News and Reviews European Economic Zone

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News and Review of European Economic Zone

 

ECB's Nowotny QE Not Closing Opportunities

Friday, October 31, 2014

 

Protracted low growth rate is the greatest risk facing the euro zone, according to the Policy Council member Ewald Nowotny of the European Central Bank on Friday, as he refused to rule out a program of quantitative easing (QE) for the euro zone. "I think we all have learned in life that matches do not say 'never'," said Nowotny who also heads Austria's central bank, when asked about the chance of QE. Comment is quite surprising given that policy measures are usually hawkish Nowotny. He was reportedly in favor of the central bank chief Jens Weidmann of Germany in voting against asset-backed securities purchase program (ABS), which was announced last September.

 

Nowotny declined to comment on Friday, and also refused to rule out the purchase of program expansion to include corporate bonds, or government bonds. "We are just starting a new program. I think it takes time to see the impact," he said. Global stocks falter on Wednesday and Thursday after the Fed's hawkish tone of voice as to confirm the end of his bond-buying program. Nowotny said however, such a move would only have a minor impact on Europe, primarily related to capital flows.

Nowotny added that the rate of economic growth continues to be at a low level even of taking a threat to the euro zone rather than flat growth or even economic contraction. Estimates indicate ECB eurozone economy flats between April hinga June this year, after growing by 0.2% in the first quarter. "I think this is the challenge that we face today," said Nowotny. He also agreed that the euro will probably continue to depreciate sharply, describing it as a "side effect" of the ECB policy stimulus. "If we look at the historical context, of course, there is the potential drop in the euro," he said. The euro has weakened about 6% against the dollar since the high level of 2014 in June.

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News and Review of European Economic Zone

 

Euro Zone Manufacturing Activity Still Slow in October

Monday, November 3rd, 2014

 

Eurozone manufacturing sector activity expanded slightly slower than the previous estimate last month as the producer price cuts failed to boost the level of new orders, according to the results of a business survey on Monday. Cut prices for the second month, along with a slow expansion in Germany as well as the contraction in France and Italy, will be prohibitive as the European Central Bank efforts to prevent deflation. With the growth in the euro zone economy stagnated in the second quarter, the inflation rate reached only 0.4% in October, the ECB is under pressure to add stimulus.

 

Markit manufacturing PMI for October was at 50.6, above the 50.3 in September, but was slightly below the previous estimate at 50.7. October marks the 16th month the PMI index has been above the level 50 output index will contribute to the composite PMI to be released later Wednesday, rose to 51.5 from 51.0 in September, although also lower than the previous results in 51.9.

"The performance of the euro zone's manufacturing sector at large remained flat since the beginning of the fourth quarter," said Rob Dobson, senior economist at Markit. "Therefore, the manufacturing sector is not likely to give a significant boost to GDP growth is anemic euro zone."

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News and Review of European Economic Zone (UK)

 

British Manufacturing Jumped in October

Monday, November 3rd, 2014

 

UK manufacturing growth unexpectedly accelerated to the fastest pace in three months in October as rising domestic demand has offset weak sales to the euro area.

 

Markit Economics said the PMI index rose to 53.2 from 51.5 in September. Economists expect the index to slip to 51.4 from 51.6 in the previous report in September, indicated in the median estimate in a Bloomberg News survey. A reading above 50 indicates expansion.

 

"The continued resilience in the domestic market" is the main thrust of the new businesses, said Rob Dobson, an economist at Markit in London. "This is part of the offset a further decline in new business in foreign countries, as exporters hit by the euro zone economy is stagnant and the euro-sterling exchange rate is relatively higher."

 

The pound rose against the dollar after the release of the survey results and traded in the range of 1.6005 at 16:50 pm, up 0.1% on the day.

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News and Review of European Economic Zone

 

European Union Eurozone Cuts Growth Forecast

Tuesday, November 4th, 2014

 

The European Commission on Tuesday reducing growth forecasts for the euro zone and the EU, citing tensions in the Middle East and the Ukraiana along with sluggish investment.

 

The EU executive today expect inflation in the euro zone is still below 2%, which is targeted by the European Central Bank until at least 2016. It allows to increase the expectations of stronger action from the ECB as the purchase of bonds and other assets on a large scale.

 

The European Commission said that this time they expect euro zone GDP to grow by 0.8% this year, down from 1.2% growth they expect in the spring of this year. In 2015, the Euro-zone economy will probably grow 1.1%, was also under the 1.7% growth seen in the spring of this year. In 2016, growth in the EU currency will rise to 1.7%.

