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Euro worry Germany

Friday, September 30, 2011

 

The euro weakened after the descent of the German retail sales will provide additional evidence on gloomy global economic outlook while the market doubts the ability of European Financial Stability Facility (ESFS) to solve the debt crisis. European inflation, an indication of the low possibility of ECB rate cuts, failed to give positive sentiment. Analysts point out the threat of low inflation along with the increasing possibility of recession.

 

German retail sales fell 2.9% in August, biggest drop in four years. "Retail sales disappoint; this evidence of economic slowdown. On the other hand, Europe is still not solve the debt crisis," said Valentin Marinov, strategic Citi. "In order for the euro to recover there must be additional funding capacity EFSF and measures to sustain growth in Europe." However, hopes vanished after the German economics minister uttered parliament seems unwilling to agree to increase funding capacity ESFS.

 

Euro-zone finance ministers meeting next week to do to help the Greeks, but few analysts are optimistic that Athens can avoid default. "We're not sure Eurogroup meeting could produce a significant policy. However, the positive statements from European leaders to prop the euro sentiment," said You-Na Park, strategic Commerzbank. "However, optimism may be implanted only a limited rise in the euro area $ 1.37"

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Europe Economy News and Review

 

Towards European exchanges Worst Quarter Since 2008

Friday, September 30, 2011

 

Trading of shares in major European bourses recorded a decrease in the session this weekend, to survive in the path of the worst quarterly drop since late 2008 as the market continues to grapple with slowing global growth and the euro zone debt crisis and impoverishment.

 

Interest in the assets at risk also appears to have diminished over the easing of optimism over the new EFSF approval by Germany, while investors are starting to be careful to enter the market ahead of parliamentary voting Slovakia and the Netherlands.

 

Germany's DAX index and France's CAC tracked moving lower with each fell 2.99% and 2.06%. While in England, Britain's FTSE index has lost around 1.75% so far.

 

Approval of the Bundestag on the previous day over the planned increase in European Financial Stability Facility (EFSF) to be as big? 440 billion has increased investor confidence in the handling of the debt crisis in the euro area. But optimism is back downs on trading ahead of Friday's parliamentary vote Slovakia and the Netherlands, which could potentially be significant opposition to the planned addition of EFSF.

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News and reviews Economy Europe (Switzerland)

 

SNB Ready to Defend Franc

Friday, September 30, 2011

 

President of the Swiss National Bank (SNB) Philipp Hildebrand, said the central bank is ready to do anything to keep the franc exchange rate limits. "The limit has been established and this will we maintain," Hildebrand said although he was reluctant to lay out details of policies that can be taken the Swiss central bank.

 

On 6 September, the SNB has set a minimum rate of EUR / CHF at 1:20 and activate the program for the purchase of foreign currency to protect exporters and reduce the threat of recession. SNB Vice President, Thomas Jordan, has uttered the central bank's commitment to be taken seriously by the market.

 

Hildebrand said the Swiss economic growth will weaken in the second half, thereby limiting the threat of recession and deflation. "Swiss franc exchange rate overvaluation is," said Hildebrand said, expressing the euro zone's fiscal crisis as the biggest threat to the global economy.

 

Franc, safe-haven currency amid the turmoil of the world, staying on top of 1:20 against the euro since the SNB set a minimum rate. EUR / CHF 1.0075 could touch on August 9 due to worsening debt crisis of the euro-zone.

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News and European Economic Review (UK)

 

Economic Data, Issues QE Block Rally Sterling

Wednesday, October 5, 2011

 

Unlike the Euro, British pound sterling currency continues gains come not just follow the EUR, and was still depressed in the area of ​​13-month lows against the U.S. dollar versus the euro to depreciate even on a Wednesday (05/10).

 

Until this news was revealed Sterling still stuck in the area's and entrapped 1.5440 GBP mainly because data on the release of the UK construction sector deteriorated with numbers, so this adds to speculation of additional quantitative easing from the Bank of England.

