News and Reviews European Economic Zone

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News and Review of European Economic Zone

 

Euro Zone Trade Surplus Rises in April

Monday, June 15, 2015

 

Euro zone trade surplus increased in April as the decline in imports. However, slowing export growth indicates if the depreciation of the Euro only bring a little boost to the economy in the region.

 

The EU statistics agency, Eurostat, reported a trade surplus of goods between blocks euros with the rest of the world increased to € 24.9 billion ($ 28.05 billion) from € 14.9 billion in April 2014. Exports rose 1.1%, more slower than in March, while imports fell 1.6%.

 

Such data as well as a depreciation shown evidence that the euro currency since May 2014 has not become a game changer for exporters, while the fall of imports may have helped drive growth for the current quarter.

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News and Review of European Economic Zone (Switzerland)

 

Appreciation of the Swiss franc S****e Growth Prospects

Tuesday, June 16th, 2015

 

The Swiss government on Tuesday cut its forecast for economic growth this year following the terpukulnya exports by strengthening Franc. The government also issued a warning about the potential impact that may be faced by their currency if Greece failed to reach an agreement with the European creditors.

 

"The effect of the decision of the Swiss National Bank lifted restrictions Franc exchange rate in January has worsened the economic outlook, which would still vulnerable to changes in foreign exchange rates," according to the State Secretariat for Economic Affairs or SECO.

 

Franc's appreciation, especially versus the euro, has eroded the competitiveness of exports to Switzerland. Exports were reported down 1.3% in April as weak demand for chemicals, pharmaceutical products and watches from Europe and the US. These conditions encourage SECO Swiss lowered its growth forecast for 2015 GDP to 0.8%, from the March projection of 0.9%. While growth for 2016 is predicted at 1.6%, lower than the 1.8% previously.

 

In the same occasion SECO maintain Swiss unemployment rate projections in the range of 3.3% for this year, and 3.5% for next year. While the average Swiss consumer price inflation is expected to grow 1.0% this year and 0.3% next year, unchanged from the previous projection

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News and Review of European Economic Zone (Germany)

 

German CPI rate of Fastest Growing On In 7-Month

Tuesday, June 16th, 2015

 

German consumer prices grew at its fastest pace in seven months in May, which indicates if the bond-buying program of the European Central Bank may begin to show effect as expected.

 

German consumer price index, which is measured according to European standards, or HICP, rose 0.1% from April and 0.7% from a year earlier, according to final data released by the Federal Statistical Office Destatis on Tuesday. The annual growth was the biggest since October 2014.

 

In the same occasion Destatis also maintain inflation data were calculated according to national standards. Based on the calculation method, German consumer prices in May was recorded to grow at a monthly pace of 0.1% and an annual rate of 0.7%. While the annual Core CPI, based on national accounting standards, reported significant growth of 1.3% as energy prices declined 5% compared to the month May 2014

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News and Review of European Economic Zone (UK)

 

England Back Positive Inflation Rate of May

Tuesday, June 16th, 2015

 

UK inflation rate returned to positive territory in May after drops down to zero level in April for the first time in 55 years, signaling the UK only temporary fall into deflation. Office for National Statistics said the rate of consumer inflation rose by 0.1% in the 12 months to May, recovering from a decline of 0.1% in April. Data in May according to economists' estimates. In the monthly rate, the inflation rate rose by 0.2%, according to the ONS. Bank of England Governor Mark Carney has previously said inflation is likely to grow rapidly as the decline in global oil prices last year began to subside, and the UK is not heading prolonged deflation. Even BoE expects inflation will be close to zero to help the British economy by encouraging the purchasing power.

 

The wages of workers in the UK has increased in recent months. Data on Wednesday is expected to show the basic salary, excluding bonuses, rose as much as 2.5% in the three months to April. The strengthening of sterling against a number of recent major currencies may limit the rate of price increases in the coming months. ONS on Tuesday said that the upward pressure on prices tingakt in May came from a rebound ticket that drag down the rate of inflation in April related to change Easter holiday period in 2015 and 2014.

