News and Reviews European Economic Zone

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News and Review of European Economic Zone (Spain)

 

Service Sector Spain Chic Show Performance in Early 2015

Wednesday, February 4th, 2015

 

The Spanish government began reaping the rewards of hard work. In early 2015, the service sector in the country which was hit by the debt crisis is observed improved.

 

According to official government data last moment, the service sector Purchasing Managers Index rose from 54.3 Spain became 56.7 in January 2015. The increase was the biggest since August 2014. The good news, the number of orders received by the business also rose dramatically, so businesses in the services sector may have to open a new job. For the record, the amount of labor absorbed Spanish service sector has consistently increased for 4 consecutive months.

 

Even if there are still obstacles that must be addressed by the government, then it is none other than the threat of deflation. Companies to lower product prices in January, even in a fairly large scale. However, it is believed not to hamper efforts to Spain to be the country with the strongest economic growth in the second in Europe for 2015.

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News and Review of European Economic Zone

 

Eurozone PMI Private Sector Improved

Wednesday, February 4th, 2015

 

The euro zone's private sector grew at the fastest pace in six months in January as companies cut prices with the sharpest pace in nearly 5 years, according to the survey results of business on Wednesday. Markit said the survey conducted before the European Central Bank announced the quantitative easing program showed first-quarter growth of 0.3%, according to economists' estimates. Markit composite PMI, which is a good indicator of growth, is at 52.6, higher than the previous results in 52.2 and 51.4 in December.

 

"The euro zone with a positive start in 2015, as growth in economic activity is accelerating. Of the four major countries, output expanded in Germany, Italy, and Spain, but the contraction in the French entered the 9th month," according to Markit.

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News and Review of European Economic Zone (UK)

 

UK PMI Services Sector Accelerate in January

Wednesday, February 4th, 2015

 

UK service sector expanded faster than expected in January after growing at the slowest pace in more than 1-1 / 2 years in December, according to survey results released Wednesday, the signal is good for economic growth in 2015. The PMI data from Markit / CIPS shows the overall economy grew at a rate slightly above the 0.5% achieved in the last quarter of 2014, according to Markit. This will be good news for Prime Minister David Cameron, who expects strengthening the UK's economic recovery will help get more votes on election on 7 May. Service sector PMI rose to 57.2 in January from 55.8 in December which is a 17-month low level, exceeding estimates and stay above 50.

 

"The service sector PMI data will ease the anxiety down the economy is slowing sharply, after seeing a slowdown in the winter to improve," said Chris Williamson, chief economist at Markit. "Moreover, the increase in the level of employment. The survey is now signaling rate of job creation that is awesome about 70,000 per month."

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News and Review of European Economic Zone (Germany)

 

German Manufacturing Data Orders Exceed Expectations

Thursday, February 5th, 2015

 

Total order products manufacturing or manufacturing orders Germany today released ride for the period December 2014. Manufacturing orders itself is one important indicator of the economy post the largest country in Europe

 

Total orders rose 4.2% compared to November 2014 (adjusted). The percentage increase was exceeded analysts' estimates surveyed by the Wall Street Journal (+ 1.2%). The increase in manufacturing orders observed fairly evenly, in which order from abroad rose 4.8%, while orders from domestic consumers increased 3.4%.

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News and Review of European Economic Zone

 

EU Revise UK Inflation Projection

Thursday, February 5th, 2015

 

European Commission in the report lowered its economic projections UK inflation predictions for the reason of low oil prices and the strengthening of the pound sterling. European Commission (EU) lowered its forecast UK inflation in 2015 to 1%, from the level of 1.6%. The EU also added that inflation will go up to a level of 1.6% in 2016. The UK economy is also expected to continue to improve at a rate that is much stronger in the next two years, due to low inflation should be able to raise the standard of living and increase consumption. Moreover, the UK unemployment rate in November was also reported lower-than-expected decline.

 

Although predicted to improve, the EU remains lowered its growth forecast Gross Domestic Product (GDP) of the UK. According to the EU, UK GDP will contract at the level of 2.6% compared to 2.7% in 2015, and 2.4% for 2016 compared to the level of 2.5%. This revision occurred based on the British national statistics bureau report in December, which implies the performance of the UK economy reached its lowest level in the first three quarters of 2014 compared to the previous estimate.

