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News and Overview of the European Economic Zone

European Debt Crisis Enters New Round

Wednesday, July 13, 2011

In recent months the news about pekonomian world dominated by news about the European Union. The more so after the debt crisis that occurred in Greece, until now fears intensified after the company rating agency Moody's cut its credit rating debt of Portugal and a week later the Irish suffer the same fate. Credit ratings of the two countries was lowered to "junk".

"The debt crisis has entered a new phase of Europe and policy makers must come up with clear answers that threaten to stop transmission of the single currency in the region." Said Mario Draghi, President of the European Central Bank (ECB) future.

Still according to the opinion that in order to manage the crisis that raged in the European Union needed cooperation among the EU members to provide certainty about the stability of the region and the single currency euro.

"European governments can no longer rely on their funding costs from Germany, the EU country with the strongest economy, simply because of their participation in the single currency." He added.

News and Overview of the European Economic Zone

No Plan At the Meeting of the European Union

Wednesday, July 13, 2011

No company is planning to hold an emergency meeting of EU leaders linked the economic crisis of the European region. The main priority of the meeting was that the finance ministers are willing to approve the details of a second rescue package for Greece.

"There's no real plan at the special meeting. More priority is the finance ministers to approve a new aid package for Greece. "German government spokesman said.

EU representative told Reuters that a special meeting will be held on Friday (15 / 7) amid growing concerns over the spread of the debt crisis in the European region. In addition the meeting will also discuss the structure of the new aid agreement for Greece

News and European Economic Review (Germany)

German Banking Optimistic With Stress-Test Results

Wednesday, July 13, 2011

All of the 13 German banks taking part in the stress-test the European banks are likely to qualify, although two of them record the results only slightly higher than the minimum threshold, according to a resource that is involved in the program.

Government-owned bank, HSH Nordbank, will probably have a ratio of core Tier 1 capital adequacy of about 5.5% based on the heaviest stress-test scenario, slightly above the minimum 5% required. While NordLB ratio is expected to be in the range of 5% -6%. While banks such as Deutsche Bank AG, Commerzbank AG, Hypo Real Estate, WestLB, BayernLB, LBBW, Deka, DZ Bank, WGZ file, Landesbank Berlin and Helaba, is expected to have a core capital adequacy ratio of at least 6% Tier 1.

From Spain, two commercial banks is likely to experience stress-test failures in the banking sector with the heaviest scenario, according to the ABC report on Wednesday without mentioning the source of the news. Some Spanish savings banks or cajas also expected to experience similar things, ABC added.

Stress-test results of 91 European banks scheduled to be released next Friday. European banks are required to have a capital adequacy ratio of Core Tier 1 over 5% of weighted assets in case of a severe economic crisis and goyahnya market over the next 2 years. Core Tier 1 is the highest level of quality that will demonstrate the ability of a bank in covering future losses

Gold Slightly Higher, Oil Down Three Days streak

Tuesday, July 12, 2011

Crude oil futures fell for the third consecutive day in today's trading session, depressed by the higher dollar and ongoing concerns about the health of the U.S. economy and global economy.

Crude oil for August delivery fell 58 cents, or 0.6%, to $ 95.58 a barrel on the New York Mercantile Exchange. But gold futures got a small boost from concerns about the euro-zone debt and could finish higher for a sixth day.

Gold for August added $ 1.60, or 0.1%, to $ 1,550.90 an ounce on the Comex division of Nymex.

News and Economic Review Asia (Japan)

Yen Gains Driven Business Sector.

Tuesday, July 12, 2011

In trading pair USD / JPY during the European session today (07-12) Japanese Yen strengthened against the dollar tracked the U.S. and in the range of 79.93.

Japanese Yen forex investors are increasingly in demand in line with the indication showing the improvement of economic performance in Japan.

Latest information about the indicator CGPI y / y which was just released by the Bank of Japan showed an increase in performance on the business sector.

Indicators of Corporate Goods Price Index (CGPI) y / y increase to 2.5% reported previously expected to rise to 2.4% from the previous value of 2.2%. This positive response by investors in forex trading.

