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News and European Economic Review (Germany)

 

German Bonds Rise Related Assessment Will Greece

Monday, 19 September 2011

 

German bonds rose as the European Union and the International Monetary Fund (IMF) has been prepared to assess whether Greece can meet the conditions to rescue the nation amid fears of debt default.

 

Two-year German bonds rose for a second day, pushing yields below 0.50%. The MSCI Asia Pacific Index of shares fell 1.6% and stock index futures declined in Europe, enhance the attractiveness of Germany as a haven debt. Slovakia is currently scheduled to sell bonds maturing in 2020.

 

German government bonds have returned 7.6% this year, according to indexes compiled by the European Federation of Financial Analysts Societies and Bloomberg. Cash grew 8.1%, the index showed. Greek bonds have fallen 34%.

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News and reviews Economy Europe (Switzerland)

 

SECO Cut Estimate Swiss GDP Growth

Tuesday, September 20, 2011

 

State Secretariat for Economic Affairs Switzerland today lowered 2011 and 2012 growth prospects, citing the negative impact of high valuations Swiss francs on exports and corporate investment. The federal government's expert group is projecting growth in 2011 at 1.9 percent, down from an earlier estimate of 2.1 percent.

 

For 2012, the expansion is estimated at 0.9 percent compared with the previous forecast of 1.5 percent. quarters of economic contraction may occur, the report said. But this expert group said if the possibility that the Swiss will not slip into a deep recession during the global economic situation does not return decreased dramatically. As a result of economic weakness, the unemployment rate in the coming years are likely to rise for the first time since 2009, said the group.

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News and European Economic Review (Germany)

 

German Producer Price Inflation Declines

Tuesday, September 20, 2011

 

German producer price inflation declined in August, according to data from the Federal Statistics Office. Producer prices rose 5.5 percent year-on-year in August, while economists estimate if the inflation rate remained steady at 5.8 percent in July. On a monthly basis, producer price index fell 0.3 percent compared with forecasts for no change.

 

Annual increase is driven by a 10.7 percent annual jump in producer prices in the energy sector. In addition to energy, producer prices rose 3.3 percent in August compared to last year. The cost of intermediate goods producers increased 4.9 percent year-on-year due to higher prices in the metal. Factory costs for consumer goods increased 3.7 percent compared to August last year.

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News and European Economic Review (UK)

 

UK Banking Back Interest

Tuesday, September 20, 2011

 

Monexnews-back London's FTSE stock index is stable on Tuesday as market participants respond to the news of London's credit rating downgraded Italy's latest is not too negative, especially after the issuer has sufficient banking stocks battered in the previous session.

 

Following through on Monday characterized by massive sales, the financial sector now looks cheap to sustain overall technical rebound on the FTSE index.

 

Observed Lloyds Banking Group recorded a best performance of the financial sector, up 1.3%, while Barclays rose 0.8% and HSBC rose 0.9%.

 

The next focus will be focused on ahead of Federal Reserve monetary policy meeting which lasted for 2 days, the U.S. central bank is expected to launch the third round of economic stimulus. If the Fed fails to implement measures of U.S. economic stimulant, whereas the shares could easily drop again.

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News and European Economic Review (UK)

 

GBPUSD drop again below 1.5650

 

Wednesday, September 21, 2011

 

Strengthening pound sterling from 1.5631 at the low point earlier this week stuck in the 1.5745 area after a period of consolidation, the currency pair GBPUSD vanish again to continue weakening to below the 1.5650 area.

 

The results of the BoE meeting has not taken the decision despite the expansion of QE, but keep pressing the pound sterling in line with the results of the BoE minutes showed that inflation will come down again to 2% in 2012, besides the increase in public sector lending to touch the highest point of 16 billion Pounds Sterling also hurt.

 

Technically speaking, the area fell below 1.5650 should trigger further bearish scenario targeting 1.5500 area before heading to the strong support 1.5344. On the upside, resistance levels are located in the area of ​​1.5680 & 1.5780.