 

The EU also wrote that the economic conditions that will allow the British government to continue to limit the structural budget deficit, according to the promise of the Exchequer George Osborne, although the pace Labat than government predictions

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News and Review of European Economic Zone

 

EU Optimistic With GDP rate of the Euro Zone

Thursday, February 5th, 2015

 

Council of the European Commission provide optimistic projections for the euro zone compared to three months ago supported by low oil prices, the weakening of the Euro, and the program of quantitative easing European central bank. Executive Council of the European Commission (EU) raised its forecast for the rate of Gross Domestic Product (GDP) of 19 countries that joined the Euro to 1.3% for 2015 from the level of 1.1% during the month of November. Projected GDP growth in 2016 increased to 1.9% from the previous projection at the level of 1.7%. The Commission raised its forecast for growth in the countries of Europe's largest economies, including Germany, France, and Spain.

 

These projections are published in the EU economic outlook report, which is published three times a year and is premised largely monetary decisions of the block, especially in the national budget.

 

However, the EU remains yellow light signaling. Falling oil prices will push inflation lower and lower in the Euro area into a deflation, with prices projected to fall 0.1% this year. In this case, the European Central Bank has launched a planned purchase of around 1.1 trillion euros of government bonds and other assets to avoid deflation is getting worse.

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News and Review of European Economic Zone (Germany)

 

German Industrial Output Up Thin in December

Friday, February 6th, 2015

 

German industrial output rose for a fourth month in December, adding signs that the expansion in the country with Europe's largest economy is gathering strength.

 

Output, adjusted for seasonal changes, rose 0.1% after a revised 0.1% to rise in November, indicated in the report of the Ministry of Economic Affairs in Berlin on Friday. The increase in the highly volatile figure is lower than the median estimate for a 0.4% rise in the Bloomberg survey. Production fell 0.7% from a year ago.

 

Bundesbank predicts that the economy has overcome the weak phase of the beginning of last year, with an indication of rising 4.2% in factory orders in December and a third straight rise in business confidence in January. The promise of quantitative easing from the European Central Bank last month will push the economy further through exchange rate weaker euro makes exporters more competitive.

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News and Review of European Economic Zone (France)

 

Imports of Oil and Gas Up, Trade Deficit France Swelling

Friday, February 6th, 2015

 

French trade deficit grew in the month of December 2014 compared to the previous month. Indeed export sector recorded an increase, but unfortunately the level of the country's imports also soared, especially in oil and gas products.

 

According to the official report is government, the trade deficit of 3.09 billion French rose to 3.45 billion euros euros ($ 3.93 billion) in the last months of 2014. Components of exports rose to 37.91 billion from 37.23 billion recorded in November. The increase in exports was influenced by an increase in the number of Airbus aircraft deliveries abroad.

 

The volume of imports rose to 41.35 billion euros from 40.32 billion euros, in which the oil and gas deficit country the second largest economy of Europe's rise in agricultural surpluses are reduced.

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News and Review of European Economic Zone (UK)

 

UK Trade Deficit Widened in December

Friday, February 6th, 2015

 

UK trade deficit widened much more than expected in December as the rise of the level of cheap oil imports, according to government data on Friday. However, the deficit in the fourth quarter of 2014 is narrowed at most in 3 years. One of the officials of the Office for National Statistics said he expects the contribution of trade to GDP Ingrgis will rise in the last quarter of 2014, compared with a decline of 0.2% in the third quarter. The ONS said its deficit widened to trade 10,154 billion pounds from 9283 billion pounds in November. Economists forecast a deficit of 9.1 billion pounds in December.

 

The level of exports in December rose as much as 0.1% while the level of imports surged as much as 2.7%, boosted by an increase of almost 40% in the volume of oil imports in December, recovering from the downward trend of oil imports in the previous month. ONS officials said that most oil imports come from Norway. This data means that in the fourth quarter as a whole, the UK trade deficit narrowed to 29.4 billion poind, fell as much as 2.2 billion pounds from the third quarter.