Analyst Research Vibiz of Vibiz Consulting suggests that the yen on the currency pair USD / JPY is expected to be strengthened further still.

News and European Economic Review (UK)

GBP / USD Weakens As Retail Sales Data Worse UK

Tuesday, July 12, 2011

Pound falls back below the 1.6000 level after the retail sales and housing data from the UK today looks bad. GBP today weakened during Asian trading as yesterday. Currently pounds continued to fall and be on the level of 1.5860.

Over the last three months of the currency pair continues to decline, and it is because UK interest rates are still at 0.50%. Meeteng MPC minutes yesterday showed no rate hikes

News and Overview of the European Economic Zone

EURUSD Rebound, But Pressure Still Haunting Bearish

Tuesday, July 12, 2011

Again we see a dramatic market movements in the forex market as the slump in the EURUSD to 3-month lows below 1.3850 were triggered by investor panic over the issue sovereign debt.

Spread the default security / CDS in Europe monitored widened to a record high in trading today, among others, Greece widened 99 points, Spain widened 25 basis points, 73 basis points Portugal, Italy and Ireland's 25 basis points 64 basis points.

Widening CDS spreads, indicating the collapse of investor confidence over a potential European region continued to press pair EUR / USD.

Indicated the technical, although prices rebounded from the 1.3830 support, but reinforcement is still limited in the short term 1.3970 area. Translucent above 1.3970 could bring the price into the neutral zone to test 1.4100.

Overall bearish scenario remains solid during the last price below 1.4220. On the bottom, fell below 1.3830 could trigger further bearish momentum targeting 1.3530 area.

News and Overview of the European Economic Zone

Euro Weakens As Fears On Italy

Tuesday, July 12, 2011

The euro weakened against the dollar on Monday amid fears that Europe's debt crisis spread to Italy, at one point had dropped below the psychologically important 1.40-dollar mark.

The dollar traded to 1.4029 against the euro in New York on Monday 21:00 GMT Tuesday (04:00 GMT), compared with 1.4258 dollars at the same time Friday.

While the dollar fell against the Japanese currency, weakened to 80.24 yen from 80.55 yen on Friday.

Common European currency was battered by signs that Italy - the euro zone's third largest economy - could be headed to the Greek-style debt crisis, because the Italian stock market fell and yields on government bonds surged.

Eurozone finance ministers meet in Brussels to discuss the new rescue package for the Greeks, even as fears mounted that the Italian or Spanish the next.

Yields on 10-year government bonds jumped on Monday to Italy 5.67 percent, while Spain's debt climbed to nearly 6 percent.

"The single currency has been absolutely devastated today because the leaders of Europe struggled to stem the loss of confidence that they will be able to come up with a solution to the country's current debt crisis," said Michael Hewson, an analyst at CMC Markets in London.

The dollar fell against the Swiss franc, trading to 0.8355 francs on Monday compared with 0.8368 francs on Friday.

The dollar rose against the British pound, the dollar traded against the pound to 1.5905 dollars from 1.6048 on Friday.

The Weakness of Crude Oil, China Oil Imports fall Speculation

Monday, July 11, 2011

Price movements of crude oil to trade this afternoon (11 / 7) was recorded as having impairment. Crude oil dropped again after the release of a report on speculation China's crude oil imports decreased in the second quarter ago. Speculation emerged ahead of the release of China's economic growth data in the second quarter of this year is predicted to weaken again.

Other negative sentiment for oil is weakening the movement of the majority of stock markets in Asia today. Post-experience bullish, today is the momentum for the investors to profit taking.

Crude oil futures declined by 90 cents to 95.3 dollars per barrel. Meanwhile, Brent crude fell 87 cents to 117.46 dollars per barrel.

According to the analysis of the Division of Research in Vibiz Vibiz Consulting, the price movement of crude oil is expected to be still more likely to decline with the support level of 94.74 dollars per barrel and resistant level of 97.03 dollars per barrel.

