mynameisandhy

Oil Wish OPEC Will Act

Monday, November 17th, 2014

Nymex oil prices rebounded after touching a low level of 4 years. Oil rallied as widespread expectations that the recent decline in oil prices could force OPEC to cut production. OPEC will perform Nov. 27 meeting. Although some countries such as Venezuela wants OPEC to cut output, but the largest oil exporter Saudi Arabia has not uttered whether to support the production cuts. Venezuela's foreign minister says Algeria and Venezuela will be voiced action to prop up the price of oil.

OPEC officials amid increasing diplomatic visit to build consensus on how the association of the oil exporters will respond to the fall in oil prices. Libyan Prime Minister Abdullah al-Thani yesterday flew to Riyadh a day after Iraqi President Fouad Masoum meet Saudi King Abdullah. Venezuela's foreign minister to visit in Algeria and Qatar. On the other hand, Saudi Arabian Oil Minister Ali Al-Naimi was on tour in Latin America. Nymex oil prices are now trading $ 75.50; away from the daily low of $ 73.24 level.

News and Economic Review Zone Asia (Japan)

Japan's GDP contracted, Abe seems Will Defer Tax Increase

Monday, November 17th, 2014

Japan's economy contracted at an annual pace of 1.6% in the third quarter after a contraction in the previous quarter, is likely to reinforce the view that Prime Minister Shinzo Abe will delay the second tax increase next year. Japan's economy fell into recession in the third quarter provide the basis for Abe to defer tax increases faster and hold elections after two years he served. Japanese media reported that the Prime Minister who returned after a week-long tour to China, Myanmar, and Australia, on Monday to announce his decision to postpone the tax hike as soon as Tuesday and expressed his desire to hold elections, which are expected to be held on 14 December.

Data gross domestic product (GDP) compared with the forecast for a gain of 2.1% by economists and following a revision to show a contraction of 7.3% in the second quarter, which is the largest decline since the earthquake and tsunami last March 2011, according to data from the Cabinet Office on Monday. In a quarterly basis, the economy contracted by 0.4% in the third quarter. The level of private sector spending, which accounts for about 60% of the economy, rose as much as 0.4% from the previous quarter, signaling that the impact of an increase in Japan's sales tax to 8% from 5% in April and continues to be felt. This is compared with estimates for a gain of 0.8%.

Abe has said he would pay attention to the GDP data when deciding whether to proceed with a second increase in the sales tax to 10% in October of next year, in part to reduce the level of public debt of Japan. "GDP data is much weaker than expected," said Kenichiro Yoshida, senior Ekono at Mizuho Research Institute. "The growth rate is also very weak kosnumsi, which may be one reason the government will decide to postpone the tax increase."

News and Review of European Economic Zone (UK)

Carney: Inflation rate hike Depending Consumers

Monday, November 17th, 2014

Bank of England Governor Mark Carney and chief economist, Andy Haldane, indicating their focus on risk reduction as the central bank's inflation rate emphasizes reason to maintain loose monetary policy. "There is a great disinflationary pressures from our trading partners, especially in Europe, and commodity prices have come down quite sharply," Carney said in an interview with Australian newspaper. With the rate of growth of consumer prices below the target BOE, according to Haldane he saw developments that continue to decline .

Comments that was released a few days after the Bank of England cut its forecast for growth and inflation Britain due to sluggish global growth and stagnation in Europe. BOE Policy Council kept interest rates at a record low 0.5% this month, and Carney, engatakna that low interest rates are still appropriate because there is a shortage in the labor market, and other problems. UK inflation rate slowed to a level of 1.2% in September and has been under the central bank's target of 2% for 9 months.

"So far, inflation expectations in the UK has risen, and overall, the BOE expects inflation will be on target in the next 2-3 years," according to Haldane. However, inflation should be treated with caution, he said. "Even in the UK, a number of data on consumer inflation expectations have dropped slightly this year. From the standpoint of the central bank, and the UK inflation rate is still below target, this is something that continues to go down."

