at San Francisco-based Charles Schwab Corp. Her firm has $1.83 trillion in client assets. “We did get several months of better-than-expected economic data. The earnings season has been pretty good.”

FOREX-Dollar near 3-week low as it falls prey to dovish Fed
TOKYO, April 26 (Reuters) - The U.S. dollar floundered at three-week lows against a basket of major currencies on Thursday, after the Federal Reserve did little to alter the perception that it remained deeply committed to a dovish policy stance.
"Despite its projections that GDP growth will pick up, the FOMC expects unemployment to remain well above target by the end of 2014. This means that there is scope for further monetary easing down the road, especially if the recovery falters," said Philip Marey, strategist at Rabobank.

Euro Falls as S&P Spain Rating Cut Boosts Europe Concern (Source: Bloomberg)
The euro fell, extending a monthly loss against the dollar and yen, after Standard & Poor’s cut Spain’s sovereign debt rating, adding to concern the region’s financial woes are spreading. S&P downgraded Spain’s long-term credit rating two levels to BBB+ yesterday from A, saying the outlook is negative as the country’s recession undermines efforts to cut the budget deficit. The yen rose against 10 of its 16 major counterparts before a meeting today where the Bank of Japan (8301) is expected to expand stimulus measures to combat deflation. The Australian dollar halted a two-day gain as S&P 500 Index futures declined, sapping demand for higher-yielding assets. “It does look as if the Spanish crisis is set to get worse before it gets better,” said Mike Jones, a currency strategist at Bank of New Zealand in Wellington. “The knee-jerk reaction from the euro to the downgrade has been to the downside. It’s also taken some of the heat out of investors’ risk appetite.”
The euro fell 0.2 percent to $1.3188 at 8:51 a.m. in Tokyo from the close in New York yesterday, poised for a 1 percent loss this month. The common currency slid 0.1 percent to 106.92 yen, having weakened 2.2 percent since March 31. The yen was at 81.07 per dollar from 80.99, after climbing 0.4 percent yesterday.

Cooling Job Market Takes Toll on U.S. Confidence: Economy (Source: Bloomberg)
More Americans than forecast filed applications for unemployment benefits last week and consumer confidence declined by the most in a year, signaling that a cooling labor market may restrain household spending. Jobless claims fell to 388,000 from a revised 389,000 the prior week that was the highest since early January, Labor Department figures showed today in Washington. The Bloomberg Consumer Comfort Index declined to minus 35.8 from minus 31.4 the previous week. “There has been some slowdown in the labor market,” said Yelena Shulyatyeva, a U.S. economist at BNP Paribas in New York, who correctly projected the level of jobless claims. “That makes consumers feel less confident, and makes them more cautious about their spending. We could see some weakness in April payrolls.”
Fewer firings are needed to lay the groundwork for more hiring and support consumer demand, which makes up 70 percent of the economy. Another report today showed that signed contracts to buy homes rose more than forecast in March, more evidence of a stabilizing housing market that may boost confidence.

Pending Sales of U.S. Existing Homes Increased 4.1% in March (Source: Bloomberg)
Signed contracts to buy U.S. homes rose more than forecast in March as low interest rates drew buyers back into the market. The index of pending home purchases rose 4.1 percent to 101.4, the highest level since April 2010, after a 0.4 percent gain in February that was revised from a previously estimated 0.5 percent drop, the National Association of Realtors reported today in Washington. The median forecast of 43 economists surveyed by Bloomberg News called for a 1 percent rise in the measure, which tracks contracts on previously owned homes. An improved labor market and mortgage rates near historic lows are helping to stabilize housing. At the same time, the industry remains the economy’s weakest link, depressed by the threat of more foreclosures, stricter lending standards, and lower property values. “It’s good news,” said Sean Incremona, senior economist at 4Cast Inc. in New York. “It does suggest that improvement in the housing market is continuing.”

