News and Reviews European Economic Zone

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News and Review of European Economic Zone

 

Euro zone inflation estimated Down Exceeds Estimates

Thursday, April 16th, 2015

 

Some economists said the euro zone inflation will fall more than forecast in this year, before returning rise next year to respond to the quantitative easing program of the European Central Bank.

 

Survey of Professional Forecasters of ECB showed inflation will only grow 0.1% this year, down 0.2% from the projection in January. The survey was conducted on a quarterly basis to some economic analysts and is not a projection of the members of the ECB. However, for the following years the growth rate of inflation is expected to be higher, in 2016 inflation is expected to reach 1.2% compared to the previous projection of 1.1%. And in 2017 inflation is projected to rise 1.7% from 1.6%.

 

The latest data from Eurostat showed euro zone inflation at 0.1% in March, and has been in negative territory in four consecutive months. The ECB targets inflation at 2% over the medium term.

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News and Review of European Economic Zone (UK)

 

Growth of UK House Prices Touch Level 5-Month High

Thursday, April 16th, 2015

 

House prices in the UK grew at the fastest pace in five months in March, triggered by the lack of the number of properties, according to the survey results on Thursday, adding to signs that the slowdown in the housing market may be over. Monthly house price index by the Royal Institution of Chartered Surveyors' (RICS) rose to +21 in March, is above the Reuters estimates, and from +15 in February. There are signals of uncertainty regarding future elections on May 7 that makes sellers refrain from putting the property on the market, according to the RICS.

 

Simon Rubinsohn, economist kepalam RICS, said however that the current trend is seen from the results of the latest survey is the housing sector crisis is very real, which should be addressed in the near future by the next administration. The housing sector has been becoming major problems in the elections to the Conservative Party and the Labour opposition parties competing in the polls sound. Earlier in the week, Cameron said he would extend the "right-to-buy" for people to buy a new home on the cheap, including social housing owned by a non-profit organization. The move was accused of being a "bribery" by Labour. Rubinsohn said there are tentative signs that the momentum of house prices can go up as the supply of homes on the market continued to fall.

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News and Review of European Economic Zone (UK)

 

The British Politics temperature Escalates

Thursday, April 16th, 2015

 

British Liberal Democrat stronghold potentially determine the direction of the winner after the British election the Conservatives competition with the Labour party, which has said it will support the Liberal Democrat Prime Minister David Cameran plan of the conservative party to hold a referendum on membership in the Euro zone.

 

Nick Clegg, the Liberal Democrat leader stated that the referendum should be held if there is a change EU treaties. But Clegg still provide certainty coalition with the conservative party.

 

So far this has not been established whether the party center-right, the Labour party or Cameron from conservative party will win a majority in the elections which lasted 7 May. It is estimated that the election will be the toughest election in Britain since the 1970s.

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News and Review of European Economic Zone (UK)

 

Improved Labor Sector UK, Unemployment Rate Down

Friday, April 17th, 2015

 

The number of Britons who work to grow the most in a year in the three months to February and the unemployment rate dropped to its lowest level in nearly 7 years diving. The latest data on employment and earnings before elections next May 7 also shows the rate of wage growth generally slowed in the 3 months to February. Office for National Statistics said the number of employed increased by 248 000 people, the largest increase in the period of 3 months since April 2014, to a record at 31 049 million people. The ONS said the level of employment at 73.4 shows that the increase is not usually to reach a record high.

 

The ONS also said that the UK unemployment rate fell to 5.6%, its lowest level since July 2008 and down from 7.9% in the previous election. The average number of weekly earnings in the three months to February, including bonuses, rose as much as 1.7% in comparison with the same period a year earlier, slowing from 1.9% in January. Outside bonuses, wages rose as much as 1.8%, slightly accelerating. Economists estimate the total wages rose as much as 1.8% and outside the bonus will increase by 1.7%.

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News and Review of European Economic Zone (Greece)

 

Greece Has Time Until May 11 To Approve Reform Plan

Friday, April 17th, 2015

 

Greece has until the Eurogroup meeting in mid-May to approve the reform plan or potentially face a default, the Financial Times reported, citing an official of the European Union on Friday. Pierre Moscovici, European Commissioner for economic and financial affairs, said that the meeting on 11 May will be a defining moment for the Mediterranean.

 

"We still have two important meetings. The opportunity in a meeting in Riga on April 24 will have to be a useful moment in which we want to see real progress in the reform plan. And the next meeting on May 11 should be decisive," said Moscovici told the FT.