 

Sterling also depressed along with other risky assets as the development of the banking sector so that funding problems had recorded a low-level session at 1.5410 price.

 

Essentially, any data that indicate a slowing economy will cause an added reason for the British central bank to soon launch a further quantitative easing, and this certainly will get a negative response from Sterling.

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News and European Economic Review (UK)

 

Speculation Strengthens Against Yen Sterling Pressure

Wednesday, October 5, 2011

 

Pound sterling currency on foreign exchange trading GBP / JPY noon today (05-10) rallied and tracked the pair traded at around 118.43.

 

Pound Sterling strengthened along with the increasing positive investor sentiment, linked to the speculation that reports the service sector can be better than estimates.

 

Services PMI indicator basically expected to show a decline in performance and potential value dropped to 50.6 from 51.1 the previous period.

 

However, the market is still speculate on the issue and responded with a rise early positive sentiment by investors in forex trading.

 

Analyst Research Vibiz of Vibiz Consulting suggests that the currency Sterling on the currency pair USD / JPY is still expected to strengthen further, especially to data made ​​public.

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News and Overview of the European Economic Zone

 

Analyst: Beware of the euro weakening further

Wednesday, October 5, 2011

 

Rating agency Moody's decision to cut Italy's credit rating as much as 3 degrees, raising fears Europe's economic conditions. Moody's also makes a step back market panic on the condition of Greece.

 

Currency area is also expected to be depressed on the transaction today. Analysts predict the trend is still within the range pelemahannya, reaching again the lowest monthly level. "The decline can be characterized by falling trend channel is still active in the daily. At that time hourly starting to look up drop motion, supported on a declining momentum," said Douglas Herien, Analyst Valbury Asia Futures.

 

Indeed, the euro had gained 1.27% against the U.S. dollar to 1.3347 after briefly approaching the lowest level in over nine months in early New York session. Strengthening of the euro, among others, supported by an article released by the Financial Times that the leader of the Union? Europe is considering to recapitalize troubled financial institutions.

 

For this condition, Herien provide advice to investors is not too aggressive in doing deals. "Beware of the motion at a resistance level of 1.3369 to 1.3463, the trend could continue for the area was still intact," advises Herien.

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Europe Economy News and Review

 

EU Aid Appeals Commission coordinated the Banking

 

Thursday, October 6, 2011

 

EU Commission calls for coordinated injection of capital in the banking sector in order to protect the credit meltdown on the potential defauly Greece.

 

In addition, German Chancellor Angela Merkel is reportedly preparing a plan to increase the bank capital of Europe.

 

This latest plan has raised expectations that the European banks would be immune recession, especially after EU officials strive to increase capital pebankan sector to prevent transmission of the crisis.

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News and European Economic Review (Greece)

 

Greek Start Opening Up

Thursday, October 6, 2011

 

Greece plans to invite foreign investors in January to offer offshore oil exploration in the western Mediterranean countries which is estimated to contain reserves of 280 million barrels of oil, according to Junior Minister of Energy statement on Thursday.

 

Yiannis Maniatis also said that the cabinet has given approval for drilling in the Gulf of Patras, as well as the north west of Io? Nnina and sea Katakolo.

 

"For the first time that Greece was willing to take such steps, which will be conducted with transparency thorough," said Maniatis according to the agency.

 

The contractor is expected to be able to be appointed within one year. Oil exploration activities was also expected to increase the income of Greece, who was struggling to avoid default, up for? 14 billion over the next 15 years.

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News and European Economic Review (UK)

 

Release Sterling Index of Services Strengthens Against U.S. Dollar

Thursday, October 6, 2011

 

Recent data releases Index of Services 3m/3m indicator has just been released by the National Statistics show signaled a positive development in the British economy.