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News and Review of European Economic Zone (Germany)

 

Sector Trade Show Performance Fantastic Germany in 2014

Monday, February 9th, 2015

 

Although the European economic conditions are less favorable, the German trade sector has recorded an impressive performance. The value of exports, imports and the amount of surplus state blue continent's largest economy soared to record highs in 2014.

 

According to data from Destatis a while ago, German exports (adjusted for seasonal factors) rose 3.4% in December compared to the previous month. While the volume of imports declined 0.8% to trade creates a surplus of 21.8 billion euros ($ 24.7 billion). Before the data was released, analysts surveyed by the Wall Street Journal just predict a trade surplus of 18.8 billion euros in the last month of 2014.

 

Meanwhile, for a period of one full year, the German success record exports, imports and surplus of all time. Total surplus even soared to 217 billion euros, equivalent to Rp3.114 trillion and nicks break the previous record in 2007, which amounted to 195.3 billion. The results of this data reinforces the assumption that the line of the German economy remains strong amid slowing economic climate of Europe, Asia and America.

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

BOE Carney Praise ECB Policy

Monday, February 9th, 2015

 

Bank of England Governor Mark Carney praised the latest movements of the European Central Bank to raise Eurozone economy and said that the current global financial markets will be more resilient to shocks other extras.

 

"There are many reasons why the ECB is very important actions, one of which refers to the ECB which has a range of policy tools to support what is needed by the economy, the ECB has taken bold action," Carney said in the event the Institute of International Finance at the sidelines of the ministerial meeting finance and central bankers G-20 in Istanbul.

 

The urge to shore up the global financial system would pay for itself in the long run and it is the recommendation of reform after the crisis of 2008 by the Basel Committee on Banking Supervision and the Financial Stability Board, with Carney as its chairman, was ready to start making a difference, he said.

 

"This system is much durable, more resilient, and these systems tend to reinforce themselves of additional surprises," Carney said, adding that the international banking network and liquidity will not be interrupted as the lifeboat after the crisis in the US housing market that triggered the global crisis in 2008.

[mynameisandhy]

News and Review of European Economic Zone (Greece)

 

Increased Investment Risk, Interest Greek Bonds Rise

Monday, February 9th, 2015

 

Greek bond interest today soared amid the country's exit from the discourse of the bailout program designed by the European Union, the European Central Bank and the International Monetary Fund (IMF). Yield increases sharply as the amount of investment risk if Greece really do not want to run the budget austerity agenda.

 

Prime Minister Alexis Tsipras who was installed already started a war of nerves with the government of the European Union. He openly expressed his intention to defect from the rules imposed by international creditors.

 

Impact, interest letter Greek debt soared, where the 2-year tenor bond returns recorded in the number of 20.77%, up 339 basis points in one session. As for debt assets tebor 5 years, interest rose 206 basis points to 16.02% and the 10-year tenor bonds recorded in 11.03%, up 86 basis points.

[mynameisandhy]

News and Review of European Economic Zone (France)

 

French Industrial Production Exceeds Estimates

Tuesday, February 10th, 2015

 

The results of industrial production increased in France reported last December 2014. According to the statistics agency Insee center, the increase in production occurred in all sectors of industry without exception.

 

Figures French industrial production rose 1.5% over the period of November 2014. The percentage increase was exceeded financial analysts' forecasts, which only predicts an increase in industrial production by 0.4% per month. Although the European economy is still sluggish, industry players in France was able to maintain its performance from month to month. Energy and mining sector rose 2.8%, while the manufacturing industry rose 3.4%. The transport line rose 2.9% and the production of household appliances rose 1.2%

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

UK Industrial Output Slows Coming Back End Years Ago

Tuesday, February 10th, 2015

 

British industrial output slowed in the back end of last year, depressed by the maintenance of the cultivation of oil and gas in the North Sea, amplifies the signal that the UK economic recovery begins to slow down approaching the end of 2014. Industrial output fell as much as 0.2% for the monthly rate in December, compared with estimated to increase by 0.1%, after unchanged in November, according to the Office for National Statistics on Tuesday. With the British people will participate in the elections less than three months away, the outlook for the economy became the main focus by all political parties. Prime Minister David Cameron has said he wants the UK more dependent on exports, but weakness in the euro zone has made the British economy is more dependent on the level of consumer demand.