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News and Review of European Economic Zone (UK)

 

Wage Workers in the UK Rise, Unemployment Rate Stable

Wednesday, June 17, 2015

 

The level of wages in the UK grew by more than expected to achieve the fastest pace in nearly four years in 3 months to April, according to government data Wednesday, the latest signal of recovery in living standards. Office for National Statistics also said the UK unemployment rate was steady at 5.5%, last at its lowest level since 2008. The number of people working rose as much as 114,000 in the three months to April, slowing down as England held a tight election last May 7th. Finally the Conservative Party Prime Minister David Cameron won the election with a majority in parliament, reducing uncertainty about the political outlook. The increase in the level of work to bring the number of people working into 31.05 million people.

 

The average number of weekly wages in 3 months to April, including bonuses, rose by 2.8% compared with the same period a year earlier, accelerating from the annual growth rate of 2.3% in the 3 months to March. Outside bonuses, wages rose by a similar rate. Economists estimate the rate of wages will rise as much as 2.1% and outsized bonuses will increase by 2.5%.

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News and Review of European Economic Zone (UK)

 

BoE Minutes: Hiking Interest Rate Policy Depends Inflation Rate

Wednesday, June 17, 2015

 

Bank of England officials warned that this month the UK could be affected when other nations begin to raise interest rates, but the outlook for UK interest rates are still dependent on the domestic inflation rate. BoE MPC Meeting Minutes June 3 released Wednesday showed all nine members of the board voted to hold interest rates at 0.5%, even after the last month, two board members describe their decision "quite right". MPC board member warned that obstacles to the global growth rate began to subside, which means that some countries will probably begin to normalize monetary policy. Most economists expect the US will raise interest rates this year. According to the minutes, the policy can be extended internationally.

 

However, the Committee agreed that the lines of England's monetary policy will depend on the inflation outlook in the UK and will not be determined by the pace of the other central banks. Minutes of June removing the reference to the previous month on "many factors" related pathways England interest rate policy, and the MPC said that the economic outlook is only slightly changed. The level of consumer spending became a major topic of discussion this month, with a number of members were surprised that the decline in oil prices have a greater impact. Other members said that the impact of falling oil prices will likely be too late felt and will accumulate over time. MPC also mengatkaan that the number of housing loan interest rates have reached a record low. According to the minutes, in this context, the Committee recalled that Laat policy available to the Financial Policy Committee and other regulators are the first line of defense against any financial stability risks that may appear on the housing market.

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News and Review of European Economic Zone

 

Euro Zone Inflation Back

Wednesday, June 17, 2015

 

Euro zone economy back inflation in May, according to European Union statistics office confirmed, Eurostat on Wednesday, as rising food prices, of tobacco, and services offset the decline in energy prices. Eurostat said that the rate of consumer inflation in the euro zone rose at a monthly rate of 0.2% in May to an annual rate of 0.3%, mengkonfrimasi previous estimate. The inflation rate in April stagnant. The inflation rate, which in addition to components of unprocessed food and energy, rose as much as 0.1% in the monthly rate for an annual rise of 0.9%.

 

Eurostat said that in May, the increase in the price of vegetables, restaurant and cafe as well as of tobacco has the greatest impact of the increase in the overall annual inflation rate, while the decline in prices of automotive fuel, heating oil and gas dragged down the inflation index. European Central Bank wants to keep inflation remained below, but close to 2% to an annual rate in the medium term. Worried by the trend of falling prices, the ECB began to buy government bonds in March to flood more cash in the economy and re-raise the price. Some market participants believe that the return of the euro zone into inflation can create ECB to halt quantitative easing (QE) hers, although most of ECB officials have said they plan to run QE to its conclusion. The ECB expects the euro zone inflation rate will rise to 1.5% in 2016 and 1.8%, is close to the target, in 2017

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News and Review of European Economic Zone (Switzerland)

 

SNB Jordan Estimate Will Weaken Franc

Thursday, June 18, 2015

 

Thomas Jordan gives a more optimistic outlook for the franc on Thursday, said the pace of the Swiss National Bank and the development of the global situation could weaken the currency from time to time. Speaking after the SNB kept interest rates at a record low, he said negative interest rates will help fix the valuation is too high. The central bank took off limits franc-euro 5 months ago, to jump-start the exchange rate of the franc to a record, pressing down inflation and weigh on the economy.