 

Greece at risk of running out of cash in the next few months unless they agreed reform initiatives proposed by international creditors. Achieving consensus on reform measures will open the flow of bailout funds for Greece next stage, which is needed to pay loans to the International Monetary Fund.

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News and Review of European Economic Zone (UK)

 

The pound Translucent 3-Week High Level

Friday, April 17th, 2015

 

The pound strengthened against the US dollar and hit a 3-week high, before the US employment data is important. Many investors are reducing its position in the greenback as the expectation of delay interest rate hikes. The series of disappointing data from the world's largest economy led investors to doubt the strength of the US economic recovery.

 

After a fairly quiet trading in the Asian session, investors prepare ahead of average earnings data in the 3-month, claims for unemployment benefits as well as the overall unemployment rate is quite optimistic predicted by analysts. Data released at 15:30 GMT is expected to show an average 3-month earnings will rise at a rate of acceleration equal to the previous data release. Analysts are also optimistic for the data unemployment rate in February was also predicted to be 5.6% lower than the rate of 5.7% a month earlier in the year. Meanwhile analysts are adding to the number of the number of claims for unemployment benefits for the month of March from the previous month.

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News and Review of European Economic Zone

 

Euro Zone Construction Sector Declines Sharply in February

Monday, April 20th, 2015

 

Eurostat reported eurozone construction sector fell 1.8% in February from January, and 3.7% from February 2014. The Strengthening an indication businesses and households are still hesitant to invest despite the euro zone economic recovery began to accelerate.

 

The construction sector began to drop sharply in 2008 when the euro zone financial crisis, and reached its lowest point at the beginning of 2013. The largest economy in the eurozone, Germany, is expected to lead the economic recovery kawaasan even recorded the largest decline in the construction sector, by 3.1 % from January, and 8.1% from the month of February 2014.

 

Some economists pushed the euro zone and Germany in particular to make the investment program which began to recover infrastructure obsolete. Mebteri-EU finance ministers last month called Juncker future plans Plan, the proposed program investasti Commmision European President, Jean-Claude Juncker. The program aims to channel funds worth € 315 billion in investment over four years to the 28 members of the bloc.

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News and Review of European Economic Zone (Greece)

 

Greece Has Time Until May 11 To Approve Reform Plan

Monday, April 20th, 2015

 

Greece has until the Eurogroup meeting in mid-May to approve the reform plan or potentially face a default, the Financial Times reported, citing an official of the European Union on Friday. Pierre Moscovici, European Commissioner for economic and financial affairs, said that the meeting on 11 May will be a defining moment for the Mediterranean.

 

"We still have two important meetings. The opportunity in a meeting in Riga on April 24 will have to be a useful moment in which we want to see real progress in the reform plan. And the next meeting on May 11 should be decisive," said Moscovici told the FT.

 

Greece at risk of running out of cash in the next few months unless they agreed reform initiatives proposed by international creditors. Achieving consensus on reform measures will open the flow of bailout funds for Greece next stage, which is needed to pay loans to the International Monetary Fund.

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News and Review of European Economic Zone (Germany)

 

German Producer Price Index Up Thin in March

Monday, April 20th, 2015

 

German producer price index rose slightly in March from February, but compared with the previous year still showed a decline largely due to a sharp decline in oil prices since the middle of last year.

 

Destatis reported the producer price index rose 0.1% in March from February which also rose 0.1%, largely driven by the increase in fuel prices by 4.4%. However, the increase in March was lower than expectations of economists surveyed by MarketWatch of 0.2%. Compared with March 2014, the index slipped 1.7%, but still better than the decline in February by 2.1%. If it does not take into account the price of fuel, the index rose 0.1% from February, and down 0.5% from March 2014.

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News and Review of European Economic Zone (Greece)

 

Athens Ordered Public Body to the Central Bank Deposit Fund

Tuesday, April 21, 2015

 

The Greek government on Monday issued a decree that requires public bodies such as state-owned enterprises and public pension institutions to transfer their cash reserves to the central bank. Although the decree is not surprising, considering that Athens has circulated a notice last week, it remains a proof step increasingly diminishing government coffers amid renewed concerns about the risk of a Greek default.

 

In a speech in front of reporters last week, Deputy Finance Minister Dimitris Mardas had been warned about the possibility of the application of these measures. "Similar provisions have also been applied in the Netherlands, Portugal and the UK," said Mardas. "It became one of the options."

