News and Reviews European Economic Zone

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News and Review of European Economic Zone (Italy)

 

Italian Business Confidence Up in November

Thursday, November 27th, 2014

 

Bureau of Statistics Instat report manufacturing business confidence levels rose in November, supported by expectations that will better orders from consumers and industrial goods. Until this month, kepercyaan level has risen two consecutive months.

 

Level of confidence of manufacturing businesses rose to 96.3 in November from October's 96.1. Figures in November, the highest level since July.

 

Manufacturers of consumer goods recorded the highest increase in the level of trust, followed by capital goods producers, while the confidence level of intermediate goods producers unchanged.

 

However, the level of confidence in its calculations incorporate composite indicator of a retailer, business services, and construction sectors turn into 87.7 from October's 89.1.

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News and Review of European Economic Zone

 

Fall of the Euro Zone Inflation ECB Stimulus Opens Opportunities

Thursday, November 27th, 2014

 

Fall of consumer price inflation in Spain and Belgium, combined trend of decline in bank lending to the business sector across the Euro zone region increasingly putting pressure on the European Central Bank (ECB) to immediately implement aggressive stimulus measures.

 

Yet still there are some signals that slightly dampen anxiety Euro zone economic contraction, as the German unemployment rate is getting better as well as the recovery of the Euro zone business confidence level.

 

Inflation in the Euro zone as a whole had declined to 0.3% from 0.4% in October, which is also a decrease in inflation for 14 consecutive months is far below the ECB's target of 2%.

 

Conditions of very low inflation combined weak economic growth has urged the ECB to implement a program of bond purchases as a stimulus to reduce the risk of the fall of the Euro zone to the brink of deflation. Deflation is usually described as a period of continuous fall of consumer prices making it difficult for the debtor to pay the debt, especially for economies that have a large enough debt as Spain.

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News and Review of European Economic Zone (Italy)

 

Unemployment Italy Record Record High

Friday, November 28th, 2014

 

The longest recession since the Second World War is experienced Italian makes businesses reluctant to hire workers, making Italy's unemployment rate rose to a record high. Istat reported the unemployment rate in October at 13.2%, up from 12.9% in September. Percentage in September was revised up from 12.6% the previous release, and economists expect the unemployment rate in October at 12.6%. The percentage of 13.2% in October was the highest since calculations began in 1977.

 

The unemployment rate for those aged 15 years to 24 years rose to 43.3% in October, from 42.7% the previous month. Prime Minister of Italy, Matteo Renzi, battling unions, and politicians from the opposition maupaun own party for paving the way for reforms that make the labor market more flexible. PM Renzi said the rise in the unemployment rate due to the increasing number of people are looking for work. Italian citizens who are not looking for work are not included in the calculation of Istat

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News and Review of European Economic Zone (Germany)

 

Weidmann dismissed the appeal About Stimulus Plan Germany

Friday, November 28th, 2014

 

Bundesbank President Jens Weidmann on Friday rejected the appeal of the German stimulus plan, saying that only structural reforms and improving the competitiveness that would push the euro zone economic recovery.

 

"This call for fiscal stimulus plan public in Germany in order to boost the Euro zone economy is wrong," Weidmann said in a speech at the economic summit held by the German newspaper Süddeutsche Zeitung. "The level of investment which is above potential economic growth will not be possible to increase prosperity, it applies to public and private investment."

 

Weidmann's views are in line with the German government, where public investments are considered not to be able to solve the problem of growth in the Euro bloc, given the circumstances require more structural reforms. While the International Monetary Fund together with neighboring countries such as France and Italy have urged Germany to increase public investment. But Berlin is only willing to disburse additional funds worth € 10 billion ($ 12.5 billion) for public investment over three years starting in 2016, and hopes it will spur private investment worth € 50 billion.

 

"The market also has misjudged the central bank's monetary policy, which they consider to be able to solve the economic problems," added Weidmann

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News and Review of European Economic Zone

 

Energy Price Inflation erodes the weakening of the Euro Zone

Friday, November 28th, 2014

 

Inflation in the euro zone slowed to 0.3% in November from 0.4% in October, which reinforce expectations that the European Central Bank will soon launch monetary stimulus.

