News and Reviews European Economic Zone

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News and Review of European Economic Zone

 

ECB officials: We're Not Closing the Door for New Policy

Friday, September 12, 2014

 

European Central Bank (ECB) to open up to a new policy for the sake of economic recovery in the euro zone. Of note, the current monetary easing is not powerful enough to cope with decreased arousal and investment business.

 

The statement disclosed by ECB board member, Erkki Liikanen in an interview on Friday (12/09). As is known, last week the European Central Bank has cut interest rates to the level of bank deposits 0:05%. Authorities also promised to buy private debt securities in order to stem the threat of deflation.

 

"I would not rule out the existence of a new facility, but we have to implement existing policies first," said Finland's central bank governor. All members of the ECB does not oppose the release of additional measures if necessary. While the asset purchase program and new banking bonds began in October.

 

According to Liikanen, the bonds will be purchased by the ECB should be transparent and appropriate criteria specified. "We are not going to buy up assets recklessly," he added. Liikanen colleagues at the European Central Bank itself strongly support what the President Mario Draghi and always ready to anticipate monetary dynamics in the region. "The most important thing for us is to maintain price stability and steer inflation close to 2% level," he concluded.

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News and Review of European Economic Zone (Italy)

 

Italian Production Sector Data Fail to Fulfill Expectations

Friday, September 12, 2014

 

Unexpectedly, the rate of industrial production or industrial production tumbled Italian state in July 2014, all production of goods declined, led by consumer goods major.

 

Industrial output in the country's fourth largest economy of the euro zone is dipped 1.0% compared to a record in June, according to the national statistics agency Istat. In fact as many as seven economists surveyed by Dow Jones Newswires had predicted the figure unchanged from the previous month.

 

The decline in production largely due to a contraction in the sector of consumer products as much as 2.4%. Then followed by a 2.1% decline in the investment goods sector. Production of consumer goods is a parameter of economic recovery in Italy. If the number is decreasing, it can be concluded that the country's economy was sluggish.

 

Italian energy production also fell 0.8% in July, while the category of intermediate goods decreased 0.6%. If calculated on an annual basis, industrial production contracted 1.8% compared to Italy in July 2013 (adjusted for working day calendar). Italy itself has fallen into recession for the third time since 2008, the latest economic fact the dashed hopes of economic recovery this year.

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News and Review of European Economic Zone

 

Stop Strengthening Euro 2 Days streak

Monday, September 15, 2014

 

Until the beginning of the European session on trade this week the euro retreated against the dollar and halt reinforcement in two consecutive days. Market sentiment was hit due to poor Chinese economic data released last Saturday, giving concern to the economic slowdown in the world's second largest.

 

China's industrial output in August grew by 6.9% from the same period the previous year gave dragging down the Australian dollar to 0.9000 level for the first time since March 20. The percentage of growth is lower than 8.8% eskpetasi economist, and was the lowest in the last six years. Other data showed year-on-year investment in China grew 16.5%, and retail sales grew 11.9%, the second data below economists' estimates.

 

While the data from the euro zone showed an increase in the trade surplus, but the decline in exports caused investors worried about the outlook for the region's economy. Eurostat reported a trade surplus that has not been adjusted for € 21.2 billion, compared with € 18.0 billion in July 2013, and became the biggest since March 2013, but after adjusting the level of exports fell 0.2% from June, while otherwise imports rose 0.9%, and the adjusted trade surplus fell to € 12.2 billion from € 13.8 billion in June.

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News and Review of European Economic Zone

 

Period from January to August, Ford of Europe Sales Up 7%

Monday, September 15, 2014

 

Ford Motor Co. Europe reported a rise in vehicle sales in the period January-August 7%, driven by the continued recovery of the European automotive market, and the Kuga SUV sales record. Although the European automotive market recovery seen slow, but Ford of Europe is still optimistic the European automotive market will grow this year after a decrease in six years in a row.

 

Ford said sales in the first eight-month period rose to 762 900, from the same period the previous year amounted to 712 400. In August alone, the vehicle of Sales in Europe rose 14% to 61,700 vehicles. Ford also managed to increase sales to retail buyers and the company is more profitable than penujualan to rental car companies. Ford retail sales up 8.5% of total sales in August, the highest level since 2009 Increased retail sales is said to reduce the incentives Ford

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News and Review of European Economic Zone

 

Euro Zone Surplus Widens in July

Monday, September 15, 2014

 

Eruo zone trade surplus widened in July, but a decrease in the level of exports provide tersediri concerns. Eurostat reported a trade surplus of € 21.2 billion, compared with € 18.0 milair in July 2013, and became the biggest since March 2013, but the level of exports fell 0.2% from June, while imports rose 0 otherwise, 9%.