Manufacturing Contributed Less to U.S. Growth Last Year (Source: Bloomberg)
Manufacturing added less to U.S. economic growth last year than in 2010, indicating a pickup in the expansion depends more on bigger gains in the services industry. Factory production accounted for 0.5 percentage point of the 1.7 percent increase in gross domestic product in 2011, the Commerce Department said today in Washington. A year earlier, manufacturing added 1.2 percentage points to economic growth of 3 percent. “We definitely need the recovery to broaden,” said Ryan Sweet, a senior economist at Moody’s Analytics Inc. in West Chester, Pennsylvania. “There are signs that manufacturing is starting to slow. We’re going to see manufacturing contribute less to growth this quarter.”
Makers of durable goods, such as automobiles, were still one of the biggest contributors to the expansion last year, adding 0.49 percentage point after 0.96 percentage point in 2010. Durable-goods manufacturing increased 7.9 percent in 2011 after a 17 percent jump the previous year. Fifteen of 22 industry groups added to growth, including professional, scientific and information services.

Consumer Comfort in U.S. Falls by the Most in More Than a Year (Source: Bloomberg)
Consumer confidence in the U.S. dropped last week by the most in more than a year as perceptions of personal finances and the buying climate dimmed. The Bloomberg Consumer Comfort Index fell to minus 35.8 in the period to April 22 from minus 31.4 the previous week, the biggest decline since March 2011. A gauge of the buying climate decreased to a two-month low, and a measure of household financial wherewithal fell by the most since September. Payrolls grew in March by the least in five months, raising concern that growth is short of the pace needed to trim an unemployment rate hovering above 8 percent. Bigger advances in jobs and incomes would provide a cushion against elevated fuel costs and allow households to accelerate spending, which accounts for about 70 percent of the economy.
“It is going to be difficult to generate large improvements in sentiment unless the economy begins to pick up,” said Joseph Brusuelas, a senior economist at Bloomberg LP in New York. “Jobs are growing, but not fast enough. There’s a risk the pace of consumption will slow this quarter.”

Bernanke Takes On Krugman’s Criticism Ignoring Own Advice (Source: Bloomberg)
Federal Reserve Chairman Ben S. Bernanke took on Nobel prize-winning economist Paul Krugman yesterday and called his advice to reduce unemployment by boosting inflation “reckless.” “The question is, does it make sense to actively seek a higher inflation rate in order to achieve” a slightly faster reduction in the unemployment rate, Bernanke said yesterday to reporters after a Federal Open Market Committee meeting. “The view of the committee is that that would be very reckless.” Krugman, whom Bernanke hired at Princeton University in 2000 when he was chairman of the economics department, said in a New York Times Magazine article that the Fed should raise its 2 percent inflation target to cut unemployment. Such a policy shift would align with Bernanke’s comment in 2000 that the Bank of Japan (8301) should pursue faster inflation to escape deflation, he said. Japan’s consumer prices fell 0.2 percent that year.
“While the Fed went to great lengths to rescue the financial system, it has done far less to rescue workers,” Krugman wrote. “Higher expected inflation would aid an economy” because it would persuade investors and businesses “that sitting on cash is a bad idea,” Krugman said.

Treasuries Set for Weekly Advance on Spain’s Rating Cut (Source: Bloomberg)
Treasuries were set to complete a six-week gain, the longest in 10 months, as Spain’s rating downgrade by Standard & Poor’s renewed concern Europe’s debt crisis is deepening, increasing demand for safer assets. Yields on two-year U.S. notes touched the lowest level since February before Spain auctions bonds next week. The Federal Reserve will sell today as much as $8.75 billion of Treasures maturing in June 2014 to April 2015 as part of its program known as Operation Twist. “Europe’s debt crisis will probably enter a second round,” said Akira Takei, head of the international fixed- income department at Mizuho Asset Management Co. in Tokyo, which oversees about $41 billion. “There is a move toward risk aversion, resulting in the buying of Treasuries.”
Yields on benchmark 10-year notes lost one basis point, or 0.01 percentage point, to 1.93 percent at 9:40 a.m. Tokyo time, according to Bloomberg Bond Trader prices. The 2 percent note maturing in February 2022 added 3/32, or 94 cents per $1,000 face value, to 100 5/8. Ten-year rates have fallen 3 1/2 basis points since April 20 and have declined for six consecutive weeks, the longest drop since June.