 

Eurostat report on Friday showed the 18-nation bloc CPI pressured by a sharp drop in energy prices. While the Core CPI, which does not include the component of energy, food, alcohol and tobacco, 0.7% stable at speed. Euro zone inflation data was released a few days ahead of the ECB policy meeting, where most investors expect the central bank will announce additional measures to help revive the region's economy.

 

While separate data released simultaneously showed euro zone unemployment rate unchanged at 11.5% in October

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News and Review of European Economic Zone (UK)

 

House Price Growth Slows In UK In November

Friday, November 28th, 2014

 

The growth of house prices in the UK slowed in November as demand for properties continued to slow, reported by Nationwide Building Society.

 

The price increase at an annual rate eased from 8.5% to 9% in October, the agency said today in a statement on their website. These results are the smallest increase in 11 months. Prices rose by 0.3% from the previous bull, when it rose by 0.5%.

 

Strict mortgage rules introduced this year and fears on the affordability of purchasing power has been dampen activity in the housing sector after a recent surge in prices over the last year. The Royal Institution of Chartered Surveyors said this month that the index of demand from new buyers has dropped to a six-year terendag.

 

"Level of activity is still weak housing market in recent months," said Robert Gardner, chief economist at Nationwide, said in a statement. "There is a ketidaknyambungan between slowdown in the housing market lately with broader economic indicators, which is relatively still pretty good."

According to Nationwide, the average home price in November amounted to 189.388 ($ 298,000).

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News and Review of European Economic Zone (UK)

 

UK Manufacturing PMI Up Thin in November

Monday, December 1st, 2014

 

Activity in the UK manufacturing sector unexpectedly rapid bertambap in November as strong domestic demand offset a decline in the level of orders from the eurozone and developing countries, according to a survey on Monday. UK manufacturing sector PMI by Markit / CIPS rose to 53.5 from 53.3 in October, reaching its highest level in four months and was well above the 50 level that separates expansion and contraction. Economists expect the index weakened to 53.0. The growth rate in the number of new orders helped push the sector manufacturing jobs to the highest level in 4 months.

 

The survey meneguatkan signal that the slowdown in the economic recovery of the United Kingdom at the end of 2014 will likely not take place sharp. This will be good news for Finance Minister George Osborne will announce semiannual economic review on Wednesday. Osborne has warned that Britain is not immune to the slowdown in the global economy, and the survey results Monday showed the level of manufacturing exports continue to fall, although lower than in October, as the level of orders from the EU, developing countries, and Russia slowed. The level of orders from the eurozone also depressed by the weakening of the euro against sterling, according to Markit.

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News and Review of European Economic Zone

 

Order Level Drops, Euro Zone Manufacturing Growth Slows

Monday, December 1st, 2014

 

The rate of growth in the euro zone's manufacturing sector slowed in November and the level of new orders fell to the fastest pace in 19 months despite the sharp price cuts, showing a poor outlook for the coming months, according to a survey on Monday. Also worried about the European Central Bank officials, who are trying to sustain growth rates and pushing up inflation, factory activity slowed in the third country euro zone's largest economy, namely Germany, France and Italy.

 

"The situation in the euro zone's manufacturing sector is worse than the previous estimate ... There is a risk of slowing the spread of the countries of the area," said Chris Williamson, chief economist at Markit. Markit PMI of manufacturing sector to be at 50.1 in November, the lowest level since June 2013 and down from a previous estimate of 50.4 and 50.6 on in October.

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News and Review of European Economic Zone (UK)

 

UK Construction Sector Expansion Slows to 13-Month Low Level

Tuesday, December 2nd, 2014

 

UK construction activity expanded at the slowest pace in more than a year in the last month, as orders touching the lowest level since June 2013 and waning optimism about growth next year, according to the survey released Tuesday.

 

Report Markit / CIPS construction PMI fell to indicate 59.4 in November from 61.4 in October, which broke expectations fell to 61.0 from economists. However, the index is still perched comfortably above the long term average of 54.5.

 

"Economic news unfavorable overall has been a key factor that dampen demand patterns in the UK construction sector," said Tim Moore, senior economist at Markit. "While uncertainty ahead of elections next year also weighed on business confidence and affect the interest of the client to launch new projects."