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News and European Economic Review (Greece)

 

Minister Admits Greek Market squeezed

Wednesday, September 21, 2011

 

Greece is being blackmailed by the European market and did not manage a crisis quickly and decisively as it should, Greek Finance Minister Evangelos Venizelos said on Wednesday (21 / 9).

 

Citing Reuters, The Greek government will make an announcement on Wednesday about the austerity measures are discussed with international lenders to save the country from bankruptcy, a government spokesman said. The report is expected to be made after a cabinet meeting where the Venizelos will present a proposal for austerity measures as ordered by the European Union / International Monetary Fund.

 

Venizelos, who discussing for two hours on the telephone with senior officials from the EU and the IMF on Tuesday night, said that without the supervision of Troika (EU, IMF, and the ECB) state finances will slip.

 

The inspectors are encouraged Greece to accelerate the savings and reforms needed to liquefy than 8 billion euros of bailout money next month. "In order to further our negotiations, the steps and announcements will be made this afternoon," said deputy government spokesman Tolkas Greece Angelos told state television.

 

A Finance Ministry official said on Tuesday after the conference that Greece has agreed to prioritize the steps that are called "medium-term plan, in which Greece has committed to reducing the budget deficit through 2014 and sold 50 billion euros of state assets.

 

Greek media reported on Wednesday that the steps which may include dismissal of the accelerated state workers, pensions and wage cuts for civil servants, the increase in heating fuel tax and property tax extension.

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News and European Economic Review (UK)

 

UK Budget Deficit Swelling

 

Wednesday, September 21, 2011

 

England recorded the largest budget deficit in August since 1993 as skyrocketing government spending and reduced revenues from income tax. UK budget deficit in August, which does not include funding of the banking sector, swelled to? 15.9 billion ($ 25 billion) in comparison? 14 billion in the same period last year, according to the National Statistics Office report in London today.

 

Doubts about the ability of the Minister of Finance George Osborne in achieving the target of trimming the budget deficit also increased after the IMF on Tuesday lowered its growth forecast UK, U.S. and Eurozone, while warning about the need for a strong action to prevent a return to recession.

 

"It appears that the public finances increasingly responding to the slowdown in the economy, so that the institution must recalculate the budget likely target in 2011," said Philip Shaw, economist at Investec Securities in London. "The financial sector also have increased the chances of the public launch of a new round of QE of the Bank of England."

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Europe Economy News and Review

 

Central Bank is now Becoming Euro Net Seller

Thursday, September 22, 2011

 

Euro weakening dramatically triggered by central banks in developing countries are now net sellers currency.

 

Previously the bank to diversify into the euro through trade and internvensi market and strive to maintain their euro reserves, but this has turned particularly Asian central banks appear in the last few days.

 

On Wednesday, most banks are buying the dollar against the euro, to sell the single currency against the local currency as the global financial market panic.

 

This means that the euro currency will be more sensitive to negative data, along with perbalikan direction of foreign exchange reserves of central banks in emerging markets which previously had reached a total of $ 70 billion per month and about $ 25 milyarnya convert to the euro currency.

 

Since August, demand for diversification in the euro sharply lower, around 60% and still continues in August. This change is quite big compared to the situation since January to July.

 

If the slowdown in eurozone growth is continuing and the added tension of the debt crisis, it is not impossible Euro towards 1.3000 area.

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Europe Economy News and Review

 

European Stock Exchange The Sunset

Thursday, September 22, 2011

 

European stock markets collapsed on Thursday, led by financial stocks as the issuer's pessimistic view on the Fed's economic outlook positive sentiment to remove the stimulus are disbursed by the central bank.

 

Observed so far London's FTSE stock index fell -4.68% to as low as 5,001.00, while Germany's DAX stock index fell -4.74% in the level of 5,187.0 and France's CAC -5.74% traded sharply lower at the level of 2,775.0.

 

Adding to the bad macroeconomic, reports the euro zone manufacturing and services sector contracted in September. PMI composite index fell to 49.2 in September from the previous 50.7 in August. Business activities that fall below 50.0 indicating contraction for the first time since July 2009.

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News and European Economic Review (Greece)

 

Greece Continue Reform

Thursday, September 22, 2011

 

Greece would suspend civil servants than previously planned and cut the pension fund as a budget austerity program designed to relieve anxiety creditors.

