Eurozone growth slows sharply as French and Italian economies shrink – business live

Rolling coverage of the latest economic and financial news, as France’s economy contracts by 0.1% in the last quarterLatest: Eurozone growth slows to just 0.1%Italy shrank by 0.3%… French GDP fell 0.1%Contraction is blow to MacronBut Spain and Belgium have grown 1.37pm GMT Back in the City, investment services platform Hargeaves Lansdown are the biggest FTSE 100 faller, down almost 7%. Related: Neil Woodford loyalists pay dearly for stock-picker’s style drift The external market was challenging in the second half of 2019, with political uncertainty, a General Election in the UK, Brexit and world trade tariffs all raising concerns. As we have seen in previous unpredictable periods, client confidence and retail investment flows were affected.The Investment Association reported weak retail fund flows throughout and the suspension of the two Woodford funds also contributed to the general unease.What price Neil Woodword? Well so far the problems haven’t revealed themselves. The loss of new business must be a worry, especially if it’s linked to a loss of trust as a result of the company’s role in the Woodford scandal. Unfortunately the post-mortem of that debacle has only just begun. With the Woodford fund distribution guidelines announced recently, they’re back under the microscope.“For Hargreaves you’d expect to see at least a fine from the FCA, and perhaps even a class action lawsuit from shareholders. How that will affect their business remains to be seen. It could be a very long year ahead for the company.” 1.16pm GMT France’s finance minister has blamed the industrial action and protests against the French government for the slump in growth in the last quarter.“This temporary slowdown does not call into question the fundamentals of French growth, which are solid.We are nonetheless particularly vigilant of international uncertainties.” Continue reading…
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