News and Review of European Economic Zone (France)

Against the French Minister of Finance Optimistic GDP

Monday, November 17th, 2014

French economic growth may exceed the target of the Organization for Economic Co-operation and Development (OECD) amounted to 0.4% this year, said French Finance Minister Michel Sapin. "Recent data for the third quarter that made me optimistic. This year, France will achieve the target of 0.4%, and possibly a little on top of that," he said on the sidelines of the G-20. Gross domestic product (GDP) in the country's second-largest economy in Europe is growing 0.3% in the third quarter, the high level of 1 year. The data following the contraction in the previous quarter, making the French have called "sick man of Europe".

However, the rate of growth of 0.4% is difficult to maintain in the long run, according to the warning. The OECD estimates that France will expand at a rate of 1% in 2015, which according Sapin will not be enough to deliver real results. "Although the growth rate of 1-1.5%, as we expected, will not be enough to reduce unemployment and rebalance our public finance sector. Structural reforms and fiscal policies and structural investments A suitable that can help France, and Europe, unvuk reach the rate of growth that can stop the crisis, "he said.

News and Review of European Economic Zone (Switzerland)

SNB worried about the Euro zone, the Referendum Gold

Monday, November 17th, 2014

Swiss National Bank to face the biggest test in 2 years at the limit of his franc exchange rate, but it may be easier to maintain today than when it concerns the euro zone divisions erupted. The franc rose to its strongest level since September 2012 on Friday, approaching the limit of 1.20 which was introduced by the Swiss National Bank since 2011 when the currency appreciation pressure on the exporters and pose a threat of deflation. The weakening of the euro zone recently, and the readiness of the European Central Bank to use a radical policy to stimulate the economy, has melonjakkan demand for francs. Referendum against the Swiss gold reserves this month also played a role. While small chances for approval, the result "Yes" will encourage the SNB to buy gold together with currency intervention.

However, the flow of capital towards Switzerland have been reduced sharply since high levels in the euro crisis, as kcemasan that intervention would trigger inflation. More importantly, the success of the SNB maintains the limit in 2011 and 2012 means that the SNB did not need to intervene with the same scale to maintain the current limit. "The difference between now and the year 2011 is a broad market and most economists believe that intervention can break speculation," said Rudolf Strahm, economist and former official in Switzerland. "Some traders try to attack franc but failed and losers. Since then no one would dare to try again."

Had reached the level of 1.2015 francs per euro on Friday, near the level of 1.2010 per euro, the level at which the SNB intervened earlier. SNB surprised the market when imposing such restrictions in September 2011, after the franc soared to a record high against the euro. Years later, as concerns of a Greek exit from the euro zone spread, Trager failed to push through the boundaries of the franc. Limit the exchange rate has become the backbone of SNB policy. The strengthening of the franc these days is not likely to trigger an intense buying, according to economists.

WTI Towards Longest Weekly Decline Since 1986

Friday, November 14th, 2014

WTI oil to the longest streak of weekly decline in nearly three decades and Brent was on track record longest decline amid speculation that OPEC will still refrain from reducing production to relieve the anxiety of the abundance of supply.

Oil futures contract fell as much as 1.3% in New York and ready for the seventh weekly decline, it is the longest losing streak since March 1986. The fall in oil prices reflects the increase in political opinion polls indicate that the Organization of Petroleum Exporting Countries will maintain their production, according to reports of Goldman Sachs Group Inc. Crude stocks at Cushing, Oklahoma, which is the delivery point for WTI contracts, rose to its highest level since May, on show in the report of the US government.

Oil has tumbled into a bear market as the leaders of OPEC members resisted calls to reduce production and instead they reduce the price of exports to the US, where production has risen to its highest level in 31 years amid a surge in oil shale. Venezuela, Libya and Ecuador have asked for any action to provide support for crude oil prices over the 12 OPEC members will meet on November 27 in Vienna.

