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News and Review of European Economic Zone (Greece)

 

Investors Still Look forward to the Greek Government

Wednesday, June 20, 2012

 

Some of the party winning the election is still trying to form a coalition government that will lead the Greek people wading through the debt crisis and economic recession it. Today is the dateline for the New Democracy party to announce his government coalition. If the New Democracy government failed to prepare the anti-bailout party will be given the next opportunity to form a coalition.

 

After seeing the development of negotiations in the last two days; investors are still optimistic about New Democracy to form a government together with the PASOK party and the Democratic Left. "Government should be formed immediately," said PASOK party leadership, Evangelos Venizelos said, hinted at the possibility of government can be formed on Wednesday. Athens news agency reported the New Democracy party leader, Antonis Samaras, will meet with Venizelos at 1600 BST and the leader of Democratic Left party, Fotis Kouvelis, at 1700 hrs.

 

In the meantime, please register strengthening euro thin in the London session. EUR / USD has traded 1.2698; not so far away from daily highs 1.2707

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News and Review of European Economic Zone

 

Fed, European market tear down the Chinese data

Thursday, June 21, 2012

 

European stock markets lost strength in the session Thursday after Federal Reserve policy announcement failed to satisfy market expectations, while mining stocks dropped after weak manufacturing data of China.

 

Europe Stoxx 600 Index fell 0.5% to 248.49 level and is ready to stop the increase obtained in the last session emat.

 

In recent past, European markets moved higher on hopes the central banks will do restrain the debt crisis and boost economic pertumuhan, with investors khsusnya focus on policy announcements from the Fed.

 

However, the central bank would not meet market expectations because it did not announce further quantitative easing, but said it would increase its program to replace short-term bonds with long-term bonds amounting to $ 267 billion this year began in late 2012. The program is known as "Operation Twist" and will erakhir this month.

 

Banking remove some of the increase obtained previously, with HSBC Holdings PLC shares fell 1% in London. Lloyds Banking Group PLC fell 1.2%, while Standard Chartered PLC fell 0.9%, adding to pressure on the FTSE 100 index fell 0.6% to a level of 5588.79.

 

In France, the world's largest steel company, ArcelorMittal SA, down 2.3% while the shares of oil company Total SA tegrelincir 0.8%. And the CAC 40 fell 0.5% to a level of 3110.09.

 

IBEX 35 index fell 1.1% to a level of 6720.70, weighed down by shares of Banco Popular Espa? Ol SA, which fell 1.5%, and Telefonica SA, down 1.5%.

 

German Stock Exchange also fell, with the industrial conglomerate ThyssenKrupp AG shares fell 1.2% truck manufacturer MAN SE is down 1%. DAX 30 index fell 0.6% to a level of 6352.29.

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News and Review of European Economic Zone (Spain)

 

Spain Must Pay For Expensive bond

Thursday, June 21, 2012

 

Spain managed to get funding? 2.2 billion, although they had to pay top dollar when selling bonds. This course shows investors want higher returns for holding the Spanish government bonds amid fears the outbreak of Spain's ability to meet its funding needs.

 

Borrowing costs for 5-year tenured bond rose to 6.072%, higher than previous auctions 4.960%. However, the amount of funds obtained successfully passed the target? 2 billion. Demand is still high with the ratio of bid-to-cover bond to 5-year tenure at 3:44; better than the previous auction 3:14

 

Meanwhile, the euro was weaker in the London session please register. EUR / USD has traded 1.2679; not so far away from daily lows 1.2642

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News and Review of European Economic Zone (UK)

 

UK retail sales post the increase in May

Thursday, June 21, 2012

 

UK retail sales recorded an increase in May, topping estimates and rebounded from a sharp decline in April, official data showed Thursday.

 

In its report, the UK Office for National Statistics said retail sales rose 1.4% to a seasonally adjusted in May, exceeded the expectation of rising 1.2%. Retail sales in April was revised down to 2.4% decrease from the previously reported results by 2.3%.

 

For an annual basis, retail sales rose at an annual rate of 2.4% in May, above expectations for a gain of 2.1%, after the previous month recorded a decrease of 1.1%.

 

Core retail sales, which excludes auto sales, post 0.9% rise in May, compared with 0.7% rise expected.

