News and Reviews European Economic Zone

[mynameisandhy]

News and Economic Review European (Spanish)

 

Spanish election results prop the euro

Monday, November 21, 2011

 

The euro managed to rise last weekend and the last day following the news of the victory in the Spanish opposition welcomed the election of the market.

Conservative faction, Popular Party (PP), managed to win elections by winning 45% majority vote. People get rid of the Spanish socialist government, in power since 2004, as a form of dissatisfaction with its performance, such as high unemployment and massive debt.

Jose Luis Zapatero became the fifth rule, after Portugal, Ireland, Greece and Italy, who was ousted because of the debt crisis. Now, the new Spanish government to implement austerity and change to grow the economy and reduce debt.

Like the four countries, Spain also had a huge debt after converting its currency from the peseta to the euro, which is used for 100 years. Banking provides easy-to-business lending, encourage the property sector which ultimately collapsed when the financial crisis of 2008. Spanish unemployment rate reached 21%.

Last week, the Spanish bond yield approaching 7%, a level which dragged Greece, Portugal and Ireland became the recipient of bailout. But, as the fourth largest economy of Europe, Spain is too big to be helped.

The euro had soared to $ 1.3611 last week. Now that the euro still remain well above $ 1.35. Election results seemed only a temporary impact. These results have not changed the trend of the euro. Although the new government is formed in the fifth country in debt, the market should be reassured that they can implement change.

Italian and Spanish bond yield falls after ECB's entry into the market. But there are still concerns that yield the two countries rose again. Many believe that the ECB only have ammunition to overcome the crisis of confidence is spreading in Europe. They believe the only way to prevent the deployment in Europe is the ECB bond buying in bulk, or the same as Quantitative Easing (QE). Analysts expect the ECB will sooner or later forced to do so, even though we are still reluctant.

Debt and deficit problems in the U.S. heats up again. The Committee failed to produce a deficit reduction possibilities ahead of deadline decision Wednesday to find cuts $ 1.2 trillion in the next decade.

[mynameisandhy]

News and Review of European Economic

 

The European Single Currency Depressed

Monday, November 21, 2011

 

European debt crisis that continues growing risk sentiment weighed. Pessimistic European market players can get out of this crisis that hit the country.

 

In Asia, EUR / USD slowly rose after the U.S. failed to reach agreement on a predictable budget. Focus again fixed to the U.S. market. "Investors are not sure the problem will be quickly resolved with so many problems," according to Valeria Bednarik, chief analyst at FXstreet.com. "This week predicted the euro would be back at 1.3350/80 level."

 

EUR / USD at 1.3520 zone, about 10 points above the level when the market opened. If the currency continued to strengthen food resistance level will be in the range of 1.3565 and 1.3615, according to Ms. Bednarik. Support level at 1.3490, 1.3450 and 1.3425.

[mynameisandhy]

News and Economic Review European (Spanish)

 

Jump in Spain Still Limit Yield Bond Strengthening Euro

Tuesday, November 22, 2011

 

Concerns the weak global economic outlook and the euro zone debt crisis still limit the strengthening of the euro against the U.S. dollar on Tuesday. In addition, the Spanish bond yield rising to a level of 5:11% for 3-month tenor, from the previous auction 2:29% to Euro nautical negative catalyst.

 

These cost increases more and add to the anxiety that bond yields have reached the level of risk, although the new Spanish government has elected to implement fiscal austerity measures. Fitch Ratings also commented that the new Madrid government need to spend additional austerity measures to meet deficit reduction targets.

 

Technically, the currency pair EURUSD intraday bias remains neutral with trading range forecast in the range 1.3425 - 1.3575 and the required penetration consistently blamed one new direction could provide a more clear trend. Dropped below the 1.3425 area will continue to bearish scenario targeting 1.3365 on short-term targets.

 

On the upside, strong resistance is still visible in the area of ​​1.3615, a new translucent area above can be changed into a bullish intraday bias for targeting 1.3810 area.

[mynameisandhy]

News and Economic Review Europe (UK)

 

GBPUSD 1.5475 Target Aims?