 

As the international financial market conditions that began normal, investments in other currencies will become more attractive, and will help reduce the excessive strengthening of the franc, Jordan said in Bern. Slowdown seen in today's economy also shows that the Swiss franc will likely not survive in a high level, he added. Swiss consumer inflation rate is slowing and the economy are on the verge of a recession for the first time in 6 years after the SNB took off limits at 1.20 per euro in January. Commenting on the risk of the Greek crisis on the economy, Jordan said the central bank will maintain a loose monetary policy today and is ready to take further steps if necessary.

Although still too strong Swiss franc against the euro, the franc is not currently getting a strong appreciation pressure, which is likely to explain why the SNB did not cut interest rates, according to economists. In the face of the possibility of confusion pascah acyl Greek debt negotiations, the SNB will probably need a little leeway, he added

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News and Review of European Economic Zone

 

Merkel: Greek deal Requires Steps From Tsipras

Thursday, June 18, 2015

 

German Chancellor Angela Merkel said that the deal with Greece still be achieved if the Greek government's promise to undergo economic reforms on the part of creditors. Merkel did not show attitude softened in a speech in Berlin on Thursday, but he instead compare Greece with other bailout recipients who "take the opportunity" to overhaul their economies. Based on the agreement is government of Prime Minister Alexis Tsipras and the euro zone creditors last February 20, he said that Greece must commit to "a comprehensive structural reform," which will largely continue.

 

Greece has received the solidarity which is very rare in the last 5 years, according to Merkel. The basic principle still applies, the bailout fund for those who want to carry out reforms, he added. The views of Merkel considered influential because he is the leader of the country's largest contributor to the bailout of Greece worth 240 billion euros (273 billion dollars). The intervention of the minister himself comes as the eurozone economy will meet in Luxembourg today in an effort to resolve the impasse over help that occurred since February. Currently the market is still pessimistic about the euro zone finance ministers meeting today will produce meaningful solutions.

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News and Review of European Economic Zone (UK)

 

UK Retail Sales Slows level of May

Thursday, June 18, 2015

 

The pace of growth in UK retail sales figures slowed sharply last month after scoring a strong result in April, as consumers buy fewer clothes, according to government data on Thursday. The volume of retail sales rose as much as 0.2% in May, roughly in line with economists' estimates, to show the growth rate of 4.6% to an annual rate, according to the Office for National Statistics. Economists expect retail sales will be flat in May after a revised down to show a gain of 0.9% in April, while clothing sales skyrocketed due to the warm weather that is not baisanya. Contrast to this, in May colder than usual.

 

The ONS said sales of clothing fell by 1.6% from April, the biggest drop since September 2014. The food store grabbing a good month, with volume rising as much as 0.6%, the biggest gain since December. Survey the private sector have given the opposite picture in May. Confederation of British Industry reported the pace of retail sales growth the fastest since December, while the British Retail Consortium said the growth rate of sales of more lembat.

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News and Review of European Economic Zone (Germany)

 

German Producer Price flat in the month of May

Friday, June 19th, 2015

 

The level of prices of goods leaving the factory Germany in May unchanged from April, but continued to fall in the annual rate.

 

Producer prices fell by 1.3% from May last year, due to lower energy prices, reported by the statistics bureau, Destatis on Friday.

 

The economists surveyed by The Wall Street Journal predicted to rise 0.2% on the monthly level and down 1.1% at an annual rate.

 

Factory prices affecting the price paid by consumers.

 

Excluding energy prices, which are volatile, producer prices in the country with Europe's largest economy is flat on the monthly level and down 0.3% at an annual rate.

 

Energy prices fell 0.2% from April and down 4.1% from May last year, Destatis said.

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News and Review of European Economic Zone

 

EU Will Hold Emergency Meeting On Greece on Monday

Friday, June 19th, 2015

 

Euro zone leaders will try to reach a Greek bailout deal delayed at a crisis meeting in a hurry on Monday, after finance ministers again failed to bridge the gap between Greece and its creditors.

 

Jeroen Dijjselbloem, the leader of the Euro-area finance ministers, said that Athens did not present a significant overhaul of policy and spending reductions on Thursday night to create a new financing agreement that is credible.

 

Dijsselbloem said that too little progress was made overnight between the finance ministers and Greece and I regret to say that there is no agreement in sight.

 

After nearly five months of full negotiations, the decision of whether Greece can avoid defaut and survive in the euro area as a member of the group of the single currency, now back in his fate in the hands of 19 Euro zone countries. "The meeting on Monday will be something positive or negative, said one EU official.