 

The impact of data releases to trade GBP / USD pair this afternoon (06-10), which monitored the strengthening pound sterling happen. The forex market responds to this by encouraging the pair GBP / USD so it is in the range 1.5477.

 

Actual data indicators Index of Services 3m/3m reported increased to 0.9% previously forecast to rise to 0.9% from 0.2%.

 

Analyst Research Vibiz of Vibiz Consulting suggests that the pound is still potential to strengthen further.

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News and European Economic Review (UK)

 

Sterling Strengthens Sector Production Data Release Pre

 

Friday, October 7, 2011

 

Recent data indicator PPI Input m / m which is scheduled to be released by National Statistics, is expected to show a positive indication of progress on the British economy.

 

Expected release such data to the trade impact GBP / USD pair this afternoon (07-10), which monitored the movement of the strengthening pound sterling currency.

 

The forex market responds to this by encouraging early GBP / USD so it is in the range 1.5488.

 

Recent data indicator PPI Input m / m expected to rebound to 1.3% from -1.9%.

 

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 (Switzerland)

 

Turning Swiss Franc Weakens U.S. Labor Report Response

Friday, October 7, 2011

 

Swissie currency pair to trade USD / CHF noon today (07-10) tracked down and the pair traded at around 0.9176.

 

As rival the U.S. dollar, Swissie weaker as the presence of positive signal in the United States economy, where it is shown to still be holding the unemployment rate in the country.

 

Unemployment Rate indicators reported can be held in the figure 9.1% from the previous value of 9.1%.

 

Analyst Research Vibiz of Vibiz Consulting suggests that the Swiss franc on the currency pair USD / CHF is predicted to weaken further.

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Europe Economy News and Review

 

Euro and Pound Post Back Wanted Non Farm Payroll Data

Friday, October 7, 2011

 

Riskier currencies like the euro and the pound back in demand in the London trading session on Friday compared the U.S. dollar, as investors were still optimistic about the ECB's efforts to provide an injection of funds especially U.S. employment data report managed to arouse interest in an asset's risk appetite.

 

The ECB issued a policy of funding liquidity operations for tenor of 1 year and run a bond purchase program, where it was greeted positively by investors.

 

Sterling also rose up after positive U.S. employment data support riskier currencies like the pound sterling, although some British banks suffered a credit downgrade and QE2 measures announced by the UK central bank earlier.

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Europe Economy News and Review

 

France & Germany agree, European Stock Up

Monday, October 10, 2011

 

French and German leaders an agreement to reduce concerns over the crisis in Europe has triggered a rise in European stock exchanges on trading Monday (10/10).

 

FTSE index rose 0.25 to 5317, the DAX was up 0.15 to 5686 and CAC rose 0.2% to 3102, as quoted from yahoofinance.com.

 

This positive sentiment after German Chancellor Angela Merkel insisted the European leaders will do everything necessary so that European banks have enough capital. Merkel joined French President Nicolas Sarkozy persuaded investors to reduce the burden of the crisis that rocked global markets.

 

"It's only positive for the market in the short term. This is good because the government has realized that they must go," said Joe Rundle, Head of Trading at ETX Capital.

 

For U.S. stock futures trade is predicted to rise on this day that led the S & P extend rally last week.

 

Asian stocks mixed while moving such as Hang Seng index fell 0.1% to 17,684, the Nikkei index rose 0.9% to 8605, the Shanghai index fell 0.6% to 2344 and the ASX index rose 0.9% to 4201.

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Europe Economy News and Review

 

ECB: European Crisis Biggest Since World War II

Monday, October 10, 2011

 

European Central Bank Council members Erkki Liikanen stressed the need to recapitalize banks to fight the debt crisis of Europe is considered the biggest since World War II.

 

His comments came a day after the leaders of Germany and France promised to unveil new measures to resolve the debt crisis of the euro zone by the end of this month, because of international pressure to build bold steps to prevent the reaction from the European global economy. "Banks need to be adequately capitalized. The fate of the bank and the country is strongly associated with it," Liikanen said in an interview quoted by Reuters sepetri Finnish TV.

