Rolling coverage of the latest economic and financial news
More gloom in France this morning as shares in the Paris-listed train maker Alstom are tanking, down by 28%.
The company has cut its profit and cash flow forecasts for the second time since April. It also announced a plan to cuts its debt by €2bn, as it grapples with delays to a series of key German projects.
Another solid PMI reading extends the eurozone’s best growth spell for manufacturing for over four years. The sustained growth recorded since February paints an encouraging picture of resilience for the manufacturing sector, which has been buffeted by the headwinds of tariffs and conflicts in the Middle East and Ukraine, and in particular the surge in costs and supply difficulties that these have caused.
Instead, increased defence spending, precautionary inventory building, diversification and changing trade patterns due to US tariffs have created growth opportunities for many producers.
Furthermore, with input cost inflation surging sharply higher again in October, climbing to one of the highest rates seen over the past four years thanks to higher energy prices and supply bottlenecks, the latest PMI data add to pressure on the [European Central Bank] to hike rates further in the coming months, providing another headwind to businesses.” Continue reading…
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