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News and Review of European Economic Zone

 

ECB Raise Limit ELA for Greece

Friday, June 19th, 2015

 

European Central Bank (ECB) has raised the program funding Emergency Liquidity Assistance (ELA) to his Greek banking sector as much as 3.3 billion euros (3.7 billion dollars), according to CNBC sources. The decision, taken at a teleconference Friday and first reported by Reuters, following a meeting of euro zone finance ministers on Thursday, in which the ability of Greek banks to remain in business next week is questionable. This happens after the flow of funds out of the Greek banking sector piled up, even after re-negotiating the bailout deal failed.

 

Valuation Greek banking sector has dropped by almost a third since the beginning of June as concerns about the risk of a Greek exit from the euro zone. On Friday morning, the banks remain open in the center of Athens and it seems there are some people who continue to withdraw money at an ATM, according to CNBC observations. The mood of investors seems quite quiet and no queues that occur, making it difficult to assess whether banks are becoming more crowded than usual on Friday morning.

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News and Review of European Economic Zone

 

ECB Back Raise ELA Facilities For Greek Banks

Monday, June 22, 2015

 

The European Central Bank has raised its emergency loan facility provided to the Greek banks, as an effort to offset the increase in the outflow of deposits amid continued uncertainty about the country's bailout program, according to an official at Greece's central bank on Monday.

 

Step ECB raised ceiling Emergency Liquidity Assistance program or the ELA is the 3rd time in less than a week. This facility will help the Greek central bank to provide liquidity to the banking sector.

 

"Today the Board of Governors had a meeting and decided to increase the limit on the ELA," said central bank officials, without giving details on the amount of liquidity provided to Greek banks. "Board of Governors of the ECB is ready to again meet via teleconference, when needed," he added.

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News and Review of European Economic Zone

 

Deal signaled Greece Boost Optimism

Monday, June 22, 2015

 

Global stock markets and bond markets Euro zone peripheral region boosted optimism that Greece and international creditors will be festive deal the final moments thus avoiding the danger of a Greek default.

 

Prime Minister Alexis Tsipras will meet with Chairman KomisiEropa, ECB and IMF on Monday ahead of the Eurozone summit tonight to reach a negotiated settlement bailout.

 

Staff Head of the European Commission, President Jean Claude Juncker expressed latest proposals recently received from the Greek, is great progress, while other European Commissioner Pierre Moscovici more optimism that a deal can be achieved. As a result tertopang sentiment although there are still many uncertainties, the German stock index surged 2.5%, while Spanish and Italian bond yields for 10-year tenor slipped 12 basis points.

 

Various analysts estimate the probability of a deal when it increased to 75%, though it is still unfortunate if a new deal can be achieved at the last minute / final moments before the deadline.

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News and Review of European Economic Zone (Greece)

 

Greece Proposal Submission Recent Reforms

Monday, June 22, 2015

 

Greece submitted a new reform proposals to creditors, such a move could be the last effort to get aid Greece to avoid default next June 30. Athens government has said that without the aid, Greece will not be able to pay the debt due on that date amounted to € 1.5 billion to the International Monetary Fund.

 

The Greek government on Sunday approved a package of proposals with regard to budgets in order to meet the demands of its creditors to achieve the fiscal targets.

 

President of France, Francois Hollande, confirmed Greece has submitted a new proposal. While EU diplomats say the proposal has not been accepted, but the representatives of Greece and its creditors, including the IMF will say will soon have a meeting.

 

Fear of default makes miiaran euro fund reportedly withdrawn from banks in Greece last week. Quoting from CNBC, several sources in Frankfurt and Brussels said the European Central Bank board members will meet today to discuss the emergency loan program for Greece. The source said pre-orders for withdrawal on the day in Greece has reached € 1 billion.

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News and Review of European Economic Zone (Greece)

 

Greek Bailout Proposal Raise Hope For A Deal

Tuesday, June 23, 2015

 

The creditors Greece indicates for the first time that an agreement to avoid the bankruptcy of Greece is starting to look after proposals submitted by Athens on Monday made significant concessions to the reduction of the pension fund.