News and Economic Review Asia (China)

Exports and imports of China as of June recorded slow

Monday, July 11, 2011

BEIJING. China recorded the speed of import growth declined in June 2011. This decline occurred as the government seeks to control the growth of domestic demand hit.

Chinese imports in June grew only 19.3% compared with a year ago, this figure is much lower than the position of May, reaching 28.4%. While exports grew only 17.9%, which is also much slower than the growth of 19.4% in May.

China is currently the state economy and second largest exporter in the world. Analysts said the new figures released this weaker than expected and led to a surplus of U.S. $ 22.3 billion.

"Import figures under-estimated,''said David Cohen of Action Economics in Singapore. The numbers recorded reflects that China's economic growth will slow. He said the Chinese government's policy is tightened monetary policy began to affect the country's economic growth rate.

"Latest figures are in line with the slowdown in growth, with a smooth landing as many people waiting,''Cohen said. Analysts also expect domestic demand hit by the rise in consumer prices in the country.

Inflation figures released late last week also showed that China's inflation touched its highest level in three years with an increase of 6.4% in June, compared with a year ago.

News and European Economic Review (Spanish)

Spanish Prime reshuffle his Cabinet

Monday, July 11, 2011

Spanish Prime Minister Jose Luis Rodriguez Zapatero on Monday to do some changes to his cabinet following the resignation of Alfredo Perez Rubalcaba, who previously served as Deputy Prime Minister as well as Interior Minister and the Speaker.

Deputy Interior Minister, Antonio Camacho, will occupy a new position as the new Interior Minister, while Development Minister Jose Blanco is shifted to the government spokesman. Rubalcaba announced his resignation at the weekend in order to better focus for the campaign as a candidate for Prime Minister of the Socialist party in the next general election.

News and European Economic Review (UK)

Sterling followed the fall of the euro

Monday, July 11, 2011

Sterling fell today, following the fall of the euro following the unrest about the Italians will be the next country affected by the debt crisis.

On the other hand, the fall of sterling euro support, keeping him under 90 level against the single European currency.

However, market participants said sterling will continue to affected by the euro and the development of the debt crisis ahead of an emergency meeting of the European Union today. The weakening of sterling is not separated from England with a view of the proximity of countries affected by the debt crisis.

Economic data are less encouraging further reduce the interest against the pound. Data from the British Chambers of Commerce which showed GDP grew 0.3% during the second quarter and the slowdown in exports indicates the recovery is still sluggish.

At 16:30 GMT, sterling traded at $ 1.5958, down from the closing level of $ 1.6040 last week. Against the yen, sterling weakened to 128.91 from 129.32. Sterling rose against the euro to 88.50 pence from 88.84 pence.

News and Overview of the European Economic Zone

Euro Slump to Lowest Level, Domino Effect Concerns Rise.

Monday, July 11, 2011

Euro drops against dollar return on the trading pair eur / usd noon today (11-07). The currency weakened to the lowest range observed since early June.

Fears of a domino effect in the presence of the public debt crisis in Europe to put pressure on the euro currency.

After Greece was undergoing a process of debt restructuring and debt rating slashed four levels Portugal, news also emerged that the European Central Bank (ECB) is preparing bail-out fund for Italy.

Analyst Research Vibiz of Vibiz Consulting suggests that the euro weakened observed moving around - 1:17% against the rupiah at foreign exchange trading today.

Meanwhile the Euro selling rate of Bank Indonesia rate in the range of Rp. 12158.02/Euro and buying rate of about Rp. 12035.94/Euro.

Wait for data of Non-Farm payrolls, Asian's Oil Down

Friday, 08 JULI 2011

World crude oil in Asian trade on Friday (8 / 7) weakened. Markets waiting for U.S. jobs report to measure the rate of the country's economic recovery.

Light sweet crude fell 001% to U.S. $ 98.66 per barrel. Meanwhile Brent crude fell 61 cents to U.S. $ 117.98 per barrel.

U.S. crude oil prices early this morning rose with unemployment claims data drive that down and increase retail sales. This led analysts to raise estimates increased non-farm data to be released today.

