-Jens Weidmann, ECB Governing Council member, Bundesbank Goveror
A bunch of positive news came out from the Euro zone on Wednesday, as retail sales in the currency bloc rose for the third month in a row in December, while Markit's composite PMI, a measure of activity in the manufacturing and services sectors, climbed to 52.6 in January from 51.4 in the preceding month. The PMI gauge was revised upwards from a preliminary estimate of 52.2, and pointed the Euro zone economy expanded at the fastest pace since July 2014. Moreover the indicators, which assess performance of the services sectors in Germany, Italy and Spain, rose in January, while France's services sector slipped back into contraction territory in the reported month with the services PMI at 49.4. On top of that, retail sales in the 19-member region picked up by 0.3% from November, following the 0.7% increase in the previous two months. On an annual basis, sales soared 2.8% during the reported month, accelerating growth following an upwardly revised 1.6% increase recorded in November.
Meanwhile, Jens Weidmann, ECB Governing Council member, reiterated his critics concerning central bank's QE programme. Weidmann said that the scheme entails risks that outweighs benefits. Moreover, he added that he did not see deflation threat in Europe, which is "characterized by a downward spiral of falling prices, declining wages, consumer restraint and reduced investment by companies."
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