Tuesday, November 22, 2011

 

Intraday bias remains bearish in the short term, especially if the price had dropped decisively below the area of ​​1.5570 to 1.5475 after the target area.

 

Nearby there is resistance at 1.5610 area, translucent again over the area has the potential to trigger a correction of up targeting 1.5690 area, but as long as prices hold below the 1.5765 area as a whole remains bearish scenario intact.

[mynameisandhy]

News and Review of European Economic

 

Tend to Go Bearish EURUSD 1.3365 Target

Tuesday, November 22, 2011

 

Intraday bias neutral in the short term, but the overall outlook is still technically inclined downwards, where the strategy of short-sell on rallies more suited to market conditions at this phase. Prices have been moving sideways since 11 November, and found the prisoner support at 1.3425, tumbled & closing daily under the area potentially open up opportunities further reduction targeting 1.3365 area.

 

On the top, just above the penetration area of ​​1.3575 - 1.3615 could only stop the current bearish intraday outlook.

[mynameisandhy]

News and Review of European Economic

 

Auction Euro Bonds Slump After Germany Weak

Wednesday, November 23, 2011

 

The euro slid versus the dollar after German auction of 10-year government bonds, known as a bund, the results are bad.

 

The planned sales of 6 billion euros ($ 8.1 billion) attracted a bid of 3.9 billion euros, with the Bundesbank accepted a bid of 3.64 billion euros.

 

Central banks, which conduct auctions on behalf of the German Finance Agency (GFA), 2:36 withstand billion euros, bringing the total to 6 billion euros plan. Published the results of the auction average of 1.98%.

 

Economist at RBC Capital Markets said the bid to cover ratio of the share of the auction at 1:07 is the weakest since 1999.

 

Dollar versus the euro extend losses by fast trade under $ 1.34 and is still down 0.8% at $ 1.3402 on the action today.

[mynameisandhy]

News and Review of European Economic

 

Investor Survey Shows Opportunity Recession The European Zone

Wednesday, November 23, 2011

 

Some investors already expect at least there will be a country coming out of the euro zone, according to Barclays Capital survey of 1000 respondents. This condition indicates the collapse of investor confidence to the European zone.

 

Most will come out to see Greece, while 5% of respondents see there are 5 countries that may be out among others Portugal, Ireland, Italy and Spain.

 

In addition, 70% of respondents even saw an opportunity to recession in Europe as a consequence of the debt crisis.

[mynameisandhy]

News and Economic Review Europe (UK)

 

BoE Minutes overload Sterling

Wednesday, November 23, 2011

 

Sterling fell after the BoE minutes suggests the need for the addition of further monetary stimulus. "The program asset purchases being carried out take from three months to run," wrote Bank of England minutes. "Stable inflation means the expansion of asset purchase program may be necessary if economic conditions worsen."

 

"The tone is very dovish minutes. Some officials seem to want to speed up the BoE QE to stimulate economic growth despite difficult in practice. Quite natural for central banks to increase the stimulus," said John Hydeskov, an analyst at Danske Bank. "Sterling still be depressed due to the increasing threat of recession in UK and Europe, the UK's main export markets, "said Lee Hardman, economist BTMU.

 

GBP / USD dropped to a low level of 1.5554, slightly above the 1.5550 option barrier. Traders look at 1.5550 support will be key if impregnable can open opportunities to the psychological level of 1.5500.

[mynameisandhy]

News and Review of European Economic

 

European Stock Rebound Despite Debt Crisis Transmission Shadowed Anxiety

Thursday, November 24, 2011

 

European stock markets surged on Thursday, recovering from a sharp decline a day earlier was helped by the German IFO data better than expected.

 

Observed so far terkerek London's FTSE index rose 0.03% to as low as 5,152.50, while Germany's DAX index rose 1.13% at the level of 5,541.0, and the French CAC gained 1.60% traded at 2,863.50.

 

German IFO business climate index for November rose to 106.6 compared to 105.1 expectations. These data provide some relief on Wednesday after weak demand indicated to German bonds sparking fears that the crisis could spread to the euro zone economy the strongest in Europe.