Jonathan Barratt, chief analyst at the Rock Alliance Securities said that the market is currently running with fear, it will recede and move depending on how OPEC would think. The price will not go up until we got closer to the time of their meeting.

WTI oil for December fell as much as 96 cents to $ 73.25 a barrel in electronic trading on the New York Mercantile Exchange, and is currently engaged in a range of $ 73.90 at 16:22 pm. The contract yesterday fell as much as $ 2.97 becomes $ 74.21, it is the lowest closing level since September 2010. The price of oil has dropped by 25% this year.

News and Economic Review Zone Asia (Japan)

Japan's GDP Will Affect Tax Decision Abe

Friday, November 14th, 2014

News of the plan of Prime Minister Shinzo Abe, which will delay the tax increases, as well as ask the elections faster adorn the Japanese financial market headlines this week. But experts said the decision would depend on the Japanese gross domestic product data will be released on Monday.

Economists in a Reuters survey estimate Japan's annual GDP will grow 2.9% in the period from July to September, rebounding from a decline of 7.1% in the previous quarter, which is the biggest contraction since 2009. Kenaiakan first sales tax in 17 years last month April said to be the cause of the sharp contraction in GDP is the third largest economy. Abe in April to raise the sales tax to 8% from the previous 5%, and earlier plans to raise back to 10%.

On Wednesday, the Minister of Economy of Japan, Akira Amari, said the government should implement a new fiscal stimulus, especially to stimulate private spending to protect the economy if the GDP data released disappointing.

Abe previously said it would wait until the release of GDP data to decide whether to raise interest rates or not, there are some analysts who say Abe has taken a decision before the data is released

News and Review of European Economic Zone (Italy)

Italian GDP Decline 0.1% in Third Quarter

Friday, November 14th, 2014

Italian economy slumped in the third quarter that pushed the country to decline for the fourth year that has made elaborate Prime Minister Matteo Renzi in an attempt to generate growth and maintain public keuanga remained stable.

Italy's GDP fell by 0.1% from the period of three months ago, which is when it fell by 0.2%, in the report by the national statistics bureau Istat in a preliminary report in Rome on this day. These results correspond to the median estimate in a Bloomberg survey of 22 economists. Output has fallen by 0.4% from a year ago.

GDP in the country with the third largest economy in the euro area has gone down in all but two in at least 13 the last quarter as the unemployment rate rose to a record high. Renzi rely on estimates of 0.6% growth next year to control the public debt of more than 2 trillion euros ($ 2.50 trillion) and maintains a policy of tax cuts for the low paid workers that aims to revive consumer demand.

Bank of Italy said in a report yesterday that the country needs to avoid "demand recession spiral" because even during the economic crisis, which has been outstanding both in terms of time period and depth. "

News and Review of European Economic Zone

German And French Economy Grows In Third Quarter

Friday, November 14th, 2014

Growth in the two countries with the largest economies in the Euro area has been returned in the third quarter, but still sinyalkan slow growth is still running in the region.

German GDP rose by 0.1% in the three months to September and France surged by 0.3%, it is the highest in more than a year. Analysts surveyed by Bloomberg earlier predictions of economic growth in these countries respectively 0.1, and see the expansion at the same level for block 18 countries.

Fragile recovery of the euro area has become increasingly dangerous since the sluggish growth in the countries economic center in the region. With the unstable growth and inflation is near its lowest level in five years, the European Central Bank has deployed stimulus unprecedented and urged the government to invest and undertake structural reforms to support growth.

It was a positive surprise, said Frederik Ducrozet, economist at credir Agricole CIB in France, referring to the French GDP report. The ECB should reasonably comfortable with the fact that domestic demand is still quite strong and consistent with a slightly stronger momentum towards the end of the year.

