News and Reviews European Economic Zone

[mynameisandhy]

News and Economic Review Europe (Germany)

 

Germans worry about credibility of the ECB

 

Wednesday, November 9, 2011

Germany's economic advisory panel warned the ECB may lose credibility by buying bonds member countries of the euro-zone is problematic. "The program eliminated the purchase of bond market discipline mechanism in the absence of political discipline. ECB was jeopardized its credibility because it indicated to finance government debt," the report panel of economic advisers, who used to give advice to the German government.

 

Germany strongly opposed the bond purchase program, but ECB President Mario Draghi has given indicates the central bank is ready to do the purchase of the euro-zone government bonds problematic. The panel also predicted the ECB would cut interest rates back up to the level of 1% at the end of 2011 and will not change the policy of low interest rates throughout 2012.

 

Meanwhile, the euro weakened on the New York session. EUR / USD is now trading near 1.3609 1.3580 daily lows

[mynameisandhy]

News and Economic Review Europe (Greece)

 

Greek Coalition Government Fails to Reach Consensus

Wednesday, November 9, 2011

 

Prime Minister George Papandreou will resign and the main opposition leader Antonis Samaras has been in talks since Monday over who will lead the government until early elections in February.

Papandreou has agreed to resign after obtaining support for the opposition to the approval of an international bailout for his country.

Greek state television reported Tuesday that economists Lucas Papademos will become the country's interim prime minister while the debt-ridden countries strive to meet the demands of international creditors. But, until yesterday evening a former deputy director of the European central bank did not receive parliamentary approval.

The European Union demanded that both parties signed a written promise to implement unpopular austerity measures as part of the bailout plan agreed last month to Greece.

Samaras did not want to sign a written pledge, calling it an affront to national dignity, and that the oral promise to the plan should be sufficient.

[mynameisandhy]

News and Review of European Economic Zone

 

The stock market tumbled because of Italy

Wednesday, November 9, 2011

 

World stock markets fell back to see the conditions in Europe that there is still no certainty. Once broke down in Greece, now the fear of the crisis engulfing Italy. In trading on Wednesday (9 / 11), Italian bond yields jumped rise above 7%, reaching a record high.

 

The stock market in America, too weak, the Dow Jones Industrial Average closing ahead of the afternoon session decreased 1.96% to 11933.14. While the S & P 500 down 2.29% to 1246.87.

 

Market conditions in Europe even worse than America. Euro Stoxx 50 index, the index for the 50 blue chip stocks in Europe fell 2.84% to 2237. While the FTSE 100 index of stocks in the UK fell 2.01% to 5455.94.

 

Conditions in Europe was worsened after Italian Prime Minister Silvio Berlusconi said he would resign after budget reform could pass. Consequently the Italian government bond yield with a tenor of 10 years reached more than 7.21%, the highest since the European Union was founded in 1999. By contrast, bonds with the same tenor in Germany only give 1.73% yield.

[mynameisandhy]

News and Review of European Economic

 

As Wall Street, European stocks Negative

Thursday, November 10, 2011

 

European stocks fell on Thursday (10/11) morning along with a sharp decline in Wall Street that triggered the debt crisis of Italy.

 

FTSE index was down 0.9% to 2228, the DAX lost 1.4% to 5745 and the CAC down 1.03% to 3043. The weakening reflected the tension ahead of the T-Bill sales of the Italian government that shows the power of the Italian budget. The market also saw a split in the European Union so that it starts to leave the risky assets and seek safer German bonds.

 

In trading yesterday, European shares fell nearly 2% with a failure to convince the market although Italian Prime Minister Silvio Berlusconi resigned. Because investors are confused by the insistence on early elections by Berlusconi. Market waits for a provisional government. This opens up the uncertainty of economic reform.

 

Wall Street closed down 3% on stock trading Wednesday (9 / 11). It was influenced by the Italian bond yields spike marks Europe's debt crisis has worsened. The Dow Jones fell 389.24 points, or 3.20% to as low as 11780.94. The S & P 500 lost 46.82 points, or 3.67% to a level of 1229.10. The Nasdaq Composite Index fell 105.84 points, or 3.88% at 2621.65.

