Euro zone moves ahead; central bank talkfest

(Reuters) - Flash estimates for third-quarter growth in the euro zone due out this morning are expected to show the region powering ahead with 0.6 percent growth in the three months and 2.5 percent for the year.
A "Manufactured in France" placard is seen at the "Made In France" fair in Paris, November 12, 2017. REUTERS/Benoit Tessier
If confirmed, that would compare favourably to the less impressive 1.5 percent year-on-the-year growth the UK posted a couple of weeks ago and will encourage the ECB along its path to gradually tightening its stimulus programme.
While doubts remain about southern Europe’s economies, German GDP came in better than expected this morning; and outside the euro zone, the economies of eastern Europe are doing even better, experiencing a growth spurt that is already putting pressure on prices and wages.
It’s pretty rare that you get the central bank chiefs of the United States, the euro zone, Japan and Britain around the same table but they will all be there in Frankfurt today for an ECB-hosted event on central bank communication.
Central bankers talking about the art of talking may not seem the most compelling event but the history of monetary policy is strewn with communication gaffes, misunderstandings and general misfires. Moreover, there is fairly widely held view that if communicating a push to inject stimulus is tricky, explaining how you plan to remove it is even more sensitive.
When asked to confirm in parliament yesterday whether a vote by the chamber to reject a final Brexit deal would result in Britain leaving the EU without any deal at all, Brexit minister David Davis' answer was a barely audible "yes" - in fact, it was so muffled that the parliament speaker and several of his lawmaker allies had to repeat the answer out aloud.
What this means is that those with the most reservations about Brexit will have the option of backing whatever deal Davis finally gets from Brussels or, ironically enough, consigning Britain to the hardest Brexit of all - a no-deal one. This has infuriated a number of Conservative deputies just as parliament embarks today on the debate over the EU Withdrawal deal, with one describing the "meaningful" vote PM Theresa May believes she is offering them as meaningless.
Euro zone moves ahead; central bank talkfest Euro zone moves ahead; central bank talkfest Reviewed by Alexander Von Stern on 01:08:00 Rating: 5