 

The decline in the level of exports is bad news for the euro zone depends on the trade that help prevent contraction in the second quarter. Low domestic demand made ​​a lot of companies have to seek out markets such negra block 18.

 

The decline in exports in July to reflect the possibility of worsening economic ties with Russia. Eurostat reported in the six months to June, exports to Russia fell 14% from the same period a year earlier, while imports from Russia fell 6%

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News and Review of European Economic Zone (UK)

 

UK Inflation Slows in August

Tuesday, September 16, 2014

 

UK inflation slowed to the lowest level in the last five years in August, prices in supermarkets and discount weather effects food prices fell the most in more than a decade.

 

Office for National Statistics reported inflation in August grew 1.5% from a year earlier, slowing from growth of 1.6% in July. The percentage growth is in line with economists' forecasts. UK inflation up in August was below the target the Bank of England in eight consecutive months.

 

From July, inflation grew 0.4%, the price of clothing increased by 2.6%, while food prices fell 0.2%. The fall in food prices provide an overview demimmenarik discount supermarkets continue to give visitors, in addition to better crop yields from 2013 and also makes food prices decline

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News and Review of European Economic Zone

 

Eurozone Wage Growth Rises in 2nd Quarter

Tuesday, September 16, 2014

 

Wage growth in the 18-nation euro currency users has increased over a period of 3 months to June, which is a sign that inflationary pressures in the region will probably accelerate.

 

Report of the European Union's statistics agency, Eurostat, showed wages rose 1.2% in the 2nd quarter compared to the same period in 2013, after growing 1.0% in the January-March quarter. Total labor costs, which include taxes and other corporate costs, also rose 1.2% after rising 0.6% in the previous period.

 

Wage increases and the amount of labor costs would be good news for the members of the Board of Governors of the European Central Bank, because it shows that inflationary pressures may begin to strengthen. Based on recent data, the annual inflation rate dropped to block euro 0.3% in August from 0.4% in July. Still far below the target of 2% set approaching the ECB

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News and Review of European Economic Zone (Germany)

 

ZEW: German Economic Prospects dimmed

Tuesday, September 16, 2014

 

German economic outlook dims in September, referring to the results of a survey of financial analysts released Tuesday. Which indicates if the euro zone economy and the uncertainty of the effects of sanctions on Russia still continues to weigh on sentiment.

 

Reports indicate ZEW German economic sentiment index fell to 6.9 in September from 8.6 in August. Economists had expected the index to fall to 5.2. The index for current conditions also dropped sharply to 25.4 from 44.3 in August, well below expectations of 41.0. While the expectations index hit the lowest level since December 2012.

 

"The economic climate is still overshadowed kedakpastian great," said ZEW President, Clemens Fuest, after the release of the survey results. "The risk of the impact of the Russian sanctions continue to lurk, while economic activity in the euro zone remains disappointing."

 

Fuest also added that the consequences of Scottish independence referendum next Thursday is still difficult to determine.

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News and Review of European Economic Zone

 

Euro Zone Inflation Stuck at Low Level

Wednesday, September 17, 2014

 

Eurostat revised the euro zone annual inflation in August to 0.4% of the initial release of 0.3%. However, inflation in August is the same as the previous month and the lowest level since October 2009, while from July, inflation grew 0.1% in August. European statistics bureau also reported inflation in the EU, including the 10 states that do not use the euro currency, was 0.5% in August.

 

Report from Eurostat showed the six members of the euro zone prices declined in the 12 months to August, while two members of the EU who do not use the euro are also experiencing the same thing.

 

Low inflation gives positive and negative impacts. Real income be increased if low inflation when wage growth is weak, on the other hand the government and households become difficult to reduce high debt levels

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News and Review of European Economic Zone (Switzerland)

 

Swiss Economy Turning Negative Expectations

Wednesday, September 17, 2014

 

For the first time since January last year, the Swiss economic expectations turned negative in September as concerns about the impact of geopolitical tensions on the growth of the Euro block adds pessimism among financial analysts.

