"It" has hit the fan in Brussels. How lucky are we to be out? Imagine who would be paying.
//The more surprising fact is that the euro has not fallen faster considering the eurozone has a trade deficit. Now he predicts the euro has further to fall.
The latest S&P Global Eurozone PMI adds to his prognosis. The index dropped to 49.2 in August, from 49.9 in July, the second successive drop in business activity and a sharper fall than that seen in July. ...
The outlook gets worse. Overnight on Monday, benchmark gas prices in the European Union rose 13 per cent to a record peak
Gas prices have doubled in the last month to be 14 times higher than the average price of the past decade. Consider that fact slowly.
Christine Lagarde and the European Central Bank are in dangerous territory as they consider whether to be hawkish with more aggressive interest rate hikes when they meet next on September 8.
There may be hints about future policy over the next few days from the Bundesbank chief Joachim Nagel when he meets fellow central bankers at the Fed’s Jackson Hole Economic Symposium tomorrow.
Deciding what to do next will be tricky. The ECB is caught between a rock and a hard place. Raising rates may do more harm than good and tip the region into a deeper recession.
Lagarde will need to come up with her version of Mario Draghi’s famous ‘Whatever It Takes’ to avert another eurozone crisis and stop the euro falling further.
And she can’t even blame Brexit.//
https://www.msn.com/en-gb/money/other/single-currency-in-crisis-the-ecb-is-caught-between-a-rock-and-a-hard-place-ahead-of-crunch-rates-decision-says-maggie-pagano/ar-AA110Iqx?ocid=msedgdhp&pc=U531&cvid=290bd0fcc74241f3969501401f74c9f6