 

This step was taken after going through a long cabinet meeting as well lay off civil servants this year from 30,000 to 20,000. Besides the monthly pensions above $ 1,636 will be subject to new cuts.

 

In terms of state revenue, tax-free limit on annual income will diterapangkan of $ 6.818 compared to the previous $ 10.908.

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News and European Economic Review (Greece)

 

Moody's Cuts Rating 3 Bank of Greece 2 Not

Friday, September 23, 2011

 

Moody's Investors Service on Friday 8 ratings downgrade Greek banks each of two notes in the middle of a struggling domestic economy and the decline in deposits as the market predicted.

 

Citing Reuters, Moody's said the outlook for all ratings remains negative. This review re-rating downgrade on 25 July.

 

Moody's cut its rating National Bank of Greece, EFG Eurobank Ergasias, Alpha Bank, Piraeus Bank, Agricultural Bank of Greece and Attica Bank to Caa2 from B3. Emporiki Bank of Greece and General Bank of Greece downgraded to B3 from B1.

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News and European Economic Review (French)

 

French Regulator: 15-20 European Banks Need to be recapitulated

Friday, September 23, 2011

 

Head of the French market regulator said on Friday (23 / 9) that 15 to 20 European banks need to be recapitalized.

 

"There is a problem in Europe with a capitalization of banks," said Jean-Pierre Jouyet, head of market regulator AMF, said on Europe 1 radio. "There are 15 to 20 banks in Europe that need to be recapitalized."

 

Asked if there are banks that need recapitalization of France, he added: "Not at this stage".

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Europe Economy News and Review

 

ECB's Coene: Central Bank Ready to Act If Outlook Worsens

Friday, September 23, 2011

 

European Central Bank is ready to act at the beginning of next month to address the risks to euro zone growth if economic data continues to disappoint, according to one member of the Board of Governor Luc Coene ECB in an interview in Washington.

 

"The ECB can not ignore the data before," says Coene, when asked about possible cuts in interest rates. "If the data in early October showed the figures are worse than anticipated, the central bank would soon take action to respond," says Coene, which is the Belgian central bank governor.

 

With quiet today's economic data, market focus makes just drawn to the G-20 and IMF meetings in order to obtain the latest indication of the handling problems of Greece and the steps to lift global economic growth.

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Europe Economy News and Review

 

Try Mute Euro Fall

Monday, September 26, 2011

 

Euro tries to recover as European stocks rise as result of the expectations the European Central Bank will cut interest rates to shore up the economy that was dirudung-euro zone debt crisis. Monetary ECB council member, Ewald Nowotny, spell out the possibility of cutting interest rates should not be ruled out. German Ifo economist Klaus Abberger, predicted the ECB will cut interest rates to as low as 1%. Hope this works ECB monetary easing investor panic will reduce the ability of European Greece prevent default.

 

Euro could touch $ 1.3362 against the dollar and? 101.94 against the Asian session before the session starts cutting decline in London. German business sentiment index is not as bad as expected also to give positive sentiment. Business sentiment fell to 107.5 in September, but better than the prediction of 107.0. "Not too bad business sentiment had muffled fears of recession for a while, but gave warning that Germany must work hard to maintain growth momentum," said Carsten Brzeski, an economist at ING.

 

EUR / USD now traded 1.3453, 1.3362 away from the daily low levels. EUR / JPY traded 102.74, recovering after a touch-101.94.

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News and European Economic Review (UK)

 

Sterling urges U.S. Dollar, Market Response Pre Release Test Data

Monday, September 26, 2011

 

Pound sterling currency on foreign exchange trading GBP / USD pair this evening (26-09) rallied and tracked the pair traded at around 1.5514.

 

As rival the U.S. dollar, pound sterling strengthened along with the increasing positive investor sentiment related to the expected drop in U.S. housing sector performance.

 

Indicator New Home Sales is expected to show a decrease in performance and potentially decreased to 296K from 298K the value of the last period.