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News and Review of European Economic Zone

 

Euro Zone Big Four are still negotiate

Friday, June 22, 2012

 

Four major countries in the euro zone met for talks about the financial crisis that hit the area. Italian capital Rome, the location of the meeting since Friday (6/22/2012), the Prime Minister of Italy Mario Monti, German Chancellor Angela Merkel, French President Francois Hollande, and Spanish Prime Minister Mariano Rajoy.

 

Agenda of the meeting, wrote the AP and AFP are debt reduction options of Spain and Italy. The discussion also includes plans Summit (Summit) Europe that will be held next week.

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News and Review of European Economic Zone

 

European Review of U.S. Banking

Friday, June 22, 2012

 

European Union finance ministers will discuss policies that can strengthen the banking sector turbulence damping by further debt crisis, Reuters reported. Leadership of the IMF, Christine Lagarde, has urged euro-zone to channel aid directly to the bank and not through the government; but Germany and some other euro-zone members oppose the proposal because it violates the constitution. this.

 

Meeting of finance ministers will discuss policy could lead to the formation of the European banking including deposit guarantee scheme. Lagarde has uttered the European Stability Mechanism (ESM) should be possible to lend to banks in order to prevent the worsening financial situation. Spain's economy minister, Luis de Guindos, said there was a meeting to discuss the various policies in order to prevent the occurrence of banking crises.

 

Meanwhile, the euro began to look hard to maintain gains in New York session. EUR / USD has traded 1.2536; stay away from daily highs 1.2583

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News and Review of European Economic Zone (Spain)

 

Spain plans ragged Euro Performance

Friday, June 22, 2012

 

The euro slipped from a high level daily after Bloomberg reported that Spain was consider a plan to share the loss with the junior bondholders as part of bank restructuring scheme. EUR / USD is now trading 1.2535, 1.2583 daily high level away from

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News and Review of European Economic Zone

 

Before the auction the weakening Euro in Italy and Spain

Monday, June 25, 2012

 

The euro fell back against the U.S. dollar and Japanese yen before Italy and Spain selling bonds tomorrow amid concern the European financial crisis spread to countries whose economy is larger.

 

Uang17 eye on the state to extend last week's decline as much as 0.6% after billionaire George Soros warned that the Euro could disappear if the meeting of EU leaders failed to relieve the debt turmoil on euro zone meeting on June 28 to 29. The strengthening yen in because of the demand for safe assets after weaker against the dollar on speculation a plan to double the sales tax will memeperluas part in the ruling national party.

 

"I'm not going to ignore the euro do not fall further in the near future," said Michael Derks, chief strategist at FxPro Group Ltd. In London, "I do not see any hope to make the right decisions at the summit in order to really result in drastic measures or great solutions.

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News and Review of European Economic Zone (UK)

 

Sterling Bank of England's Miles Distressed Comment

Monday, June 25, 2012

 

Sterling weakened in London over the outbreak of the session will expectations of further monetary easing from the Bank of England (BoE). In an interview with daily Financial Times, David Miles BoE officials called for the activation of the Quantitative Easing program to restore the British economy. GBP / USD has traded 1.5555; stay away from daily highs 1.5594

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News and Review of European Economic Zone

 

Swiss and Polish currency swap plan

Monday, June 25, 2012

 

The Swiss National Bank and the National Bank of Poland has completed its currency swap agreements between the policy of the Swiss franc and a possible second Polish Polish central bank to provide Swiss franc liquidity to banks in case of Poland in the Swiss interbank tensions, as announced by the bank's today.

All swap transactions will be conducted within one week. These two banks had not anticipated this agreement will be needed.

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News and Review of European Economic Zone (UK)

 

The UK Outlook Worsens Related Crisis Zone of Europe

Tuesday, June 26, 2012

 

Governor of the Bank of England (BoE) British policy makers warned that Britain is in the midst of a crisis situation, so diutuhkan action to keep the British banking system.

 

Besides Mervyn King confirmed that the new policy to support the loan will still be needed in testimony before Parliament. The worsening outlook for the UK economy in recent weeks due to turmoil in the European zone, where the problem is increasing the opportunities for expanding the program of asset purchases, known Quantitative Easing.

 

This last testimony of Mervyn King will certainly be an important opportunity for change in voting against the QE program of the MPC board member in July, after being there five council members who opposed the program while the remaining 4 people agree on any additional quantitative easing policy worth? 50 -? 375 billion.

 

Britain's own budget deficit in May soared so? 17.9, publishing over? 2.15 billion a year ago, while government spending increased 7.9% and 1.6% revenue decline is largely due to a decrease in tax revenue amounting to -7.3% of government revenue due to the impact of economic recession the swelling budget.