[mynameisandhy]

News and Economic Review Europe (UK)

 

Ahead of Reference Interest Rate Determination Urged Sterling Yen

Thursday, November 10, 2011

 

In trading GBP / JPY the European session this afternoon (10-11) observed weakened against the Pound Sterling and Japanese Yen in the range of 123.71.

 

Pounds less and less enthused forex investors in line with the expectations of declining economic performance in the UK.

 

The latest information about the indicator Official Bank Rate which is scheduled to be released by the Bank of England is expected still can not show a significant positive developments in the monetary sector of the UK.

 

Indicators Official Bank Rate was held at the level estimated to be 0.50% of the value of the last period is 0.50%.

[mynameisandhy]

News and Economic Review Europe (France)

 

Chaotic Greek Crush Income Credit Agricole

Thursday, November 10, 2011

 

Many financial companies caught in the effects of European bond crisis. No wonder if the period of 2011 deserve to be called as a difficult period for financial sector businesses.

 

The fact is reinforced by the financial institution earnings eroded sharply. One is the Credit Agricole Group, which decreased net income in the third quarter. Net income in the Paris-based company is plunged 36% to 930 million euros ($ 1.26 billion). Loss from decline in the quality of Greek bonds was recorded up to 637 million euros. From the line of operations, revenue from retail banking is quite strong. The official statement from the directors of Credit Agricole today.

 

Figures lending of regional banks is quite solid. Loans to housing sector up to 7.1% and business lending rose 5.9% over last quarter. The core tier capital ratio amounted to 8.9% for the first nine months. Agricole shares immediately fell 5% after the earnings release.

[mynameisandhy]

News and Review of European Economic

 

The euro strengthened against the dollar ahead of the Italian senate election

Friday, November 11, 2011

 

The euro strengthened against the dollar before the election of the Italian senate on debt reduction measures that aim to boost investor confidence in the country.

 

The currency is the euro zone rose for a second day against the U.S. currency. Former European Central Bank Vice President Lucas Papademos yesterday given a mandate to form a unity government while Italian Greek pave the way for a new government might be led by former Competition Commissioner Mario Monti European Union. The yen rose to its highest level against the dollar since the Japanese government intervened last month to weaken the yen.

 

The euro gained 0.3 percent at $ 1.3640 observed MKE actionable at 10:21 am London time, after rising 0.5 percent yesterday and recorded a decrease of 1 percent in the week. The common currency moves against the yen at 105.59 thin yen, leading to decreased 2.1 percent in the week. The yen strengthened against the dollar to as low as 77.33 per dollar, its highest since Japan sold the currency on October 31. And at the level of 77.39.

[mynameisandhy]

News and Economic Review European (Spanish)

 

Serious,,! Spain's economy stalled

Friday, November 11, 2011

 

Spain's economy stalled in the third quarter, the country matador undermining efforts to protect themselves from debt crisis after Spain and Italy borrowing costs soaring.

 

Gross domestic product unchanged from the previous quarter, when it rose 0.2%. From the previous year, the economy grew 0.8%. Bank of Spain estimates on 31 October that the economy stalled in the third quarter and grew 0.7% this year.

 

The slowdown threatens Spain's budget deficit. This requires a new government to accelerate spending cuts to prevent transmission of the crisis. People's Party, who will win the poll shows, has promised to get back to Spain AAA rating without raising taxes or cutting the level of pension.

 

Spanish yield of 10-year bonds compared with German equivalents rose to 408.8 basis points today, from 408.6 yesterday. Spain yield of 5.9% for loans over 10 years, the highest since August 5, even as ECBopa support the market with the purchase of bonds.

[mynameisandhy]

News and Economic Review Europe (Italy)

 

Italian 2012 Budget Bill Debate Begins!

Friday, November 11, 2011

 

Italian Senate on Friday began the debate in 2012 state budget bill is expected to be agreed on the same day, so it can be given to parliament for final approval, and will accelerate the process of the resignation of PM Silvio Berlusconi.