News and Review of European Economic Zone (France)

French Economic Growth Higher than Expected

Friday, November 14th, 2014

French economy accelerated in the third quarter of this year with growth above economists' expectations. Insee reported French economic growth of 0.3% in the third quarter from the previous quarter, the increase is higher than expectations of 0.1%. But Insee also revised down growth in the second quarter to -0.1% from 0%. The report also provides the possibility of achieving the target of the French government's economic growth by 0.4% in the full year.

The growth of the second largest economy in Europe can promote economic growth bloc of 18 countries after the European Central Bank to add stimulus to revive the region's economy. French praised the ECB steps to stimulate the economy, but the French government also wants governments of Europe along with the EU also helps to loosen fiscal policy, as well as faster implementation of large infrastructure investment in Europe.

Oil Still Concerned With Supplies

Thursday, November 13th, 2014

Nymex oil prices are still struggling near 3-year low levels as investors remained concerned with the abundance of supply is created by the booming US shale oil and reactivation of the largest oil refinery in Libya. Saudi Arabia said his country and other oil producers will do their best to maintain the stability of oil prices. However, the majority of traders and analysts doubt the ability of OPEC to cut production at a meeting this month.

Anxiety over supplai also exacerbated by the release of a report that Libya has resumed oil production at its largest refinery facilities El Sharara although exports are still blocked by rallies in Hariga port. Nymex oil closed down 0.81% to $ 76.90 in trading Wednesday.

News and Review of European Economic Zone (UK)

House Price Growth Rate Slows Sharply in UK

Thursday, November 13th, 2014

The rate of growth in house prices in the UK slowed sharply in the three months to October to the lowest level since May 2013, fueled by widespread price declines in London, according to a survey by the Royal Institution of Chartered Surveryors on Thursday. RICS said in a statement monthly house price index turu nmenjadi +20 in October from +30 in September, its lowest level since the British economy began to recover more than a year ago and are at the bottom of the estimates of economists. The decline was triggered by the collapse in home price index in London became -35 from -9 in September, showed a decrease in the price of the most extensive in the 4 years in the British capital.

Mengatkan RICS house prices in most of the city of London is still strong, and partly due to a decrease in anxiety luxury property tax rise ahead of elections in May 2015. RICS data consistent with other data showing a slowdown in the UK housing market, where house prices rose at an annual rate more than 10% earlier this year, and more than 20% in London. "The trend is more flat on the market some suggesting possible buyers become more cautious ... as tightening credit conditions under pembali has made it more difficult to access housing loans," said economist Simon Rubinsohn RICS. "However, with the new instruction is still flat ... it seems implausible that a decrease in the level of demand will lead to a sharp decline in home prices," he added.

News and Economic Review Zone Asia (South Korea)

The Bank of Korea Maintain Interest Rate

Thursday, November 13th, 2014

The Bank of Korea as expected to keep interest rates at a record low of 2.0% at the monetary policy meeting today. Most economists expect the central bank South Korea would not change monetary policy after cutting interest rates to 0.25% in October, and provides a view of the South Korean economy is not too bad so it does not need further rate cuts.

South Korean exports are able to maintain growth, although still below the estimate, while household debt levels are high making policy makers are reluctant to lower interest rates further and make the cost of borrowing is too low. However BOK still face pressure to loosen monetary due to low inflation and weak domestic demand.

Strengthening of the won against the yen after the Bank of Japan monetary stimulus adds additional pressure for the BOK to cut interest rates to lower the value of the South Korean won is that exporters are able to compete with the Japanese exporter. BOK last October cut its forecast of economic growth this year to 3.5% from 3.8%.

News and Economic Review Zone Asia (China)

Chinese Industrial Production Slows in October

Thursday, November 13th, 2014

Data from the Chinese government showed China's industrial production growth slowed in October from the previous month, gives an overview of the continuing obstacles facing the Chinese economy.

