News and Reviews European Economic Zone

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News and Review of European Economic Zone (Germany)

 

Business confidence in Germany weakened in May

Friday, May 22, 2015

 

For the first time in seven months, the data that measures the German Ifo business confidence weakened businesses during the period of May 2015. Many companies are revising down its business targets for the European economy is weak.

 

German Ifo Business Climate Index fell from 108.6 (April) to 108.5 or the first decline since October 2014. Economists surveyed by the Wall Street Journal earlier this report predicts drop to 108.4.

 

Ifo President Hans-Werner Sinn, arguing that the German economy is moving in the manufacturing sector despite lowering its export targets in May. The Ifo index of solid growth this year, but did begin there are signs that momentum began to fade. Activity in the services sector even touched the lowest level in the last 5 years in May as prices soared sharply in the consumer sector. The ZEW indicator of economic expectations also fell to its lowest since December 2014 in May.

 

Ifo survey results come out every month, in which the figure obtained from interviews with about 7,000 directors of companies engaged in the manufacturing, construction, wholesale and retail. The main question is about the business expectations for the next 6 months following an assessment of the current situation

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News and Review of European Economic Zone (France)

 

French Businessman Confidence level Level Up To 4-Year High

Friday, May 22, 2015

 

French confidence level in the manufacturing sector rose in May to its highest level in almost four years as leaders of the businessmen revised upwards their assessment of recent output.

 

The level of confidence in the manufacturing sector rose further above its long term average of 100 to reach the level of 103 in May, the highest level since August 2011, it was reported by the statistics bureau Insee on Friday. The April figure was revised to 102 from the previous 101.

 

Size widely from business confidence, which includes wholesale, retail and construction services, also rose. The combination of these indicators rose to 97 from 96 in April, said Insee.

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News and Review of European Economic Zone (Italy)

 

Thin Italian Industrial Orders Down in March

Friday, May 22, 2015

 

The number of Italian industrial orders fell slightly in March, as demand from abroad contracted while domestic demand is still stable.

 

Total industrial orders contracted by 0.3% at the monthly level, reversing the positive trend seen in February, the statistics bureau Istat reported on Friday, which uses the data seasonally adjusted.

 

The number of orders from abroad fell 0.5% from February, while domestic demand has not changed.

 

The number of orders 2.7% higher at an annual rate in some things that are not adjusted, Istat added.

 

Industrial sales rose 1.3% at the monthly level in season adjusted, with an increase of 1.9% in demand from abroad, Istat said.

 

Based on the report from Istat, sales rose 0.9% at an annual rate in the adjustment of the working day, led by a rise of 4.5% in overseas demand.

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News and Review of European Economic Zone (UK)

 

Assessing the Impact Will the BoE Brexit

Monday, May 25, 2015

 

The Bank of England is planning to examine the impact of a possible British exit from the EU, according to a statement, confirming email accidentally sent in one of the newspapers about the intentions of the secret research project. The Guardian reported that one of the senior officers BoE said via email that the project should be kept secret from most of many employees BoE and any journalist who asked it should be said that the Bank of England are observing problems in the European economy at large. British Prime Minister David Cameron, who was re-elected on May 7, has pledged to overhaul England bentuh cooperation with the European Union before holding references to the membership until the end of 2017.

 

Such as the Scottish independence referendum last year, the BoE tries to resist the talk that the central bank is entering the political debate. In a statement Friday night, Bank of England confirmed its intention to launch the assessment. According to the statement, is not something surprising if central banks take action against government policies. There are a number of economic and financial problems that arise in the context of a renegotiation and a referendum, and is one of the central bank's responsibility to assess matters related to the objectives.