 

The report also shows the most pronounced slowdown in growth occurred in the civil engineering sector, which relies heavily to the large infrastructure projects that are supported by the government.

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News and Review of European Economic Zone (UK)

 

The expansion rate of the UK Construction Sector Slows

Tuesday, December 2nd, 2014

 

Aktvitas UK construction sector expanded at the slowest pace in more than a year last month, the level of new orders is at least survived rate since June 2013 and the level of optimism fades, according to a survey on Tuesday. Construction sector PMI from Markit / CIPS fell to 59.4 in November, the lowest level since October last year, down from 61.4 in October. While being lower than economists' expectations for results in 61.0, the index remains well above the 50 level that separates expansion and contraction, and also the long-term average at 54.5. However, optimism about the next year fell to its lowest level since October 2013.

 

"The economic data use within the overall negative cited as a key factor that suppresses strong demand patterns across the UK construction sector," said Tim Moore, senior economist at Markit. "However, a number of construction companies warned that the uncertainty ahead of the next election has been hit level of business confidence and affect the willingness of clients to run the new project."

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News and Review of European Economic Zone

 

Manufacturer Inflation Rate Down 0.4% Euro Zone

Tuesday, December 2nd, 2014

 

Inflation rate in the euro zone fell manufacturers with the sharpest monthly rate in a year in October as the price of energy and non-durable goods such as food fell sharply, pressing the European Central Bank to do more to stimulate the economy. Inflation at factory gates in the euro zone fell as much as 0.4% from September, according to the European Union's statistics office, Eurostat on Tuesday. Economists forecast a drop of 0.3%.

 

Inflation figures were dragged down by a decline of 0.9% in energy prices and a decrease of 0.6% in non-durable goods prices, depressed by a drop in crude oil and commodity prices. The decline in producer inflation rate in October increased the number of euro zone problem with deflationary pressures. The inflation rate recorded an increase of only manufacturer in June and September this year. On an annual basis, prices fell as much as 1.3% in October, according market expectations and slightly lower than the rate of 1.4% decline in August and September. Only the price of capital and durable baradng the gainers. Annual inflation is the sharpest decline telrihat in Slovakia, Estonia, and the Netherlands.

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News and Review of European Economic Zone (Greece)

 

Greeks Do not Want to Make Extra Savings Policy

Wednesday, December 3rd, 2014

 

Greek Prime Minister Antonis Samaras pointed out his government will not do the additional austerity measures to satisfy the demands of the troika. Samaras said that Athens has proved his country can meet budget targets. -Team Troika representing Greece's creditors that the IMF, the European Commission, and ECB- has called for additional austerity measures in order to ensure the adequacy of the government's financing needs.

 

Athens is still in negotiations with the troika to discuss the implementation of policy reforms become final bailout fund disbursement requirements. There are still differences between the two sides, especially regarding the need for additional austerity measures. Samaras stated troika analysis would lack funding for next year's Athens is wrong. On the other hand, the Troika wants to Athens perform additional savings of 2.5 billion euros for the government's 2015 budget

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News and Review of European Economic Zone (Switzerland)

 

Swiss Economy Grows 0.6% in Third Quarter

Wednesday, December 3rd, 2014

 

Swiss economic growth rose higher than expected in the third quarter, exceeding its neighbor Germany thanks to household consumption and the public sector.

 

State Secretariat for Economic Affairs said that Switzerland's GDP rose by 0.6% in the three months to the end of September, after the revision to 0.3% in the second quarter. These results are higher than the 0.3% median estimate of 17 economists in a Bloomberg survey.

 

Switzerland has managed to maintain growth in the face of the sluggishness in the economics of the Euro zone, which is the destination for most of the value of their exports. European Central Bank Governing Council will meet tomorrow to discuss whether more stimulus is needed to revive the economy of the area.

 

"Swiss domestic economy continues to look good, with a very strong labor market," said Christian Lips, an economist at Norddeutsche Landesbank in Germany. "The growth of real wages should provide support for private consumption."

 

With the increasing political tensions with Russia, was further increased resistance in the German GDP, which is the largest trading partner of Switzerland, which only rose 0.1% in the third quarter. French GDP rose 0.3% and Italy persist in its longest recession.