 

ZEW Institute and Credit Suisse Group on Wednesday said its index of investor and analyst expectations dropped to its lowest level since December 2012 to minus 7.7 from 2.5 in August. Negative number indicates that expects more economic outlook would deteriorate than vice versa. These results are in line with the ZEW survey in Germany, Switzerland's main export markets, where a similar index recorded a decrease for the 9th consecutive month in September.

 

While the Swiss National Bank is scheduled to review the monetary policy they were on Thursday. The SNB is likely to cut its outlook for growth this year from a range of 2%. In addition to keep interest rates near zero, analysts also expect the Swiss central bank will re-affirm the commitment to maintain the minimum limits of the exchange rate euro / franc which has been in effect since September 2011

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News and Review of European Economic Zone (UK)

 

UK Unemployment Claims Dropped A total of 37,200, 6.2% Unemployment Rate Being

Wednesday, September 17, 2014

 

The number of people filing claims for unemployment benefits in the UK fell more than expected in August, while the unemployment rate fell to the lowest level since December 2008, on show in the government data on Wednesday.

 

In a report, the Office for National Statistics said that claims for unemployment benefits dropped to the season adjusted as much as 37,200 in the last month, compared with forecasts for a drop of 30,000. July figures were revised to a decline of 37,400 from the previous report that showed a drop of 33,600 people.

 

The report also showed that the unemployment rate fell to 6.2% in the three-month period in July, compared with forecasts for a reading of 6.3% and down from a 6.4% in the three months periodr in June.

 

In addition, the index reports the average income, which includes bonuses, rose by 0.6% in the three-month period in June, the results were above estimates for an increase of 0.5%, after falling by 0.4% in periods of three months in June.

 

Outside bonuses, wages rose by 0.3% in the three-month period in July, according to the results of the estimates after an increase of 0.7% in the three-month period in June.

 

GBP / USD was trading at around 1.6316 at the time of data release, while EUR / GBP was at 0.7946 from 0.7945 previously.

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News and Review of European Economic Zone (Switzerland)

 

SNB Ready to Take Action If Needed

Thursday, September 18, 2014

 

Swiss National Bank (SNB) while maintaining a minimum value limit of EURCHF at 1.20 and does not change the benchmark rate in a range of zero to 0.25% when finalizing the results of its monetary policy this afternoon. However, the SNB reiterated the central bank's commitment to maintaining the minimum exchange rate of the euro against the Swiss and take further action if necessary.

 

Swiss franc again approaching the limit of SNB minimum target after the ECB cut interest rates further in early September. The threat of continued strengthening of the franc rose considerably after the ECB express intent to purchase the Asset-Backed-Securities and covered bonds. The ECB will even provide cheap funds TLTRO facility this afternoon in order to prevent the euro-zone economy falling into recession and deflation.

 

"The Swiss franc exchange rate is still at a high level. Policy the minimum exchange rate remains fixed instruments. Central bank is prepared to buy foreign currency in unlimited quantities in order to maintain the minimum EURCHF," the central bank said in a statement. EURCHF has not changed much after the SNB decision. Now traded EURCHF 1.2078; down 0.22% from yesterday's closing level of 1.2104

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News and Review of European Economic Zone (UK)

 

UK Retail Sales Rise Amid Sales Surge Vacuum Cleaner

Thursday, September 18, 2014

 

Retail sales in the UK rose to its highest level in four months in August, partly helped by a surge in the demand for vacuum cleaner done before the latest restrictions on high-powered electronic equipment.

 

Volume sales including fuel rose by 0.4% in July, the result is in accordance with the median estimate of 21 economists in a Bloomberg News survey, the results show the statistics bureau in the UK. Sales excluding fuel rose 0.2%.

 

The report also shows an extension of a price war between the major retailers in the UK as they try to win the hearts of customers. The prices in the store as a whole declined by 1.2% in August to an annual rate, it was the largest in five years, while prices in food stores fell by 0.1%, this is the first decline in a decade.

 

Measured by volume, sales at food stores fell by 0.7% in August from July. Sales in non-food stores increased by 1.6%, led by a 3.8% increase in household appliance stores. New regulation in the European Union banned the sale of electric power celeaner large vacuum that will come into effect at the end of August. Restrictions on hair dryers, lawn mowers and kettles will be introduced in early 2015.

