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EIA Reports Encouraging Oil Price Recovery

Friday, May 29, 2015

Crude oil prices rose on Thursday as US crude stocks recorded a weekly decline in the 4th row, indicating if the US oil market began to find a balance after experiencing excess supply in the long term.

Report of the Energy Information Administration (EIA) showed crude oil inventories decreased 2.8 million barrels last week, compared with expectations for a 1.5 million barrel decline. The data also helped 'black gold' rose from pressure triggered by the US dollar rally in the last 10 days.

Oil prices also drawn support from the disastrous forest fires in Canada, which forced the evacuation of the several fields of oil and gas production. The fire has caused energy companies operating in Alberta, the largest source of US oil imports, to stop production of 233,000 barrels per day, or about 10% of total Canadian oil output.

News and Review of European Economic Zone (France)

France Consumer spending Amounting Estimates

Friday, May 29, 2015

French economic data today re-released disappointing. Consumer spending in Europe's largest economy rose in April, but the increase did not match expectations of financial market participants.

Consumers refrained from spending money, especially for durable goods. It made French consumer spending rose only 0.1% in April compared to March and 2% higher than the same month last year (data Insee).

Economic analysts surveyed by The Wall Street Journal had previously forecast a monthly rise of 0.2% and 2.5% compared to last year. Insee also revised down figures consumer spending in March from 0.7% to 0.6%.

French consumers spend more money for food and clothing in April compared to March. But the number of purchases in large quantities is decreasing. Spending on residential spending fell 0.2% and durable goods also fell 0.4% compared to March.

News and Review of European Economic Zone (Switzerland)

Swiss economy shrinks; Franc Press Export Sector

Friday, May 29, 2015

Swiss economy contracted most sharply in the past 6 years as the strengthening of the franc began to have an impact on the export sector. Gross domestic product fell by 0.2% in the first quarter, after a revised growth of 0.5% in the previous quarter, according to the State Secretariat for Economic Affairs in Bern on Thursday. It was the largest contraction since early 2009 and is under economists' estimates for a contraction of 0.1%.

With the franc is still too strong, according to the Swiss National Bank, will continue berlanut downside risks. The data also provide ammunition for critics of the central bank, which said the SNB's decision last January to remove the limit of the exchange rate against the euro endanger the economy. Revocation limit resulted franc soared to a record high against the euro, making industrial companies that export most of their products much trouble.

According to one economist, currently there are signals the beginning of the recession, the second quarter probably will not improve. He also added that the SNB may not need to revise down the growth outlook for this year, because the SNB can ignore it.

News and Review of European Economic Zone (UK)

GfK: Consumer UK Increases Pessimistic in the month of May

Friday, May 29, 2015

UK consumer sentiment unexpectedly worsened this month as optimism about the economy in the next 12 months SCARA faded sharply, according to survey results from research firm GfK. GfK said that his monthly consumer sentiment index, which is calculated after the victory of the Conservative Party in this month's elections, dropped to +1 from +4 in April, while economists expect no change. Optimism about the state of the economy in the next 12 months fell to the lowest level since January, while Britons also become less optimistic about the prospects for their personal finances.

According to Nick Moon, director of social research at GfK, in the short term it shows despite giving the Conservatives a majority in the House of Commons, today's society is not too oprimis about keidupan economy under the leadership of the party. He added that it is very worrying that the economic optimism index is only one point above the level of last year, fell as much as 6 points in May.

News and Economic Review Zone Asia (Japan)

Japan Inflation Flat in April, Consumer Spending Down

Friday, May 29, 2015

Japan's core consumer inflation rate only increased slightly and the level of public spending fell in the year to April, fueling doubts about the central bank's view that there is a stable economic recovery that could help mengakselarasi rate of inflation to the target of 2%. 0.3% rise in the consumer price index (CPI), in addition to oil and fresh food products, roughly in line with market estimates for a gain of 0.2%. Outside residual impact of the sales tax increase last year, core CPI flat in April from a year ago. Analysts expect consumer inflation will remain flat or down slightly at an annual rate of up to around July or August, due to the impact of the decline in gasoline prices last year.