 

Despite the increase, but market participants are still worried that the debt crisis of Europe is still potentially hit the stock market performance. This issue will also be on the agenda at the meeting with Sarkozy & Merkel Mario Monti in Strasbourg.

[mynameisandhy]

News and Economic Review Europe (UK)

 

Will Sterling Continues Depressed

Thursday, November 24, 2011

 

Sterling is still struggling near seven-week lows as investors continue to apply the strategy sell on rally due to gloomy economic outlook for the UK. The UK economy grew 0.5% in the third quarter of 2011; but weak demand, business investment and exports also fell, so did not give positive news for sterling. "The weak exports and a slowdown in the euro-zone economy will continue to push sterling in the medium term," said Sebastian Gely, strategic Societe Generale.

 

Sterling is now traded 1.5511 after briefly reaching 1.5566. The lowest price today will be a key support 1.5495 where penetration can worsen the performance of sterling. Option barriers at 1.5600 area will be able to limit the potential increase.

 

The potential is limited due to the strengthening of sterling gloomy UK economic indicators and the prospect of further monetary easing Bank of England. "Sterling will continue weakening," said JP Morgan analyst, Freeman Chile. "Yesterday a very dovish BoE Minutes." Minutes show yesterday the central bank monetary council agreed to keep the amount of asset purchases as much? 275 billion but some BoE officials felt the need to increase the number of programs in the future.

[mynameisandhy]

News and Review of European Economic

 

The European Debt Crisis Risk High

Thursday, November 24, 2011

 

Members of the board of the Bank of England, David Miles said that there is risk of one EU member state may be leaving the European region due to the threat of the region's debt crisis is increasing due to the instability of European bond markets.

 

Currently no one is sure of the ability of European officials to control the panic the holders of European bonds, thus causing a situation of Europe member states began to hot, he said.

 

In addition, the clutter debt crisis began to spread to Germany, which is the largest economy in the European region. Therefore, the MPC board members decided to increase the quantitative easing program to offset the risk of the debt crisis of the European region.

[mynameisandhy]

News and Economic Review Europe (Italy)

 

Italian Borrowing Costs Continue to Rise

Friday, November 25, 2011

 

Borrowing costs continue to rise after the Italian government bond auctions as investors are still worried about the potential transmission of the euro-zone debt crisis further. Rome did manage to collect funds € 10 billion but have to pay more to get the funds. Two-year bond yield tenured reached 7814%, far higher than the auction in October 4628%.

 

Even after the auction is over, bond yields surged to a record 8% despite the ECB's latest look to buy Italian government bonds. Governor of the Bank of Italy, Ignazio Visco, Italy express genjot necessary structural reforms for economic activity. "The problem for the Italian public budget policy now reflects the run last year. Macroeconomic policies have not been enough to cover the shortage," the Italian central bank governor said Visco. "Only by improving the structural weaknesses, we can create economic growth for Italy."

 

Meanwhile, the euro weakened on the New York session. EUR / USD is now trading at 1.3255 level, stay away from high levels of 1.3351 daily

[mynameisandhy]

News and Review of European Economic

 

Euro-zone Recession Can Experience

Friday, November 25, 2011

 

Euro-zone can not seem to avoid recession due to tight funding and banking are ragged protracted debt crisis of consumer confidence and business. The continued increase in yield-euro zone government bonds show investors have lost confidence in the ability of European leaders to control the further spread of the debt crisis.

 

Goldman Sachs predicted the euro zone will fall into recession in the fourth quarter of 2011 due to falling consumer confidence, tight fiscal policy, and the private sector deleveraging process continues. Goldman just expect the euro-zone please register growth of 0.1% for 2012 and see all the funding difficulties of banking as a clear downside risk. "The difficulty of financing banks are not lending, shown in the data; but if the situation continues to worsen the financial condition of enterprises and households," wrote Goldman Sachs research report.