"Traders usually cautious before important data was released as non-farm payrolls. Market requiring a consistent flow of information to support the price," an analyst at Commodity Brokers in Sydney, Benson Wang.

The market was also awaiting the release of certainty the International Energy Agency (IEA) on the magnitude of world oil stocks. China has also observed the market about inflation control policies.

Oil prices have rebounded 10% from the downturn over the past four months account after the IEA issued a startling data paad July 23 on OPEC countries have removed 60 million barrels of oil reserves. The institute will decide about the amount of release of oil reserves at the end of this month.

News and Economic Review Asia (China)

Markets Not Reacting PBOC Advised Against Inflation Overstated

Friday, July 8, 2011

Governor of People's Bank of China on Friday urged the market not to overreact to a large increase in the annual inflation rate in June, adding if the digit monthly rates can be used as a better indicator.

"Better to use a monthly rate of inflation data," said the PBOC Governor Zhou Xiaochuan.

China is scheduled to release its consumer price index in June on a Saturday, which had been widely expected to show growth of over 6% on annual level. A poll of 16 economists surveyed by Dow Jones Newswires showed the rate of inflation will likely accelerate to 6.3% in June from 5.5% in the previous month, and will constitute the fastest pace since July 2008.

Economists generally expect consumer inflation surges in June reflecting a sharp rise in pork prices over the previous year. They also expect inflation to remain high in July before starting to slow down in August.

News and Overview of the European Economic Zone (Germany)

German Exports May Adj 4.3% This Month, +3.7% Import

Friday, 08 JULI 2011

German exports rose in May rebounded after a decline in April and widening trade surpluses of Germany, data from the Federal Statistics Office, or Destatis, showed Friday

German exports rose 4.3% in May, after the April jump 5.6%, to EUR89.5 billion, according to the calendar-and seasonally-adjusted data. Increases beyond 3.7% monthly rise in imports to EUR76.7 billion.

The adjusted trade surplus was EUR12.8 billion, Destatis said, up from EUR11.9 billion in April.

Adjusted figures showed Germany's trade surplus widened to EUR14.8 billion from EUR10.8 billion in May - was revised down from EUR10.9 billion - in April. The current account surplus shrank to EUR6.9 billion in May from an upwardly revised slightly EUR9.0 billion in April - EUR8.8 billion.

Economists surveyed by Dow Jones Newswires had forecast a trade surplus of EUR11.5 billion and adjusted current account surplus of EUR7.0 billion.

News and European Economic Review (UK)

UK Producer Price Inflation Darting

Friday, July 8, 2011

UK manufacturers raising prices of June whosale fastest in two and a half months related to rising raw material prices. Price of factory goods increased 5.7% up to June, from a previous 5.4% in May. This is the fastest rise since October 2008, according to the National Statistics Office today (08/07).

Producer prices rose 0.1% this month. The increase in the index mainly due to the fastest rise in food prices since October 2008, with growth of 8.9%. Price of kerosene rose 16.5%, but the upward momentum began to fade, reflecting the drop in oil prices in global markets. Price recorded a decrease in the second, amounting to 0.1%. The increase in the overall producer price index is faster than economists forecast. The survey, conducted Dow Jones Newswires last week predicted rising 5.6% and 0.2% monthly gain. The increase in prices of production can affect consumer price inflation if the retailer imposes an increase on consumers. The consumer price index rose 4.5% until May, more than double the BoE's target of 2.0%. BOE estimates that prices will rise sharply this year before returning to the target.

Thursday (07/07) BoE hold interest rates remained at low levels throughout the period at 0.5% level.

News and European Economic Review (UK)

Sterling Grey For Weekend

Friday, July 8, 2011

Sterling tracked moving sluggish in the negative range below the key level of $ 1.6000 over the weekend.

In Thursday's trading session yesterday GBP had surged as production data triggered by the UK manufacturing sector is experiencing a sharp rise in May. But the reinforcement did not last long after the Bank of England (BoE) announces interest rate decision remains unchanged at 0.50% level.