 

Household consumption expenditure rose by 0.6% Switzerland in the third quarter, with construction investment rose 0.8% and government consumption rose 0.9%. The value of exports of goods rose 2.8%, with the strongest positive contribution "so far" comes from the chemical and pharmaceutical sectors.

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News and Review of European Economic Zone (UK)

 

UK Service Sector Growth Rapid Increase in November

Wednesday, December 3rd, 2014

 

UK service sector growth rate is accelerating more than expected last month, according to survey results on Wednesday, signaling the economy may be slowing less than expected following a strong growth during the year. Service sector PMI from Markit / CIPS rose to 58.6 in November after falling sharply to 56.2 in October, exceeding analyst expectations, amid reports the strengthening of the level of demand and the increasing number of new business. The rise in the PMI index is greatest in emergency over a year, and was far above the level of 50 for almost 2 years. Manufacturing sector survey results released on Monday also showed a rebound, despite Tuesday's construction PMI data was weaker than expected.

 

Markit said that overall, the survey showed the UK economy will grow by 0.6% in the last quarter of 2014, up from an earlier estimate of 0.5%. "The pace of growth in use within the service sector activity grew quickly relieve anxiety sharp slowdown in the economy," said Chris Williamson, chief economist at Markit. The composite PMI services sector, manufacturing and construction rose to 57.8 after hitting a 17-month low at 56.4 in October.

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News and Review of European Economic Zone (France)

 

French PM: Private Firms Should Help Reduce Unemployment

Thursday, December 4th, 2014

 

Economic conditions in France has not improved until the end of 2014. Some time ago, the unemployment rate in the country the second largest economy of Europe was reported to increase to a level of 10.4%.

 

Reports third quarter less fun it makes the French government stifling. Prime Minister Michel Sapin denounced the ranks of his cabinet and ask businesses taking part in employment. "Once again, unemployment is soaring. If the country is willing to lower the unemployment rate, businesses must work harder," he told the TV station iTele.

 

In 2013, the government took the initiative to cut unemployment by opening several new jobs in agencies and state agencies. For 2014, the government encourages private companies to help create employment. The trick is to cut taxes for businesses so that funds from the incentives can be used for business expansion. Unfortunately, the private company is very slow in responding to the mandate of the government so that the number of unemployed is not abating. "We actually liked the business industry, because in this sector employment and welfare of the citizens created," sapin lid.

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News and Review of European Economic Zone (UK)

 

Bank of England Hold Interest Rates

Thursday, December 4th, 2014

 

The Bank of England kept interest rates at a record low on Thursday as BoE officials to consider the risk of low levels of inflation and a weak outlook for the global economy with strong domestic recovery. BoE's Monetary Policy Committee as expected to keep interest rates at 0.5%, which has endured since almost 6 years ago, and did not give a statement. Recovery in the UK, led by the consumer sector appears to slow down entering 2015, but economists and financial markets expect no rate hikes until the end of next year.

 

Weak wage growth rate, inflation rate is below the target of 2% BoE and the poor outlook for the euro zone has convinced most of many of 9 members of the MPC to keep interest rates. However, the minutes of the last meeting showed that most of the seven members who chose to keep interest rates become increasingly cemasn regarding risks rise in inflationary pressures. English seems to be preparing for further fiscal tightening in the next few years are likely to suppress the BoE to keep monetary policy remains loose.

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News and Review of European Economic Zone

 

ECB Cuts Projected GDP and Inflation

Thursday, December 4th, 2014

 

European Central Bank cut its forecast for growth and inflation in the next 2 years on Thursday, saying the outlook had deteriorated since the latest projections released last September. The ECB expects the inflation rate in 2014 was at 0.5%, up slightly to 0.7% next year and 1.3% in 2016. The ECB also cut its forecast for economic output in the euro zone be 0.8% this year, 1.0% in 2015 and 1.5 % in 2016. in the month of September, the ECB predicts inflation will be at 0.6% this year, then rose to 1.1% in 2015 and 1.4% in 2016. The ECB also in September and expects gross domestic product to grow by 0.9 % this year and 1.6% in 2015 and 1.9% in 2016.