[mynameisandhy]

News and Economic Review Europe (Portugal)

 

General strike against Portugal Disable Saving Step

Friday, November 25, 2011

 

The workers in Portugal, Thursday (24/11), launched a general strike to oppose the expansion of government austerity measures in the tight 2012 budget with the aim of helping the country to pay its debts.

Public transportation was paralyzed, and most planes are supposed to depart from Lisbon and Porto did not air. Subway line in Lisbon was closed for 24 hours, while the national railway system is also affected.

 

Postal service workers, hospitals and schools and other public services across the country are joining in the protests. The government initially announced only three percent of civil servants did not show up at their workplace, according to Xinhua reports - which monitored ANTARA here on Friday morning.

 

But according to the union of Portugal, more than 90 percent of workers participated in the strike.

 

After a meeting of the government, Parliamentary Affairs Minister Miguel Relvas, a member of Portugal's cabinet, change the tone of his voice. He said, "Make the government, the number is not important. What is important is the difficult situation faced by Portugal only be overcome with peace and hard work."

 

After Greece and Ireland in 2010, Portugal became the third eurozone country to ask for international bailouts when the country was no longer able to collect fresh funds in the financial market with a sustained interest on the loan.

[mynameisandhy]

News and Economic Review Europe (Italy)

 

The IMF does not discuss aid package with the Italian

Monday, November 28, 2011

 

The IMF said it was discussing the package of aid for Italy, as well as the Japanese say there are no talks going on the Group of Seven, amid fears that Italy will be difficult to overcome the cost of lending.

 

Lender based in Washington is not talking about financial programs with Italian officials, as stated by the spokesman for the IMF via email.

 

IMF will reportedly lend € 600 billion ($ 798 billion) to Italy to boost investor confidence.

 

Return for 10-year Italian bonds rose above 7% this month due to investor skepticism about the ability of Italy to control the debt burden. Aid amounting to € 600 billion would allow the Prime Minister Mario Monti to maintain the capital stock for 12 or 18 months and maintain consumer confidence.

 

IMF aid package that extends a third of Greece, Ireland, and Portugal, has $ 390 billion to be lent to 17 November, based on the data displayed on the site.

 

Chritian Bank of France Governor Noyer said today that the market seems to have forgotten the power of Italy including the industrial base. Stock eurozone bonds currently are not functioning normally just said in Tokyo.

[mynameisandhy]

News and Review of European Economic

 

OECD: European Debt Crisis Still Become Key Global Economy

Monday, November 28, 2011

 

Economic cooperation and development organization, known as the OECD issued a outlook that the euro zone sovereign debt crisis became identified key risks to the world economy.

 

Chief Economist Pier Carlo Padoan said that additional steps are necessary to prevent the transmission of the crisis, including a substantial increase EFSF capacity and more support from the ECB.

 

OECD predicts GDP growth in the 34 member states are still down from 1.9% this year to 1.6% in 2012, but expected to happen rebound to 2.3% in 2013. Level of unemployment will persist in the range of 8% for up to two years.

 

Growth in the euro area slowed from 1.6% expected this year to 0.2% in 2012, before eventually recovering to 1.4% in 2013.

[mynameisandhy]

News and Review of European Economic

 

Euro Want Debt Crisis Can be Resolved

Monday, November 28, 2011

 

The euro recovered from a seven-week lows as hopes of improving the presence of a debt crisis ahead of EU summit next week, although investors remain skeptical that there is a current policy. German and French officials now examine the radical method to secure the fiscal deeper integration among countries of the euro-zone.

 

Sentiment also improved after the daily La Stampa wrote the IMF is preparing a grant € 600 billion for Italy; but IMF spokesman denied this report. German media also report German bonds was studied along with the euro-zone member states are still rated AAA; although the German Finance Ministry denied the report.

 

"The euro is still vulnerable, especially with the large amount of bonds to be issued euro-zone member states this week," said Jane Foley, analyst at Rabobank. Yield 10-year Italian bonds began to fall after the ECB looks to do the intervention, but sentiment remained bearish due to lack of comprehensive and rapid solutions from European leaders to prevent further transmission of debt crisis.