 

President Giorgio Napolitano on Wednesday alone has appointed Mario Monti to replace Berlusconi in Italy's new government.

 

Italian politicians are under intense pressure to quickly pass the bill, which includes plans trimming the deficit for fiscal year 2012 and increase measures to spur long-term growth.

 

With broader support, the new emergency government is expected to implement the agreed reforms and launched a new policy as an effort to restore stability and curb an alarming rise in bond yields. Which will eventually be able to assist Italy in managing the debt burden has reached € 1.9 trillion.

[mynameisandhy]

News and Economic Review Europe (UK)

 

Barclays Pessimistic With Sterling

Monday, November 14, 2011

 

Sterling weakened, follow the trail of the euro against the dollar decline, due to loss of investor optimism will be a new government in Italy. Italian President has appointed former European Commissioner Mario Monti to lead the new government needed to implement reforms. Traders see a sell-by fund managers and investors Eastern Europe who want to secure the gains seen after the sterling rally this month.

 

Analysts also see the risk of weakening sterling ahead of the publication of the BoE inflation report on Wednesday that is expected to revise down growth in the UK. "BoE inflation report will have a negative for sterling; although the market remains focused on the development situation in the euro zone," said John Hydeskov, strategic Danske.

 

Technical analyst at Barclays Capital also pessimistic with sterling outlok that can fall to $ 1.5900 and $ 1.5860 this week if it stays below $ 1.6170 resistance, the 200-day MA. In addition to reporting inflation, employment data and UK retail sales this week also can suppress the sterling performance if stressed the fragility of Britain's economic recovery.

[mynameisandhy]

News and Economic Review Europe (UK)

 

Sterling Rebound Coming to the UK Consumption Data Release

Monday, November 14, 2011

 

Nationwide Building Society today (14-11) is scheduled to announce the latest developments konsumis sector in the UK economy.

 

Nationwide Consumer Confidence Indicator is expected to increase from the previous period is 45. Meanwhile, GBP / USD pair was observed in the range of 1.5925.

 

The possibility exists that shows improved performance is sustained early in the growing interest of investors in the forex market to hold the pound sterling, the currency is moving so strong rebound on the GBP / USD after vanish on this afternoon.

[mynameisandhy]

News and Review of European Economic

 

Continue Euro weakening against dollar

Monday, November 14, 2011

 

The euro currency continued weakening against the dollar and yen in trading on Monday, marked by the penetration level of technical thereby increasing sales momentum.

 

Monitored by far the currency pair EURUSD fell -0.82% to a level of 1.3636, under MA100 week, while EURJPY fell -1.08% to as low as 105.00.

 

Attenuation occurs even though Italy and Greece has appointed a new government, but investors still see the fact that the new government was still difficult to overcome the debt crisis in Europe.

[mynameisandhy]

News and Economic Review Zone EUROPE (GERMANY)

 

German ZEW sentiment indicator fell to -55.2 November

 

TUESDAY, 15 NOVEMBER 2011

 

German ZEW economic sentiment indicator fell to -55.2 in November from -48.3 in October, the Center for European Economic Research in Mannheim-based ZEW report or Tuesday (15/11).

 

The indicators measure investors' expectations for the German economy over the next six months.

 

Economists forecast a smaller drop to -52.0. Current conditions index fell to 34.2 from 38.4 in October.

 

"World trade center weakened and issue public debt in the euro zone and in the United States weigh strongly on business activities.

 

This risk is even able to get more important and thus the more it can harm economic growth in Germany, "ZEW President Wolfgang Franz said.

 

Notes November index is based on a survey of 278 analysts.

[mynameisandhy]

News and Economic Review Europe (Italy)

 

Monti Still Preparing Cabinet of Italy

Tuesday, November 15, 2011

 

Prospects for the new government rises after Italy's largest political party in the amount of support given the market pressures that Prime Minister Mario Monti to act quickly. "We think the business Professor Monti will give good results," said Angelino Alfano, the party secretary of the PDL.