 

So far, it is unclear when Greece will actually run out of cash. But the ratings agency Standard & Poor's last week predicted the Greek cash reserves will likely run out in mid-May

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News and Review of European Economic Zone

 

Call ECB officials Grexit Impact Limited

Tuesday, April 21, 2015

 

Board of Governors of the European Central Bank, Ewald Nowotny, said the impact of the Grexit, the term used market participants will be a potential Greek exit from the euro zone, will not be the same as the impact in the event two years ago.

 

Nowotny added that he did not see a Greek exit will be followed by the release of the other member states, though he could not estimate the psychological impact will ditumbulkan of a Greek exit. The Austrian central bank governor also said that the time for Greece and krediurnya to reach an agreement began to run out.

 

Greek Finance Minister, Yanis Varoufakis, at the end of last week that a Greek exit can be followed by other countries that use the euro currency

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News and Review of European Economic Zone (Germany)

 

German Economic Sentiment Down in April

Tuesday, April 21, 2015

 

The level of investor confidence in the German economy surprisingly fell in April due to the uncertainty in Greece's debt will likely have an impact on the economy of Europe's largest.

 

The ZEW Center for European Economic Research reported that the index number of investor and analyst expectations for the German economy in the next six months fell to 53.5 in April from 54.8 in March, at the same time break the expectations of a rise to 55.3 by economists surveyed Bloomberg News.

 

However for 238 investors and analysts surveyed by the ZEW still optimistic with the current economic conditions, the index numbers reached 70.2, far up from 55.1 in March.

 

Economists also expect the German economy will grow 0.5% in the first quarter of this year, and will grow at the same rate in the next quarter.

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News and Review of European Economic Zone

 

Coeure: ECB Will Continue to Provide Liquidity to the Bank in Greece

Wednesday, April 22, 2015

 

The European Central Bank will continue to provide liquidity to banks in Greece during these banks are able and have enough collateral, according to the ECB executive board member Benoit Coeure on Greek newspaper, Kathimerini on Wednesday. He said that imposing capital controls is not a "working assumption" the ECB, while speculation about a Greek exit from the eurozone is "impossible." Asked about whether the ECB will return to Athens the profits derived from the Greek bonds were bought at the height of the debt crisis, Coeure said that it depends on whether Greece can complete a review bailout successfully. He added that the uncertainty regarding the Discussion of Athen and creditors dragging down economic activity and the risk to the health of the financial system.

 

According Coeure, in recent days, there is real progress in the quality of the discussion with three institutional creditors - the ECB, the European Commission and the IMF - that might be able to continue in the future. But he added that, however, a significant difference to the subject is still there and still required substantial effort. He hoped Discussion of these can reach agreement.

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News and Review of European Economic Zone (UK)

 

Bank of England Optimistic Against Euro Zone Economy

Wednesday, April 22, 2015

 

Minutes of the monetary policy meeting the Bank of England shows all the members of the board agreed interest rate was maintained at 0.5%, but for two members of the decision is deemed to be "balanced". BOE also estimate the likely inflation will recover faster than expected in the next year. All members jugua agree maintain the asset purchase program worth £ 375 billion.

 

The central bank also showed optimism for the euro zone economic recovery on the terms of the data that was released earlier. Weak demand from the block 19, the country has dropped to burden perekonoian UK in recent years, the Bank of England said the benefits of higher economic growth better than the form of the exchange rate caused by the asset purchase program of the European Central Bank.

 

In the minutes of the Bank of England also did not expect the US economy to show weakness in the last month, but also estimate the attenuation is only temporary. The weakening that occurs in the US and China's economy is successful offset by the euro zone's economic recovery.

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News and Review of European Economic Zone (Italy)

 

Italian Industrial Orders Up Sustained Domestic Demand

Wednesday, April 22, 2015

 

Italian industrial orders rose in February, after sharp falls in the previous month. The increase was supported by domestic and foreign demand. Italian statistics bureau, Istat, reports based on data that have been adjusted for seasonal factors, industrial pensana rose 0.8% in February. As for January was revised to -3.7% from -3.6% the previous release. Domestic orders rose 1.2% in March from January, while foreign orders rose 0.4%.

 

Compared to the previous year and without adjustment, penasan reported up 2.0%. Orders can be a mirror next to the Italian industrial production, which has the second largest manufacturing sector in Eorpa after Germany. Reported industry sales rose 0.4%, from January, while compared to February 2014, sales fell 0.9%

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News and Review of European Economic Zone (Spain)

 

Spain Unemployment Rate Up in First Quarter

Thursday, April 23, 2015

 

Spain's unemployment rate rose in the first quarter of this year from the last quarter of 2014, Spain's economic recovery is still not able to create more jobs. Statistical Bureau of Spain, INE reported the number of people who do not have jobs decreased by 13,100 to 5.44 million. The reduction to be the biggest in the first quarter since 2005. Nevertheless Spain unemployment rate rose to 23.8% the previous daro 23.7%.