 

With slashed its forecast, which shows how the economy will evolve according to the ECB, the central bank of the euro zone will increase in expectation of additional steps to shore up the region's economy. President of the ECB President Mario Draghi has recently opened up opportunities for additional policies to prevent a decrease in the growth rate and the rate of inflation and rising expectations that such measures will be taken as soon as the first quarter of next year.

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News and Review of European Economic Zone (UK)

 

The increase in the rate of UK House Prices Back Slows

Thursday, December 4th, 2014

 

The rate of growth in house prices in the UK again slowed in November as prices rose only 8.2% as compared to last year, the smallest increase since February, according to Halifax on Thursday. In November, house prices rose as much as 0.4%, recovering from a decline of 0.4% in October, says Halifax. Economists expect home prices rose as much as 8.0% and 0.3%. Bank of England welcomes the signal that the UK housing market is being eased after tens of percent price increase at the beginning of this year, which is partly due to the new control on housing loans.

 

Index annual house price increases by Halifax achieve a high level of 10.2% in July. In October, house prices rose as much as 8.8%. The rate of price growth is likely to return to slow down in 2015 as the prospect of higher interest rates and the recent increase in scale disappointing number of buyers, said Halifax. Halifax Economists forecast a rise in house prices nationwide are in the range of 3-5% in 2015, although his spokesman said the projection was made before the home purchase tax reshuffle announced by the Minister KeuanganGeorge Osborne on Wednesday.

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News and Review of European Economic Zone (Germany)

 

German Factory booking Gains in October

Friday, December 5th, 2014

 

German factory orders rose more than expected in October, in a sign that the country with Europe's largest economy continues to recover from the fall of the middle of last year.

 

Based on data released by the Ministry of Economy in Berlin today, the number of bookings, which are customized for seasonal changes and inflation, rose by 2.5% after a revised 1.1% to rise in September. Economists had predicted to rise 0.5%, according to the median estimate of 37 economists in a Bloomberg survey. Total bookings grew by 2.4% from a year ago.

 

German economy barely expanded in the last quarter after contracting in the three months to June, and the Bundesbank has said that growth will lose momentum until at least the end of this year. Euro zone, which is Germany's largest trading partner, striving to avoid stagnation, prompting the ECB to prepare for further stimulus measures if it is necessary.

 

"The figures are disappointing in a few months ago is a reflection of domestic investment demand fading," said David Milleker, chief economist at Union Investment GmbH in Frankfurt. "Utiliasi capacity itself is still quite high, so it should still be pretty good investment."

 

Domestic factory orders led the gains in October with a surge of 5.3%, compared with a rise of 0.6% in export orders, addressed in today's data. Investment goods rose by 3% and basic goods rose 2.5%. Booking for consumer goods fell 0.1%.

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News and Review of European Economic Zone (Germany)

 

Bundesbank Cuts Growth Outlook Germany

Friday, December 5th, 2014

 

Bundesbank cut its forecasts for inflation and economic growth in Germany until 2016, reflecting the conditions of the Euro zone which is struggling to increase consumer prices.

 

The central bank based in Frankfurt cut their forecasts for inflation in 2014 to 0.9% from 1.1% they predicted in June. Bundesbank cut its forecast for real GDP growth this year to 1.4% from 1.9%.

 

While countries with the largest economies in the euro zone supported by consumer spending behind unemployment is at a record low, the economy is still able to barriers of a fragile recovery and uneven in the Euro zone. ECB in the estimate will consider proposals for a broader asset purchases that include foreign debt securities at the next monetary policy meeting on 22 January, said two central bank officials who are familiar with the results of the meeting.

 

"There is reason to hope that the current slowdown phase that occurs in the German economy will only run short," Bundesbank President Jens Weidmann said in a report.

 

Bundesbank saw German consumer prices rose 1.1% next year and 1.8% in 2016. GDP in the prediction will expand by 1% in 2015, or half of the previous prediction, and 1.6% for 2016. Projections have not calculated the decline in oil prices recently, the Bundesbank said.

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News and Review of European Economic Zone

 

Euro zone growth in Q3 Almost Stagnant

Friday, December 5th, 2014

 

Euro zone economy almost stagnated in the 3rd quarter, as the acceleration of consumer spending offset by a decrease in investment spending and contribution of trade.

 

Report of the European Union's statistics agency, Eurostat, Friday confirmed if GDP block-18 countries grew only 0.2% in the 3rd quarter, slightly accelerated from 0.1% growth recorded in the period from April to June. The data also indicate if the decline continues to hamper investment Euro zone economic recovery, which has been much weaker than expectations this year.

 

Eurostat said investment spending slipped 0.3% from the 2nd quarter and 1.3% lower than the 3rd quarter of 2013. That indicates that the business sector has not believe the economy will be strong enough to expand in the next few years to mandatangkan rise in profits . The reluctance of the business sector to invest also put a halt to recruitment. While the very low inflation rate seems to have increased the purchasing power of households, which boosted their consumption of 0.5% in the last quarter.

 

Economist of the European Central Bank on Thursday has lowered its forecast for 2015 economic growth to just 1.0% of the projection in September by 1.6%

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News and Review of European Economic Zone (Germany)

 

German Production Output Declines in October

Monday, December 8th, 2014

 

German industrial output in October declined from the previous month and lower than expected, improving economic conditions will concern the fourth quarter of this year. Data from the Ministry of Economy showed manufacturing output grew 0.2% in October from the previous month, below economists' expectations which forecast a rise of 0.3%. Data output in September was also revised down to 1.1% from the previous release of 1.4%.

 

Details of the report showed manufacturing production rose 0.2% while construction output grew 1.4%.

 

The following data releases industrial orders data in October which showed an increase of 2.5% growth, better than economists forecast of 0.5%.

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News and Review of European Economic Zone

 

ECB's boss admits its Policy Not Running Effective

Monday, December 8th, 2014

 

One by one, stakeholders at the European Central Bank (ECB) to accept the fact that economic growth in the region do not run as expected. They were formerly desperately against monetary easing, now beginning to be lenient.

 

ECB policy council member Ewald Nowotny, acknowledged that European economic growth is 'excruciatingly slow'. In a forum in the city of Frankfurt, Germany a few hours ago, Nowotny expects the inflation rate will remain low at least until the initial quarter of 2015. "The euro zone will be a weak point in the map of the world economy," he said.

 

Nowotny statement is contrary to the stance a few months ago. He is one of the important people in the ECB are asking the public to wait for the effectiveness of central bank policy and reject any new monetary stimulus. However, towards the end of the year, economic conditions did not change as expected so Nowotny acknowledged that authorities face a big problem.

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News and Review of European Economic Zone (Greece)

 

Schaeuble: Greece Probably Need Extra Time

Monday, December 8th, 2014

 

Greece may membutukan longer time before the last stage of the bailout package can be disbursed by the international lenders, according to German Finance Minister Wolfgang Schaeuble said on Monday in Brussels. This is not the first time Greece needs additional time to implement a program that disepakatan, Schaeuble said ahead of discussions with its partners in the eurozone, adding however overall Greece are in a great track. Eurozone finance ministers are considering to extend bailout for 8 months until mid-2015, according to documents obtained by Reuters last week. But the Athens says it is only willing to consider extended the program for a few weeks.

 

On the other hand, one of the ECB officials said that the weakening of the euro zone currency is not the goal of the European Central Bank. "Weakening the euro is not a concrete goal of the ECB," said Ewald Nowotny, a member of the Board of the ECB policy and Australia's central bank chief, describing the weakness of the euro just as a side effect of monetary policy.

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News and Review of European Economic Zone (Germany)

 

German Exports Decline in October

Tuesday, December 9th, 2014

 

German Bureau of Statistics reported exports of Germany recorded a decline in the early fourth quarter of this year. Level after adjustment exports fell 0.5% in October. Imports fell by 3.1% deeper, making the adjusted trade surplus to € 20.6 billion euros, above economists' forecasts of € 19 billion and € 18.6 billion the previous month.

 

The value of German exports are not diseuaikan new record high of € 103.9 billion, higher than September lbih of € 102.5 billion. The data also showed German exports to the euro zone countries rose 1.9%, to countries outside the euro zone, but still within the European Union rose 7.6%, and to countries outside the EU grew by 6.3%.