 

Analyst Research Vibiz of Vibiz Consulting suggests that the pound sterling currency on the currency pair GBP / USD is estimated to be strengthened further, especially to data made ​​public.

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News and European Economic Review (UK)

 

Maintaining Fighting Area 1.5500 pounds

Monday, September 26, 2011

 

Pound rallied from a low position on Thursday at 1.5328 seems to lose momentum after touching the daily high at 1.5554 level, which suppress the GBPUSD back down and traded in the range of 1.5510 or 0.2%, still above the opening price today.

 

"However, short-term bias remains positive. Overbought condition shown in the graph per hour may be able to trigger a correction before the new rally," said Slobodan Drvenica, an analyst at Windsor Brokers Ltd.. Closest resistance can probably be found in the area before heading 1.5575/1.5600 strong resistance at 1.5630, he added.

 

Currency pairs are losing momentum as the easing of bullish market sentiment in the last hour and especially after the opening session of Wall Street. Shares in Europe and the United States is moving away from the daily high positions have provided opportunities for the U.S. dollar to move higher across the board.

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News and European Economic Review (UK)

 

Sterling Commerce Urges Induced Yen Shares

 

Tuesday, September 27, 2011

 

Pound sterling currency to trade GBP / JPY this afternoon (27-09) rallied and tracked the pair traded at around 118.85.

 

Pound Sterling strengthened along with the presence of positive signal on the British economy, where it is shown by an increase in performance at stock trading in the country.

 

FTSE 100 INDEX observed in today's trading rose +2.33%, and potentially continue the rebound.

 

Analyst Research Vibiz of Vibiz Consulting argued that Sterling on the currency pair USD / JPY is expected to remain thin can be strengthened further, in the intraday trading range is relatively limited.

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Europe Economy News and Review

 

German & Spanish Discourse Decline Further Expansion EFSF

Tuesday, September 27, 2011

 

Steffen Seibert, a spokesman for German Chancellor Angela Merkel, on Tuesday said that the German government will not support the discourse to expand the scope of the European Financial Stability Facility (EFSF) beyond what was agreed in July last. EFSF will still run like what has been set at July 21, he added.

 

Earlier, Spanish Finance Minister Elena Salgado has also been said that the EU authorities have no plans to expand further EFSF. Speculation about the increase in strength EFSF has sparked a rally in global stock markets all week.

 

While on the same day the ECB also announced that they are ready to conduct liquidity operations 12 months if needed. The news adds to growing optimism on the handling of the debt crisis in the euro area, and adding more pressure on the greenback.

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News and European Economic Review (Greece)

 

Default Will Greece Promises Inevitable

Tuesday, September 27, 2011

 

Greek government promised to meet budget targets and avoid default just before the crucial vote of the German parliament. The Greek government hopes to secure a property tax increase package of assistance from international creditors.

 

Greek Finance Minister Evangelos Venizelos give comments at a news conference Tuesday that it hoped the Troika delegation will give a positive signal to loloskan rescue package for Greece in October.

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News and European Economic Review (UK)

 

Sterling Strengthens Pre Release Data

Wednesday, September 28, 2011

 

Core indicators of recent data Durable Goods Orders m / m which is scheduled to be released by the Census Bureau, is expected to show a less favorable indication of developments in the economies of the United States.

 

The impact of data releases to trade GBP / USD pair this afternoon (28-09), which monitored the movement of a stronger currency is the pound sterling which rivals the U.S. dollar.

 

The forex market responds to this by encouraging early GBP / USD so it is in the range 1.5634.

 

Core indicators of recent data Durable Goods Orders m / m are predicted to decline to 0.1% from 0.8%.

 

Analyst Research Vibiz of Vibiz Consulting suggests that the pound is still potential to further strengthen especially up until the data is actually released.

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News and European Economic Review (Finland)

 

Finnish Parliament approves expansion EFSF

Wednesday, September 28, 2011

 

Finnish Parliament on Wednesday approved the expansion of the bailout EFSF, as agreed upon by euro zone leaders in July.

 

This change will provide the capacity to intervene EFSF sovereign bond market and provide soft loans to the government line who have problems with debt.