 

Spain's unemployment rate is the largest in the EU kedia after Greece which stood at 26% at the end of 2014. During the beginning of the European crisis, the unemployment rate became the highest Spain, before it was taken over by Greece in mid 2012. Spain's unemployment rate reached its highest peak The first quarter of 2014 amounted to 26.9%

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News and Review of European Economic Zone

 

Eurozone Business Activity Slows in April

Thursday, April 23, 2015

 

Eurozone economic recovery slowed in April, although still showing the fastest pace in recent years. A survey of purchasing managers in firms in the region suggests that the economy has come out of a period of stagnation, helped by lower oil prices, the decline in the euro exchange rate, and the level of trust that is stable after the European Central Bank launched a program of monetary stimulus.

 

Markit report the results of the survey showed business activity index, which includes the manufacturing and service sectors, the euro zone fell to 53.5 in April from March at 54.0. A reading above 50 indicates expansion and below 50 indicates contraction.

 

The business activities of the two economic giants euro zone, Germany and France, reportedly slowed down, but activity in the country lainnnya recorded the fastest pace since August 2007. German business activity index slowed to 54.2 from the previous 55.4, and French business activity fell to 50 , 2 from the previous 51.5

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News and Review of European Economic Zone (UK)

 

UK Retail Sales Decline in March

Thursday, April 23, 2015

 

Office for National Statistics reported retail sales in March fell 0.5%, 6.2% drag reduction at the gas pump. Economists surveyed by Bloomberg News had forecast a rise of 0.4%. If not include fuel sales, retail sales rose 0.2%. As for retail sales in February was revised down to 0.6% from 0.7% the previous release.

 

Retail sales contributed 5.7% of the UK's gross domestic product grew 0.9% in the first quarter, far down from 2.2% in the last quarter of 2014. The UK's gross domestic product data will be released on Tuesday next week.

 

The retail sales data signaled the UK economy lost momentum in the first quarter. Prime Minister David Cameron continues to continuing economic recovery in order to convince Britons to vote Conservative on May 7 elections.

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News and Review of European Economic Zone (Greece)

 

Greece Will Not Get Help To Deal Reached Reform

Friday, April 24th, 2015

 

Given a stern warning against Greece at a meeting of finance ministers from the euro zone today, Greece is said to be approaching bankruptcy will receive grants before approving a full economic reforms.

 

Chairman of the Eurogroup, Jeroen Dijsselbloem, closing opportunities requesting aid Greece early with only a partial submit reform proposals. He said the rest of the bailout funds being frozen at € 7.2 billion will not be available again after June, and Greece's creditors would not discuss the long-term financial aid and debt relief to the Athens government reached an agreement full reform.

 

Dijsselbloem also said that the finance ministers will review the progress of the Greek reform program only on May 11, a day before Greece must make payment to the International Monetary Fund, worth € 750 million.

 

PM Greece, Alexis Tsipras, after a meeting with German Chancellor, Angela Merkel, on Thursday said he hoped the deal would be reached at the end of this month. Merkel himself said he would do anything to Greece is not out of the eurozone, but Greece must reform.

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News and Review of European Economic Zone (Germany)

 

German Business Sentiment at Highest Level Since June

Friday, April 24th, 2015

 

German business sentiment improved in April, indicating that the economic recovery in Europe's largest economy, which started last year is still gaining momentum. The Ifo business climate index rose to 108.6 by in April from 107.9 in March, hitting its highest level since June 2014. Economists had forecast a rise to 108.4. Ifo President Hans-Werner Sinn said that the recovery in the German economy continues.

 

Index continues to show the strengthening of the growth rate in 2015 than last year, but the evidence suggests that the reinforcement is limited. PMI survey this week showed that the private sector in Germany grew at a slower pace in April compared to March, while a separate survey by the ZEW also showed poor results grama from the previous month. Sinn added that the manufacturing sector assess their current business conditions improved from last month, but only sedikti optimistic about future business developments.

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News and Review of European Economic Zone (Greece)

 

Greece Reshuffle Team Negotiators

Monday, April 27, 2015

 

Prime Minister of Greece, Alexis Tsipras, overhaul negotiators team that will face European creditors and the International Monetary Fund (IMF). The move comes after Greece's finance minister, Yanis Varoufakis, sharp criticism over its performance in last week's meeting of the Euro zone. Varoufakis, economist known open and forthright, isolated in the euro zone finance ministers meeting in Riga last week and came home empty-handed in the middle of the financial crisis Greece is nearing bankruptcy.