Contributed to the economic outlook for the country's third-largest economy in the world, the level of public spending fell by 1.3% in April from a year earlier, far worse than expectations for an increase of 3.1%. Bank of Japan Governor Haruhiko Kuroda has stressed that he will monitor the impact of oil price movements on inflation and would consider returning policy loosening is also the risk factors threaten to hamper gai rise gradually due to the economic recovery as planned. However most senior central bank officials worry that if the rate of inflation to remain low for a long time, it can suppress inflation expectations and make consumers reluctant to shop.

Stay tuned for US oil inventories data

Thursday, May 28, 2015

Ahead of the opening of the US trading session, WTI crude oil stuck on the lowest level of the month, market participants await US crude oil inventory data this evening. American Petroleum Institute (API) on Wednesday reported US oil inventories rose 1.3 million barrels last week. Became the first such increase after declining in the previous three weeks.

Energy Information Adminstration inventory data will be released this evening, if the release of the data also showed an increase, then it could be a signal of US shale oil production began to recover, after experiencing a period of contraction.

Dollar rally in the last few days making oil fell in four consecutive days until Wednesday. The price of oil is denominated in dollars more expensive for holders of other currencies, so as to reduce demand. Additionally projection from Goldman Sachs predicted oil prices will reach the level of $ 45 per barrel in October also give negative sentiment for oil.

News and Economic Review Zone Asia (South Korea)

Won Drops to 8-Week Low Level

Thursday, May 28, 2015

The won dropped to 8-week low amid signs the rate of growth rate of exports and South Korea slowed as the worsening global conditions. Exporters can not sustain kompetitifitas amid weakening yen and the euro, according to the Korea International Trade Association report released Thursday. This happened after the Bank of Korea Governor Lee Ju Yeol on Tuesday said that exports may be down in May. HSBC Holdings Plc said there was a decrease in the level of demand for Korean products by China as an excuse to cut its 2015 growth forecast this week to 2.8% from 3.1%.

According to one analyst currencies, weak demand from abroad reduce the level of exports this year and the impact of changes in currency exchange rates also play a role. The Government will continue to try and maintain order not won strengthened against the yen.

News and Review of European Economic Zone (UK)

UK GDP Second Estimate Fixed Amounting to 0.3%

Thursday, May 28, 2015

Office for National Statistics reported a second estimate of gross domestic product (GDP) England first quarter remained at 0.3% compared with the first estimate. Such data confirm the economic slowdown in the first quarter of the UK. The release also lower than economists' estimates of 0.4%. Meanwhile, for the period year-on-year, GDP also remained at 1.2%.

British economy in 2014 and outperformed the G7 economies other woods, but the slowdown that occurred recently raised concerns against the resilience of the UK economy.

British economic slowdown in the first quarter due to weak performance of the majority of the services sector, also widening the trade deficit. The service sector is the bone puunggung British economy, which has contributed up to 80%. While manufacturing and construction sectors showed a slight increase, although not able to offset weak service sector.

The Bank of England's quarterly inflation report in the May 13 UK lowered its economic growth this year to 2.5% from 2.9%, and for 2016 is estimated at 2.6%.

News and Review of European Economic Zone (Switzerland)

Export sector Swiss Franc Exchange Rate Induced by Strengthening

Thursday, May 28, 2015

The value of Swiss exports declined in April of 2015. Factors strengthening exchange rate of the franc became the main obstacle for the export offender because it reduces the demand for chemical products, pharmaceuticals and watches mainly from Europe and the United States.

Exports in April fell 1.3% compared to the previous year (real calculation) to 16.3 billion francs ($ 17.2 billion), or 5.1% lower. While the volume of imports touched CHF13,4 billion, down 0.7% (real terms) and 8.1% in nominal calculation.

