This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Eurozone Unemployment Hits Another Record High

At present, the five euro countries at the forefront of the debt crisis â¿¿ Greece, Spain, Italy, Cyprus and Portugal â¿¿ are in recession. Others could well join them in the months to come.

The currency bloc's powerhouse economies, such as Germany and France, have also seen growth levels fall in the last year and that's increased pressure on businesses to cut costs. Industrial conglomerate Siemens AG, for example, announced Friday it would cut another 4,700 jobs, though not all in Germany.

Germany's unemployment rate in October was unchanged at' 5.4 percent. France's was steady too, albeit at nearly double Germany's at 10.7 percent.

Separately, households got some good news in Eurostat figures showing the annual inflation rate in the eurozone fell by more than anticipated to a 23-month low of 2.2 percent in November from 2.5 percent the previous month.

Since it was a preliminary estimate, no reason for the fall was given but waning labor market pressures to lift wages are likely to have been, at least partially, behind the fall.

"We think inflation could fall quite a bit further over the next year or so in response to the spare capacity in the economy, helping to ease the squeeze on households' real incomes," said Jonathan Loynes, chief European economist at Capital Economics. "But whether that will get them spending in an environment of austerity and rising unemployment is another matter."

Despite the November decline, inflation is still above the ECB's target of keeping price rises at just below 2 percent. Few economists think the ECB will cut its main interest rate from the current record low of 0.75 percent at its monthly policy meeting next Thursday.

____

Don Melvin in Brussels and Greg Keller in Paris contributed to this story

Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 18,010.68 -115.44 -0.64%
S&P 500 2,107.39 -13.40 -0.63%
NASDAQ 5,070.0260 -27.95 -0.55%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs