News and Reviews European Economic Zone

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News and European Economic Review (French)

 

French Q2 GDP Growth Very Weak

Friday, August 12, 2011

 

French economy, as the country's second largest economy in France reported no economic growth or GDP at the level of 0.00% in the second quarter, adding to concerns over the ability of countries to achieve the deficit reduction plan.

 

French GDP data was released under the expectation of the growth rate of 0.3%, compared to GDP growth of 0.9% on the previous quarter. Household consumption is still down 0.7% in the second quarter that hurt the overall GDP, while imports fell 0.9% and export growth remains flat 1.8% in the first quarter.

 

This report certainly has the potential to suppress the French who had nearly lost triple-A credit rating.

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News and European Economic Review (UK)

 

House Prices In London Falls Related to Financial Chaos

Monday, 15 August 2011

 

London home sellers demand prices fell the most in one year in August as demand in Britain's most expensive property market hit by the turmoil in financial markets, Rightmove Plc said.

 

Asking price in the capital fell 3.4% from the previous month, when it lost 1.4%, Britain's largest property website, said in a report e-mail today. Nationally, the value is down 2.1%, the second monthly decline in a row and the largest since December.

 

"Prices often fall back on this year, but the new turmoil in global financial markets may start to weaken the housing market with buyers in London are already far insulated from the worst decline," said Rightmove.

 

While the values ​​are being supported by a lack of supply of properties and record low interest rates, waning consumer confidence and the potential impact on bank lending from the European debt crisis escalation could undermine activity further, Rightmove said. UK business confidence fell last month and a recovery in the labor market will be slow,

 

Demand national prices fell 0.3% in August from a year earlier to average? 231,543 or $ 377,000, Rightmove said. It was the first annual decline since September 2009. In London, prices rose 3.2% to? 418 008.

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News and European Economic Review (Switzerland)

 

Consider Target Swiss Franc

Monday, August 15, 2011

 

The Swiss government and central bank are discussing the possibility of targeting the exchange rate appreciation of the franc by the weir, newspaper Sonntagszeitung. "The plan was prepared and the Swiss National Bank will set a target in the coming days. Discussions are now focusing on the role of government and plan to be adopted on August 17, "wrote Sonntagszeitung. Walter Meier, SNB spokesman, declined to comment on the report but the weakening of the franc continued after the news was released.

 

Swiss central bank is looking for ways to prevent investors hunt francs. Although, the SNB had to increase liquidity in money markets and lower borrowing costs to zero percent, but the parliament has given signaled support for tougher measures to protect the economy.

 

Franc weakened in the London session, USD / CHF 0.7996 touch while EUR / USD reach 1.1456.

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News and European Economic Review (Norway)

 

Norges Fixed Interest Rate 2.25%

Monday, 15 August 2011

 

Norges Bank's interest rates eventually rise from current levels, the Governor Oeystein Olsen wrote in Dagens Naeringsliv, after the sudden price unchanged last week amid global growth concerns.

 

The central bank's benchmark rate of Norway remains unchanged at 2.25% last week after the turmoil of global markets forced policy makers to abandon a planned increase.

 

"When conditions change significantly, as they did in August, Norges Bank will adjust the course of monetary policy towards a new economic outlook," said Olsen. Oslo-based bank last raised borrowing costs in May, after the guard has not changed for a year.

 

Policymakers are responding to a landslide victory in the global equities amid fears of Europe's debt crisis and the faltering U.S. growth will derail the global recovery. At the same time, the Norwegian central bank needs to drive consumer demand and credit growth is driven by the lowest unemployment rates in Europe. The Bank has signaled it did not want the price in Norway deviate too far from the borrowing costs across Europe.

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News and Overview of the European Economic Zone

 

Euro Rebounds Summit Coming to Paris

Tuesday, August 16, 2011

 

Overall euro tumbled on Tuesday, depressed below the highest point of a 3-week versus the dollar after a report that economic growth in Germany and the euro zone slowdown fears as well as provide policy makers to address the pressing problem of the region's debt.