 

Results 103 votes versus 66 in the Finnish parliament, has passed the policy, but the decision as a whole still needs approval from all 17 member states of the European zone.

 

The next vote of the German parliament on Thursday will also be considered carefully by investors.

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Europe Economy News and Review

 

Continue Strengthening Euro Finnish Post-Voting

 

Wednesday, September 28, 2011

 

Terkerek euro climbed to the highest point in 1-week session of the European trading Wednesday after its release the results of the Finnish parliament voted to approve the bailout capacity additions through EFSF European bloc.

 

But reinforcement is still limited as optimism over the addition of a solution to the trillions of bailout funds have largely faded due to comments of European finance ministers said that the increased capacity EFSF beyond the July 21 agreement and are still less likely.

 

From the economic side, the euro zone economic growth may be more clearly through Germany's expected inflation figure has decreased at a rate of 2.4% yoy. Lower inflation rate can increase the projected cuts in ECB interest rates at the next monetary policy meeting.

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News and European Economic Review (Switzerland)

 

Swiss Franc Weakens But Still Threatens SNB Intervention

Thursday, September 29, 2011

 

Swiss franc weakened against the euro and U.S. dollar on Thursday after the deputy governor of the Swiss National Bank said the central bank will keep trading limits 1:20 francs per euro by foreign intervention.

 

The central bank's policy was clear enough to peg the value of cross rate above the minimum EURCHF 1.2000, based on comments of Thomas Jordan, Basel.

 

While the U.S. dollar, USDCHF currency pair remained above the 0.8945 support, the area fell under the further reduction opportunities targeting 0.8850 area. On the top, USDCHF need to penetrate above the 0.9020 area to continue the test scenario bullishnya area 0.9080 - 0.9100

 

Swiss franc weakened against the euro and U.S. dollar on Thursday after the deputy governor of the Swiss National Bank said the central bank will keep trading limits 1:20 francs per euro by foreign intervention.

 

The central bank's policy was clear enough to peg the value of cross rate above the minimum EURCHF 1.2000, based on comments of Thomas Jordan, Basel.

 

While the U.S. dollar, USDCHF currency pair remained above the 0.8945 support, the area fell under the further reduction opportunities targeting 0.8850 area. On the top, USDCHF need to penetrate above the 0.9020 area to continue the test scenario bullishnya area 0.9080 - 0.9100.

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News and European Economic Review (UK)

 

Sterling Uphill Follow Euro

Thursday, September 29, 2011

 

Sterling strengthened against the U.S. dollar on Thursday, following the strengthening of the single currency Euro and other risky assets related to the relief of the German parliament voted decisively.

 

However the increase is limited because of fears the UK economy and banking sector fragility of the British against the euro zone debt crisis, as well as by expectations the Bank of England cuts quantitative.

 

BoE chief economist Spencer Dale said on Thursday that the weaker global economy now looks more consistent than previous estimates, so the monetary stimulus may be needed if the situation continued to deteriorate. In addition, the UK mortgage approvals reported on Thursday despite rising to its highest level since December 2009, but overall growth in the credit sector is still quite weak when compared to before the era of financial crisis.

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News and European Economic Review (Italy)

 

Italy Borrowing Costs Remain Expensive

Thursday, September 29, 2011

 

Italy must pay dearly when the 10-year bond auction; is certainly still not show recovery in investor confidence since the S & P cut Italy's credit rating. Borrowing costs remain expensive even though there is hope Europe will create a rescue fund-euro zone is more powerful. Analysts see tentative reaction Rome about the debt crisis has damaged investor confidence.

 

Despite having to pay expensive, Italy was able to sell bonds worth? 7.86 billion with a ratio of bid-to-cover to achieve better than auctions 1.374 1.269 August; this course can make sure the market will be the ability of government funding. However, the 10-year bond yield rose to 5.86% higher than last month's auction of 5.22%. "Yield bonds are quite high, although not yet at an alarming level. However I was not comfortable seeing the Italian government bond yields rise," said David Schnautz, strategic Commerzbank.

 

Meanwhile, the euro strengthened on the New York session, was trading near the high-level daily 1.3628 1.3679

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