 

Tsipras and his senior officials to express support and approve Varoufakis Varoufakis will be the new team leader to negotiate a reform agreement with the creditors. However, they also pointed to the Deputy Minister of Foreign Affairs, Euclid Tsakalotos, as coordinator of the group. In contrast to Varoufakis, Tsakalotos seen as Oxford economist who tend to be more flexible in negotiating and preferably officials. From now on, Tsakalotos given a more active role in the talks and is expected to give different results

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News and Review of European Economic Zone (UK)

 

CBI Industrial Orders Data Disappointing Pound

Monday, April 27, 2015

 

Pound sterling fell slightly lower against the US Dollar after the release of data expected UK industrial orders rose only slightly in April. Confederation of British Industry (CBI) reported the results of a survey of 468 companies rose 1 point to a level of 1 in April from the zero level in March. Although the survey results above the zero level indicates expectations of an increase in orders, but the increase in April was lower than the market forecast is gaining 4 points to level 4.

 

CBI leaders declared domestic orders still rose by a moderate pace, but orders from abroad slowed unexpectedly. Export activity is still hampered strengthening pound sterling against the euro which made the British domestic products less competitive in European markets. The uncertainties related to the Greek financial sector also weighed on the British industry. Overall, the data CBI lowered growth projections optimism for the UK economy.

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News and Review of European Economic Zone (Germany)

 

German Business Sentiment at Highest Level Since June

Monday, April 27, 2015

 

German business sentiment improved in April, indicating that the economic recovery in Europe's largest economy, which started a year ago is still gaining momentum. By the Ifo business climate index rose to 108.6 in April from 107.9 in March, touching the highest level since June 2014. Economists had forecast a rise to 108.4. Ifo President Hans-Werner Sinn said that the recovery in the German economy continues.

 

The index continues to show the strengthening of the growth rate in 2015 than last year, but the evidence suggests that the gains are limited. PMI survey this week showed that the private sector in Germany grew at a slower pace in April compared to March, while a separate survey by the ZEW also showed poor results lebi from the previous month. Sinn added that the manufacturing sector assess their current business conditions improved from last month, but only sedikti optimistic about future business developments.

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News and Review of European Economic Zone (France)

 

Unemployment in France Reaches New Record High

Tuesday, April 28, 2015

 

The number of unemployed in France reached a new record high in March, fully restores decline recorded at the beginning of this year.

 

The number of job seekers category "A", which is defined as registered jobseekers menanggur entirely, rose 0.4% in March from February to 3.5098 million, the data shown by the labor ministry. The previous record was achieved in December, as many as 3,500,700.

 

That number into pukulam against French President Francois Hollande, who has been targeting the unemployment rate to one of his priorities before the 2017 elections.

 

Parta Socialist leader has been trying to tackle the problem from different angles. He introduced a scheme to sponsor work with young people after he took office in 2012, and last year he implemented tax cuts for employers in an effort to increase the recruitment of workers. The latest plan of the government is an incentive scheme for young people to who have low paid jobs.

 

So far, these efforts only provide little impact. The unemployment rate in France, which is published quarterly by the statistics bureau Insee, has been rising since Hollande became president. Recent figures showed the unemployment rate reached 10.4% level at the end of last year, and Insee expect it will continue to rise to reach the level of 10.6% in mid-2015 because of the increasing number of young people who want to enter the labor market.

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News and Review of European Economic Zone (France)

 

Governor of the Bank of France: French Economy Could Grow 1.5% Next Year

Tuesday, April 28, 2015

 

The economy could grow more than 1.5% in the next year if the government continues its steps to make France more competitive, according to the Governor of the Bank of France on Tuesday.

 

"We could see a 1.5% growth over the next year if we make bold reforms," ​​Christian Noyer said in an interview with radio station Europe 1. The growth rate will be enough to push the unemployment rate, he said.

 

Noyer added that the French government needs to go further in overhauling the labor market. The Government should be able to create a more simple employment contract to help push the younger generation of job insecurity, while the minimum wage should also be more flexible so as not to be a barrier to entering the labor market.

 

Governor of the Bank of France, who will retire this year, also found changes in the controversial labor law would be easier to do today than next year, which France prepares to hold presidential election in 2017. In addition, France is also still need to continue efforts to balance budget.