April trade surplus increased from CHF2,5 billion to CHF2,9 billion. For the record, watch exports fell 0.8% to a value of CHF1,83 billion, but rose 1.1% when referring to the real calculation.

News and Review of European Economic Zone

Nowotny: ECB Can not Accept Greek Collateral Current

Thursday, May 28, 2015

European Central Bank should stick to clear rules regarding funding for Greece, according to Ewald Nowotny on Thursday, dimming hopes that the ECB may loosen sukapnya to help Greece who are trying to reach an agreement with international creditors. According to Nowotny, the ECB, it's pretty obvious there are several requirements that must be met, one of which is whether we can accept Greek bonds as assets and collateral, and the answer for now is no.

He added that it should be clear that the ECB will not do outside funding rules. Probably out there circulating rumors that the ECB could provide funding for granted, but I think it is not legally possible, he added.

Crude Oil Slump More Than 2%

Wednesday, May 27, 2015

Crude oil closed down more than 2% on Tuesday, pressured by the possibility of going back to increased activity in the US shale oil producer and the strengthening of the US Dollar.

Data released Friday showed the number of drilling rigs declined by only 1 throughout last week, prompting speculation about a rebound in US oil production and eroding the prospects of tightening oil market in the coming months. While the appreciation of the dollar often bring pressure on commodity prices denominated in US currency, including oil.

In addition, sentiment was also depressed by several other factors such as growth in supply from OPEC, Saudi Arabia and Iraq where record production, the risk of a return to normalcy oil supplies from Iran, as well as some of the signs of stress in the physical market.

Going forward, investors will await OPEC meeting on June 5 in Vienna and indications of supply response from Saudi Arabia and other major oil producers.

News and Economic Review Zone Asia (Japan)

BOJ Iwata: Yen Movements Reflect Fundamentals

Wednesday, May 27, 2015

Deputy governor of the Bank of Japan Kikuo Iwata on Wednesday said that the exchange rate is moving in line with economic fundamentals. He said that the Bank of Japan will continue to monitor how the movement of the currency market, including exchange rates, will affect the economy. But he refused to bekomentar specifically about the weakening yen towards the 8-year lows against the dollar due to the strengthening of speculation rising interest rates in the US lately. Currently the yen is still traded in the range of 133.00 per dollar.

Meanwhile, one of Japan's top government spokesman said on Wednesday that excessive volatility in exchange rates is not expected, but added that the pace of the weakening yen is still not excessive. The deputy head of the cabinet secretariat Yoshihide Suga said that pemeirntah will continue to monitor the movement of currency exchange rates carefully.

News and Economic Review Zone Asia (China)

Use of Yuan Start Trading Dominant in China

Wednesday, May 27, 2015

The Chinese government's intention to make its currency as one of the most important trading currency world began to materialize. Yuan currency is now the most widely used in trade transactions with China, shifting the position of the yen and Hong Kong dollar.

Governments and enterprises in China is promoting the use of yuan as a medium of exchange in import export transactions. Now as much as 31% of payments trade cooperation wear Yuan, or much improved from just 7% in the past three years (data from the World Interbank Financial Telecommunication).

Along with the increase of direct cooperation with China and Hong Kong, Yuan is more often used as a unit of exchange. The Chinese government diligently to facilitate the use of its currency by opening the clearing center around the world, signed a currency swap agreement and set a quota of foreign investment.

For the last month alone, Yuan became the most widely used currency in Canada's trade balance with China and Hong Kong. To accommodate the magnitude of the transaction between the two regions, China to build four new clearing center in order to facilitate the transaction. In addition to Canada, Yuan controls 50% payment of import export between China and Singapore, Taiwan, South Korea and the Philippines.