 

He warned that if not controlled properly, the European debt crisis could trigger a new credit crisis.

 

"If this can be restricted, it began again through the bank. And this problem applies to all developed countries like the United States, Japan, Europe, even though the euro zone is the central issue here."

 

Liikanen, the Finnish central bank governor also add bank capitalization is the primary task of shareholders, but the state may need me too and dilapidated banks may need restructuring. He said the European banks are now experiencing difficulty in receiving funds from the market. "Especially the long-term financing has become more difficult, and it is a problem for long-term investment," he said.

 

Dexia, the bank who are victims of the first two years of the euro zone debt crisis, agreed to recapitalized.

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News and European Economic Review (UK)

 

Sterling Continue Strengthening

Monday, October 10, 2011

 

Sterling rose, follow the trail of an increase of EUR / USD, after the leader of Germany and France promised new plan to recapitalize European banks. Sterling remained above the lows Thursday after the Bank of England reactivate the asset purchase program for the exciting British economic recovery. Analysts see no UK economic data released makes GBP / USD is more driven by market sentiment started to decrease the negative effects of Quantitative Easing (QE) BoE.

 

"Sterling follow the trail of the euro, underpinned by optimism after meeting Merkel and Sarkozy at the weekend," said Michael Derks, strategic interviewed by Reuters. "Usually the QE will have a negative impact, but with most of the world's major central banks also consider the performance of monetary easing will not be much tergerogoti sterling." Traders saw no demand in the area of ​​$ 1.5650, but GBP / USD needs to penetrate the $ 1.5716 to continue the rally.

 

"Market sentiment will continue to affect the movements of EUR / USD, and with the announcement of QE will be limited to the weakening of sterling against the dollar," wrote research reports Lloyd. Traders also see the restoration of sterling, post announcements QE BoE, more dominated by profit-taking and short covering.

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News and European Economic Review (Greece)

 

Troika: Greece Will Get Help In Early November

Tuesday, October 11, 2011

 

Greece will most likely get the next rescue package worth 8 billion euros is needed to prevent bankruptcy in early November, as noted by the inspector EU, IMF and the ECB in a joint statement on Tuesday.

 

After the Eurogroup and the IMF executive board members approved the conclusion of the Troika of the fifth review, the next Euro aid package consisting of 5.8 billion Euros from the EU and 2.2 billion Euros from the Fund will be available in early November.

 

However the response of market participants are still at least by the news of this troika, because the overall market is still hope for further progress to prevent transmission of the debt to other areas such as Spain and Italy.

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News and European Economic Review (UK)

 

Sterling overload gloomy UK economy

Tuesday, October 11, 2011

 

Sterling weakened by the rise of profit-taking after a rally yesterday. Sterling also susceptible to a sell-after economic indicators have not managed to eliminate anxiety about the dismal performance of the UK economy. Industrial production increased 0.2%, but manufacturing output fell 0.3% for the month of August. Traders also saw a sell-by Asian institutional investors and profit-taking after GBP / USD reach 1.5689 yesterday.

 

"Today's data is quite mixed. There was no significant difference between industrial production and manufacturing, but the overall trend is still lower production and is certainly not a positive impact for sterling," said John Hydeskov, an analyst at Danske Markets. GBP / USD rally since the touch-level 14-month low after Bank of England announced the reactivation of the program Quantitative Easing (QE). However, analysts predicted the UK economy and weak support for QE BoE's Miles can keep the UK monetary policy remains very loose for a while.

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News and European Economic Review (UK)

 

NIESR GDP Estimate Released ahead of Sterling Weakens

Tuesday, October 11, 2011

 

Pound sterling currency on foreign exchange trading GBP / JPY noon today (11-10) tracked down and the pair traded at around 119.74.