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News and Review of European Economic Zone (Greece)

 

Greece Can not Be Paying Debt At IMF

Monday, May 25, 2015

 

The Bank of England is planning to examine the impact of a possible British exit from the EU, according to a statement, confirming email accidentally sent in one of the newspapers about the intentions of the secret research project. The Guardian reported that one of the senior officers BoE said via email that the project should be kept secret from most of many employees BoE and any journalist who asked it should be said that the Bank of England are observing problems in the European economy at large. British Prime Minister David Cameron, who was re-elected on May 7, has pledged to overhaul England bentuh cooperation with the European Union before holding references to the membership until the end of 2017.

 

Such as the Scottish independence referendum last year, the BoE tries to resist the talk that the central bank is entering the political debate. In a statement Friday night, Bank of England confirmed its intention to launch the assessment. According to the statement, is not something surprising if central banks take action against government policies. There are a number of economic and financial problems that arise in the context of a renegotiation and a referendum, and is one of the central bank's responsibility to assess matters related to the objectives.

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News and Review of European Economic Zone

 

Germany: Street Settlement Greek Crisis Still Very Complicated

Monday, May 25, 2015

 

German Chancellor, Angela Merkel, said today that still takes a long process to reach a solution of the Greek crisis. Statement that he offers a few moments ago after a meeting with Prime Minister of Greece, Alexis Tsipras, yesterday.

 

Ahead of the summit in Latvia, Merkel admitted that required the approval of third parties involved in the negotiation process to resolve the Greek problem, namely the European Commission, the European Central Bank (ECB) and International Monetary Fund (IMF). Merkel spoke for over two hours with Tsipras and the President of France, Francois Hollande to discuss the issue.

 

However, Merkel also praised the discussion process which he said 'friendly and constructive'. Together Hollande, he even invited the Greek government to come to him when in need of advice or assistance. A Greek official confirmed what was said by the Chancellor of Germany and welcomed the offer that it provides.

 

Greece own their own are in financial difficulties to pay the mortgage debt that will mature later this month. Athena also still has the burden of payments to international creditors and pay off the salaries of civil servants plus retirement fund. The Government has not applied for extraordinary high-level meeting with the finance ministers of Europe but it will likely take the opportunity of discussion at a meeting of the Eurogroup end of May.

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News and Review of European Economic Zone (Greece)

 

The Greek Bailout Negotiations Progress Positive

Tuesday, May 26, 2015

 

German officials on Tuesday to signal that the disbursement of bailout deal for Greece may soon be achieved to avoid the incidence of accidental default after Greece's debt payment due to the IMF amounting to 300 million euros on 5th June.

 

Separately, other euro zone officials expressed teleconference on Thursday will be held to follow up the outcome of negotiations representatives of the Greek government with the creditors of the IMF, ECB and European Commission.

 

Overall Greece needs to pay debts amounting to 1.6 billion euros ($ 1.76 billion) to the IMF in the next month, starting with the first installment of 300 million euros on June 5. Greek liquidity crisis risk is increased if not immediately achieved a new loan deal from the EU / IMF.

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News and Review of European Economic Zone (Greece)

 

Varoufakis: Can Creditors Demand Inhibitory Greece Run Reform

Tuesday, May 26, 2015

 

Greece is committed to free pereknomiannya, reforming the pension system, and run a primary budget surplus accordingly. But Finance Minister Yanis Varoufakis also added Greece difficulty meeting the demand of the creditors to adopt tightening measures this year and step over it can shake the ability to run the necessary reforms. Greece has an obligation to pay the debt with the four a total of 1.6 billion euros to the International Monetary Fund next month.

 

Today the Greek authorities returned the representatives of the European Commission and the International Monetary Fund in Brussels. Both sides are still trying to find a middle ground with respect to the dissent in pension regulations, sales tax, budget targets, and labor.

 

Greece was able to pay its obligations even though not received aid since the summer of last year. Some steps taken to overcome the Greek remedy such curbed spending, hold payments to suppliers and vendors, invite people to pay delinquent taxes, and hold cash reserves of regional governments, hospitals, universities, and other public institutions.

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News and Review of European Economic Zone (UK)

 

Sterling Down to Lowest Level 2 Week

Tuesday, May 26, 2015

 

Pound sterling continued weakening against the dollar and touched a two-week low after data showed US core durable goods orders rose in April, making the dollar received additional personnel to strengthen.