[mynameisandhy]

News and Economic Review Europe (UK)

 

Sterling Reports Rebound Positive Response UK Housing Data

Tuesday, November 29, 2011

 

Pound sterling currency to trade GBP / USD pair this afternoon (29-11) observed strong rebound and the pair traded in the range of 1.5509.

 

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

 

Indicators Nationwide HPI m / m were reported to have grown 0.4% previously forecast to fall to -0.1% from the previous value of 0.4%.

[mynameisandhy]

News and European Economic Review (Switzerland)

 

Weakened Swissie Consumption Sector Urged Expectation Report

Tuesday, November 29, 2011

 

In trading pairs USD / CHF during the European session today (29-11) observed the Swiss franc weakened against the U.S. dollar and in the range of 0.9214.

 

Increasingly less attractive Franc forex investors in line with the expectations of declining performance of the Swiss economy.

 

The latest information about the UBS Consumption Indicator indicator scheduled to be released by UBS AG is expected to show weak performance in the consumption sector.

 

UBS Consumption Indicator Indicator expected to show a decline in performance and estimated down from last period value is 0.84.

[mynameisandhy]

News and Review of European Economic

 

Negative sentiment is hindering Europe Index

Tuesday, November 29, 2011

 

European stock markets opened on a lower level on Tuesday (29/11). French banks led the decline in the stock performance of blue continent.

 

Lethargy occurred after a rally on Monday. Investors looking at the euro zone meeting in Brussels as one of the most important event this week. The pressure for market participants emerged from media reports, which stated that the Standard & Poor's will lower the projections to the quality of the French AAA rating to 'negative'. While the rating agency Moody's preparing to cut its subordinated debt rating some EU banks.

 

The Stoxx Europe 600 (SXXP) fell 0.3% to a level of 229.23, while the French CAC 40 fell 0.5% to as low as 2,997.94. Bank companies such as Societe Generale SA (GLE) lost 1.5%. German DAX 30 (DAX) fell 0.4% to 5,722.73. Britain's FTSE 100 index (UKX) lost 0.2% to as low as 5,300.92. Shares of Remy Cointreau SA (RCO) rose more than 3% after the liquor manufacturer reported the results of the first half earnings.

[mynameisandhy]

News and Economic Review Europe (UK)

 

Some British Workers Strike

Wednesday, November 30, 2011

 

Teachers, hospital staff and border guards will participate in the biggest strike in 30 years; is certainly going to impose on the British government who were facing difficulties of economic weakness. Predicted 2 million public sector workers, who are members of various unions, participating in strike action in protest at the policies that force workers to pay more for pension funds and required to work longer before they can retire. The strike will disrupt a variety of government services including health care, taxes, schools, ports, and airports.

 

The government has uttered the need for reform so that people can live longer and more especially the inaccessibility of public pension funds. Prime Minister David Cameron condemned the strike as an act of irresponsible and urged the unions to continue the negotiations over the pension plan. However, the unions say the government is not willing to negotiate.

 

Meanwhile, sterling weakened in the London session. GBP / USD is now trading 1.5542, 1.5629 daily stay away from high levels.

[mynameisandhy]

News and Review of European Economic

 

There Is No Solution Concrete from Brussels

Wednesday, November 30, 2011

 

EU finance ministers (EU) gather on Wednesday (30/11) to discuss the region's economic improvement. Highlights include the recapitalization of banks, Eurobonds, economic governance and rapid response to regain confidence in the financial sector.

 

"Europe was entering a critical period, ie a response to the crisis stage of the European Union," said EU Commissioner Olli Rehn, shortly after arriving in Brussels. Rehn wanted to ensure that financial authorities have sufficient funds to stem the fortress market turmoil. Given the resolution of one part of 27 finance ministers is the guarantee for the availability of bank liquidity.

 

One delegation said that the European ministers are more inclined to choose a national effort in solving the problems of each country. Block also is reviewing the discourse of European stability, the implementation must change pact in the region.