 

Pound Sterling weakened with the increase of negative investor sentiment, the expectations associated with decreased performance on the UK economy as a whole.

 

NIESR GDP Estimate indicator is still not expected to show an encouraging performance, while the value of the last period is 0.2%.

 

Analyst Research Vibiz of Vibiz Consulting suggests that the currency Sterling on the currency pair USD / JPY is expected to weaken further still, especially to data made ​​public.

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News and Economic Review Europe (Slovakia)

 

Weekend, Europe Receive Approval Slovakia

Thursday, October 13, 2011

 

Slovak political officials prepare for new talks today related to efforts to reform the European Financial Stability Facility (EFSF). Voting early stages of fall in the hands of the parliament a few days ago, an event which depose Prime Minister Iveta Radicova.

 

The three parties in the coalition SDKU (Radicova), Christian Democrats and Most-Hid already agreed commitments by Robert Fico, head of the opposition Social Democrats (Smer). Under the deal, the government must first promise to hold parliamentary elections on 10 March next, as requested by Fico. Elections had been scheduled to take place in 2014. If the parliament approved the deal today, then Fico and third party support will determine the date of voting reforms advanced EFSF as soon as possible. Although this could be done today, most likely vote could be held about the new EFSF tomorrow Friday (14/10).

 

Support from Smer opposition party is very important because it has a popularity among the voters reached 40%. Fico pleaded not interested in power until democratic elections held in March next year. Voting EFSF failed last Tuesday due to a four-party coalition Freedom and Solidarity (SAS) rejected that discourse. Richard Sulik, head of SAS, Slovakia rate is the second poorest country in the euro area, which is not feasible to help other countries that failed fiscal. Now the situation is different, the public could hear the Bratislava parliamentary approval before the holiday weekend.

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News and Economic Review Europe (UK)

 

Economic anxiety overload Sterling

Thursday, October 13, 2011

 

Sterling weakened in the London session, but still traded not so far from the high level of 4 weeks. However, analysts express concerns over the fragility of the UK economy will limit the rise in sterling space. Data yesterday showed the jobless rate rising to its highest level since 1994, while the decision of the Bank of England (BoE) which enable the Quantitative Easing program remains a negative factor for sterling. Resistant sterling near $ 1.5797 yesterday high level, with the option barrier at $ 1.5800.

 

Comments BoE bigwigs, Charlie Bean, who uttered the central bank can increase the amount of the asset purchase program if needed, also overload a sterling performance. Sterling recovers from lows 14 months ago due to the rise of the action week short-covering after the BoE announced the QE II. Strengthening of the EUR / USD also had a positive impact as the market is more optimistic about Europe's determination to overcome the debt crisis.

 

"The movement of sterling in line with market sentiment," said Lee Hardman, economist BTMU. "Sterling could continue the rally due to the continuing action of short-covering, but the increase will stop below $ 1.60 before weakening again."

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News and European Economic Review (Switzerland)

 

Swissie Report Production Sector Urged

Thursday, October 13, 2011

 

Swissie on trading currency pair USD / CHF noon today (13-10) tracked down and the pair is trading at around 0.8971.

 

Swissie weaker as the presence of a negative indication on the Swiss economy, where it is shown by the still negative performance in the production sector in the country.

 

Indicator PPI m / m are reported only improved slightly to -0.1% which was previously thought to be able to show positive kierja namely to 0.2%. The value of the previous value was -1.2%.

 

Analyst Research Vibiz of Vibiz Consulting suggests that the Swiss franc on the currency pair USD / CHF is estimated to be only a thin weakened further.

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News and Review of European Economic

 

European Stock Raised, G20 Expectations

Friday, October 14, 2011

 

European stock markets showed a solid performance on Friday, after a bad start due to the investors placed great hopes on the outcome of the G20 finance ministers meeting in Paris to provide a detailed plan to help the European sovereign debt crisis.