 

Euro zone finance ministers, who met on Monday afternoon ahead of a meeting of euro zone leaders, saying that more work is needed to ensure the figures of Greece in line with the demands of creditors, but talks will continue in the hope an agreement will be reached this weekend ,

 

This latest offering is the latest breakthrough potentially decisive bailout negotiations after negotiations that lasted for four months.

 

President of the European Council, Donald Tusk said that there are some promising things that have happened, including talks on Monday. Greece latest proposal is the first proposal rill in recent weeks.

 

Jeroen Dijsselbloem, Dutch finance minister, who chaired the meeting said that the first assessment of the institution mengawasai the Greek bailout, the European Commission, the European Central Bank, and International Monetary Find, find a new plan to be a "broad and comprehensive. He also added that yet they need to look specifically to see if it adds to the fiscal terms, if reform is comprehensive enough for an economic recovery that is ready to bounce back

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News and Review of European Economic Zone (France)

 

French Businessman Confidence Down in June

Tuesday, June 23, 2015

 

The level of confidence in the French manufacturing sector fell more than expected in June as business leaders become more cautious about the outlook for their bookings and the current production levels.

 

In June, business confidence in the manufacturing sector fell to 100, the indicator for the level of the long-term average, from 103 in May, reported by the statistics bureau Insee on Tuesday. The economists surveyed by The Wall Street Journal estimated that it fell one point to 102.

 

A decline in confidence in the manufacturing sector was dragged by a broader indicator of business confidence which includes wholesale, construction, retail and services. The indicator fell to 97 in June from 98 in May.

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News and Review of European Economic Zone (Germany)

 

German economic Get Momentum, Manufacturing & Services Sector Gains in June

Tuesday, June 23, 2015

 

German economy get momentum this month, with the index of business activity rose more than economists forecast.

 

Markit Economics said on Tuesday that the composite index of manufacturing and service sectors rose to 54 from 52.6 in May. The figure is above the 50 level that divides expansion from contraction between and stronger than the reading of 52.7 economists surveyed by Bloomberg.

 

The current Bundesbank raised its economic forecasts for Germany amid growing consumer optimism, the outlook for the Euro area is currently overshadowed by the Greek crisis with its creditors. Markit report showed new businesses were occupied by German companies rose only slightly this year, and job creation slowed from the month of May.

 

Oliver Kolodseike, economist at Markit said that economic data gave a mixed picture of economic health in the private sector Germans. At the time the company reported that output rose at the strongest rate than in May, the latest rise in new business and the workers are few and showed that activity growth will probably slow again in the coming months.

 

With an average reading for the second quarter, overall slightly weaker than three bualn first period of this year, economic growth may not be lifted since the first quarter, added Kolodseike.

 

For the month of June alone, Markit's manufacturing index for Germany rose to a level of 51.9 from 51.1 in May.

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News and Review of European Economic Zone (Germany)

 

Confidence level Businessmen Germany Dropped Due to volatility Greece

Wednesday, June 24, 2015

 

German business confidence levels fell for the second month in a sign of concern that the volatility of any Greek debt problems will reach to the level of countries with the largest economy in Europe.

 

Business climate index from the Ifo Institute fell to 107.4 in June from 108.5 in May. Based on a Bloomberg survey of 40 analysts showed a median estimate for a decline to a level of 108.1.

 

The current German economic growth is supported by the number of unemployed who are in record low, uncertainty over the unity of the Euro area is still overshadowing the outlook for the country. If governments in the Euro area failed to reach an agreement with Greece on reforms to open up the bailout payments, the country can not pay the debt and ultimately forced out of the Euro bloc.

 

Level German investor confidence fell for a third month in June. However, the purchasing managers' index from Markit Economics published on Tuesday rose more than economists forecast, showing rapid economic growth momentum.

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News and Review of European Economic Zone (UK)

 

BoE's Cunliffe: English Start Shows Increased Productivity

Wednesday, June 24, 2015

 

Productivity England should begin to show improvement over the next few years following the prolonged slump after the crisis, according to an official of the Bank of England on Monday.

 

Jon Cunliffe, BoE Deputy Governor for financial stability and one of nine members of the Monetary Policy Committee voting, see several factors began to indicate if the growth in productivity will continue after stagnating for 8 years, albeit at a moderate pace.

 

Productivity in the UK, as measured by output per worker, has stalled when the financial crisis occurred and showed almost no growth since 2007, referring to official government data. And for the moment, the UK productivity is still about 15% below pre-crisis growth trends and lags about 30% behind the US, Cunliffe added in a speech in Luton, England.