 

German GDP data slowed to 0.1% in Q2 below estimates of 0.5%, while the Euro zone GDP was released at the level of 0.2% in the same period, increasing market pessimism towards the European region that have been distressed by the problem of the debt crisis.

 

But the currency pair EUR / USD looks soar temporarily as the focus shifted to the summit of Paris where French President Nicolas Sarkozy will close the latest solution to the debt crisis of Europe by Angela Merkel. The meeting will be held at 21.00 pm, followed by a press conference expected at around 23:00 pm.

 

The meeting was to give hope for progress newest solution for issuing security zone Europe / euro zone bonds.

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News and European Economic Review (UK)

 

Sterling Turning Positive, Potential Target 1.6470

Tuesday, August 16, 2011

 

Terkerek Sterling rose against the dollar and the continued strengthening against the euro on Tuesday after a report that UK inflation rate exceeded expectations in July. This data is not far from the expectations and monetary policy played down the prospect that the BoE BoE interest rate rise at this phase is predicted to keep interest rates at low levels until the end of 2012.

 

As a result, although the currency pair GBPUSD turned positive today, but strengthening is still limited at 1.6399 so far.

 

Based on technical analysis, intraday bias remains bullish in the short-term test the 1.6470 area, but overall the movement is still in a sideways fashion since the last 4 weeks and the required penetration above the 1.6470 area to proceed further bullish scenario, targeting 1.6745 area.

On the bottom side, the nearest support levels appear in the area 1.6310 - 1.6270, fell below that area could bring the price into the neutral zone because of its direction becomes apparent while testing a key support level of 1.6195 in the short term.

[mynameisandhy]

News and European Economic Review (UK)

 

Sterling Appreciation Continues Post-CPI

Tuesday, August 16, 2011

 

Pounds are able to turn strengthened versus the U.S. dollar and euro on Tuesday after the release of the data showed Britain's inflation rate rose slightly above the forecast in July, despite the dovish outlook on UK monetary policy will restrict the movement seems to keep the Pound.

UK inflation grew at 4.4% in July, as banks increase the cost and the retailer cut its sales prices into the summer, according to the National Statistics Office reported on Tuesday.

 

Increasing the rate of inflation is widely expected by the Bank of England, which saw inflation in the range of 5% by the end of this year, before falling back below 2% target within the next 2 years.

 

"The data is not far from the estimates and BoE policy, so there is no reason to expect the rate hike from the numbers," said Adrian Schmidt, currency analyst at Lloyds Banking Group. Schmidt also assess if the Cable still seems to be trapped in the current trading range.

 

While some analysts argue that the BoE's main focus remains fixed on the demand side of the economy after weak data last activity indicates continuing slowdown in the economy, potentially leading to further quantitative easing.

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News and European Economic Review (UK)

 

Observed Passive Investors Sterling, Waiting BOE Report

Wednesday, August 17, 2011

 

In forex trading the Asian session today (17-08), British Pound is generally observed to move lower against several other major currencies.

Monitored the currency is moving lower against the U.S. Dollar, Japanese Yen and Australian dollar, after trading yesterday on the general move to strengthen.

Against the Japanese yen on cross rate GBP / USD Pound tracked down - 30 pips or about - 0.23%, tracked down -24 pips or about - 0.15% on GBP / USD and weakening -17 pips or about - 0.10% against the U.S. dollar on a pair GBP / USD.

Analyst Research Vibiz of Vibiz Consulting told the briefing before the session of the European market today that Sterling has the potential to respond to the report the Bank of England is scheduled to release the latest data indicator MPC Meeting Minutes at 15:30 (GMT) later.

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News and European Economic Review (Switzerland)

 

Investor anxiety rises, Swiss Franc Rise Up

Wednesday, August 17, 2011

 

In forex trading the European session today (17-08), the currency of safe-haven Swiss franc is generally observed to move sharply higher against several other major currencies.

 

In forex trading in the spot market tracked the ongoing surge in the strengthening of those currencies against the U.S. dollar on a pair USD / CHF is about 121 pips or about 1:52%.

