Telegraph's Ambrose Evans-Pritchard comments on the absolute decline in euro zone money supply- The three main gauges M1, M2, and M3 have each begun to decline in absolute terms after slowing sharply over the Autumn. - The decline shows that the implosion of the banking system on the periphery is now outweighing growth left in the core. This is the first sign of an emerging credit crunch - While real M1 deposits are still holding up in the German bloc, the rate of fall over the last six months (annualized) has been 20.7pc in Greece, 16.3pc in Portugal, 11.8pc in Ireland, and 8.1pc in Spain, and 6.7pc in Italy. The pace of decline in Italy has been accelerating, partly due to capital flight.
***Reminder: Ealier this morning, EURO ZONE OCT M3 MONEY SUPPLY Y/Y: 2.6% V 3.4%E; M3 3-MONTH AVG Y/Y: 2.8% V 3.1%E