Cannes summit 'a major point of inflection for eurozone'

Stock market traders may be interested to learn that one expert has said the meeting in Cannes of 20 international finance chiefs on November 3rd and 4th is likely to be a vital event in the future of the eurozone economy.

Jim O'Neill, chairman of Goldman Sachs Asset Management in London, told Bloomberg that it will become a "major point of inflection".

He asserted that it will either "resurrect life of leave us in deep hibernation through the winter".

His comments come after Goldman Sachs Group revised its outlook for the economy of the eurozone, forecasting that it will expand by 0.1 per cent next year, down from earlier forecasts of 1.3 per cent.

Angela Merkel, the German chancellor, recently stated that greater economic integration may be needed in the euro-area, while French president Nicolas Sarkozy suggested that the failure of Greece "would be the failure of all of Europe".

Yesterday the euro fell to a ten-year low against the yen, with Bloomberg reporting that the common currency hit 101.32 yen at 08:49 New York time.

Posted by Greg Secker