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The Eurozone: Following the Deflationary Footsteps of Japan?

French President Francois Hollande appears to have spoken too soon. In a June 8 speech in Japan, he told Japanese leaders, "What you need to understand here in Japan is that the crisis in Europe is over."

The July 2013 European Financial Forecast said, "Hollande seeks to convince Japanese investors that Europe's crisis is over. Instead, he should look to Japan to find out what comes next." The publication also noted Japan's struggle with two decades of deflation.

Five months after Hollande tried to reassure Japanese investors, the crisis in Europe appears to be anything but "over" --

Markit's Eurozone Services Purchasing Managers' Index (PMI) ... fell to 50.9 in November from 51.6 last month.

It was the weakest reading in three months and undercut even the lowest forecast from 32 economists polled by Reuters. France in particular, where business activity unexpectedly shrank, was the weakest link in the euro zone this month.

-- Reuters, Nov. 21

Read the entire Reuters article here.