Economic confidence Europe downs

Confidence among European businesses and consumers is in free fall as shutdowns to contain the coronavirus push the economy into recession.

The reports are a grim preview for European leaders, who will discuss a possible 2 trillion-euro ($2.2 trillion) rescue plan for the region. Governments have already pledged billions of euros in aid, and the European Central Bank on Wednesday stepped up its efforts to shield the most vulnerable countries.

Figures on Thursday showed French business confidence plunged to its lowest on record in April with economic activity running 35% below normal levels, while consumer sentiment in Germany also dropped to a record low.

The health crisis and the complete shutdown of several sectors have sent the euro-area economy into a nosedive. A measure of consumer confidence in the region also plunged, and Purchasing Managers Indexes due later Thursday are forecast to show continued dramatic economic weakness.

The German report from GfK showed consumers haven’t been this pessimistic in at least four decades. The survey was conducted April 1-14, before the government started to ease lockdown restrictions, fueling hope that a gradual rebound in activity will at least cushion the slump.

In France, national statistics agency Insee said business sentiment across sectors registered its steepest monthly decline in April to reach the lowest level since the measure began in 1980.

Source: https://www.bloomberg.com/news/articles/2020-04-23/french-business-confidence-sinks-to-record-low

Comments

Business life in Europe wakes up

Business life in Europe wakes up The organisers of Sleep & Eat have announced the first details of this November’s show in Olympia London, designed to support hospitality businesses across the spectrum and lift the trammelled spirits of the hospitality community. New for this year, there will be an array of meeting and networking platforms designed to generate conversations and connections between all members of the hospitality community, which will include series of one-to-one meetings organised in advance through the show’s new portal. Initiatives such as these will be combined with a unique collection of experiential Sets, a Conference bringing industry leaders together, this year to debate the shape of hospitality after COVID-19, and an international Exhibition. The organisers have also revealed that, for the first time, the event will be delivered in collaboration with major international Hotel Brand Partners, Accor, IHG and Wyndham Hotels & Resorts. ...

Italy: Wine sales sour from virus

Italy: Wine sales sour from virus With Italy's restaurants and bars closed for another month and global trade snuffed out by the coronavirus, the world's top wine producing country is experiencing an existential crisis. Italy's 47.5 million hectoliters edged out France's 42.1 million for last year's global wine production title, although France's 9.8 billion euros ($10.7 billion) in exports beat out Italy's 6.4 billion euros. Making nearly a fifth of all the world's wine and selling more than half of it at home, Italy's two-month lockdown has hit the Mediterranean country's winegrowers especially hard. High end hurting Some of Italy's most prestigious wines are suffering from the worldwide lockdown. For decades, Barolo has focused on "maximum quality," earning a place on the wine lists of some of the world's best restaurants, said Paolo Boffa, president of the Terre del Barolo cooperative. See more: https...

Italy: Firms shake lockdown using shortcut in coronavirus law

Italy: Firms shake lockdown using shortcut in coronavirus law The government last week extended non-essential business closures to May 3. But more than 100,000 mainly small- and medium-sized companies have applied to keep going or partially reopen. In principle, a key hurdle for companies to do business should be that they can prove they are part of a supply chain to businesses that are deemed “essential” in a government decree, such as food, energy or pharmaceutical companies. But the government, facing a backlog of applications, has clarified Italy’s lockdown laws to say no companies need to wait for government approval to go ahead. More than 105,000 firms have applied to be considered part of essential supply chains, the interior minister said on Wednesday, in a guideline on its website to clarify the lockdown rules. Of those, just over 2,000 have been turned down and told to suspend their business. More than 38,000 are being investigated and the rest are waiting to be...

Business advice

Search This Blog