 

Economic outlook for the euro zone dragged down by lower growth than expected in the major countries, including Germany, France, and Italy, for Italy in the estimate will turn back into a recession this year.

 

Tampakya picture is only slightly better for the wider European Union. 28 EU countries are now expected to grow by an average 1.3% this year, down from growth of 1.6% in the estimate in the spring. Next year, the EU's GDP is estimated to rise 1.5%, well down from its previous forecast at the level of 2%. In 2016, growth is seen to be 2%.

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News and Review of European Economic Zone (UK)

 

Growth in UK Construction subside in October

Tuesday, November 4th, 2014

 

Growth in construction in the UK rose below economists forecast last month as the housing construction slumped to its lowest level in a year.

 

Markit Economics said that the PMI index fell to 61.4, the lowest level that is five months, from 64.2 in September. Economists estimate for a decline to 63.5, according to the median estimate in a Bloomberg News survey. A reading above 50 indicates expansion. Housing index fell to 61 from 65.8.

 

Hasiil data follows reports in recent months that showed housing demand weakened due to the latest regulations of the Bank of England which makes consumers more difficult to get a mortgage and consumer wedged at the prospect of higher interest rates in the next year. Nationwide Building Society said last month that the housing market has "lost momentum."

 

"The survey provides an indication of the beginning of October that the attenuation starts running around the UK housing market boom that has begun to weigh on residential construction sector," said Tim Moore, senior economist at Markit.

 

The respondents in the survey said that "in the housing market conditions are less favorable that has caused consternation among its clients," according to Markit. Commercial activity slowed in October, though still in the category of strong performance.

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News and Review of European Economic Zone

 

Coeure Urges Euro Zone Government Reform Perform

Tuesday, November 4th, 2014

 

The euro zone economy risks losing momentum and delayed recovery unless the government adjusts its monetary stimulus from the European Central Bank and the fiscal and structural policies to sustain growth rate, according to one high-ranking ECB, Benoit Coeure on Tuesday. Coeure, which is a member of the ECB Executive Board, urged the government to immediately implement the reforms to strengthen the economy.

 

"Except for the presence of monetary, fiscal, structural level of confidence sufficient to encourage and maintain the level of investment and private consumption, we are once again at risk of losing momentum and stunted recovery," he said. "From our side, we are very committed to our part in joint policy, which aims to carry out our mandate and return inflation back to 2%."

The experience of the eurozone crisis and adjustment in the Baltic countries has shown that "overall, the reform earlier give better results than a gradual approach," Coeure said in a speech in Nicosia. switch to Cyprus, he said that there should be enacted that can speed up the legalization of private sector debt restructuring.

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News and Review of European Economic Zone

 

Euro Zone Continues To Crawl Into The occurrence Deflation Risk

Wednesday, November 5th, 2014

 

Eurozone moves closer to the moment in which the risk of deflation becomes a reality.

 

Firms reduce their prices to the lowest level since 2010 in the middle of them trying to boost sales in the face of sluggish economy and slowing new orders, reported by Markit Economics today. This has pressured margins and reduce resources for hiring and investment and reduce economic opportunities for rebounds, said the company is based in London.

 

The European Central Bank pumped money into the banking system to trigger inflation has not reached the target of policy makers since the beginning of last year. With manufacturing and services activity index showed growth running slow, it is increasingly apply pressure to raise long-term loans and are ready to announce the asset purchase plan to prevent spiraling price declines in the currency bloc of 18 countries.

 

"The data in this month also looked pathetic, given the economic picture is being hobbled and more likely to take the picture worse than before," said Chriss Williamson, chief economist at Markit. "The combination of the threat of a stagnant economy and the increasing risk of deflation will add pressure on the ECB to do more to stimulate demand in the Euro zone, it strengthens the call for quantitative easing to full scale."

 

PMI index for manufacturing and services rose to 52.1 in October from 52 in September, is under estimation in the call for on October 23 at the level of 52.2. The index for services slipped to 52.3 from 52.4. A reading above 50 indicates expansion.

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News and Review of European Economic Zone (UK)

 

UK Services Sector Growth Rate Slows Sharply

Wednesday, November 5th, 2014

 

The increasing economic uncertainty in the UK reducing the rate of growth in the services sector more than expected last month, according to the survey results on Wednesday, which signaled a significant slowdown in the recovery at the end of the year. Service sector PMI from Markit / CIPS on Wednesday fell to a 17-month low at 56.2 in October from 58.7 in September, lower than analysts' estimates. While the index remains above the 50 level that is higher than the historical average, the figure is an indicator of the current UK economic indicators are lower than expected.