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News and Review of European Economic Zone

 

ECB pours € 82.6 Billion In First Phase TLRTO

Thursday, September 18, 2014

 

The European Central Bank on Thursday said it has disbursed € 82.6 billion loan fund through the tenured 4-year Longer-Term Targeted facility Refinancing Operations (TLRTO). Injections of liquidity are expected to spur lending to the business sector and to boost the rate of inflation which is currently very low.

 

For this loan facility, the European Central Bank offers 0.15% interest rate, or just 0.10% higher than the refinancing rate. Launch TLRTO previously announced last month, which along with the decline in interest rates to be part of the stimulus package by the ECB. Liquidity operations have a maximum volume of about € 400 billion of this will be run in two stages, with the next phase scheduled to take place in December.

 

Policy makers hope that by providing financial incentives cheaper in the long run, the commercial banks will be encouraged to extend credit to companies that require and increase investment and recruitment. In turn, it can provide a positive contribution to economic growth and job Euro block, and again to spur inflation.

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News and Review of European Economic Zone

 

TLTRO program ECB Less Getting Warm Response

Friday, September 19, 2014

 

Latest scheme of the European Central Bank to shore up the eurozone economy to get a less than warm welcome from banks in the euro zone. The financial markets were shocked to discover that there is only a limited demand for cheap loans from the ECB bids, as they expect the banks will soon take the cheap loans. The ECB, led by Mario Draghi, providing funds TLTRO (targeted long-term refinancing operations) as much as 400 billion euros (315 billion pounds) which can be retrieved with 0.15% The interest rate for four years if it can increase lending to businesses or the public, and for 2 years without conditions. The ECB on Thursday announced that the banks only taking 82 billion euros from 400 billion euros on offer, about half of market expectations. TLTRO second phase will be launched in December, and some analysts predict the level of demand may be betambah within 3 months.

 

TLTRO program is similar to the funding scheme for lending of the Bank of England, which was initially greeted less when launched in August 2012 ago. However, some economists believe that the minimal number of TLTRO taken to urge the ECB to take more drastic measures, including buying government bonds under its quantitative easing program. "Expectations in a survey shows the number of loans taken by 150 billion euros, and even that number is still below the estimated ECB president Mario Draghi," said Jennifer McKeown, senior European economist at Capital Economics. "But the fact that these loans are less attractive to banks showed that they had no intention of increasing the amount of the loan, either because of risk aversion, low levels of demand for loans, or possibly both."

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News and Review of European Economic Zone (UK)

 

Scotland Still Involved In United Kingdom

Friday, September 19, 2014

 

Scottish Society chose to remain joined Britain after the independence referendum results provide clarity on the future of the British union that has lasted for 307 years previously had been at the end of the horn and triggering political turmoil as well as financial.

 

After calculating all night (Scotland time), as many as 55% of voters supporting Scotland to vote "no" compared to 45% who supported independence. The pound surged after the voting results, which gave the Better Together campaign advocates a wider margin of victory than that shown in the poll. The corresponding results based on 31 of the 32 local government areas that make a statement after a record turnout of more than 90% in some regions.

 

"I accept the decision" of the people, says Alex Salmond, leader of the semi-autonomous government in Edinburgh is also the leader of the pro-independence voters, in a speech.

 

This referendum results in the last two years increased a little argument over the survival of Scotland on their economies after independence, the currency that is in use, as well as the health care problems in the North Sea oil revenues, it has left a legacy to the people of Scotland are divided on when inspiration movement they simply affect stability throughout Europe.

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News and Review of European Economic Zone

 

Surplus balance of Euro Zone Current Landscape in July

Friday, September 19, 2014

 

Euro zone current account surplus widened slightly in July, which signaled to sustainability is strengthening some economies in the region, referring to data released by the European Central Bank on Friday.

 

Euro zone current account recorded a surplus of € 18.7 billion ($ 24.1 billion) in July, while the figure in June drevisi rose to a surplus of € 18.6 billion from the initial publication of € 13.1 billion in surplus. For the 12-month period ending in July, the Eurozone recorded a surplus of 2.5% of GDP. It was higher than 2.1% in the 12-month period to July 2013.

 

This data was released following the Eurostat report earlier this week that showed the Euro zone trade surplus with the rest of the world widened in July, though exports decreased monthly. Continuous weakening exports could be bad news for the Euro zone, which rely on trade 2nd quarter to avoid contraction

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News and Review of European Economic Zone

 

Visco: ECB May Not Need Additional Stimulus Amidst Weakening Euro

Monday, September 22, 2014

 

The European Central Bank may not need to add stimulus measures after the policy in the past three months has pushed the weakening euro, said a member of the Governing Council Ignazio Visco.