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News and Review of European Economic Zone (UK)

 

Pound wiped out its gains against the U.S. dollar

Tuesday, June 26, 2012

 

Pound gains against the U.S. dollar cut in session Tuesday after disappointing U.S. consumer confidence after concerns over the rising cost of borrowing in Italy and Spain and still has not explained the results of the European summit in Brussels this week continued to weigh.

 

Previous industry data showed that U.S. consumer confidence declines, exceeded expectations in June, fell for a fourth month in a row and touch their lowest level since January.

 

Conference Board reported consumer confidence index fell to 62.0 in June from 64.4 points in May, a figure that was revised down from 64.9 in the previous report. Analysts expect the index fell to 63.5 in June.

 

The report was released after Standard & Poor's and Case-Shiller home price index reported a fall at an annual rate of 1.9% in April from a year earlier, beating expectations for a decline of 2.5%, but still recorded a decrease for the 22nd consecutive month, participate.

 

Meanwhile, the market sentiment remains fragile after the yield on the 10-year Spain rose to 6.71% after the auction of three and six months of government, approaching a critical threshold of 7%.

 

Meanwhile, Italy to sell as much as 2.99 billion euros with a two-year bonds yield 4.71% on average, the highest since December.

 

Pound observed away from the highest level since June 21 against the U.S. dollar from 1.5651 level, trading at 1.5607 level during morning trade in the U.S., but still up 0.21%. Sterling also rose against the euro, up 0.44%, to touch the 0.7993 level.

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News and review European Economic Zone (Germany)

 

Strengthening Support your German Data Exchange Europe

Tuesday, June 26, 2012

 

Energy and pharmaceutical shares of stock to support the strengthening of European stock exchanges in trading Tuesday (26/06/2012). Reinforcement occurs after the data German consumer confidence index rose in July.

 

Europe Stoxx 600 Index rose 0.3% to 243.44. BP shares rise led to 1%. IBEX indexes, Spain rose 0.7% to be 6667.40. For Germany's DAX index rose 0.4% to 3030.63. FTSE index was up 0.3% to 5464.94. Croda International stock 3.5% higher and E ON AG shares rose 1.8% DE.

 

The results of GfK Group survey showed German consumer confidence index in July rose to 5.8 from 5.7 in June. It is above economists' expectations are estimated to decrease to 5.6 in the month of July 2012. German consumers are not worried about the increasing potential of the European crisis.

 

The data showed German consumers are not too concerned about political and economic uncertainty in Greece. German consumers are not concerned with the Spanish banking rescue.

 

Hang Seng Index rose 0.2%, the Nikkei fell 0.8%, Straits Times index fell 0.2%, the Shanghai index down 0.2%, Kospi index fell 0.4% and the ASX index fell 0.3%. U.S. oil prices in Asia fell 0.2% t to U.S. $ 79.01. Gold prices fell 0.3% to Rp1.583 per troy ounce. EUR.USD exchange rate rose 0.04% to 1.2506 euros per dollar. AUD / JPY rose 0.2% to 79.82 U.S. dollars per yen.

 

Today Cyprus has formally requested a bailout to the European Union. Immediate funds to rescue banks because entangled Greek bonds.

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News and Review of European Economic Zone (UK)

 

Sterling rallied Premature BoE Post-Word

Wednesday, June 27, 2012

 

Rally Pounds Sterling (GBP) once again faltered on Wednesday (27/6) as the market still seems to avoid the risk of currencies after dovish comments from senior Bank of England (BoE).

 

BoE Governor Mervyn King on Tuesday again 'said' that the UK economic outlook deteriorated in recent weeks due to the impact of the debt crisis in the Euro zone. Comments are increasingly strengthened speculation that the central bank will choose to expand its asset purchase program in order to sustain growth.

 

Whereas quantitative easing (QE) were considered to bring negative effects to the Sterling currency. And to enter the European session, USD recorded pressure in the area compared with $ 1.5615 yesterday closing at $ 1.5643.

 

But some analysts said the weakening of Sterling will not be sharp and will be limited given that most markets have been anticipated beforehand. This was due to be concluded with more members who hold dovish central bank, the BoE rate market will reconsider whether or not related to monetary easing in the release.