 

Meeting of the Bank of England officials this week will consider the survey as a measure of when it will begin raising interest rates. The UK economy is now expected to grow by around 0.5% in the last quarter of 2014, compared with 0.7% in the third quarter, according to Markit. BoE last month estimated fourth-quarter growth rate of 0.8% sebeasr. Markit also said economic growth can still continue to weaken Britain.

The combination of anxiety about the euro zone, the risk of a sharp slowdown in China, uncertainty regarding US monetary policy and geopolitical anxiety, all of which inhibit recovery services sector last month, according to Chris Williamson, chief economist at Markit. "The slowing pace of growth in the services sector push back the prospect of higher interest rates," added Williamson. "The spate of poor economic data in recent years has led to some uncertainty terhaadap outlook."

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News and Review of European Economic Zone

 

Eurozone PMI Weak in October

Wednesday, November 5th, 2014

 

The growth rate of the business sector in the euro zone grew less than expected in October despite the existence of a deeper price cuts, according to a business survey on Wednesday that gave little reason to be optimistic about the coming months. The companies today are reducing the price for more than 2-1 / 2 years last month and slashed the price of the sharpest rate since early 2010, when the euro bloc plunged into financial crisis. Weak growth and further price cuts will add pressure on the European Central Bank as it seeks to prevent deflation and re-push inflation stood at 0.4% in October out of the "danger zone" and back towards the target.

 

Markit composite PMI rose only slightly from 10-month low level in September at 52.0, is at 52.1. Although this is above the 50 level for 16 consecutive months, but the expansion was driven by the effort. The sub-index for output prices fell to 47.1 from 48.5 in September, its lowest level since February 2010. "The threat of economic stagnation and a growing risk of deflation will increase the pressure on the ECB to do more to stimulate demand in the euro zone, reinforcing opportunities scale quantitative easing full, "said Chris Williamson, chief economist at Markit.

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News and Review of European Economic Zone (UK)

 

Industrial Production Rises in the UK in September

Thursday, November 6th, 2014

 

UK industrial production rose more than economists forecast in September as production and transportation of oil rebounded from a decline in the summer.

 

Production rose by 0.6% compared with a decrease of 0.1% in August, in the report by the Office for National Statistics said today in London. The median estimate of 30 economists in a Bloomberg survey showed to rise 0.4%. Manufacturing output rose by 0.4%, also higher than the estimate.

 

In the third quarter, industrial production rose by 0.2% compared with the previous estimate of 0.5% rise. Downward revision will impact minimal, less than 0.1%, the total estimate for third quarter GDP growth since the category comprising less than 15% of economic activity.

 

The pound rose after the data are published, and are traded in the range of $ 1.5975, little changed from yesterday's close at 16:50 pm.

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News and Review of European Economic Zone (UK)

 

Bank of England Hold Interest Rates, Focus On Inflation Report

Thursday, November 6th, 2014

 

Bank of England, which had expected to start raising interest rates from near zero English this month, this time seems to be signaling no rate hikes until the middle of next year. Bank of England kept interest rates at 0.5% level, which has not changed since the financial crisis in 2009, at a policy meeting that ends on Thursday, according to economists' estimates. The current focus will be on economic projections that will be released by the Bank of England on 12 November, which would indicate a bad outlook covering the rapid recovery of the UK economy since the BoE's latest quarterly projections released in August.

 

The combination of weak inflation rate could fall below the level of 1% in the near term, the rate of wage growth is low and the risk of the euro zone falls back into recession, has prompted a number of senior central bank officials to say that they are not ready to start re-normalizing monetary policy. Trimming inflation expectations and growth rates next week will probably drive the financial markets to be sure that there will be no interest rate rise until mid-2015, after the British parliamentary elections in May, or perhaps even longer.

Alan Clarke, economist at Scotiabank, predicted the BoE will cut its forecast for inflation in the period of 2 years to 1.7% from 1.8%, below the BoE's target of 2%. "If our forecast is correct, then the market might conclude a rate hike will not occur until the end of 2015," he said. In contrast with this, Simon Wells of HSBC said that while the BoE will probably cut its forecast for short-term inflation, but the central bank will probably raise the medium-term inflation projections to show how much dampat low interest rates on growth. "Given this, we do not estimate a dovish inflation report," he said. Economists predict the presence of a slight decline in the BoE projections last August, which is to the 3.5% for this year and 3.0% for 2015.