 

PDL support is quite important because many of its members that have been uttered against the cabinet will be composed Monti government to face a debt crisis that now threatens the third largest economy in the euro-zone. Monti's new government should have a strong parliamentary support to execute the desired policy reforms opposed by some of the people of Europe but Italy. If Monti acts or fails to carry out its run too late then this will incur a new attack for the financial markets.

 

Since yesterday, Monti had consulted with some of the party which controls the Italian parliament. Monti Reuters interviewee express his government is working on a cabinet and will announce it soon.

 

Meanwhile, the euro was weaker in New York even though the session was beginning to stabilize. EUR / USD is now trading 1.3566, keep a distance of 1.3512 daily lows.

[mynameisandhy]

News and Economic Review Europe (Italy)

 

European Stocks Flat, Italy Still Leave Anxiety

Tuesday, November 15, 2011

 

Stocks in Europe's main bourses to cut some of its reduction to then move tends to flat in trading on Tuesday, with increasing investor interest in mining stocks could offset the decline in banking stocks hit by fears of debt problems being wrapped around the state-Southern European countries.

 

"Yields on bonds to be the main trigger of market movement," said Frederic Rozier, finance manager at Meeschaert Wealth Management in Paris. "The market seems also testing the ability of Spain to tackle the problem of debt, although the widening of yield between German bonds with France, Spain and Italy are also caused by factors of yield decline in Germany."

 

The FTSE has so far lost about 0.9%, followed by the German DAX and French CAC fell respectively 1.8% and 1.75%. The banking sector became the worst performing stock in trading on Tuesday, with BNP Paribas fell more than 4% and UBS declined about 2.6%.

 

Increasingly negative market sentiment amid concerns about tersisanya Italy, where Mario Monti faced skepticism from Italian political parties following the objections of some members of Congress to take part in the new government cabinet.

[mynameisandhy]

News and Review of European Economic

 

Euro Weakens For Growth Approach the Recession

Wednesday, November 16, 2011

 

Data poor growth in Europe and a positive retail sales statistics on the U.S. economy gave a strong boost the dollar against the euro on Tuesday.

 

At 2200 GMT Wednesday (05:00 GMT) the euro fell to 1.3536 dollars from 1.3629 dollars late Monday.

 

The euro fell to 104.31 Japanese yen from 105.07 yen, while the dollar slipped to 77.05 yen lower from 77.09 yen.

 

Data from Eurostat showed growth for the 17-nation eurozone at 0.2 per cent in the third quarter, sending European stocks fell and government bond yields shot up, AFP reported.

 

As well as the new Prime Minister of Italy, Mario Monti launched a final round of talks to form a government, the 10-year borrowing costs jumped back country above the level of 7.0 percent is not sustainable.

 

Spain to pay interest rates rise more sharply than five percent at 3.16 billion euros, the Spanish government bond auction term period of 12 months and 18 months.

 

And the returns on the French 10-year bonds rose sharply to 3.683 percent, making Paris pay more than double compared to Germany to borrow.

 

Meanwhile, in the United States, the yield on the ob; ogasi 10-year government at 2.06 percent, slightly up from 2.04 percent on Monday.

 

"We have the political uncertainty in Greece and Italy, it takes its toll on the currency," said Samarjit Shankar of BNY Mellon.

 

"Initially, the problem is limited to Greece, Portugal, Ireland, Spain and Italy," he said. "Now we see bond yields in Belgium and France began to move higher."

[mynameisandhy]

News and Review of European Economic

 

Moving Euro Weakens; Auction Bonds in Spain and France Threatened Less Successful

Wednesday, November 16, 2011

 

 

In today's trading the euro exchange rate against the U.S. dollar resumed procession pelemahannya (16/11). The euro continued decline for three consecutive days against the U.S. dollar along with concerns that are still thick on the European debt crisis. Market focus to the condition of Spain and France who will conduct auctions trade bonds on tomorrow. On a bond auction yesterday in Italy look back to an increase in yields. This is a signal that the market is still very hesitant about efekfitas European recovery steps.

 

The euro reached the lowest position in more than a month later against the U.S. dollar today. Spain is scheduled to auction bonds worth 4 billion euros that will mature in 2022 coming, while France will auction bonds with maturities of more rapidly in 2013 and 2016. On a bond auction yesterday Spain and Belgium to sell fewer bonds than the maximum levels specified.