 

For the fourth quarter as a whole, industrial output rose as much as 0.1%, higher than the decrease of 0.1% which has been used to estimate keemapat quarter GDP by the ONS. But the ONS said that the revision is not high enough to change the projection of GDP growth of 0.5% when releasing the second estimate of fourth-quarter GDP on 26 February.

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News and Review of European Economic Zone

 

France Warn Greece To Obey Rules

Tuesday, February 10th, 2015

 

Both parties are involved tough debate about the future with Greece in the euro zone must respect each other's views to reach an agreement, said French Finance Minister Michel Sapin. "There are other ways, as long as we respect each principle," he said on the sidelines of a meeting of G-20 finance ministers in Istanbul. "First: We must respect the election results in Greece. The new government has been elected. It is impossible to ask the new government to do the same thing as the previous government. Second: Greece must know the regulations in Europe, in cooperation with the IMF, the ECB, and the Union Europe. We should all respect each other so that there is room for a deal. "

 

However, Sapin warned, Greece must comply with the requirements bailout deal worth 240 billion euros (271 billion euros). "Greece can not act like there are no rules. In Europe, there are separate rules. Greece is part of the IMF, and has become part of the European Union almost from the beginning. Greece has said that the ECB is the central bank them. So they must act within the framework that. "

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News and Review of European Economic Zone

 

Euro Moves Ahead of Talks Stable Greece

Wednesday, February 11th, 2015

 

The euro was steady against the dollar on Wednesday as uncertainty about whether Greece can reach an agreement to extend the bailout program has made investors nervous.

 

During the Euro was down about 0.1% to $ 1.1315, while the EURJPY climbed 0:11% at 135.31.

 

Trading was thin with markets in Japan were closed for a national holiday.

 

Currency Euro area supported by reports that the European Commission will propose an extension of six months for the Greek bailout program in an emergency meeting of euro zone finance ministers.

 

Athena is also expected to ask for a loan to cover the funding needs until September, and also propose new reforms to replace some strict austerity programs related to the bailout program.

 

Greek Prime Minister Alexis Tsipras has said that he will fulfill his promise before the election to remove and reject the austerity program extension of the bailout, it sparked fears about the future of Greece in the Eurozone

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News and Review of European Economic Zone (Greece)

 

Prime Minister of Greece Get Confidence Motion

Wednesday, February 11th, 2015

 

Greek Prime Minister Alexis Tsipras easily won a vote of confidence in his plan to stop the bailout program and dealing with European leaders as both sides prepare to attend a meeting in Brussels this week. In a speech to parliament, Tsipras praised the important role played by Greece in the reshaping of Europe and promised that the party would not be subject to Athens to ask for an extension of an international bailout regardless of "how much" German Finance Minister Wolfang Schaeuble asked for it.

 

"We do not negotiate a bailout; it has been undone by his own failure," he said in parliament before winning the vote with the support of 162 of the 300 total seats voice. "I want to emphasize that there is no turning back. Greece can not return to the era of the bailout."

This happens after Schaeuble said that if Greece does not want a new aid program, "will be," added a number of warnings from officials in Europe yagn urged Athens to obtain an extension of the bailout program that will expire this month. Tsipras - which has the support of 75% of Greek society according to opinion polls, said he was confident that both sides will reach an agreement. Yet there has been little progress in bridging the difference signal ahead of a meeting of euro zone finance ministers on Wednesday and EU leaders on Thursday that would restrict aid to Athens after February.

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News and Review of European Economic Zone (Greece)

 

Greece, OECD Agree to Cooperate In Reform

Wednesday, February 11th, 2015

 

Greece and the OECD on Wednesday agreed to cooperate in the reform of the Greek economy, but the Athens insists will not let outsiders decide what policy adopted. Beribcara ahead of a meeting of eurozone finance ministers in Brussels, where Greece will present the request to terminate international bailout and the transition to the new debt restructuring agreement, Prime Minister Alexis Tsipras said Greece is committed to implement the reforms, but not as he was told by others.

 

Organisation for Economic Co-operation and Development has previously been membeirkan Greek "policy tools" to design the necessary reforms Athens by international creditors. OECD Secretary General Angel Gurria said the organization will work together to help Greece achieve the target of reforms. "The crisis resulted in lower growth rates, high unemployment rate ... and the people of Greece have suffered directly," Gurria said in a press conference with Tsipras. "The crisis has led to the increase in the gap and produce a sharp erosion in optimism," he said.