In addition to the BoE's Monetary Policy Committee also announced a policy to maintain the asset purchase program worth? 200 billion. These factors make the Sterling return instantly corrected until the level falls below the crucial $ 1.6.

Contrast with BoE policy, the European Central Bank (ECB) on Thursday it raised interest rates by 0.25 basis points to 1.50%, widening the difference in UK interest rates with the euro zone, another factor that helped push Pound.

U.S. stocks fall predictions, Asia Oil Stronger

THURSDAY, 07 JULI 2011

World crude oil in Asian trade on Thursday (7 / 7) rise with a projected decline in U.S. crude stockpiles.

Light sweet crude rose 64 cents to $ 97.29 per barrel. Meanwhile, Brent crude rose 49 cents to U.S. $ 114.11 per barrel.

In trading yesterday, crude oil and commodity prices fell after China raised its benchmark interest rate for the third time from the beginning of the year to tame inflation. But the increase experienced by gold as investors chose to protect its assets in precious metals.

"There will be no stu konsensum more general rise in interest rates in August, It will be the end of the tightening in China this year. This condition becomes positively to support oil demand," said Head of Energy Research at Mirae Asset Securities in Hong Kong.

The U.S. data is not as bad as previously thought. In addition there are some resolutions to resolve the crisis in Greece. It will withstand rising global oil prices to the highest level for this summer.

News and Economic Review Asia (Japan)

Nikkei Success entrenched Above 10.000

Thursday, July 7, 2011

Today is the day-to-2 for the Japanese Nikkei index entrenched in the positive range above the psychological level of 10000.

In general, this condition is mainly supported by Wall St. a few sessions later closed higher thanks to the data appeared above expectations of economic fundamentals, so that helped ease doubts about the recovery that is currently shrinking.

Internal factors that helped strengthen the foundation of strengthening the Nikkei is policy environment the Bank of Japan (BOJ) will continue to hold interest rates at the low range. BOJ also raised its forecast on the Japanese economy, which indicated will recover modestly from mid-fiscal year 2011/12.

But strengthening the Nikkei will be limited and potentially corrected if the yen rose sharply against the U.S. dollar. Because the appreciation of the yen would make Japan's industrial and manufacturing sector to maintain its production

News and Overview of the European Economic Zone (Switzerland)

Swiss Parliament began to worry about a drastic strengthening of the franc

Thursday, July 7, 2011

ZURICH. Swiss Parliament held a crucial meeting with the relevant central bank continued strengthening of the Swiss franc exchange rate. The meeting involves the economics minister, Johann Scneider Ammann and general chairman of the Central Bank of Switzerland / Swiss National Bank (SNB) Philipp Hildebrand. Both make assessments of current conditions and future prospects related to price stability to maintain the performance of the Swiss economy.

Parliament wanted the SNB to take greater steps in maintaining price stability. From March 2009 to June 2010, the SNB intervened to prevent the strengthening of the Swiss franc.

At that time, the SNB decided to stop the intervention due to Switzerland's economic performance is still improving despite the strengthening of the Swiss franc continues accelerated.

But now, the franc exchange rate is strongly influenced by global conditions so that significant movement. Risk aversion is re-developing countries, ranging from concerns over China to Europe aimed at increasing demand for assets that are safe haven, in this case is the currency with a low yield as the Swiss franc.

However, the strengthening of the currency is no good impact on the overall Swiss economy. It was seen from late May retail sales data that describes the pessimism.

News and Overview of the European Economic Zone

Euro Ignore ECB Meeting?

Thursday, July 7, 2011

The euro slumped back against the U.S. dollar and still tracked moves in the negative range on Thursday.

The euro slumped mainly due to the widespread negative market sentiment as the country of Portugal is currently a European Union country to-2 after the Greek lowered credit ratings to the status of 'junk' or rubbish by the ratings agency Moody's.

Suddenly this condition re-ignited fears of widespread debt crisis of the European zone, plus it is in China yesterday raised interest rates beyond the forecast. Two factors are encouraging investors to switch into safe-haven currencies like the Swiss Franc, Japanese Yen and U.S. Dollar.

