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Recession Warnings Ruffle Europe As Germany And Italy Stall

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German industrial output fell at the fastest rate for a decade in May, raising concerns that Europe's economic powerhouse is succumbing to the twin effects of the oil and credit shocks.

In Italy, Fiat announced plant closures and temporary layoffs at factories in Turin, Melfi, Imola and Sicily in order to face an economy "in crisis". Car sales in Italy have fallen by almost 20pc over each of the past two months.

Fiat said plants would be shut one week in four through September, October and November. "The situation is evidently more serious than had been understood," said Metalmeccanici, Italy's car workers' union.

France's finance minister, Christine Lagarde, called for joint EU action to head off a recession. "The slowdown is clearly becoming a matter of concern. We must very seriously come up with a way of stimulating growth," she said in Brussels. She later met her Italian counterpart to help prepare an EU-wide "anti-speculation" plan to help bring down oil prices.

Germany's industrial output was down 2.4pc in May. Orders have now fallen for six months in a row, the worst run since the early 1990s. The German Chamber of Industry and Commerce warned of up to 200,000 job losses in coming months.

Spain's factory output slumped 5.5pc in May. The country's business lobby Circulo de Empresarios yesterday warned of a "high probability" that Spain's economy would fall into recession in the second half of this year as the housing collapse takes its toll.

It appears that this recession is becoming the latest trend.

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Those numbers are awful, 20% fall in car sales in each of the past two months (Italy) and those German and Spanish numbers make ours look pretty good...but something seems to have happened here since the begining of June.

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  • 395 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

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