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News and Review of European Economic Zone

 

Ahead of EU Summit: European Stock Up Euro Flat

Wednesday, June 27, 2012

 

European stocks rose on Wednesday, but the euro remained flat, with many investors out of the market. After Germany confirms remains opposed to making common bond to share the euro zone debt load before a summit of European crisis. The dollar retreated from earlier highs and German bonds remained stable, while riskier assets such as commodities decline, along with that all markets are reluctant to beregerak forward toward better before a summit of EU Summit, 28-29 June in Brussels.

 

"We expect little in the direction towards the main peak pertamuan EU summit which starts tomorrow, with a few sentiments that are not pleasant." Said Mitul Kotecha, head of global FX strategy at Credit Agricloe.Setiap no news of the issuance of public bonds in the euro zone ahead of summit meeting, dipandangan by many people that it is a potential solution to overcome the debt crisis of Europe is now in its third year, seems to have been ruled out after German Chancellor Angela Merkel said it will not happen "over my life".

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News and Review of European Economic Zone

 

Market Quiet Ahead of EU Summit

Wednesday, 27 June 2012

 

Spanish Retail Sales Data reported to be decreased to 4.9%. These results can not be called good results, but still showed considerable growth of the market forecast at -8.2% and the results of last month at -10%. German Import Prices are also released data showing a decline of -0.6% to -0.7%. These data suggest that growth in Germany slowed inflation, giving rise to rumors that the ECB will cut interest rates.

 

The market is still awaiting the results of the German Prelim CPI and the EU Summit. Currently the euro was at 1.2490 level.

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News and review European Economic Zone (Germany)

 

Germany Denies Changing His attitude

Thursday, June 28, 2012

 

Monexnews - German finance ministry denied reports that it has changed its stance on the euro bond insisting that it will only happen if fiscal integration has been realized. Earlier Wall Street Journal, citing Finance Minister Wolfgang Schaeuble, reported that Germany was willing to move more quickly than would be expected to accept responsibility for the euro-zone debt.

 

When asked to comment on reports the Wall Street Journal, Martin Kotthaus ministry spokesman said: "That's not true. We have always said that talks with debt management will only be realized as part of the process toward the end of the fiscal union," said Kotthaus told Reuters.

 

Meanwhile, the euro weakened on the New York session. EUR / USD has traded 1.2430; stay away from daily highs 1.2524

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News and Review of European Economic Zone

 

Market Expecting Miracles Still On EU Summit This Weekend

Thursday, 28 June 2012

 

Data released this afternoon UK Current Account and Final GDP are both showing disappointing results. Current Account USD decline from the estimated market-8.9B and 7.2B results of the previous month-to-11.2b, while the GBP Final GDP showed no change from last month's results as well as market forecasts. These data did not significantly affect the movement of currency GBP on the market that are currently in the level of 1.5546.

 

On the other hand, debt interest 5-year bonds and 10-year Italy also showed unsatisfactory results. For interest rate 5-year Italian bonds rose from 5.66% to 5.84%. For debt interest 10-year Italian bonds rose from 6:03% to 6:19%, while for the bid to cover decreased from 1.4 to 1.3. In addition, the interest rate 10-year bond debt Spain back up to around 7%.

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News and Review of European Economic Zone

 

Danske Bank: Euro Can be Seen Negative Side of the future

Thursday, June 28, 2012

 

The euro has managed to become the main attraction after hitting a bottom at 1.2400 at the current price. After there was some problem in the euro zone and the ugly unemployment data in Jerman.Mengenai EU summit starting today, senior analyst at Danske Bank S.Roed-Frederiksen said that "very low expectations for EU summit where are all the same, euro should be left-leaning backwards at risk of any announcement. We doubt, however, that we will see an outcome that can change the negative trend in the euro, mainly because the ECB expected to cut interest rates next week ".

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News and Review of European Economic Zone

 

Euro Record Gain Since October

Friday, June 29, 2012

 

The euro surged against the U.S. dollar posted its biggest daily with since October after EU leaders agreed to act as an effort to stabilize the bond markets of Spain and Italy, as well as taking steps towards the creation of the Eurozone banking union.

 

The euro shot up to touch the highest level since late May at $ 1.2692, before it fell slightly to trade at around 1.2665 or 1.8% above its opening price on Friday. The single currency is also to maintain the rate of increase of 2.5% against the U.S. dollar, although it may have to end the quarter-2 with a decrease of 5%.

 

The latest news from Brussels indicate if the European leaders have given permission for use of the rescue fund permanent facilities or the European Stability Mechanism (ESM) to provide funding for Spanish banks.