 

"Expectations of inflation should return to where they were," Visco said on September 20 in an interview in Cairns, Australia, where he attended a meeting of finance chiefs from the Group of 20. "This does not mean that there will be a next step. We have been bold enough to reduce interest rates to levels that have never been thought of by the market."

 

The single currency has fallen about 6% since early June, when the ECB introduce negative interest rates on reserves and funds over a four-year loan program to present to trigger the growth of credit. Policy makers have to reduce borrowing costs further at the beginning of this month and commit to buy the assets that cover the background in securities and bonds to boost the ECB's balance of trade as much as 1 trillion euros ($ 1.3 trillion).

 

The euro extended losses, it tells that the movements we do in between the months of June to September to get a good response, "said Visco, who is also head of the Italian central bank. ECB does not target any level of currency exchange rates, he added.

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News and Review of European Economic Zone (UK)

 

Pound Back Stronger Focus As Markets Return to UK economy

Monday, September 22, 2014

 

The pound rose before the Bank of England Governor Mark Carney addressed in this week as attention now back to the economic outlook after the result was Scotland last week which showed that they persist in the United Kingdom.

 

The British currency has appreciated against all of the 31 index quote currency interest rate outlook as Credit Suisse predicts that the Bank of England will raise borrowing costs more than half a percent over the next year.

 

"With the end of voting on the Scottish referendum, now we will see who will be the movement of sterling perngaruhi by fundamentals," said Sue Trinh, a senior currency strategist at Royal Bank of Canada in Hong Kong. "We still prefer to express views streling constructive rather than against the euro."

 

Sterling rose 0.3% to $ 1.6350 at 9:55 pm after rising 0.1% in the last week. The UK currency rose by 0.1% to 0.7866 per euro. RBC predicts the pound will strengthen to 75 pennies in the first quarter of 2015, said Trinh.

 

Carney will address in Wales on September 25. Bank of England officials will meet next on October 9 after the benchmark interest rate at the level of 0.5% this month

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News and Review of European Economic Zone (Germany)

 

German Manufacturing Index Slows To Lowest Level 15 Months

Tuesday, September 23, 2014

 

German manufacturing index expanded at the slowest pace in 15 months in September as the number of new orders fell, the report sinyalkan uneven recovery momentum in the country with the largest economy in Europe.

 

Markit Economics said that the PMI index fell to 50.3 from 51.4 in August, it is the weakest level since June 2013, economists surveyed by Bloomberg forecast to decline to 51.2. The services index rose to 55.4 from 54.9, the result of declines in production plants Balance and push composite index rose to 54 from 53.7. A reading above 50 indicates expansion.

 

"Weak manufacturing data have become one of the most striking features of the fragility of the recovery at large," said Oliver Kolodseike, an economist at Markit. Data "reflects a mixed picture of the health of the German economy rate at the end of the third quarter."

 

Index of new orders in the factory contracted for the first time since June 2013, fell to 48.8 from 51.1, on show in the data.

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News and Review of European Economic Zone

 

Manufacturing and Services sector in the Euro Zone Slows In September Month

Tuesday, September 23, 2014

 

Growth in the manufacturing and service sectors in the euro region unexpectedly slowed in September to the weakest pace this year, is adding signs that the region's economy is faltering.

 

PMI index for both industries dropped and composite index fell to 52.3 from 52.5 in August, in the report by Markit Economics today. Economists predict no change in the level reading of 52.5, according to a survey by Bloomberg News.

 

Economic expansion in the euro area stalled in the second quarter as the three biggest economies in the region failed to grow and inflation fell to its lowest level in nearly five years. European Central Bank President Mario Draghi said yesterday that the euro area recovery has lost momentum.

 

"The survey paints a picture that is not good still continues in the euro zone," said Chris Williamson, an economist at the London-based company. "Prices continue to fall in the middle of the company is struggling to get customers, which it surely would have raised some concern that the region will face deflation. Signs There are also fears that growth could slow further in the fourth quarter."

 

Today's data showed that the GDP will grow 0.3% in sekrang quarter, dragged down by the stagnant French economy and slowing growth in all countries of the region, said Williamson. Markit index released earlier showed manufacturing and services sector shrank in France, while the German factory growth slowed to the lowest level in 15 months.