 

Meanwhile, the 17 eurozone ministers on Tuesday night, wanting the management of the bailout by the International Monetary Fund (IMF). Rehn said that European governments have the same vision with the IMF on this issue. But the forum's ministers still have to figure out where additional funds will come from.

 

"The involvement of the IMF would make it an exclusive institution, it should be remembered that we have to realize that the IMF not only belong to the euro zone," the opinion of the Austrian finance minister, Maria Fekter. Therefore, European governments have to manage the provisions of the IMF's intervention in solving the crisis (if his involvement was agreed).

 

Talking about the fund, the United States have shown reluctance to provide extra bail. That attitude was shown in last month's G20 summit. Another discourse called the ECB should be more active in channeling the bailout. But again, the problem of limiting the authority of the will of the majority party. Dutch Finance Minister Jan Kees de Jager, warned that there are no shortcuts in this issue. "The lack of fiscal discipline has brought us into this crisis, so you must first address the underlying issues," he said.

[mynameisandhy]

News and Review of European Economic

 

S & P Downgrade injures the European Banking Sector

Wednesday, November 30, 2011

 

Shares in Europe's main stock is traded on the red zone, after the decision of Standard & Poor's downgrade of large banks re-ignited concerns over the health of the banking sector and increasingly eroded investor confidence in this sector.

 

Eurostoxx 50 Index declined about 1%, while Germany's DAX index and France's CAC slipped harius respectively 0.7% and 0.9%. In the UK, the FTSE index moved 0.5% lower in the first 2 hours of trading.

 

Rating agency Standard & Poor's has decided to lower the credit ratings of 15 banks such as UBS, HSBC, Barclays, JPMorgan Chase & Co., Goldman Sachs and Bank of America following the change in assessment criteria.

 

In addition, concerns over debt crisis Eurozone is also still weighing on market sentiment, following the failure of European Union finance ministers in preparing detailed plans for expansion European Financial Stability Facility (EFSF) which has agreed to be increased by € 1 trillion from the previous € 440 billion.

[mynameisandhy]

News and Review of European Economic

 

European stocks fluctuated on concerns the crisis and China's Economy

Thursday, December 1, 2011

 

European bourses staggered between up and down after concerns that the debt crisis spread and the Chinese economy is slowing auction results offset the auction results that showed increased investor demand for bonds of Spain and France.

 

Novartis AG and Roche Holding AG shares lead rise in health care, sedikitnaik gain 1.5 percent increase. Hochtief AG and Vinci SA fell after the airport agreement between them continues to fall. Norsk Hydro ASA fell 1.1 percent after predicting growth in aluminum demand will weaken.

 

The Stoxx 600 rose 0.1 percent to 240.41 level observed there at 1:28 pm London time after earlier falling by 0.8 percent. Index for this week has increased 8.5 percent in the post the current European leaders agreed to guarantee the issuance of sovereign bonds and central bank reduced funding dollars to the banks.

 

European shares rose 3.6 percent yesterday post the biggest gain in four days since November 2008 after the Federal Reserve and five other central banks lowered the cost of funding dollars and China cut the reserve ratio for banks.

 

China's manufacturing recorded its weakest performance since the global recession eased in 2009.

[mynameisandhy]

News and Review of European Economic

 

8 Days to Save Europe

Thursday, December 1, 2011

 

European policy makers will hold a summit on December 9 to discuss the agenda of the new European treaty changes to tighten regulation of the budget among the EU members.

 

The new pact is expected to tighten control of the budget among the 17 euro zone countries, which is the pedestal for the ECB to take additional steps to save the euro zone, as described by the President of the ECB, Mario Draghi.

 

Other agenda, regarding the issuance of bonds together seems still difficult to be accepted by the Germans, after Thursday's party center-right coalition Merkel once again confirms that the issuance of Euro bonds are not negotiable, close the door to France and other European countries are still seeking the move.

 

Ecofin achieved positive progress has been gaining momentum yesterday from the post-agreement market participants EFSF capacity additions, but investors are still looking forward to be wait n see, if the EU summit next week policy makers can achieve additional progress.