 

"In critical condition, the EU had taken a pretty good long-term," said Sebastien Galy, forex analyst at Societe Generale. "That way, the risk of spread of the crisis has been reduced at least for the next few weeks.

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News and Review of European Economic Zone

 

Recapitalize banks directly via the ESM as soon as the funds gain the ability

Friday, 29 June 2012

 

According to the report, EU officials gathered for the second day of an EU summit in Brussels decided that the rescue for Spanish banks will turn into a direct recapitalization, as soon as a permanent EU bailout fund, the European Stability Mechanism capacity expanded, allowing for the move. This will happen when the ECB took over as supervisor of the eurozone banking system.

 

EU sources confirmed that the change should happen soon, because 14 of the 17 national central banks in the euro zone now hold the power of supervision. After that ESM will be able to direct bank recapitalization, which allows financial institutions to repay the government for each of the previous loan. This will happen as in the case of Spain, who will receive money saving before it can be given directly.

 

EU officials to ensure that this measure will reduce the impact of deficit borrowing in the recipient country practically to zero.

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News and Review of European Economic Zone

 

Merkel: recapitalize banks directly under the conditions

Friday, 29 June 2012

 

Angela Merkel told reporters in Brussels today that the fact that the ESM will be able to direct recapitalization of distressed banks does not mean that these countries take advantage of the aid exempted from complying with certain conditions.

 

According to the German Chancellor Troika will not be involved in the Spanish bank recapitalization. The same goes for Italy, in this country will require a bailout. Only the European Commission and the ECB will take part in the operation, and not the IMF.

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News and Review of European Economic Zone

 

Euro Down Against Major Currency

Monday, July 2, 2012

 

The euro fell against major currencies before the data today may show unemployment rates in Europe will rise, raising the prospect of the European Central Bank will cut interest bunga.ECB, which maintain low borrowing costs from 1 percent since December, will probably lower the benchmark interest rate by 0.25% on July 5, shown in a survey of economists in a Bloomberg News. Undergo euro currency posted the biggest jump in more than one year against the yen on June 29 after European leaders to ease the requirements of Spanish bank loan.

 

"We can not buy the euro," said Marito Ueda, senior managing director at FX Prime Corp. (8711) in Tokyo, a currency-margin company. "Prospects for the European economy remains bleak, and it still remains to be seen what economic measures will be done there.

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News and Review of European Economic Zone (France)

 

France Must Work on Budget Deficit

Monday, July 2, 2012

 

France would have to save? 6-10 billion this year and? 33 billion in 2013 to meet the deficit target or at risk of creating fear in the financial markets, according to the state auditor. At the request of President Francois Hollande, the auditor assess the decline in state revenues as the biggest threat to France to reach the deficit target.

 

Although the results of the audit in accordance with the predictions of economists, but this confirms that Hollande may be difficult to fulfill his campaign promise to end the policy of austerity. The government has plans to raise taxes for wealthy people and companies on this year; but the policy of subsidies and cuts in civil service in 2013 does not seem to be inevitable.

 

The main obstacle to achieving the deficit target of 4.5% of GDP this year and 3% of GDP in 2013 is the decline in revenues due to economic growth assumptions are too optimistic. Problems will arise next year in which the government should do drastic policies to reduce the deficit amid weak economic growth, protracted debt crisis of the euro-zone, and high unemployment.

 

Meanwhile, the euro weakened in the London session. EUR / USD has traded 1.2620; stay away from daily highs 1.2672

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News and Review of European Economic Zone

 

The unemployment rate in Europe reached a record increase

Monday, July 2, 2012

 

The unemployment rate in the euro zone recorded an increase in line with expectations to a new record high in May, official data released by Eurostat showed Monday.

 

In its report, Eurostat said euro zone unemployment rate rose to 11.1% seasonally adjusted in May, up from 11.0% in April. These results are in line with market expectations. The unemployment rate reached 10.0% in May 2011.

 

Based on data released, the number of unemployed in the euro zone as much as 24.86 million in May, in which some 17.56 million unemployed in the euro zone.

 

Compared to a report in April, the unemployment in the region increased by 151 000 people in 27 countries of Europe and as many as 88 000 in the euro zone.

 

Among the modern state for members of the euro zone, the lowest unemployment rate recorded in Austria, Luxembourg and Germany, while the highest level recorded in Spain as much as 24.6% and 21.9% in Greece.

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