 

The US Commerce Department reported US durable goods orders fell 0.5% in April, but core orders were not entering the transport sector rose 0.5% in the calculation of the previous month, after economists' expectations. Besides the core capital goods orders, which reflects the investment business, rose 1%.

 

Urge the strengthening of the dollar began on Friday after data showed US core inflation rose 0.3% in April, higher than economists' estimates of 0.2%. In addition chairwomen US central bank, Janet Yellen, the same day confirmed its intention to raise interest rates this year.

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News and Review of European Economic Zone (Germany)

 

German Consumers More Optimistic Facing In June

Wednesday, May 27, 2015

 

German consumers back optimistic outlook for the month of June due to the low level of inflation and the recovery of the desire to shop. Monthly data which surveyed 2000 consumers GfK German consumer sentiment resulted in the increase in Germany from level 10.1 in April to 10.2 in the month. This level is the highest level since mid-2001 and could surpass the expectations of analysts Reuters at level 10.

 

There are many factors that influence the increase in consumer optimism Germany. The recovery of export activity, the unemployment rate at its lowest level, increase in wages, and lower interest rates make consumers willing to increase spending.

 

However, the rebound in oil prices since last month to make consumers aware of the possibility of rising inflation. GfK also added to geopolitical factors such as the odds of a Greek exit from the euro area, the crisis in Ukraine, and the anxiety of terrorism can dim consumer optimism

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News and Review of European Economic Zone (France)

 

French Consumer Confidence Declines in the month of May

Wednesday, May 27, 2015

 

French consumer confidence declined in May 2015. French citizens are less confident in their ability to store assets and money because of the economic conditions that have not been as expected.

 

Consumer confidence in the country's second largest economy of Europe fell from 94 (April) to 93 in May. This decrease is the first since the release of the data in October 2014. The average level ideal for consumer confidence itself is at the 100 level.

 

According to data from the statistics agency Insee, the French people are not too confident of being able to save money now and in the future. Consumer attitudes in view of the current financial situation also decreased compared to last April.

 

Insee monthly survey results also show a decline in a sense of concern will be the number pengguran. While the number of household heads who forecast a rise in prices in the market also reduced inflation expectations but still rose in May.

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News and Review of European Economic Zone

 

Nowotny: ECB Can not Accept Greek Collateral Current

Thursday, May 28, 2015

 

European Central Bank should stick to clear rules regarding funding for Greece, according to Ewald Nowotny on Thursday, dimming hopes that the ECB may loosen sukapnya to help Greece who are trying to reach an agreement with international creditors. According to Nowotny, the ECB, it's pretty obvious there are several requirements that must be met, one of which is whether we can accept Greek bonds as assets and collateral, and the answer for now is no.

 

He added that it should be clear that the ECB will not do outside funding rules. Probably out there circulating rumors that the ECB could provide funding for granted, but I think it is not legally possible, he added.

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News and Review of European Economic Zone (Switzerland)

 

Export sector Swiss Franc Exchange Rate Induced by Strengthening

Thursday, May 28, 2015

 

The value of Swiss exports declined in April of 2015. Factors strengthening exchange rate of the franc became the main obstacle for the export offender because it reduces the demand for chemical products, pharmaceuticals and watches mainly from Europe and the United States.

 

Exports in April fell 1.3% compared to the previous year (real calculation) to 16.3 billion francs ($ 17.2 billion), or 5.1% lower. While the volume of imports touched CHF13,4 billion, down 0.7% (real terms) and 8.1% in nominal calculation.

 

April trade surplus increased from CHF2,5 billion to CHF2,9 billion. For the record, watch exports fell 0.8% to a value of CHF1,83 billion, but rose 1.1% when referring to the real calculation.