 

The investors hope, especially the meeting may give details of regional banks and the recapitalization plan also increased the capacity of the IMF bailout loans.

 

The positive sentiment is expected to continue on Wall Street stock indices, although rating agencies S & P cut Spain's credit rating from AA-from AA previously. Nevertheless the Spanish IBEX 35 stock index, fell 0.9% observed underperform compared to other European stocks.

 

In addition other rating agency Fitch Ratings downgrade also four European banks, among others Lloyds Banking Group and Royal Bank of Scotland and UBS. Lloyds Banking Group slumped 1% was observed, while BNP Paribas fell 3.7%, and Deutsche Bank fell 2.1% and UBS fell 0.9%.

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News and Economic Review European (Spanish)

 

Spain: Downgrade due to the European situation is precisely

Friday, October 14, 2011

 

Spain has just received a downgrade of bonds from Standard & Poor's today. As if not accepted, the State asserts that the economic situation the region is the source of performance degradation fiscal Spain.

 

Spain rating cut from AA to AA + by S & P, following a similar thing done by Fitch last week. S & P monitors the structural and constitutional reforms in the country which aims to cut its budget deficit. However, Spain saw the S & P is not objective because it does not take into account the changes were made to the government to expand employment. According to Economy Minister Elena Salgado, although later the Spanish should use public money to recapitalize, debt ratios remain relatively low. Salgado did not see the country fail to maintain fiscal health, but the current situation in Europe makes the country difficult to do more.

 

Salgado opinion is reinforced by the opinion of the European Economic Commissioner spokesman, Amadeu Alfataj. "Spain has made an important step in its balance sheet in order to meet the requirements of the authority," said Alfataj. Throughout 2010, Spain is considered capable of keeping the deficit target agreed. Alfataj assume it is true if there are financial risks in the country, but the government managed to cover it well.

 

Prime Minister Jose Luis Zapatero is working to cut its budget deficit to 6% this year. Because in 2010 ago, recorded a deficit of 9.2%. The attitude of the S & P today's increasingly prone to reinforce the notion that Spain followed Greece, Ireland and Portugal to the list of countries that should be bailed out by the European Union and the IMF.

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News and Review of European Economic

 

Chancellor Merkel Not Show Consistent Attitude

Friday, October 14, 2011

 

Many people expect the G20 forum next month could bring fresh air for European recovery effort. But is not the case with the German chancellor, Angela Merkel. He made ​​a statement before the bigwigs different region of 180 degrees with what He lay out in front of the German people.

 

Merkel stated there would be no dramatic policy changes of the G20 forum. "There will be no surprises," Merkel said in a speech at a trade union conference, Karlsruhe. Statement Merkel is very different from the belief that he uttered this month with Nicolas Sarkozy. On one occasion, France and Germany to mention that both countries are preparing plans to resolve the crisis of Europe. The resolution will be released on the G20 forum in November, as promised two heads of state.

 

Speaking in front of members of IG Metall workers in the southern part of Karlsruhe, Merkel said that Germany would only take a big step, just when more benefits than disadvantages. The chancellor once again blamed the policy of troubled European nations, which owe more without being able to boost competitiveness. The situation lasted for years and all members of the euro should be affected at this time. To overcome these problems, the German could not find a solution in just one night.

 

At the end of her speech, Merkel asked European leaders to determine attitudes towards the banking sector. The option to let the bankrupt banks can only be removed without damaging effects that can be the region's financial system.

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News and Review of European Economic

 

EUR / USD Continues by Post G20 Summit

Monday, October 17, 2011

 

EUR / USD back tersupport and moving up into the range of 1.388 this afternoon, near the highest point in the last month. The euro looks to gain momentum after the G20 meeting that gives new hope for solving the debt crisis in Europe. EUR / USD was down for a moment in the Asian session due to profit taking lightly, but soon got back into the European session. G20 meeting last weekend seems to give a positive signal for new strategies that had been discussed most likely to be implemented next week

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