News from the euro: “End of the euro!” Brussels warns as inflation rates skyrocket | World | News

European stocks slipped on Friday amid concerns over rising inflation and soaring coronavirus infections, while investors were unsure how weak US wage data would influence plans for the Federal Reserve on policy tightening.

Data showed eurozone inflation hit a record high last month, likely indicating increased pressure on the European Central Bank to raise interest rates this year.

The disturbing data triggered a warning from Nexit activists about the stability of the euro area.

Nexit Denktank analysts said: “With high inflation, public debt can ‘melt’.

“Southern European countries such as Greece (210%) and Italy (156%) have high debts and inflation is in their best interest and that of the euro.

“The Netherlands has little debt, but cannot change course because of the euro.

“If Italy goes bankrupt, it means the end of the euro.

“Their national debt is too large to be saved like Greece did.

“This was stated by Jeroen Dijsselbloem (former Eurogroup president) and also confirmed by EU law professors.


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Chris Zaccarelli, Investment Director of the Independent Advisor Alliance, said: “Inflation is the number one concern of the Fed, and they are going to hike and potentially sell off the balance sheet to remove the monetary accommodation. .

“Today’s report is unlikely to do anything to change the Fed’s view.”

The prospect of higher interest rates boosted European bank stocks, making them the top performers this week with a 6.7% jump.

The gains of some chipmakers helped limit some losses in the tech sector. Italian STMicroelectronics rose more than 3% after posting quarterly revenues above its own estimates.

German chipmaker Infineon Technologies gained 1.7%, taking inspiration from South Korean Samsung Electronics which posted encouraging fourth quarter results.

Deutsche Bank climbed 1.8% to a more than six-month high. The CFO of the German lender told Handelsblatt in an interview that the company is confident it will hit a key profitability target this year.

Dutch insurer Aegon has climbed more than 4 percent to the top of the STOXX 600, after announcing a € 50 million share buyback.

Meanwhile, Airbus fell 0.8% after reports that Qatar Airways is seeking more than $ 600 million in compensation from the aircraft manufacturer for surface defects on A350 airliners.

Airbus said that although it recognized the technical issues, there were no safety concerns.

Polish parcel locker company InPost fell 14.0% to the bottom of the STOXX 600 after posting weaker-than-expected quarterly parcel volume growth in the country.

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