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News and Review of European Economic Zone (UK)

 

UK GDP Second Estimate Fixed Amounting to 0.3%

Thursday, May 28, 2015

 

Office for National Statistics reported a second estimate of gross domestic product (GDP) England first quarter remained at 0.3% compared with the first estimate. Such data confirm the economic slowdown in the first quarter of the UK. The release also lower than economists' estimates of 0.4%. Meanwhile, for the period year-on-year, GDP also remained at 1.2%.

 

British economy in 2014 and outperformed the G7 economies other woods, but the slowdown that occurred recently raised concerns against the resilience of the UK economy.

 

British economic slowdown in the first quarter due to weak performance of the majority of the services sector, also widening the trade deficit. The service sector is the bone puunggung British economy, which has contributed up to 80%. While manufacturing and construction sectors showed a slight increase, although not able to offset weak service sector.

 

The Bank of England's quarterly inflation report in the May 13 UK lowered its economic growth this year to 2.5% from 2.9%, and for 2016 is estimated at 2.6%.

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News and Review of European Economic Zone (UK)

 

GfK: Consumer UK Increases Pessimistic in the month of May

Friday, May 29, 2015

 

UK consumer sentiment unexpectedly worsened this month as optimism about the economy in the next 12 months SCARA faded sharply, according to survey results from research firm GfK. GfK said that his monthly consumer sentiment index, which is calculated after the victory of the Conservative Party in this month's elections, dropped to +1 from +4 in April, while economists expect no change. Optimism about the state of the economy in the next 12 months fell to the lowest level since January, while Britons also become less optimistic about the prospects for their personal finances.

 

According to Nick Moon, director of social research at GfK, in the short term it shows despite giving the Conservatives a majority in the House of Commons, today's society is not too oprimis about keidupan economy under the leadership of the party. He added that it is very worrying that the economic optimism index is only one point above the level of last year, fell as much as 6 points in May.

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News and Review of European Economic Zone (Switzerland)

 

Swiss economy shrinks; Franc Press Export Sector

Friday, May 29, 2015

 

Swiss economy contracted most sharply in the past 6 years as the strengthening of the franc began to have an impact on the export sector. Gross domestic product fell by 0.2% in the first quarter, after a revised growth of 0.5% in the previous quarter, according to the State Secretariat for Economic Affairs in Bern on Thursday. It was the largest contraction since early 2009 and is under economists' estimates for a contraction of 0.1%.

 

With the franc is still too strong, according to the Swiss National Bank, will continue berlanut downside risks. The data also provide ammunition for critics of the central bank, which said the SNB's decision last January to remove the limit of the exchange rate against the euro endanger the economy. Revocation limit resulted franc soared to a record high against the euro, making industrial companies that export most of their products much trouble.

According to one economist, currently there are signals the beginning of the recession, the second quarter probably will not improve. He also added that the SNB may not need to revise down the growth outlook for this year, because the SNB can ignore it.

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News and Review of European Economic Zone (France)

 

France Consumer spending Amounting Estimates

Friday, May 29, 2015

 

French economic data today re-released disappointing. Consumer spending in Europe's largest economy rose in April, but the increase did not match expectations of financial market participants.

 

Consumers refrained from spending money, especially for durable goods. It made French consumer spending rose only 0.1% in April compared to March and 2% higher than the same month last year (data Insee).

 

Economic analysts surveyed by The Wall Street Journal had previously forecast a monthly rise of 0.2% and 2.5% compared to last year. Insee also revised down figures consumer spending in March from 0.7% to 0.6%.

 

French consumers spend more money for food and clothing in April compared to March. But the number of purchases in large quantities is decreasing. Spending on residential spending fell 0.2% and durable goods also fell 0.4% compared to March.

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News and Review of European Economic Zone (Switzerland)

 

Swiss Manufacturing PMI for May Exceed Expectations

Monday, June 1st, 2015

 

Strengthening exchange rate of the dollar is weighing on businesses in Switzerland, especially those working in the export sector. But the results of the data in the month of May yesterday showed that the country's manufacturing businesses are still strong enough to survive in the midst of a trend decline in economic performance.