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News and Review of European Economic Zone (Germany)

 

German Consumer Price Slump in January

Thursday, February 12th, 2015

 

German consumer prices fell deep into negative territory in January for the first time in more than five years, driven down mainly by oil prices fell sharply, the statistics bureau reported by Germany on Thursday, as the final reading for the month of January.

 

German statistics bureau, Destatis, confirmed their initial report numbers, calculate based on European standards, but revise down from the initial reading of measurement based on the national methodology.

 

Very low level of consumer inflation in Germany and elsewhere in the euro zone has underlined the need for expansion of the stimulus package from the European Central Bank which will come into force in March, which will increase the purchase of government bonds for covered bonds and securities purchases assets background.

 

Consumer prices in the country with the largest economy in Europe, which is measured based on common standards of Europe, fell 1.3% in January on a monthly level and down 0.5% at an annualized rate, Destatis said. This is unchanged from the previous data reported on January 29th.

 

Destatis reported that consumer prices measured by national standards fell 1.1% on a monthly level and 0.4% at an annual rate in January. It was revised from a decline of 1% and 0.3% for each of the initial reading. The annual figure is the lowest level since July 2009 when prices fell 0.5%, Destatis said.

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News and Review of European Economic Zone (UK)

 

BoE Inflation Slowdown Risk Estimate, Ready Cut Interest Rates

Thursday, February 12th, 2015

 

Bank of England saw a rise in interest rates is not needed this year, and is ready to cut interest rates if inflation fell to a negative area deeper than expected, the new projections indicated on Thursday. BoE Governor Mark Carney said that he expects inflation will come down levle zero in the coming months due to the falling oil prices are near the low level of 6 years, but stressed that this does not mean that the economy has slipped into deflation.

 

"English is not currently experiencing deflation," Carney said in a letter to finance minister George Osborne to explain the difference between inflation, which stood at 0.5% according to the latest data, and the central bank's target of 2%. However, if the weak global activity and the UK are at risk of deflation, the BoE said it was ready to cut interest rates, following in the footsteps of other central banks that have taken emergency policy. This is a big change from the previous position, in which the BoE said interest rates below 0.5% have impact drinking, and some banks are too weak to adopt the policy. "MPC (board policy) is ready to take whatever steps are necessary, over time, to ensure inflation back to the target in a timely manner, said Carney.

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News and Review of European Economic Zone

 

ECB's Praet: ECB Stimulus Should Coupled Structural Reform

Thursday, February 12th, 2015

 

The European Central Bank's policy to drain billions of euros into the euro zone at risk in vain if the government does not fix the economy, said ECB executive board member Peter Praet on Thursday. Last month, the ECB launched a government bond purchase plan to drain hundreds of billions of new money into the economy to boost euro zone inflation, which has moved into negative territory, back to the target that is slightly below 2%. The move adds another asset purchase program that has launched the ECB to try to prop up the economy.

 

Praet, the ECB's chief economist, said the new policy seems are trying to penetrate into the market and the economy, but the government must play its role as the ECB stimulus separately creating a more rapid recovery and long-lasting. "Of course, perhaps the biggest risk we face with our new policy is the policy of futile because the government has not done much to improve tingakt confidence in the future," he said. By carrying out structural reforms, the government can increase the potential for economic growth. If they do this, the result will be much more positive. "If the government berdeterminasi in overcoming their structural obstacles, all the requisite increase in growth is surprisingly been met," said Praet.

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News and Review of European Economic Zone (Italy)

 

Italy's economy shrinks in Q4 Stop

Friday, February 13th, 2015

 

Italy was able to stop the economy shrank in the fourth quarter of last year also became the third euro zone countries reporting data on Gross Domestic Product (GDP) with better results than predicted. Italian government capable of removing the economy from the negative area, with a rate of 0.0% of GDP, a slight increase from the previous period were down 0.1%. Prior to the data released statistics bureau Italy, Istat, analysts predict the economy shrank by 0.1% decline. The fourth-quarter GDP report is published in the middle of the overwhelming evidence Italian economy finally able to recover in 2015 after three years of recession.