Since 2012, as many as 26 countries already use yuan as the currency of payment directly to China and Hong Kong. But globally, the currency is still in fifth position in the list of the most commonly used currencies in payments ********* with a percentage of only 2%

News and Review of European Economic Zone (France)

French Consumer Confidence Declines in the month of May

Wednesday, May 27, 2015

French consumer confidence declined in May 2015. French citizens are less confident in their ability to store assets and money because of the economic conditions that have not been as expected.

Consumer confidence in the country's second largest economy of Europe fell from 94 (April) to 93 in May. This decrease is the first since the release of the data in October 2014. The average level ideal for consumer confidence itself is at the 100 level.

According to data from the statistics agency Insee, the French people are not too confident of being able to save money now and in the future. Consumer attitudes in view of the current financial situation also decreased compared to last April.

Insee monthly survey results also show a decline in a sense of concern will be the number pengguran. While the number of household heads who forecast a rise in prices in the market also reduced inflation expectations but still rose in May.

News and Review of European Economic Zone (Germany)

German Consumers More Optimistic Facing In June

Wednesday, May 27, 2015

German consumers back optimistic outlook for the month of June due to the low level of inflation and the recovery of the desire to shop. Monthly data which surveyed 2000 consumers GfK German consumer sentiment resulted in the increase in Germany from level 10.1 in April to 10.2 in the month. This level is the highest level since mid-2001 and could surpass the expectations of analysts Reuters at level 10.

There are many factors that influence the increase in consumer optimism Germany. The recovery of export activity, the unemployment rate at its lowest level, increase in wages, and lower interest rates make consumers willing to increase spending.

However, the rebound in oil prices since last month to make consumers aware of the possibility of rising inflation. GfK also added to geopolitical factors such as the odds of a Greek exit from the euro area, the crisis in Ukraine, and the anxiety of terrorism can dim consumer optimism

Stable, Oil Prices Will Probably Stop Rally

Tuesday, May 26, 2015

Crude oil prices more or less flat at the beginning of Tuesday's session, the sturdy as the level of demand to shore up prices and excess supply push prices down, but analysts say that there is a signal that the recent oil rally may begin to fade. The high level of demand in Asia and also the driving season in the United States are confronted with an output that is near a record high, mainly from the Organization Of Petroleum Exporting Countries (OPEC), although the level of oil production in the US seems to have reached its peak, at least temporarily. Analysts said that prices probably will not rise too much from current levels.

According to economists, the crude oil market gets strut of reports decline in production and supply of crude oil last week but prices failed after re-testing the high level reached at the beginning of the month. Recent oil price rally may begin to subside as oil prices WTI reached the level where producers can operate profitably. The fact that WTI price level approaching LRMC (long-run marginal cost) for new investments signify that the rally in oil prices may not have a lot of space, according to analysts.

News and Economic Review Zone Asia (China)

China Index Stronger Thanks to the swift Fund Entrance

Tuesday, May 26, 2015

China shares extend gains today. Until the closing of the Tuesday session, the main Shanghai index was observed to rise thanks to large capital inflows.

Although the central government seeks to restrict the volume of speculative transactions in the capital market, investors are still buying stocks in Shanghai. The main index finishing the morning session at 4892.73 levels or higher by 1.6% compared to its opening position before finishing the day at 4,910.90 level, up about 2%. Shares of the aviation sector, defense and manufacturing led the Chinese market's gains. ChiNext soared 3.6% to 3592.91 position until mid-day and predicted ready to set new records.

In the morning, the market was hit by profit-taking. But amid inflows into the stock market, buying is inevitable, especially in some of your favorite stocks. There are no signs of the Chinese index will weaken in the short term

News and Review of European Economic Zone (UK)

Sterling Down to Lowest Level 2 Week

Tuesday, May 26, 2015

Pound sterling continued weakening against the dollar and touched a two-week low after data showed US core durable goods orders rose in April, making the dollar received additional personnel to strengthen.