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News and Review of European Economic Zone (Switzerland)

 

SNB Jordan: Gold Swiss Referendum "Dangerous"

Thursday, November 6th, 2014

 

Results of voting whether to be Switzerland raised its gold reserves would be harmful to the economy, according to the governor of the Swiss National Bank in a newspaper which was released Thursday. The proposed "Save our Swiss gold", made by the right-wing Swiss People's Party (SVP), the central bank plans to ban reducing its gold reserves and the central bank has at least mengharusnya gold at least 20% of its assets. The referendum is scheduled for November 30. SVP think it will stabilize the exchange rate of the franc. The idea has caused anxiety in the currency markets and gold, mengungat it will make the Swiss National Bank (SNB) to increase its stake in gold in large quantities.

 

Governor SNB, which has opposed the proposal, saying it will make the central bank's job more difficult. "The idea is not from Switzerland for wanting to change fundamentally our monetary policy," said Thomas Jordan in the Swiss newspaper, Neue Zuercher Zeitung. "It would be dangerous if the Swiss limits its ability to act against the chaos and maintain the stability of its currency." Jordan said the result "yes" vote on the SNB will be urged to buy gold worth about 70 billion Swiss francs (70 billion dollars). Survey last month showed the public supported the proposal by 44%, less than the majority it needs to be approved. The results of another poll last week by the Swiss newspaper, 20 Minuten show support for the proposal has been reduced.

In a separate interview, Jordan said that the proposal of the gold may make the central bank more difficult to maintain the minimum exchange rate at brick 1:20 francs per euro, introduced last September 2011 to prevent deflation and recession. "The minimum exchange rate at this time it is important to meet our monetary mandate," said Jordan. "Support for the proposal that the gold will make the application of the minimum exchange rate more difficult."

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News and Review of European Economic Zone (Germany)

 

The increase in German industrial production in the Lower Estimates

Friday, November 7th, 2014

 

German industrial production rebounded in September from a slump in August, although the increase is still below economists' estimates. Destatis reported industrial production rose 1.4% in September from August, lower than economists' estimates of 2.0%. While production data for August was revised to -3.1% from -4.0% the previous release.

 

Details of the report shows the output of capital goods rose sharply to 4.5%, manufacturing output rose 1.7%, while construction output fell 1.2%.

 

The report was released a day after Destatis reported factory orders rose 0.8% in September, while August was revised to -4.2% from -5.7%. The increase in factory orders were also below economist estimates of 2.2%.

 

The second weakness of the report makes some analysts expect the German economy will return to contract in the third quarter, and will be the second consecutive quarterly contraction. The European Commission has lowered its growth forecast to 1.3% of the German economy this year and 1.1% next year, from a previous projection of 1.8% and 2%.

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News and Review of European Economic Zone (France)

 

French Industrial Production Flat For In September

Friday, November 7th, 2014

 

French industrial production stabilized in September as rising energy production imbangi decline in agricultural production and other items, on show in the government data on Friday.

 

Industrial production in the country with the second largest economy in the Euro zone flat in September compared with August, it was reported by the national statistics bureau Insee. Economists surveyed by the Wall Street Journal predicted to decrease by 0.2%.

 

Insee also revised down industrial production figures for the month of August to be a contraction of 0.2% from the previous reading to unchanged on the month.

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News and Review of European Economic Zone (UK)

 

UK Trade Deficit Widened Back In September

Friday, November 7th, 2014

 

The gap between how much the value of imports and how much the value of British exports in September continues to widen, driven primarily by an increase in imports mimyak and growing trade deficit with Germany, based on data released by the government on Friday.

 

The trade deficit for goods rose to 9.8 billion pounds ($ 15.5 billion) during the month of September, it was reported by the Office for National Statistics (ONS).

 

The number is up from a deficit of 9 billion pounds, as the UK exported 4.2% more goods throughout the world, but imports also increased by 5.8% larger. The deficit is still lower than the 10.1 billion recorded in the month of September 2013.

 

The biggest contributors to the surge in imports in the year to September is the increase in the purchase of oil, especially from countries outside the European Union, said the ONS.

 

The weakening economy in the eurozone and the strong pound was also hurt the value of exports during the third quarter. Goods trade deficit with Germany, which is Britain's biggest trading partner, has been rising gradually to be the largest ever recorded during the third quarter, according to the ONS.

 

For the first nine months of this year, the trade deficit in goods amounted to 2.3% greater than the same period in 2013, according to figures from the ONS. It is mainly caused by the economic downturn in the euro zone, which is Britain's biggest trading partner and sanctions against Russia.

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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."

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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.

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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.

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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.

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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.

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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

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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.

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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.

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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.

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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. "