 

Figures Purchasing Managers' Index (PMI) Swiss for April rose 1.5 points from 47.9 (March) to 49.4 (adjusted with seasonal factors). The figure was higher than analysts' estimates at the level of 48.1, though still below the expansionary level in figure 50.

 

For the first time since the central bank revoked Franc exchange rate ceiling of 1.20 per euro, the number of orders of goods from Europe increased. The manufacturing PMI tumbled sharply to 48 digits after the Swiss National Bank's decision on January 15 last. The Swiss currency itself is still 14% stronger against the euro than when the exchange rate peg is still valid. EUR / CHF is now observed in the range of 1,033 per Euro.

 

Results May PMI data could be considered in line with the latest results of the KOF report, which measures the Swiss economic outlook for the next 6 months. Institute KOF survey last March said that the national economy could avoid recession during Franc exchange rate is stable at position 1:05 per Euro, despite the growth target in 2015 is also not too high, which is only at 0.2%

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News and Review of European Economic Zone

 

The rate of the Euro Zone Manufacturing Sector Slower Of Estimates

Monday, June 1st, 2015

 

Eurozone manufacturing sector growth is slower than the previous estimate last month as the euro zone's core countries continue to experience difficulties, according to the results of a business survey on Monday. It is likely to disappoint the European Central Bank, which is trying to bring inflation to target, as the survey showed that factories keep prices in May after raising prices for the first time in 8 months in April.

 

To restore economic growth and tackle deflation, the ECB start buying government bonds worth 60 billion euros per month in March and surveys indicate the program has a number of effects. By Markit manufacturing PMI for May is at 52.2, below the previous release at 52.3 but still slightly above the 52.0 in April. Chris Williamson, chief economist at Markit, said that the moderate growth rate is not spektakuuler and there are a number of countries that continue to trouble. Weakening centered on a number of core countries, with the French manufacturing sector is still contracting and slow the growth rate in Germany, he added. PMI manufacturing Germany and France are at 51.1 and 49.4 respectively.

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News and Review of European Economic Zone (Germany)

 

Orders deserted, Figures German Machinery Orders Decline 2%

Monday, June 1st, 2015

 

Economic conditions in the Euro zone experienced a decline evenly, not least in such a big country Germany. Today's data showed that industrial machinery and the country's manufacturing weakened in April 2015 due to low domestic demand and orders from outside Europe.

 

VDMA manufacturing institute stated that the business cycle machine tools is not good. According to the survey of over 3000 companies, both small and medium scale, machining products tend to be sluggish orders in April. Figures machinery orders fell by 2% compared to the same period in 2014, while domestic orders also fell and orders from abroad fell 2%.

 

Trend request from inside and outside the Euro zone is quite in opposition. Order of the Eurozone soared 14% compared to April 2014. However, the increase is not able to offset the decline in the number of orders from outside the euro zone, which reached 7%.

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News and Review of European Economic Zone (Spain)

 

Recovered economy, Unemployment in Spain Reduced Drastically

Tuesday, June 2nd, 2015

 

Spanish labor sector has improved in mid 2015. This indication is evident from the number of people filing for unemployment benefits in the month of May, where the figure fell sharply compared to the previous month.

 

According to the Spanish Ministry of Labor, jobless claims figures dropped as much as 117 985 to 4.22 million. While the number of claims adjusted for seasonal factors, the figure fell as much as 34 160. The rate of decline in claims, either adjusted or not, is the best monthly record for the Spanish labor sector.

 

Spain's economy began to recover gradually since mid-2013 and then, after experiencing recession into both the last five years. Its gross domestic product grew 0.9% in the quarter compared to the last quarter of 2014 prime and grew 2.7% compared to the same period last year. Most of the economic growth supported by tingginnya demand from domestic consumers.

 

The drop in unemployment claims is mostly in the service sector, where the figure slumped 68 826. Followed by other sectors such as construction, industry and agriculture.

