Germany’s economy, the largest in Europe, edged back into growth in the first quarter of 2013 after a sharp downturn at the end of last year, while France slipped into recession according to data.
Germany saw minimal growth of 0.1% in Q113, weaker than the expected 0.3%, as a severe winter prevented a stronger rebound. “The German economy is only slowly picking up steam,” the Federal Statistical Office (Destatis) said. “The extreme winter weather played a role in this weak growth.” It also revised down its figure for Q412 to show a contraction of 0.7%, from the previous estimate of 0.6%.
France’s economy is technically in recession as a 0.2% contraction in Q412 was followed by a similar figure for Q113, according to Insee, the French national statistics agency. The figure was released on the first anniversary of Francois Hollande being elected as French president.
Separately, Eurostat reported that economic activity across the Eurozone contracted by a further 0.2% in Q113, the sixth consecutive quarterly fall although less steep than the 0.6% drop recorded in Q412.
Earlier this month the European Central Bank (ECB) cut eurozone interest rates to a record low of 0.5% in an attempt to stimulate growth.
Meanwhile, the Bank of England’s (BoE) outgoing governor, Sir Mervyn King, said that the outlook for the UK economy had improved with the growth rate of 0.3% recorded in Q113 likely to pick up to 0.5% in the second quarter. The BoE, which will be headed by Mark Carney, currently governor of the Bank of Canada, from 1 July, said that “a modest and sustained recovery” was now likely for the UK over the next three years.
The US money market fund reforms came into effect in 2016 and are already dramatically shaping US fund industry with investors flooding out of prime funds and into government securities. While the reforms are similar, they are not the same. GTNews interviews Yeng Bulter, global head of the cash business at State Street Global Advisors on the differences.
The top five sectors Asian fintech investors are interested in are data analytics, blockchain, lending, payments and regtech, according to Gary Hwa, EY regional managing partner.
On the third day of the Singapore Fintech Festival conference, there was a focus on specific applications of fintech innovation. One was trade finance, which is clearly is ripe for a revolution.
Kicking off day two of the Singapore Fintech Festival, Deloitte Chairman David Cruikshank said that fintech is significant for three reasons. First, customer expectations of services are higher than ever. Second, barriers to entry are lower than before. And finally, financial institutions (FIs) face a threat of what a competitor might do.