 

Bank of Italy is now predicting GDP growth in 2015, an average of 0.5% and at least 1.5% for next year. As for some of the factors that are considered capable of supporting the euro zone's third largest country is among the weakening Euro is supposed to be able to increase exports, the impact of quantitative stimulus European Central Bank (ECB), and the rising levels of consumption with lower oil prices

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News and Review of European Economic Zone

 

Euro zone GDP Rise in Late 2014

Friday, February 13th, 2015

 

The euro-area economy to continue its growth momentum at the end of last year with German re-cemented its position as the drive wheel 19 of the country club. The European Union is reporting statistics Gross Domestic Product (GDP) rose 0.3% euro zone in the fourth quarter after expanding 0.2% in the previous three months. This report is higher than the predicted rise of 0.2%. While on the same day, Germany, France, Italy, and Greece also reported its GDP level. German GDP raced twice the prediction with an increase of 0.7%, France's GDP is stagnant with a rise of 0.1%, Italy 0.0% of GDP better than expected 0.1% decline, while the GDP of Greece reported disappointing with a decrease in 0, 2% of the expectations of a 0.4% increase.

 

The currency bloc's economy is able to continue to pull the economy out of a long recession, but the decline in consumer prices and the reign of anti-austerity parties in Greece overshadowing growth. To avoid deflation in the areas of consumer spending into the economy drive wheel, the President of the European Central Bank (ECB) Mario Draghi announced the quantitative easing program of 1.1 trillion euros. The stimulus package that has pressured bond yields and the euro currency is expected to boost the level of consumption as well as restoring the economy.

 

"The euro area to get a significant boost from the weakening of the Euro, falling oil prices, and the decline in interest rates triggered QE from the ECB," said Anna Maria Grimaldi, Intesa Sanpaolo SpA economists

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News and Review of European Economic Zone (Spain)

 

Spanish Inflation Rate Eases Back in January

Friday, February 13th, 2015

 

Spain scored losing streak to the consumer inflation rate-7 in January, according to data from the Spanish statistical office, INE on Friday. Spanish consumer price index fell as much as 1.5% in the annual rate in January, compared with a decline of 1.1% in December, according to the INE, confirming data from 2 weeks ago. This figure compared with an annual decrease of 0.6% in the euro zone overall inflation in January.

 

The decrease is largely due to the drop in oil prices, which has slashed the price of the petrol stations in Spain. Inflation today, beyond the price of energy and fresh food products, rose at an annual rate of 0.2% in January, after a flat in the previous 6 months. The rate of consumer inflation is expected to tertap low for a longer time. The European Commission has estimated that inflation is likely to fall by an average rate of 1% this year, before rising as much as 1.1% in 2016. In the next 2 years, the European Commission estimates that the Spanish economy to grow at an annual rate at 2.3% - 2.5%

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News and Review of European Economic Zone

 

Euro Zone Trade Surplus Back Wide

Monday, February 16th, 2015

 

Eurozone trade surplus with the rest of the world again widened in December for the fifth consecutive month, official figures indicated in on Monday, as the cheapness of the euro continues to give impetus to exports and low oil prices provide support for import.

 

The difference between the value of goods sold Eurozone and what you buy abroad widened to 24.3 billion euros ($ 37.4 billion) at the monthly level, compared with a surplus of 21.2 billion in November, it was reported by the European Union's statistics bureau.

 

The increase in surplus due to a 2% decline in imports and exports rise by 1%.

 

The weakening of the euro has pushed exports in 18 countries that share the single currency in 2014, Lithuania joined the euro zone in January 2015, as they make their goods become cheaper abroad. Overall in 2014, the trade surplus widened to 194.8 billion euros compared with 152.3 billion euros in 2013, as exports rise by 2% and the flat growth in imports, Eurostat said.

 

Weak imports are part of a stagnant economy, but analysts underline that very low oil prices in the international market also plays a role in reducing the burden of the cost of imported parts.

 

"At the time of the import value can indicate the Euro zone domestic demand is still limited, it is proof that the import value of the Euro zone is limited only by oil and commodity prices are low," said Howard Archer, economist at IHS Global Sight.