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Jakobsen: Growth in Eurozone looks like a 'total loss' for 2014

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Eurozone GDP figures are out on Thursday and with industrial production in Germany, France and Italy down, the signs aren’t good. The prediction is for 0.1% growth but Saxo’s Steen Jakobsen warns we could see a negative number.

Although industrial production in the second quarter rose in Spain by 0.7 percent, it fell in France by 0.5 percent and was down 0.4 percent in Italy. Most worrying of all, it fell 1.5 percent in Germany. These four countries make up 78 percent of the Eurozone’s industrial output. Jakobsen says that Asia’s slowing economy has resulted in fewer German products being sold there. Furthermore he points to the country’s falling factory orders – they are down 10 percent to Europe itself.

So how is Jakobsen trading Europe? He says he hasn’t changed his strategy since January and although boring, believes fixed income is a safe bet. He warns that he’d be cautious if he was an equity investor. “After a good run,” he says, “it's time to take some money off the table.”