The US Commerce Department reported US durable goods orders fell 0.5% in April, but core orders were not entering the transport sector rose 0.5% in the calculation of the previous month, after economists' expectations. Besides the core capital goods orders, which reflects the investment business, rose 1%.

Urge the strengthening of the dollar began on Friday after data showed US core inflation rose 0.3% in April, higher than economists' estimates of 0.2%. In addition chairwomen US central bank, Janet Yellen, the same day confirmed its intention to raise interest rates this year.

News and Review of European Economic Zone (Greece)

Varoufakis: Can Creditors Demand Inhibitory Greece Run Reform

Tuesday, May 26, 2015

Greece is committed to free pereknomiannya, reforming the pension system, and run a primary budget surplus accordingly. But Finance Minister Yanis Varoufakis also added Greece difficulty meeting the demand of the creditors to adopt tightening measures this year and step over it can shake the ability to run the necessary reforms. Greece has an obligation to pay the debt with the four a total of 1.6 billion euros to the International Monetary Fund next month.

Today the Greek authorities returned the representatives of the European Commission and the International Monetary Fund in Brussels. Both sides are still trying to find a middle ground with respect to the dissent in pension regulations, sales tax, budget targets, and labor.

Greece was able to pay its obligations even though not received aid since the summer of last year. Some steps taken to overcome the Greek remedy such curbed spending, hold payments to suppliers and vendors, invite people to pay delinquent taxes, and hold cash reserves of regional governments, hospitals, universities, and other public institutions.

News and Review of European Economic Zone (Greece)

The Greek Bailout Negotiations Progress Positive

Tuesday, May 26, 2015

German officials on Tuesday to signal that the disbursement of bailout deal for Greece may soon be achieved to avoid the incidence of accidental default after Greece's debt payment due to the IMF amounting to 300 million euros on 5th June.

Separately, other euro zone officials expressed teleconference on Thursday will be held to follow up the outcome of negotiations representatives of the Greek government with the creditors of the IMF, ECB and European Commission.

Overall Greece needs to pay debts amounting to 1.6 billion euros ($ 1.76 billion) to the IMF in the next month, starting with the first installment of 300 million euros on June 5. Greek liquidity crisis risk is increased if not immediately achieved a new loan deal from the EU / IMF.

End Oil Gain 9-week, Depressed Strengthening Dollar

Monday, May 25, 2015

Crude oil prices fell nearly 2%, ending a nine-week streak of gains, amid Greenback rally and profit-taking before the long weekend in the US. The high exchange rate of the greenback makes dollar-denominated commodities such as crude oil becomes more expensive for holders of other currencies. Trader also said oil tends vulnerable to profit-taking after a gain of 6% for two days.

In addition, crude oil investors are also worried about the continuation of decline in drilling activity after a rebound in crude oil prices since April. Baker Hughes reported the number of active rigs in the US is only reduced by one rig in the week as well as a sign of decline in drilling activity during the 6-month coming to an end.

American Automobile Association said land travel in the US is predicted to reach 10-year highs throughout the long weekend with the Memorial Day holiday on Monday. Fuel consumption is expected to rise for 3 days, but analysts assess the impact will not be great because oil inventories are still very high.

WTI crude trading ends at the level of $ 59.99 per barrel, daily lows near $ 59.35 to $ 60.80 daily highs.

News and Economic Review Zone Asia (Iran)

Iran: Possible OPEC Output Cuts Will Not

Monday, May 25, 2015

OPEC unlikely to change its production ceiling during a meeting in June, according to Iranian Oil Minister Bijan Zanganeh on Sunday, as quoted by the Mehr news agency. According to him, cuts in OPEC production limits require the agreement of all members, and under these conditions seems to limit oil production OPEC will not change. Last month, seharisnya Zanganeh said OPEC cut its daily crude oil production target by at least 5%, or about 1.5 million barrels per day.