 

The new orders index for the euro zone slipped to 51.2 this month from 52.4 in August, at the ata show. Index services growth slowed to 52.8 from 53.14 and manufacturing fell to 50.5 from 50.7.

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News and Review of European Economic Zone (UK)

 

Public Finance Sector Weakens Britain Back

Tuesday, September 23, 2014

 

UK public sector finances continue to deteriorate in August after a poor start to this financial year, poses a problem for finance minister George Osborne as elections approach next year. Office for National Statistics said public sector net borrowing rate, in addition to the government-owned banks, amount to 11.6 billion pounds in August, up 6.1% from a year ago, roughly in line with economists' expectations. The level of public sector borrowing for this tax year to date, in addition to banking, to reach 45.4 billion pounds, up as much as 6.2% from between April and August 2013.

 

The British government in March said it would seek to reduce the level of borrowing as much as 10% in tax year 2014/15 to lower the budget deficit to 5.5% of GDP from 6.5% in 2013/14. But so far the loan amount is above the year 2013 This is partly due to the first few months of the tax year 2013/14 the increase in revenue due to the Swiss tax deal, as well as tax revenue from the distribution of bonuses that have been held from the beginning of 2013 to take advantage of the tax cuts.

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News and Review of European Economic Zone (Greece)

 

Greece May Exit From Bailout Programs Faster

Wednesday, September 24, 2014

 

Greece may exit the bailout program faster than it should and meet the needs of its own funding from next year, said Greek Prime Minister Antonis Samaras. "We should be the normal state, trustworthy, and independent," Samaras said after a meeting with German Chancellor Angela Merkel. Comments are quite optimistic and may be the beginning of the end of the IMF restructuring program the Greek people are very hurt.

 

Euro-zone financial aid for Greece will end in December 2014 while the IMF aid would end up in the first quarter of 2016 It has cast doubt on whether Greece can meet its own funding needs without the financial assistance of the European Union. "I am confident we can meet the funding needs next year," said Samaras. "Greek relations with IMFmemang not easy but it has changed the economy of Greece. Cooperation I believe this may end sooner. If this happen then this will be a success.

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News and Review of European Economic Zone

 

Draghi: Euro Exchange Rate Shows Strip Monetary Policy

Wednesday, September 24, 2014

 

Depreciation of the euro in line with differences in monetary policy around the world, according to European Central Bank President Mario Draghi. "The movement in the exchange rate indicates a difference path of monetary policy in Europe with other important countries," Draghi said in an interview with Europe 1 radio that was released today on the ECB's website. "Our monetary policy will remain accommodative for a long time while monetary policy other countries may be gradually acknowledged the recovery of their country. "

 

The euro has dropped by 6% since the beginning of June, when the ECB announced stimulus measures including rate cuts and TLTRO for banking, and trading near its lowest level in more than a year. Officials ECB cut interest rates again this month and said the central bank will start buying asset-backed securities and bonds. "We have a mandate and Thursday must comply," said Draghi. "We will do whatever it takes to achieve our mandate."

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News and Review of European Economic Zone (Germany)

 

German Business Confidence plunges in September

Wednesday, September 24, 2014

 

Business climate index of the ifo institute, based on a survey of 7,000 executives, dropped to 104.7 in September from 106.3 in August. Economists had predicted to decline to a level of 105.8, based on the median estimate of 36 analysts in a Bloomberg survey.

 

The German economy contracted in the second quarter and halted the growth in the euro area because of international political tension and the unemployment rate is still at a high level have been exacerbating sentiment. Risk has been driven by the ECB this month by saying that they would be more active in adding stimulus to the euro area at the start of the purchase of the asset.

 

"Reports from sustainably ifo has weakened since the spring," said Alexander Koch, an economist at Raiffeisen Schweiz, Zurich. "The main driving force is the conflict in the Ukraine and the lack of growth momentum in countries neighboring the euro area. Dynamics must be stable in the autumn and the possibilities it will provide some way for better growth prospects back at the end of this year."

 

The European Union and the United States have increased the sanctions against Russia, citing their support for the separatists in eastern Ukraine. German Chancellor Angela Merkel said yesterday that industry support has been crucial to the sanctions and the solution to the conflict "so far." Germany is Russia's largest trading partner in the European Union.