A report released Friday showed that UK companies were the most upbeat on business prospects of the year ahead, out of a group of major countries surveyed in October. That comes despite future business activity levels being at its lowest since June 2013 for both the manufacturing and services sectors.
UK firms were also the most optimistic about hiring plans among major economies. "The optimism suggests the UK will continue to outperform its peers in 2015, albeit with growth slowing from that seen in 2014.
Mario Draghi strengthened his stimulus pledge for the euro area by saying the European Central Bank can’t hold back in its fight to revive the economy.“We will do what we must to raise inflation and inflation expectations as fast as possible, as our price-stability mandate requires,” the ECB president said at a conference in Frankfurt in Friday. Some inflation expectations “have been declining to levels that I would deem excessively low,” he said.
With the next policy meeting less than two weeks away and the region remaining close to economic stagnation, Draghi is expected to step up efforts to convince investors he’s serious about reigniting growth and inflation. The euro fell and bond yields dropped on speculation the central bank is closer to buying government debt in a full-scale quantitative-easing program.
Draghi explained that “There is a combination of policies that will work to bring growth and inflation back on a sound path”. And “If on its current trajectory our policy is not effective enough to achieve this, or further risks to the inflation outlook materialize, we would step up the pressure and broaden even more the channels through which we intervene, by altering accordingly the size, pace and composition of our purchases.”
09:00 - EUR : IFO German Business climate expected to higher at 103.2
14:45 - USD : Flash services PM (Nov)I expected to be higher at 57.3
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