 

In today's trading the euro appears to be in the position of 1.3447 dollars. The position of the euro today had a significant decrease compared to the position of closing the trade early this morning at the level of 1.3536 dollars. The position of the euro today as well is the lowest position since the 10th of October.

[mynameisandhy]

News and Economic Review Europe (UK)

 

Mervyn King: Inflation could fall more sharply

Wednesday, November 16, 2011

 

Bank of England Governor Mervyn King said inflation could fall more sharply than current estimates due to excess capacity and risk substantial risk to the global economic outlook.

 

Treasurer to the Chancellor George Osborne, King said that although the direction of inflation can be expected for the next few months but the phase and its time is not yet known with certainty and inflation is still possible to fall more sharply again by considering the current economic capacity margins and the risk of economic recovery and global implications.

 

October inflation today reported decreased more than economists forecast to 5%. The Bank of England while in a second month of the four-month bond purchase program that began last October in the context of economic recovery.

 

Although inflation is still 2% higher than the central bank, said the King can still declining sharply in the next 6 months and reach the target level at the end of 2012. The Bank of England to maintain the target level of asset purchases? 275 billion ($ 436 billion) this month after increased? 75 billion last October. Interest rates are also maintained at 0.5%.

 

Consumer prices rose 0.1% with food prices fell 0.9%, the biggest monthly decline. Transportation costs fell 0.7% and fuel prices fell 0.4%.

 

The data also show the annual core inflation, which does not include alcohol, food, tobacco, and energy prices, rose 3.4% in October from 3.3% in September. Retail price inflation fell to 5.4% from 5.6%.

[mynameisandhy]

News and Review of European Economic

 

French press the ECB to intervene quickly

Thursday, November 17, 2011

 

 

France urged the European Central Bank (ECB) more aggressively implement policies to intervene in several countries hit by the recession. The goal is the root of the crisis did not spread to other states.

 

France pressed the ECB because of the position held ie AAA ratings could be cut because the yield or yield on Treasury bonds continued to rise.

 

"The role of the ECB is to ensure the stability of the euro and European financial stability. We believe the ECB will not stand by this insistence," said a spokesman for the French government, Valerie Pecresse.

 

Earlier, Finance Minister of France Francois Baroin also expressed a desire to EFSF Paris has a banking license. If this is done then the EFSF is possible to borrow funds from the ECB to provide extra ammunition to fight the European debt crisis. "France wants EFSF has a banking license in order to prevent further spread of the crisis," said Baroin.

[mynameisandhy]

News and Economic Review Europe (Italy)

 

Risk of Recession Italian Experience

Thursday, November 17, 2011

 

Italy at risk of falling into recession as consumers began to reduce its budget; this will certainly work sulitkan Prime Minister Mario Monti to the economic revitalization of Italy, according to a statement Enrico Giovannini, president of the statistical office ISTAT. "The data show the people use some savings to maintain spending habits; where the savings rate is currently at 10%, lower than 15-16% a few years ago," Giovannini said when interviewed by Reuters.

 

"Households will try to set aside more money to fill the savings that have been spent, and this risk even further cuts in consumer spending," Giovannini said. When asked whether the slowdown in consumer spending will trigger a recession, Giovannini declined to comment specifically but hinted at the existence of such risks as he uttered "will be very low economic growth in 2012". On the other hand, the EU has predicted the Italian economy will grow by just 0.1% next year, lower than the government estimates that predicted a 0.6% expansion.

[mynameisandhy]

News and Economic Review Europe (France)

 

Need to Work on the French economy

Thursday, November 17, 2011

 

With a AAA credit rating threatened and potentially the economy slipped into recession then the French have to do economic reform or risk slumped in the euro-zone debt crisis. French economy is certainly more powerful than Greece or Portugal; but with the deficit ratio reached almost 6% of GDP and the size of banking exposure to the troubled euro-zone members of the Paris will be depressed if the debt crisis continues to drag on. This is reflected in bond yields continue to rise in the 10-year Greek government which has now reached 3.7% higher than the UK and the U.S. 2.2% 2%.

