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Euro zone GDP, Q3 2024

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People walk down the iconic Alcalá street on a very hot afternoon in Madrid, Spain.

Miguel Pereira | Getty Images News | Getty Images

The euro zone economy grew 0.4% in the third quarter, flash figures published by the European Union’s statistics agency showed Wednesday.

Economists polled by Reuters had expected growth of 0.2%. following the bloc’s 0.3% expansion in the second quarter.

Spain recorded one of the highest growth rates, increasing 0.8% on the previous quarter, as Ireland — which generally records volatile figures due to the high proportion of international corporations stationed there — rose 2%.

The euro zone’s biggest economy, Germany, recorded a surprise growth of 0.2% in the third quarter. That allowed Europe’s largest economy to avoid the recession that had been forecast by some economists, as it struggles with a downturn in its key manufacturing sector.

“Although a technical recession was avoided, the German economy remains barely larger than it was at the start of the pandemic,” analysts at ING said in a Wednesday note, calling the nation a “magnet for negative macro news.”

Analysts say euro zone business activity and consumer confidence should cautiously pick up in the coming months, amid lower interest rates and cooling inflation.

The European Central Bank cut rates for the third time this year at its October meeting, after headline inflation came in at 1.7% in September, according to a final reading. The ECB cited persistent signs of weak activity in the euro area as a key factor in the central bank’s decision to enact an October cut.

Markets have fully priced another 25-basis-point cut from the ECB in its last meeting of the year in December.

Weaker euro zone growth outlook has led ECB to October rate cut, CIO says

This is a breaking news story and will be updated shortly.

Economics

Donald Trump chooses hedge fund executive Scott Bessent for Treasury Secretary

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Scott Bessent, founder and chief executive officer of Key Square Group LP, during an interview in Washington, DC, US, on Friday, June 7, 2024.

Stefani Reynolds | Bloomberg | Getty Images

President-elect Donald Trump has signaled his intention to nominate hedge fund executive Scott Bessent as his Treasury secretary, sources tell CNBC and NBC News.

The founder of Key Square Group had been considered a strong favorite for the position along with a few other close contenders.

As head of Treasury, Bessent, 62, will be both the U.S. fiscal watchdog as well as a key official to help Trump enact his ambitious economic agenda. Both a Wall Street heavyweight and advocate for many of the incoming president’s economic goals, he would come to office at a critical time as the U.S. wrestles with a growing economy alongside long-festering debt and deficit issues.

Like Trump, Bessent favors gradual tariffs and deregulation to push American business and control inflation. In addition, Bessent has advocated for a revival in manufacturing as well as energy independence.

The prospective nominee also has deep philanthropic ties through Yale University along with Rockefeller University and Classical American homes Preservation Trust.

One obstacle Bessent will have to overcome is his past affiliation with billionaire investor and global gadfly George Soros. Bessent served as chief investment officer for Soros’ fund.

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Economics

Trump might name Kevin Warsh as Treasury chief then Fed chair later, report says

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Kevin Warsh

Jin Lee | Bloomberg | Getty Images

President-elect Donald Trump is considering naming Kevin Warsh as Treasury secretary then ultimately sending him off to serve as Federal Reserve chair, according to a Wall Street Journal report.

A former Fed governor himself, Warsh would move over to the central bank after current Chair Jerome Powell’s term expires in 2026, according to the Journal, which cited sources familiar with Trump’s thinking.

The speculation comes with Treasury being the last major Cabinet position for which Trump has yet to state his intention.

Various reports have put Warsh as one of the finalists with Apollo Global Management CEO Marc Rowan and hedge fund manager Scott Bessent. Among the potential scenarios would be one where Bessent would lead the National Economic Council initially then go over to Treasury after Warsh takes over at the Fed.

However, Trump is known for the propensity to change his mind, and the report noted that nothing has been finalized.

Read the full Wall Street Journal story here.

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Economics

Matt Gaetz withdraws from consideration as America’s attorney-general

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MATT GAETZ, Donald Trump’s choice for America’s attorney-general, spent November 20th meeting senators and telling reporters it had been “a great day of momentum”. The next day, however, Mr Gaetz withdrew his name from consideration, acknowledging that “my confirmation was unfairly becoming a distraction.” This was not self-effacement from a MAGA firebrand, but a reflection of reality: Mr Gaetz had little chance of being confirmed even by a Republican-controlled Senate. The Republican Party may belong to Mr Trump, but his power is not absolute.

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