Gross Cuts Treasuries, Raises Mortgages in Fed Buy Bet (Source: Bloomberg)
Pacific Investment Management Co.’s Bill Gross said that while more monetary stimulus isn’t likely at the moment, additional quantitative easing remains an option for the Federal Reserve if employment growth is sluggish. “The chairman has not ruled it out,” Gross, who runs the world’s biggest bond fund, said during a Bloomberg Television “Street Smart” interview with Trish Regan. “If we see some weak employment reports over the next few months, then QE3 is back on.” The central bank remains “prepared to do more as needed,” Fed Chairman Ben S. Bernanke said yesterday at a press conference following a meeting of the Federal Open Market Committee in Washington, where policy makers reiterated their pledge to keep borrowing rates at record lows through 2014.
Yields on benchmark 10-year Treasury notes are likely to remain around 2 percent through the end of the year with the Fed and other central banks keeping interest rates at artificially low levels, Gross said. Pimco favors mortgage securities over Treasuries because of the additional yield they offer over government debt in that environment, he said.

China Seeks Boost From Low-Income Housing as Real Estate Slows (Source: Bloomberg)
The Beijing Star Brand Building Materials West Factory has been demolished, and in its place is a construction pit crawling with dump trucks as cranes tower above. This is the future home of the Taiheyuan Affordable Housing Project, which will have grocery stores, restaurants, and 2,400 apartments for factory hands and other low-income residents. As growth slows and real estate values slump, Chinese officials are counting on cheap housing to help prop up the economy, Bloomberg Businessweek reports in its April 30 edition. The Taiheyuan project is just a tiny piece of a vast national effort to build subsidized housing for the urban poor. Five million affordable apartments are to be built this year, with a goal of reaching 36 million units by the end of 2015.
“We will work speedily to improve the system for constructing, allocating” and managing low-income housing, Premier Wen Jiabao said in a speech on March 5. Leaders in Beijing, though, may encounter stiff opposition at the local level as cities and towns balk at footing the bill and seek more profitable investments for their money.

Japan Consumer Prices Rise as BOJ Considers Stimulus Move (Source: Bloomberg)
Japan’s consumer prices rose in March, according to a report released as the central bank decides today on monetary policy. Prices excluding fresh food increased 0.2 percent from a year earlier, the statistics bureau said today in Tokyo. The median estimate in a Bloomberg News survey of 31 economists was for a 0.1 percent gain. The Bank of Japan’s inflation forecast, also due today, may show the 1 percent goal adopted in February remains elusive. Economists unanimously forecast the bank will add to stimulus as lawmakers press for aggressive steps to spur growth and shake off more than a decade of deflation. “Additional easing at today’s meeting is almost a done deal,” Yoshimasa Maruyama, chief economist at Itochu Corp. (8001) in Tokyo, said before the report.
Shirakawa aims to contain expectations for monetary action in the face of pressure from lawmakers in the ruling Democratic Party of Japan and opposition Liberal Democratic Party. In a speech in the U.S. earlier this month, he said that central banks “cannot reasonably deliver solutions to structural issues” and the key challenge for Japan is rapidly changing demographics.

South Korea’s Current-Account Surplus Widens in March (Source: Bloomberg)
South Korea’s current-account surplus widened in March to a four-month high as overseas shipments of cars, electronics and oil products rose while the European debt crisis weighed on global demand. The surplus was $3 billion, compared with a revised surplus of $557 million in February, the Bank of Korea said in a statement in Seoul today. The current account is the broadest measure of trade, tracking goods, services and investment income. Asia’s fourth-largest economy, which expanded at the fastest pace in a year in the first quarter, faces downside risks from the European debt crisis and high oil prices, the central bank said this month. It left borrowing costs unchanged for a 10th straight month on April 13 as it forecast a “moderate recovery” in domestic demand.
“We’re passing a bottom but global demand will likely remain weak, which bodes ill for exporters,” Yoon Yeo Sam, a fixed-income analyst at Daewoo Securities Co. in Seoul, said before the release. “With moderate growth and persistent inflation pressures, policy makers seem to have limited room for moving interest rates in either direction.”

World Bank Assesses Myanmar’s Debt as Re-engages Nation (Source: Bloomberg)
The World Bank is helping assess Myanmar’s debt level as it rekindles working relations with the country 25 years after stopping loans, an official at the lender said. The Washington-based World Bank will open an office in Myanmar in June, Pamela Cox, the bank’s vice president for East Asia, told reporters today. The lender, along with the International Monetary Fund, is gathering data to analyze the nation’s debt sustainability, she said. “This is to see how much debt stress this country is going to be under once it normalizes relations and how much debt should be forgiven,” said Cox, who will travel to the country in June to meet with authorities. “We’re not at the stage of loans yet.”
The European Union and nations including the U.S. and Australia have said they will ease sanctions against Myanmar, where a new government took power in March 2011 and initiated steps to liberalize after five decades of military rule. Japan on April 22 announced it would forgive 303.5 billion yen ($3.8 billion) in loans and interest and roll over 198.9 billion yen of debt with a new loan.