 

Meanwhile, the strengthening of the Swiss franc also occur in cross rate of EUR / CHF rises sharply around 196 pips or 1.71%, while against the Australian dollar tracked rose 138 pips or about 1.66%

 

Analyst Research from Vibiz Consulting Vibiz that worsening public debt crisis in the EU and the European Union's recent report that showed GDP growth of only 0.2%, investors began to fret.

 

This causes a stronger interest in the safe-haven currency, and triggered a sharp leap Swiss franc today.

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News and European Economic Review (UK)

 

UK Unemployment Claims Rise Biggest Since May 2009

Wednesday, August 17, 2011

 

British unemployment rate soared and the number of people claiming unemployment benefits posted the biggest gain in more than 18 months in July as a labor market increasingly reflects the stagnant economy.

 

Office for National Statistics said Wednesday that the number of people claiming unemployment benefits for Jobseeker Allowance rose by 37,100 in July - the biggest monthly rise since May 2009. Claim count rate increased 0.1 percentage points to 4.9%.

 

Economists surveyed by Dow Jones Newswires had forecast a rise 20,000 in the claimant count, and the claimant count rate is unchanged from 4.8%.

 

ONS said the official international measure of unemployment, formerly known as the International Labour Organization measure, an increase of 38,000 in the three months to the end of June to 2.49 million. The unemployment rate rose to 7.9% from 7.7% in the three months to May.

 

Expectations of economists rate remained at 7.7%.

 

The number of unemployed women rose 21,000 in the three months to June reached 1.05 million - the highest figure since the three months to May 1988.

 

British labor market had previously been relatively resilient to the economic recovery is slowing down, with the number of people unemployed dropped in the three months to May.

 

News Wednesday that the labor market is weakening is a blow for the government coalition of Prime Minister David Cameron, in which banks in the private sector create enough jobs to absorb the 330,000 public sector workers who will lose their jobs due to government cuts over the next four years.

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News and European Economic Review (UK)

 

UK Retail sales weaker than expected in July

Thursday, August 18, 2011

 

UK retail sales rose less than expected in July siring a decrease in sales of apparel, footwear and household goods offset the increase in sales at food stores, official statistics showed on Thursday (18 / 8).

 

Office for National Statistics (ONS) said retail sales volumes increased 0.2% in July compared with June and flat on the previous year.

 

That figure is weaker than expected by economists polled by Dow Jones Newswires had forecast a 0.4% rise in retail sales in the month and increased 0.4% in the year.

 

Food store sales volume rose 0.7% in July, but fell 1.6% in the year.

 

Sales in stores in most non-food stores fell 0.1% on month and 1.1% in the year. Sales of textiles, clothing and footwear fell 0.3% on month and 1.0% in the year, while sales at household goods stores fell 0.3% on month and 4.1% in the year.

 

Spending power of UK consumers are being pressured by a combination of high inflation and stagnant wages, while the weak labor market and high levels of personal debt was wounded optimism.

 

Pressure continued weak dollar against the yen, among the major currencies. U.S. unit at Y76.92 from Y76.96 at 11:50 pm in New York on Tuesday.

 

After the FOMC's decision led Treasury yields fell sharply, Osamu Takashima, chief foreign exchange strategist at Citibank Japan said short-term U.S. interest rates low show, all else being equal, that the dollar would be around Y74.00.

 

China's central bank set the dollar at record low repair yuan, with a central parity rate at CNY6.4167.

 

"Highlights of the FOMC, we must say the dollar should have to face again the next sale," said Toshihiko Sakai, chief manager of forex trading and financial products at Mitsubishi UFJ Trust and Banking.

[mynameisandhy]

News and Overview of the European Economic Zone

 

European Stock Fall Sharply Reflect Growth Concerns

Thursday, August 18, 2011

 

European stock markets fell sharply on Thursday, hit by negative sentiment in Asia amid fears of slowing global growth and the level of sovereign debt at a high point. Monitored by far the hardest hit by the cement industry after Holcim Ltd. reported earnings below estimates.

 

Issuers Holcim shares fell 5%, after the cement producer said Q2 earnings tumbled 13% due to the appreciation of the Swiss franc and the high raw materials prices have reduced profits materials.