China's statistics bureau reported industrial production grew 7.7% in October from a year earlier, slower than the growth of 8.0% in September. Economists had forecast growth of 8.0%. As for growth month-to-month, China's industrial production rose 0.52% in October from September which rose 0.91%.

Other data showed fixed investment rose 15.9% in the period from January to October of the same period in 2013. The increase was lower than the period January to September amounted to 16.1%, and lower than economists' estimates of 16.0%. Retail sales growth year-on-year also noted a slowing slightly in September by 11.5%, of the growth in August at 11.6%.

News and Economic Review Zone Asia (Japan)

Japan Machinery Orders Level Up 2.9% in the month of September

Thursday, November 13th, 2014

Japan's core machinery orders, a leading indicator of capital spending, rose for the fourth month in September. Core machinery orders rose 2.9% on a monthly level, above expectations for a decline of 1.9%, but slower than the increase of 4.7% in August. Machinery orders rose as much as 5.6% in the third quarter, the second quarterly increase in a row. The companies surveyed estimated that the level of orders will be down 0.3% in the last quarter. For the annual rate, machinery orders rose 7.3% in September, above expectations for a decline of 1.3%.

"Currently we do not really pay attention to the machinery orders data," said Joe Zidle, strategic portfolio, Richard Bernstein Advisors, warned that the Japanese market is currently driven by the policy. "Menurutki what is more important for investors is whether the Bank of Japan will continue to respond to the amount of data," he said. "Outlook of the economy slowed down, depressed by the sales tax increase in April. I think the Japanese market are looking at something similar to what we see in the US in the last 3-4 years, such as the Federal Reserve and Quantitative Easing. That was the focus in the Japanese market. "

Oil Successful Rebound

Wednesday, November 12th, 2014

Nymex oil prices rebounded, although investors are still worried by the abundance of supply is. Strengthening of the US Dollar quite a burden for the performance of black gold, but the emergence of profit-taking the US Dollar in the New York session managed to encourage traders to reduce its short position, triggering a rebound in oil prices. The emergence of anxiety for the disruption in Libyan supply is also a positive sentiment. There are concerns over Libyan oil production after government opposition control of the capital and El Sharara oil refineries were very productive.

However, investors are still worried by the abundance of supply is in the market, especially with OPEC which gave the signal will not cut production when it meets at the end of November. Kuwait has uttered no plans to cut production. Iranian oil to reduce the selling price of oil shipments to the US, following the steps that have been taken Saudi Arabia last week. Oil prices rose 0.45% on Tuesday to end up at the level of $ 77.53

News and Economic Review Zone Asia (Japan)

Miyao: BOJ would consider QE Interest on the Second Semester 2015

Wednesday, November 12th, 2014

Member of the Board of the Bank of Japan, Ryuzo Miyao, on Wednesday said that there is a high chance that the central bank can begin to discuss the end of his program of quantitative easing in the second half of fiscal year 2015. Miyao said the BOJ's decision to increase his stimulus money last month pencetakkan increase the chances of achieving inflation target in the second half of fiscal year 2015, which would make the central bank began to think to repeal the program.

However Miyao not provide details about when he said the central bank will start to tighten policy. He said that the risk of easing by the BOJ will result in asset bubbles is quite limited.

Miyao is one of the four board members who support the proposal BOJ Governor Haruhiko Kuroda to add stimulus and October 31 in order to cope with slowing inflation and weak growth.

News and Review of European Economic Zone

Eurozone Industrial Output Growth signaling Weak Q3

Wednesday, November 12th, 2014

Factory output in the 18 countries that use the euro are able to show a rebound in October, despite only returning part of the decline the previous month. Which indicates the euro zone economic growth remains very moderate in the 3rd quarter.

The European Union's statistics agency, Eurostat, is scheduled to release GDP figures 3rd quarter on Friday. Economists expect the euro bloc economy will expand only 0.1% in the July-September quarter, unchanged from the rate of growth in the 2nd quarter.

