Just in – new survey data suggests that the eurozone's bruised economy has turned a corner.
Marki's Eurozone Composite PMI, which measures business activity across thousands of companies, hit a 10-month high of 48.6 In January, up from 47.2 in December
Markit reported that businesses were more optimistic about the future. However there are sharp differences between countries.
Reuters has the early details:
While still signalling a contraction as the index has been below the 50 mark that signifies growth since February last year, it has risen consistently in the last three readings.Private industry makes up nearly two-thirds of the euro zone's economy and worryingly for policymakers, the data showed a widening chasm between Germany - Europe's largest economy - and France, the bloc's second biggest.
Chris Williamson, chief economist at Markit, said the eurozone is showing "clear signs of healing", having entered recession last year,
However, there were stark differences between Germany and France: Markit's composite German PMI chalked up its biggest one-month rise since August 2009, soaring to its highest since June 2011. But in neighbouring France it plummeted to its lowest in nearly four years.
At 43.6, France's services PMI was even below readings from Spain and Italy.
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In his address to the European Parliament, Mr Hollande said the 2014-2020 EU budget of some €1 trillion (£860.8bn) was open to some savings but insisted the leaders at Thursday's summit should not compromise innovation and shared sectors like farming.
A November summit ended in failure when Britain led opposition against proposals for a new seven-year EU budget.
"I have been told a solution cannot happen with Britain. But why should one country decide for 26 others? Indeed we could have agreed at the last European summit," Mr Hollande said.
"In order to let people say that this failure was a victory, we let it happen."
In several remarks that could be seen as targeting Mr Cameron, Mr Hollande said "there are those who want to see cuts, others - possibly the same, who want guarantees on their own rebate".
Socialists show their dictatorial proclivities in the way they fear markets. Take this gem from Hollande:
"“We can’t let the euro fluctuate according to the mood of the market."
Hollande may have mood swings at his age but markets do not have "moods" - they react to the economic policies of politicians, indeed they are the instant scoreboard of politicians policies, and that is why politicians hate markets - markets get in the way of dictatorships.
I think for the PM to refer to UKIPs supporters as ‘Pretty odd people’ is a bit harsh on both of them……No chance for the BNP or UKIP................
oldnick,What don't you agree with? Wouldn't you agree that Europe would be a more dynamic and alive continent without the Euro?As I have explained to your colleagues, JJ and andycfc, or whichever of you PR guys who adopted that persona, I am an old unreconstructed hippy. I moved to Europe early in the 90's when I had the right to work and stay in any of the countries in the eu. I was very happy with the Dmark, which was acceptable outside of Germany. I sold my arts and crafts on the street and was obliged, working in luxembourg and germany to carry dmark, frog franc, lux belg franc, guilder, pound and us dollar, for the lads from spangdahlen, bitburg and Ktown and boxes of small change of all of the above. So from a convenience point of view, now a housedad, living in Belgium, wife earns dosh in Lux, big shopping in Germany, it is very convenient. From this point of view it has made my life more dynamic and alive.As a political junkie I have always understood the imperative behind Europe. No more stupid euro wars, a major convenience for international companies based in europe. Did I want the euro? No! Does it suit me now? YES!I was very anti Brussels, WAS! I, from a sense of moral debt to you Yanks, supported the invasion of Iraq. A very lone and loud voice in Trier at that time. I had known from the late 90's that Bliar and Clinton wanted to invade Iraq. I foolishly imagined that you had a plan of how to handle it after victory. I was very wrong there, was I not!Barrosso, a competent problem solver, disgusted me when he told Paddy that he must vote again. So you ask yourself, what turned me so pro europe and the EZ?YOU DID! With the sub prime crisis, born and bred in America, the worthless AAAshit sold to euro banks by the Shity and then the sovereign debt crisis, what did I see.All the MSM, Ambrose here, telling the whole world that if Germany did not hand over all its dosh then everthing would collapse instantly. I always had a good feeling about Mrs Merkel and she has certainly slapped you Yanks around. If she stood as an elected Pres of Europe I would vote twice for the lady.
Modern democracy is a choice between the lesser of evils. I sse Brussels as the lesser of evils and WallSt and the Shity as the major source of all evils that affect me personally.Letting the south in was stupid. Clever would be and will be a northern and southern euro. I do not have the slightest doubt that the euro will survive in one form or another for reasons that you could never understand or believe.However bad it gets here in northern europe it will be a walk in the park compared to what is coming to the USA and UK. I wish the UK would leave. I do not give a monkeys about the Greeks.
You need to understand that America has used up all its good will and we are sick of the whining Brits. I have no national loyalty. Even my body is on short time loan . How can I claim that a whole country is mine? If you need further explanation of my position please ask.
The French president said the EU was "a project where we cannot keep on arguing about what is already there and calling everything into question at every step".
He said it was "a commitment in which everyone accepts the balancing out of rights and obligations, where the rules are abided by, where confidence creates solidarity".
Thursday will mark the first summit meeting since Mr Cameron's Europe speech at the end of last month.
He did, however, applaud Cameron for his support for France's intervention in Mali, where French and Malian troops are reclaiming vast areas from jihadists and other rebel groups.
Elsewhere in his speech, Mr Hollande called on government leaders to agree on a target for the currency's exchange rate over the medium-term, warning that the rising currency may deepen the recession.
"The eurozone must, through its heads of state and government decide on a medium-term exchange rate," he said.
“We can’t let the euro fluctuate according to the mood of the market."
He added that the exchange rate should not be set artificially but that the eurozone should act on global markets to protect its interests.
The euro’s founding treaty gives governments the power to set “general orientations” on exchange rates, as long as this doesn’t interfere with the Frankfurt-based central bank’s control of inflation.
The euro bought $1.3533 this afternoon, close to the 14-month high of $1.3711 reached on February 1 amid confidence that the debt crisis is coming to an end.
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