 

In London, the mining sector led the performance is still poor, reflecting fears of global growth. Morgan Stanley on Thursday cut its global growth forecast and said the United States and the European zone on the verge of recession. In addition, Morgan Stanley cut its outlook for global growth in 2012 to 3.8% from 4.5%, but recession is still small due to the Fed and the ECB are still trying to take further action to avoid a recession.

[mynameisandhy]

News and European Economic Review (French)

 

S & P Rating Secure Triple-A France

Thursday, August 18, 2011

 

Credit rating agencies Standard & Poor's on Thursday re-confirm the French triple-A rating with a stable outlook, dampening investors' fears that the ratings board over the state's second largest economy in the euro zone are at risk.

 

According to the head of S & P in France, Carol Sirou it was still optimistic French triple-A rating with stable outlook. France has so far pressed between the euro-zone countries in having a high deficit and debt ratio to GDP dangerous than countries with other triple-A rating.

 

French downgrade scenarios in the event can cause a considerable impact because France is a contributor bonds, the second largest after Germany in the European zone of the rescue fund, EFSF. As we know, EFSH use the ratings board over to make borrowing cheaper in the market then the loan is disbursed to the states included in the rescue program.

 

President Nicolas Sarkozy's own commitment to restore fiscal France on track in the next few years, planned on 24 August will release details of the plan year-end fiscal targets this year and next.

 

The government also remains optimistic projections could cut the deficit from 5.7% of GDP this year to around 4.6% in 2012, and dwindling to 3% in 2013. While projections of debt to GDP ratio will peak at 86.9% in 2012, although it is quite high but still below the Italian on the ratio of debt to GDP at 119%.

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News and European Economic Review (UK)

 

Sterling Moving Up Performance Driven Fiscal

 

Friday, August 19, 2011

 

National Statistics today (19-08) reported an increase in the fiscal sector performance in the UK economy.

 

Actual releases shows that Public Sector Net Borrowing indicator decreased to-2.0b where previously expected to fall to 0.4B from the value in the previous period of 12.4B.

 

GBP / USD pair was observed in the range of 1.6424.

 

Reports showing an increase in performance is sustained by the increasing interest of investors in the forex market to hold the pound sterling, so the currency is moving higher on the GBP / USD pair.

 

Analyst Research Vibiz of Vibiz Consulting suggests that there is still potential for further movement on this pair menguatnyaPoundsterling.

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News and Overview of the European Economic Zone

 

European Banking sector slumped Back

 

Friday, August 19, 2011

 

European banking shares plunged to a low level of 29 months due to widespread concerns over the ability of financial institutions meet funding needs amid worsening economic slowdown. Intesa San Paolo fell 6%, Raiffeisen Bank down 5%, 3.3% Societe Generale and UniCredit fell fell 4.2%. Lloyds and Deutsche Bank shares also slumped 5%.

 

"Markets naturally worry about banking liquidity problem with increasing borrowing from the ECB. There are signals that indicate a crisis situation now would be 2008," said Sebastien Barthelemi, analyst at Louis Capital Markets. Earlier this week, the data show the ECB dollar facility began to be used where one of the euro-zone banks borrowed $ 500 million with interest rate of 1.1%, higher than the cost of borrowing in the market. ECB data also showed banks borrowed? 107 million of overnight facilities in the last 24 hours.

 

"Although the ECB can provide liquidity abundant does not mean investors are not worried about the ability of banks funding," said Michael Symonds, an analyst at Daiwa Capital Markets. "The market is worried about the impact of rising funding costs on the operational capabilities of European banking."

[mynameisandhy]

News and European Economic Review (UK)

 

Pound Losing Momentum Towards the end of U.S. session

Saturday, August 20, 2011

 

Pound Sterling touched its highest level 3?-Month versus the U.S. dollar on Friday, with increasing awareness of funding issues in the Euro zone banking and risk of recession in the U.S. prompted investors to collect the British currency. But the momentum did not seem able to survive as the dollar began recovering slightly towards the close of U.S. trading session.