While Eurostat reports today showed the production of factories, mines and utilities for September rose 0.6% from August, and 0.6% higher than the same month last year. That figure is relatively in line with economists' estimates, but failed to reverse the decline of 1.4% in August. So that indicates if the output is the 3rd quarter as a whole may be lower than the 2nd quarter.

Euro zone economy has shown an almost stagnant conditions in a period of three months to June. And without expansion of industrial production, a significant growth in the 2nd half of this year is becoming increasingly unlikely

News and Review of European Economic Zone (UK)

UK Unemployment Rate Survive In Level 6% in September

Wednesday, November 12th, 2014

UK unemployment rate at its lowest level in the last six years for the third quarter and increased wage growth as the labor market continues to improve.

The unemployment rate measured by the method of the International Labor Organization at the level of 6%, the same as the period of three months to August, in the report by the Office for National Statistics (ONS) said today in London. Wages rose 1% at an annual rate, faster than the 0.8% growth predicted for by economists surveyed by Bloomberg, and the basic wage exceeded the rate of inflation for the first time since 2009.

The Bank of England kept its benchmark interest rate at the level of 0.5% last week amid signs that economic growth is weakening. The increase in wage growth may memprkuat minority view on the Monetary Policy Committee last month that a rate hike as soon as possible is necessary to stop the increasing pressure of payment. BOE Governor Mark Carney is scheduled to be released the latest economic forecasts at a press conference at 17:30 pm in London.

ONS reports that are not included with bonuses, wage growth rose by 0.4% to 1.3%, beating the consumer price inflation for the first time since 2009. Inflation survive in the level of 1.2%.

A total of nine members of the Monetary Policy Committee is divided in positions 7-2 for three months in the month in October, with two officials voiced to Raise interest rates to protect the economy against the risk of a sharp rise in wage growth. For most members assume that inflation pressures are still weak. Minutes of the meeting this month will be published on 19 November.

News and Review of European Economic Zone (UK)

The British government Drop fines to 5 Bank Naughty

Wednesday, November 12th, 2014

Financial Conduct Authority (FCA) official UK fined five high profile finance company a while ago. All five were exposed to fines totaling billions or trillions of dollar amount due has failed to control the sound business practices in trading foreign exchange (forex).

Banks are exposed to fines FCA namely HSBC, Royal Bank of Scotland, UBS, JP Morgan Chase and Citibank. While the investigation is still ongoing separately for the case of investment bank Barclays. FCA stated five banks had tarnished confidence in the UK financial system and risking the integrity of the industry.

HSBC, Royal Bank of Scotland, UBS, JP Morgan Chase and Citibank proved collusion in manipulating exchange rates in the money market benchmark. Citi and JP Morgan fined each $ 348 million and $ 352 million, RBS and UBS bear sanctions respectively $ 344 million and $ 371 million while HSBC is required to pay $ 343 million. In addition to the FCA, the investigation also involves two other institutions which FINMA and the CFTC. The media are still waiting for further information from the authorities and the banks concerned about this decision.

China Data Keep Oil Performance

Tuesday, November 11th, 2014

WTI crude oil is able to maintain strength in the beginning of this week, helped by Chinese export data slick. China's exports rose 11.6% in October from the same period a year earlier, higher than the estimate of 10.6%. Meanwhile, imports grew 4.6% lower than the estimate of 5%, so that China's trade surplus into a $ 45.4 billion. The increase in exports is expected to keep China's economic growth which is the second largest oil consumer in the world.

In addition, re-increased tension between Ukraine with Russia is also able to keep oil prices decline. Market participants also pay attention to the geopolitical turmoil in Libya, where the oil fields El Feel and El Sharara has been closed, and Hariga port which exports 120,000 barrels of oil per day are also blocked.