Avoid the risk of action in the market also increased after a few days ago the euro zone manufacturing numbers and retail sales appear disappointing that these conditions reduce the Euro rally.

However, further weakening in today may be limited because there will be a meeting of the European Central Bank (ECB) is expected to raise interest rates. While the signals that further tightening of the ECB will happen this year, to give my support to the Euro.

News and Overview of the European Economic Zone (UK)

Depressed Pound Ahead BoE policy meeting

Thursday, July 7, 2011

The U.S. dollar slipped versus the pound sterling which rose broadly on Wednesday, after China rate hike and fears the spread of Euro zone debt crisis forced investors divert their funds into safer assets such as the greenback, which also triggered stop-loss below $ 1.6000.

Sterling previously had been burdened by the sales made by clearing the British and U.S. banks, and will likely remain under pressure as the expectation of rising interest rates prompted investors to increasingly move away with a cable as a funding currency.

Recent speculation that indicate if the Bank of England may choose to restart the asset purchase program as an effort to stimulate demand in the economy also helped put pressure on the British currency, ahead of the UK central bank's policy meeting on Thursday.

"In the absence of data or news that moves Sterling today, encouraging investors placing it as an alternative funding currency. Cable may still have to go through tough times in the next few months," said Adrian Schmidt, currency analyst at Lloyds Banking Group .

While the BoE interest rate swap index of interest rates will still stand at a record low of 0.5% until mid-2012, as the UK economy is struggling with weak demand and high inflation.

Gold to reduce losses, bounced off session highs

Wednesday, July 6, 2011

Gold rose nearly 1 percent on Wednesday after the euro cut some losses against the dollar, while investor sentiment was still fragile after the downgrade the credit ratings of Portugal raised fears of eurozone finance.

<XAU=> Spot gold rose as much as 0.88 percent to a session peak of $ 1,527.79 an ounce, for the then exchange rate of 0.73 percent at $ 1,526.76 at 1303 GMT.

Earlier, gold fell nearly half a percent on the day after the dollar strengthened against the euro following the Portuguese national debt downgrades and higher interest rates China's impact on the broader commodity complex.

Gold is also supported by the European Central Bank reported an increase in 12.6 billion euros ($ 18.28 billion) in the possession of gold and gold receivables after the quarterly revaluation

News and Economic Review Asia (China)

China Raises Interest Rates Again

Wednesday, July 6, 2011

China raised interest rates for the third time this year on Wednesday evening, make clear that the tame inflation remains a top priority even when the economy is slowing.

Increase of 25 basis points on lending and deposit interest rates underscores the confidence that enough of China where the world's second largest economy will be able to take tight monetary policy with a calm, and not threatened by the rapid deceleration that worry by some investors.

"Battle of China's inflation almost over. Already there are signs that price pressures begin to decline. The increase in interest rates today may be the last in the cycle," said Frederic Neumann, economist at HSBC in Hong Kong.

China's latest step in increasing its main interest rate to 6.56% a year, and lifted the benchmark one-year deposit rate to 3.5%, the central bank said.

The increase will apply from Thursday, the central bank said in a brief statement on its website.

But with evidence that China's manufacturing sector eased broadly after the tight monetary policy softening demand in China and abroad, some economists think Beijing may be nearing the end of the nine-month cycle of tightening policy.

With U.S. interest rates near zero, Beijing is also worried about attracting more speculative funds into China if it raised interest rates too far. That will exacerbate the problem of excess liquidity and further fuel inflation.

China's inflation accelerated to the highest 34-month high of 5.5% in May due to high food prices and property market continues to put pressure.

Beijing is very sensitive to price increases because of concerns that could generate social unrest and threaten his leadership.

Wang Jun, an economist at CCIEE, a government think tank, said Beijing may feel compelled to raise rates again if inflation proves harder than expected.

"If inflation falls, there will be no need to raise interest rates. But if prices soar, there may be further interest rate hikes," he said.