 

Increased productivity has played a key role in driving the economic growth potential of the world and is the main motor in raising living standards.

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News and Review of European Economic Zone (Greece)

 

Greece Back Rejected proposals International Creditors

Wednesday, June 24, 2015

 

Greek Prime Minister Alexis Tsipras on Wednesday to convey to his government that international creditors have again rejected the latest reform proposals put forward Athens, according to media reports citing a Greek government official.

 

Greece has submitted a new offer through the proposals on Monday. The assessed market participants as the latest government effort to dilute the much-needed financial assistance to avoid default.

 

Tsipras's comments on Wednesday leveled before he flew to Brussels to hold an emergency meeting, which will discuss the reform measures with the head of lending institutions. Greek PM is scheduled to meet with European Central Bank President Mario Draghi, head of the International Monetary Fund Christine Lagarde and European Commission President Jean-Claude Juncker, ahead of a meeting of the Eurogroup. A reform agreement is expected to be achieved before the EU summit on Thursday.

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News and Review of European Economic Zone (Greece)

 

Tsipras Race Time To Deal With Creditors Bailout

Thursday, June 25, 2015

 

Greece stumbled to closer to default as the other days of negotiations that ended in several hours earlier without Adaiah ended with an agreement to end the deadlock.

 

With the Greek government said that they cling busily engaged in a meeting in Brussels on Wednesday, EU officials said that the talks are only a few resulted in progress and there is no breakthrough in sight. Prime Minister Alexis Tsipras and the three heads of agencies creditors agreed to hold another meeting on Thursday after they break a few hours.

 

The race for a deal is increasing as Greece moved closer to the deadline for payment of the bailout on June 30 without an agreement in place that will ensure they can meet the payment of 1.5 billion euros ($ 1.7 billion) to the International Monetary Fund maturing well on the day the same one.

 

Minister of Finland, Alexander Stubb told reporters after a meeting of euro zone finance ministers in Brussels that the current conditions more difficult. the ministers will meet again at 13.00 local time on Thursday, then "we hope will have a concrete proposal." The proposal was very important untu keep the discussion process is still going on.

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News and Review of European Economic Zone (Germany)

 

GfK: German Consumer Sentiment Hit By Crisis Greece

Thursday, June 25, 2015

 

German consumer sentiment deteriorated slightly for the month of July for the first time since October, reported by analyst group GfK market in their monthly survey on Thursday, as the Greek crisis burden the country with the largest economy in Europe.

 

GfK consumer sentiment index, which measures the future dropped to 10.1 points in July, from 10.2 in June, came slightly below economists' estimates in a survey by The Wall Street Journal for the reading of 10.2.

 

GfK said that the Greek debt default and the country's exit from the Euro zone, which previously looked likely not happen by analysts, the current scenario seems very realistic.

 

GfK said that previous attempts that failed to find a solution to the Greek debt crisis as well as the default which will come at the moment seems to dampen the economic outlook by German consumers. Current conditions raises doubts in the minds of consumers, because the consequences of a Greek exit can not be predicted at this time.

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News and Review of European Economic Zone (Switzerland)

 

SNB Braces For Potential Impact "Grexit"

Thursday, June 25, 2015

 

Swiss National Bank is ready to anticipate considerable market turmoil if Greece is forced out of the Euro bloc and will fight it out against the Swiss Franc longs that have been overvalued, according to the chairman of the central bank on Thursday. Franc continues to reap the encouragement of ultra-loose monetary policy in the euro zone, where the debt crisis in Greece is entering a decisive phase. While the SNB in ​​January and has suspended restrictions on the exchange rate of the franc against the euro.

 

Failure of Greece to reach an agreement with international creditors will likely intensify the safe-haven flows into the Swiss currency and will trigger further action from the SNB, which has sought to weaken the Swissie by imposing a negative reference rate and the cost of deposits in francs.

 

"The situation Greece has weighed on the financial markets. The uncertainty related to Greece makes the Swiss franc remains a safe-haven currency," said the SNB chairman Thomas Jordan in an event organized by the Swiss watch industry in Lausanne. "But our main scenario is Greece remained in the euro bloc. The exit of Greece from the currency bloc at risk triggering market turmoil.