On Friday Cable also reap the support of the release of data showing a significant decline in Britain's public sector lending in July, which suppresses the overall lending in fiscal year 2011 and help governments to better approach the fiscal targets.

 

"The high pressure on the euro zone debt problems and the slowdown in the U.S. have shifted focus from the British market for now," said Lauren Rosborough, currency analyst at Westpac. "Sterling became visible slightly superior, especially against air-yield currencies like the Aussie higher. That happened not because the British are very good condition, but because the conditions are not as bad as other big countries."

 

Increasing concerns over a global recession and concerns over the ballooning funding several large banks in Europe was plunged global stocks in recent days.

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News and Overview of the European Economic Zone

 

Raise the Energy Sector European Exchanges

 

Monday, August 22, 2011

 

aham-European shares traded higher on Monday with leading oil and gas stocks has recorded a significant rise, with the action a number of investors bargain hunting after the sharp drop last week.

 

Eurostoxx 50 index advanced more than 2%, while the German DAX and French CAC collects respectively 1.55% and 2.7%. In Britain, the FTSE was trading around 2.45% higher in the first 2 hours of trading.

 

Oil stocks are able to attract investors in trading Monday, following the news that the rebels managed to take control of Libya in Tripoli, which increases the chances that companies like ENI and Repsol YPF will be able to continue its production activities in the country.

 

Even so, overall market sentiment remained fragile amid concerns over tersisanya worsening global economic outlook and the health of the EU financial sector.

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News and European Economic Review (UK)

 

Fiscal soundness Suspend UK Sterling

 

Monday, August 22, 2011

 

Monexnews - sterling strengthened due to the fiscal soundness of English conditions in the middle is still not a solution to the debt crisis of the euro-zone. Analysts see good prospects for sterling as investors took another currency as safe-haven assets amid the threat of intervention to the BoJ and SNB movement of the yen and the franc.

 

Traders see a stop-order the GBP / USD in the range of 1.6540 and 1.6620, near a high-level 3? 1.6616 months. "Sterling is now bearing the semi safe-haven status. Investors consider Britain a better condition than other developed countries, especially with independent monetary policy and fiscal discipline pursued Cameron government," said Adam Myers, strategic Credit Agricole, the prediction of GBP / USD will reach 1.7000 within a month. "More healthy fiscal condition of the UK making sterling a transitional place amid global market turmoil and the debt crisis of Europe." Investors see the pound currency undervalued compared with other G-10.

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News and European Economic Review (UK)

 

Attempting to Mute rate of 1.6520 Euro

Monday, August 22, 2011

 

After going through a phase of consolidation below 1.6500 level, Cable managed to penetrate above the resistance level to hit a daily high at 1.6519 as starting the positive market sentiment today. GBP / USD is currently trading at around 1.6510 or about 0.18% higher than the opening price today.

 

From a technical standpoint, Valeria Bednarik of FXstreet.com assess if "the current price still seems to be trying to overcome resistance at 1.6520, which is 14.6% retracement of the rally last bullish on the daily chart. Penetration level will probably continue the bullish trend of the pair this money to go around the 1.6580/1.6610 zone pricing. "

 

"To the contrary, an area of ​​1.6460 will still provide fairly strong support. In case the area is able to overcome, will probably trigger a strong bearish correction movement toward the nearest target at 1.6400, or even up to the next target in the 1.6340/50 zone," he added.

[mynameisandhy]

News and Overview of the European Economic Zone

 

China Data Encouraging European Market Sentiment

Tuesday, August 23, 2011

 

European stocks continue to trade on positive territory on Tuesday, led by the mining sector in line with metal prices moved higher after China's manufacturing sector data.

 

Interest in risky assets such as stocks showed an increase, with the index volatility Euro STOXX 50, which became one of the main barometer of market concern Europe, fell to 9.3%.

 

Germany's DAX index gained so far recorded was 1.55%, while the French CAC collect 1.74%. In Britain, the FTSE moves higher up to 1.2% by mid-session.

 

However, investor focus remains fixed on the Federal Reserve's annual symposium to be held in Jackson Hole, Wyoming. Meeting with the theme of economic stagnation were expected to provide signals about the Federal Reserve's next policy to promote U.S. economic recovery.