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News and Review of European Economic Zone

 

Euro Zone Inflation Up Taller Of Estimates

Tuesday, June 2nd, 2015

 

Inflation in the euro zone rose for the first time in the last six months, and the increase is also higher than estimated by economists. The increase in inflation is also a good news for the European Central Bank which has poured huge funds through asset purchase program to bring the euro zone out of deflation.

 

Eurostat reported konsune eurozone price index in May (year-onyear) rose 0.3%, from the previous month 0%, and higher than economists' estimates of 0.2%. The rise in inflation was triggered by the increase in energy costs, as well as signs of improvement in consumer spending.

 

Eurozone entered a period of deflation in December, the ECB then announced asset purchase program worth that began in March, and ended in September 2016. The total value of the program commonly called quantitaive easing amounting to € 1 trillion.

 

The core consumer price index, which excludes energy and food sectors in the calculation, it was reported up 0.9% higher than economists' estimates of 0.7%

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News and Review of European Economic Zone (UK)

 

Manufacturing activity in the UK Increases Thin in May

Tuesday, June 2nd, 2015

 

Data from Markit / CIPS showed UK manufacturing activity rose slightly in May, which raises doubts about the strength of the British economy in the second quarter in the year. Markit / CIPS report on manufacturing activity index in May amounted to 52.0, while for April was revised down to 51.8 from 51.9 the previous release. Figures index in May was lower than the estimate of analysts polled by Reuters of 52.5.

 

Total labor recruitment manufacturing sector was at its lowest level in the last two years, provide an overview start slowing job creation or explosion since mid-2013.

 

In the first quarter of this year, the British manufacturing output grew only 0.1%. The thin reinforcement bring the British economy grew 0.3% in the first quarter, a percentage lower than economists' estimates of 0.4%.

 

British economic growth forecast this year has been lowered by the Bank of England to 2.5%, from the previous projection of 2.9%

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News and Review of European Economic Zone

 

ECB Hold Interest Rates, Inflation Projection Raise

Wednesday, June 3rd, 2015

 

Amid signs the recovery of the eurozone economy, the European Central Bank still retains lending rate of 0.05% at a policy meeting that ends today. For the interest rate on deposits also maintained at -0.20%.

 

The inflation rate is said to have reached its lowest level at the beginning of this year, and the future is expected to increase, though still low. President of the ECB, Mario Draghi, in a press conference today raised its forecast for inflation this year to 0.3%, compared to projections in March were estimated inflation this year will be flat. As for the projected 2016 and 2017 unchanged at 1.5% and 1.8%. Draghi also said inflation will continue to observe trends, and fluctuations in the short term.

 

For economic growth, the ECB still maintains the projection of 1.5% this year and 1.9% in 2016, but lowered its forecast in 2017 to 2.0% from the previous 2.1%. Draghi said the asset purchase program had a positive impact, and the ECB is planning to maintain the program until the month of September 2016.

 

The ECB also still cautious response to the Greek problem, and provide room for negotiations between Greece with the EU. The ECB will also seek to prevent a Greek exit from the euro zone

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News and Review of European Economic Zone

 

Euro Zone Unemployment Rate Dropped in April

Wednesday, June 3rd, 2015

 

Eurozone unemployment rate in April fell to its lowest level in more than three years, be another positive signal after a previously reported inflation rose for the first time in the last six months. Filling positive data was released from the block 19 countries namely retail sales rose for the first time in the last four months.

 

Eurostat reported euro zone unemployment rate fell to 11.1% in April from 11.2% the previous month. The number of unemployed fell 130,000 in April, the biggest drop in since December 2014. While retail sales were reported up 0.7%, and became the most since January.

 

These data begin to mark the rise of consumer spending, which is a fundamental factor required by the European Central Bank to bring inflation closer to the target of 2.0%. Eurostat on Tuesday reported May inflation (year-on-year) rose 0.3%, from the previous month 0%, and higher than economists' estimates of 0.2%.