 

Although economists see room for fiscal maneuver France, but President Nicolas Sarkozy reluctant to take further austerity policy because it could jeopardize his position ahead of elections next year. Lisbon Institute think-tank has warned France not healthy fiscal position and calls for reforms in the labor sector, and the public. France currently has the highest ratio of government spending between AAA-rated countries, reaching 54% of GDP.

[mynameisandhy]

News and Review of European Economic Zone

 

Draghi Urges Quick Action On Rescue Fund

Friday, November 18, 2011

 

Governor Mario Draghi European Central Bank on Friday said euro zone governments to act quickly to raise funds and run it, suggesting an anxiety response to the lack of progress in dealing with the crisis that is getting worse. ECB under pressure to play a more important role in handling the crisis zone of Europe. Reuters poll of 50 strategically in Europe and the U.S. showed an equal chance that the ECB agreed to print money.

 

German Chancellor Angela Merkel rejected a request from Prime Minister David Cameron to step firmly, explaining his desire for a step by step approach that makes the Germans refused a request to ask other countries support the ECB. "Request the UK to add reinforcements to regain the credibility of the euro zone's right," said Merkel. "But we can not pretend to have power. Because pasa will segere mengentahuinya." Draghi places responsibility on the government, saying they had failed to take practical decisions in favor EFSF.

[mynameisandhy]

News and Review of European Economic

 

Bond Yield Declines Italian & Spanish

Friday, November 18, 2011

 

Italian and Spanish bond yields have declined on Friday to respond positively purchases ECB action, to reduce pressure throughout the week due to fears that the debt crisis could spread to other eurozone member states.

 

Observed so far the Italian bond yields for 10-year tenure has dropped to 6.74%, while the 2-year yield fell 6% k, and the Spanish bond yield was reduced 10-year tenor to 6:41%. Although the action of the purchases made the ECB is still relatively small.

 

French bonds also eased, where Bonds 10-y spread German with French narrowed 0:11 percent points to 1.62%, after being widened 2 percentage points on Thursday.

 

Lowering bond yields coincided with the President of the ECB's comments, Mario Draghi to urge European leaders to immediately implement the zone EFSF as agreed several months ago.

[mynameisandhy]

News and Economic Review Europe (Greece)

 

Soon Greek Dialogue with Troika

Friday, November 18, 2011

 

Greece's new government will meet with international creditors troika consisting of the ECB, IMF, and EU-in order to secure disbursement of bailout funds to avoid bankruptcy. Athens has submitted a draft budget that does not reveal new austerity policies but will run the policy reforms that have passed the parliament.

 

However, there are differences between the parties supporting the coalition government of Prime Minister Lucas Papademos. Tensions arise between the Socialist Party with the New Democracy primarily by Antonis Samaras, leader of New Democracy, who refused to sign a commitment to execute the policy of economic reform.

 

Papademos should be able to embrace all parties to ensure that the prerequisites of Athens carried out a bailout or a troika will delay the disbursement of bailout funds needed to avoid default. As part of the process, representatives of the "troika" will meet with Papademos and party leaders on Friday and Saturday to discuss the disbursement of the next bailout worth € 8 billion.

[mynameisandhy]

News and Review of European Economic

 

ECB urged the European Union launched soon EFSF

Monday, November 21, 2011

 

FRANKFURT. Prolonged crisis to grip the European Central Bank officials. President of the European Central Bank (ECB), Mario Draghi pressing EU officials soon to launch European Financial Stability Facility (EFSF). According to him, EFSF program should have been sliding since the financial recession was long and protracted as it is now.

 

The duration of application of this EFSF make some countries in the EU suffer from more severe. Draghi also reminded all parties that the next year, the European Union can not escape from the economic slowdown. "The economy most developed countries slowed as poor economic projections," Draghi said.

 

In order to reduce the suffering of the prisoners, the ECB buying bonds owned by the Italian and Spanish. The goal is that suppress the yield or yield and the country is to survive while awaiting the decision of the European Union.