Organization of the Petroleum Exporting Countries will meet on June 5. At the last meeting in November, OPEC, led by Saudi Arabia, decided to reject the cuts output in order to maintain market share, rejected the proposal of some members like Iran and Venezuela to reduce production levels in order to mendongrak oil prices. The decline in oil prices has been pressing OPEC producer less affluent, including Iran. While meeting in Vienna on June 5 will be received requests from a number of member countries to cut oil output, although officials from countries who proposed trimming output pessimistic pruning will occur. Iran meniginginkan other OPEC members to allow the increase in the level of oil exports if it reached an agreement with six other world powers over its nuclear program. Deadline nuclear issue there is agreement on June 30.

News and Review of European Economic Zone

Germany: Street Settlement Greek Crisis Still Very Complicated

Monday, May 25, 2015

German Chancellor, Angela Merkel, said today that still takes a long process to reach a solution of the Greek crisis. Statement that he offers a few moments ago after a meeting with Prime Minister of Greece, Alexis Tsipras, yesterday.

Ahead of the summit in Latvia, Merkel admitted that required the approval of third parties involved in the negotiation process to resolve the Greek problem, namely the European Commission, the European Central Bank (ECB) and International Monetary Fund (IMF). Merkel spoke for over two hours with Tsipras and the President of France, Francois Hollande to discuss the issue.

However, Merkel also praised the discussion process which he said 'friendly and constructive'. Together Hollande, he even invited the Greek government to come to him when in need of advice or assistance. A Greek official confirmed what was said by the Chancellor of Germany and welcomed the offer that it provides.

Greece own their own are in financial difficulties to pay the mortgage debt that will mature later this month. Athena also still has the burden of payments to international creditors and pay off the salaries of civil servants plus retirement fund. The Government has not applied for extraordinary high-level meeting with the finance ministers of Europe but it will likely take the opportunity of discussion at a meeting of the Eurogroup end of May.

News and Review of European Economic Zone (Greece)

Greece Can not Be Paying Debt At IMF

Monday, May 25, 2015

The Bank of England is planning to examine the impact of a possible British exit from the EU, according to a statement, confirming email accidentally sent in one of the newspapers about the intentions of the secret research project. The Guardian reported that one of the senior officers BoE said via email that the project should be kept secret from most of many employees BoE and any journalist who asked it should be said that the Bank of England are observing problems in the European economy at large. British Prime Minister David Cameron, who was re-elected on May 7, has pledged to overhaul England bentuh cooperation with the European Union before holding references to the membership until the end of 2017.

Such as the Scottish independence referendum last year, the BoE tries to resist the talk that the central bank is entering the political debate. In a statement Friday night, Bank of England confirmed its intention to launch the assessment. According to the statement, is not something surprising if central banks take action against government policies. There are a number of economic and financial problems that arise in the context of a renegotiation and a referendum, and is one of the central bank's responsibility to assess matters related to the objectives.

News and Review of European Economic Zone (UK)

Assessing the Impact Will the BoE Brexit

Monday, May 25, 2015

The Bank of England is planning to examine the impact of a possible British exit from the EU, according to a statement, confirming email accidentally sent in one of the newspapers about the intentions of the secret research project. The Guardian reported that one of the senior officers BoE said via email that the project should be kept secret from most of many employees BoE and any journalist who asked it should be said that the Bank of England are observing problems in the European economy at large. British Prime Minister David Cameron, who was re-elected on May 7, has pledged to overhaul England bentuh cooperation with the European Union before holding references to the membership until the end of 2017.

Such as the Scottish independence referendum last year, the BoE tries to resist the talk that the central bank is entering the political debate. In a statement Friday night, Bank of England confirmed its intention to launch the assessment. According to the statement, is not something surprising if central banks take action against government policies. There are a number of economic and financial problems that arise in the context of a renegotiation and a referendum, and is one of the central bank's responsibility to assess matters related to the objectives.