Friday the eurozone service sector, had the fastest declaration in growth in nine years, and the the purchase managers index, which measures activity in both services and manufacturing fell to 54.5 from 57.4 the previous month; the largest drop since October 2001.
Further pressure came from French president Nicholas Sarkozy who broke protocol by criticizing the ECB saying, "When the Federal Reserve cuts rates, things get better. When we don’t cut ours, we sink." Businesses also are complaining about the strong euro; Airbus warned about deeper cost cuts of close to $3 billion yearly to offset dollar exposure.
Back in August Cramer ranted that the Fed needed to cut rates here; now Sarkozy is the voice in the wilderness and he's gathering disciples. The ECB needs to cut, and they will in October.
October surprise? Not the one the bears wanted!
Post a Comment