WTI crude oil traded at around $ 79.25 a barrel at 15:50 pm, away from daily lows $ 78.33

News and Economic Review Zone Asia (Japan)

Japan Surplus Record Greater Of Estimates

Tuesday, November 11th, 2014

Japan posted a current account surplus in three months in a row in September, and the surplus was better than economists expected. Japan's Ministry of Finance reported a current account surplus rose to unadjusted 963 billion yen from August amounted to 287.1 billion yen. The surplus is larger than the Reuters poll results are an estimate of 534.2 billion yen.

Income from overseas investment is said to be the backbone of the surplus. Compared to September 2013 the surplus rose 61.9%. As for the primary income account, which includes income from the ownership of foreign stocks and bonds, Japan recorded an increase of 24.5% to a surplus of 2.04 trillion yen.

News and Review of European Economic Zone (UK)

Ahead of the European session, Sterling Still Flat

Tuesday, November 11th, 2014

Market participants await more quarterly inflation report from the Bank of England tomorrow to see the UK's economic outlook. The Bank of England is expected to be cautious given the economic projections of economic slowdown in the euro zone which is the UK's main trading partners. The slowing eurozone economy may hamper the pace of UK exports, which will force the Bank of England to keep interest rates low for longer.

Before the inflation report Office for National Statistics will report employment data the UK, the number of jobless claims decreased 24,900 expected, and the unemployment rate fell to 5.9%.

Yesterday, sterling had strengthened in the Asian trading session and the beginning of the European session must be turned lower in US session. The dollar rebounded following the toughness expectations the US economy will prompt the Federal Reserve to raise interest rates sooner. Index of US labor market conditions from the Federal Reserve which is calculated based on the 19 indicators rose 4 points in October, together with the increase in September. The index number indicates the stability of the US labor market despite the non-farm payrolls data is released lower than expected.

News and Review of European Economic Zone (UK)

BRC: UK Retail Sales Recover Slightly in October

Tuesday, November 11th, 2014

The British Retail Consortium said total retail sales rose 1.4% in October from a year ago, compared with a decline of 0.8% in September, the sharpest annual decline since April 2012. For the base interest rate in retail sales flat, after a decline of 2.1% in September . The weather was unseasonably warm, which makes buyers reluctant to buy new winter clothes in September, continuing a month ago and made shopping for clothes and shoes level remains weak. However, furniture and other home furnishings is quite strong, indicating consumers will continue to drive the UK's economic recovery, although the pace of the increase has slowed in recent years.

"Unfortunately, the warm weather has made many clothing retailer to underperform, raises questions about the rebate earlier and in line with the approach of Christmas," said David McCorquodale, head of retail at KPMG. "Promotion is still rife in the grocery sector, making it the worst-performing sector," added McCorquodale, as total food sales fell as much as 1.3% in the three months to October.

News and Review of European Economic Zone

Mersch: ECB Ready Adding ABS In the Asset Purchase

Tuesday, November 11th, 2014

Executive Board Member of the European Central Bank Yves Mersch said the ECB would be ready to buy asset-backed securities next week as part of the stimulus plan. ECB's stimulus package includes "purchasing program, which we started with the covered bonds a few weeks ago and which we will continue in one week" with asset-backed securities, Mersch said in a speech in Herrenberg, Germany. They will help "to ensure price stability in the euro zone, "he said.

Since June, officials ECB has cut interest rates twice, offering long-term loans to banks and commit to buy the assets of the ECB balance sheet to push as much as 1 trillion euros (1:24 trillion dollars). With inflation well below the ECB's target and the economy is difficult to expand, Mario Draghi has promised to add stimulus if needed, fueling speculation about the purchase of government bonds on a large scale.

"There is still no decision to buy government bonds," said Mersch said. "It's only a theoretical option if the situation worsens." ECB officials will meet in Frankfurt on 19 November. In October, they use the event to sign legislation authorizing the covered-bond program and expressed how it will be implemented. Draghi said last week the purchase of ABS will begin within "close."