Spain Cut by S&P for 2nd Time This Year on Banks, Economy (Source: Bloomberg)
Concerns that Spain will have to provide further fiscal support to the banking sector as the economy contracts prompted Standard & Poor’s to cut the nation’s sovereign credit rating to BBB+ from A. Spain’s short-term rating was lowered to A-2 from A-1, while the outlook on the long-term rating is negative, New York- based S&P said in a statement yesterday. The nation’s 10-year borrowing costs have climbed about 70 basis points this year as Prime Minister Mariano Rajoy struggles to convince investors he can control public finances amid soaring unemployment and a contracting economy. Banks threaten to disrupt the premier’s efforts as bad loans reach the highest levels in almost two decades.
“Spain’s budget trajectory will likely deteriorate against a background of economic contraction,” S&P wrote in the statement yesterday. “At the same time, we see an increasing likelihood that Spain’s government will need to provide further fiscal support to the banking sector. As a consequence, we believe there are heightened risks that Spain’s net general govern debt could rise further.”

France Unemployment Near 10% Fueled by Laws Election Omits: Jobs (Source: Bloomberg)
Tired of waits to fill orders and lack of control over his Asian factories, Pierrick Haan, chief executive officer of Dupont Medical, decided last year to return production of some wheelchairs and medical equipment to France. The 150-year-old Dupont Medical created 20 jobs making custom devices at a plant in central France -- and will stop there. Faced with France’s stifling labor code, Haan probably will send any additional production of standard equipment to what he calls “Near France:” Tunisia, Bulgaria or Romania. “The cost of labor isn’t the main problem, it’s the rigidities,” Haan said in an interview. “If you make a mistake in your hiring plans, you can’t correct it.”
While polls show job creation and the economic crisis are the top issues for French voters in next month’s second-round election, neither President Nicolas Sarkozy nor Socialist Francois Hollande are focusing on Haan’s concern. Companies say the biggest obstacle to hiring is the “Code du Travail,” a 3,200-page labor rulebook that dictates everything from job classifications to leave for training to the ability to fire.

Europe Seen Adding Growth to Budget Rules as Focus Shifts (Source: Bloomberg)
Europe may add an annex to its budget treaty spelling out how countries can boost growth as the bloc shifts its emphasis on tackling the debt crisis, a German government official said. Steps to raise competitiveness along with structural reforms are likely to feature in the prescriptions for growth, with a target date for completion by the June 18-19 Group of 20 leaders’ summit in Mexico, the official said on condition of anonymity because the discussions are private and not complete. The change in tack was signaled yesterday by European Central Bank President Mario Draghi, whose call for a “growth compact” was quickly endorsed by German Chancellor Angela Merkel. Francois Hollande, the French Socialist presidential election front-runner, welcomed Draghi’s remarks as evidence of the need for treaty changes to boost growth, while questioning the means of getting there.
“It’s not the same idea of growth,” Hollande said in an interview on France Info radio today. Draghi is “adding even stronger competition, liberalization and privatization.”

Euro-Area Economic Confidence Drops More Than Forecast (Source: Bloomberg)
Economic confidence in the euro region declined more than economists had forecast in April, as the region’s slump showed signs of deepening. An index of executive and consumer sentiment in the 17- nation euro area fell to 92.8 from a revised 94.5 in March, the European Commission in Brussels said today. Economists had forecast a drop to 94.2 from a previously reported 94.4, the median of 29 estimates in a Bloomberg News survey showed. Europe’s economy is faltering as spending cuts across the region undermine hiring and consumer confidence. Deutsche Bank AG, Germany’s largest bank, today reported a 33 percent drop in first-quarter profit, with Chief Executive Officer Josef Ackermann calling investors’ “risk appetite markedly lower.”
“With more austerity in the pipeline and the debt crisis still unresolved, any significant pickup in economic confidence in the remainder of this year might fail to occur,” said Martin van Vliet, an economist at ING Group in Amsterdam. “This could jeopardize a return to modest positive growth later this year.”