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News and European Economic Review (Germany)

 

German Economy Fall Far from Expected

Tuesday, August 23, 2011

 

German economic expectations fell further than expected in August, said the Center for European Economic Research, which is also known as the ZEW, on Tuesday (23 / 8).

 

Generally tracked the index fell to -37.6 in August, revised -15.1 in July. Experts expect the index to fall to -26.0.

 

Current conditions index slipped to 53.5 compared with 90.6 in July. Experts have estimated the level of 87.5.

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News and European Economic Review (Germany)

 

German manufacturing PMI at 52.0 Release Not Be Changed

Tuesday, 23 August 2011

 

German manufacturing PMI unexpectedly remained unchanged last month (UNCHANGE), preliminary data showed on Tuesday.

 

In a report, Markit Economics said that the German manufacturing PMI remained unchanged at a seasonally adjusted 52.0 from 52.0 the previous month.

 

Analysts expect the German manufacturing PMI fell to 50.6 last month.

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News and European Economic Review (Switzerland)

 

Swiss Franc pullback, Sector Consumption Mute Pressure Against U.S. Dollar

Wednesday, August 24, 2011

 

Swissie on currency trading pair USD / CHF tonight (24-08) tracked down and the pair traded at around 0.7894.

As rival the U.S. dollar, Swissie weaker as the presence of positive signal in the United States economy. This is indicated by an increase in the consumption sector performance in the country.

Core Durable Goods Orders Indicators m / m reported to increase to 0.7% previously forecast to fall to -0.3% from the previous value of 0.4%.

Analyst Research Vibiz of Vibiz Consulting suggests that the Swiss franc on the currency pair USD / CHF is predicted to weaken further thin.

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News and European Economic Review (Germany)

 

German Ifo Business Index August Falling Into Low 14 Months

Wednesday, August 24, 2011

 

German business optimism declined in August to the lowest 14 months, as the company hopes to reduce exports amid global market turmoil, the German Ifo research institute said on Wednesday (24 / 8).

 

Ifo business climate index fell to 108.7, down from a record in July at 112.9 and below the consensus forecast at 111.0 analysts polled by Dow Jones Newswires.

 

"The company has reduced its expectations of business development within a half years," and manufacturing "lowered expectations for further export business," Ifo President Hans-Werner Sinn said. "The German economy is not immune to the turmoil around the world today."

 

Measuring earlier reached a record high of 115.4 in February after nine consecutive months of increases.

 

Respondents' assessment of their current conditions fell to an index level of 118.1 from 121.4 in July, while the sub-index reflects expectations for the next six months fell to 100.1 from 105.0.

 

Ifo survey came a day after the serial index German ZEW economic expectations were observed near the sharp decline recorded since August 2002, slumped to -37.6 in August from -15.1 in July.

German economy grew just 0.1% quarter-on-quarter in April-June period, down from 1.3% in the previous quarter, the state statistics office said last week.

 

However, the German Bundesbank confirmed this week expect the economy will continue to grow in the second half of 2011, and extending approximately 3% for the year overall.

 

"The situation of today's business continues to be assessed overall as a good thing," said Sinn.

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News and European Economic Review (Greece)

 

Funds for Rescue Package Fails Greek Threatened

Wednesday, August 24, 2011

 

European governments re-zone to discuss plans to have the Greek government assets including real estate company or the Greek government offered as collateral to fund the rescue Greece.

 

The discussion went along Finland's rejection if not provided such collateral, though German Chancellor Angela Merkel rejected the deal, since it is unlikely there is only one country that gets the collateral so that other countries also want a similar deal. Though Finland is only contributing about 2% of the total rescue fund for Greece and other member states have a greater contribution.

 

This impact on the Greek sky-rocketing rise in bond yields 240 basis points to a new record of 42% for 2-year tenor, while the tenor of 10 years, soared 55 basis points to as low as 17.97%. Bond yield Portugal, Italy, Ireland and Spain still a bit better supported by the purchase of the ECB.