News and Reviews European Economic Zone

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News and Review of European Economic Zone

 

Moody's puts EFSF in a 'negative outlook'

Wednesday, 25 July 2012

 

Agency Moody back on center stage. After the cut Monday at the prospect of Germany, the Netherlands and Luxembourg to negative from stable, the uncertainty increases involve debt crisis, the Greek corresponding left block and the potential bailout for Spain and Italy, the agency has now been put on negative outlook EFSF. This decision is based on the state of the EFSF: Germany 29.1%, Netherlands 6.1% and Luxembourg only 0.3%

 

The value of the European bailout fund so it can be revised within twelve to eighteen months, and further deterioration in credit conditions of the countries mentioned may therefore affect the ranking of EFSF.

 

Specifically about Germany, the agency has commented critically on German bank exposure to Spain and Italy along with the ability to improve their closed their balance sheets.

 

Remember that on June 6, Moody's downgraded the credit ratings of Commerzbank and several more German banks A3.

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News and Review of European Economic Zone

 

European exchanges bleak revenue burden

Thursday, July 26, 2012

 

European stock markets traded mostly lower on Thursday session, continue to struggle under the burden of a number of fairly dismal earnings news in a variety of sectors and a large blue-chip stocks.

 

Europe Stoxx 600 index edged down to a level of 250.27, led by the energy sector, with shares of Royal Dutch Shell Group PLC fell 2.6% after the post the earnings decline.

 

Unilever NV became a bright spot, up 3.6% after report decline in profit, but noted an increase in sales. FTSE 100 flat at 5494.67 level.

 

German DAX 30 index fell 0.5% to a level of 6375.10, weighed down shares of Siemens AG which slipped 3.4% after a disappointing earnings and warned the outlook.

 

In France, the CAC 40 was flat at levels observed 3082.17.

 

The Spanish IBEX 35 index fell 0.3% to 5,985.70, led by a 4.6% decline for Telefonica SA, the final days before the deferred dividends and share repurchases for the year as profits fall in earnings was released ahead of schedule.

 

Banco Santander SA rose 1%. The bank said net income fell 93% as it took hefty provisions to protect against losses on real estate Spain.

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News and Review of European Economic Zone

 

European markets and the euro have not been able to rise

Thursday, July 26, 2012

 

European stocks and the euro weakened again. Corporate performance report shows that the impact of European crisis are becoming apparent.

 

FTSEurofirst 300 index fell 0.1% to 1017.14 in early trading today (26/7) after Siemens booked orders fell 23% in quarter two. Performance of Royal Dutch Shell oil company also missed the target.

 

While the euro hit another 0.1% to U.S. $ 1.2141. Record of the weakening euro lowest in two years has been achieved in earlier this week that the position of U.S. $ 1.2042.

 

"We are still bleak for the euro crisis," the report said Citigroup economists, they have raised the chances of Greece leave the euro zone in 12 to 18 months to 90% from the previous 50% -75%.

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News and Review of European Economic Zone (UK)

 

The pound slid against the dollar, Fed watched market

Thursday, July 26, 2012

 

Pound slipped lower against the U.S. dollar in the session Thursday as concerns over the impact of the debt crisis in Europe weighed on sentiment, but speculation over the prospect of further easing from the Federal Reserve gave the strengthening of sterling.

 

Investor sentiment was hit by fears that continued that Spain might need a full-scale bailout, because the yeild bonds Spain still held above the threshold of 7% level which is considered the country can not survive for the long term and need resolution.

 

The pound also remained under pressure after data on Wednesday showed that the UK economy contracted the most since the first quarter of 2009 in the three months to June. Gross domestic product fell 0.7% in the second quarter, versus expectations for a decline of only 0.2%, thus prolonging the recession the UK for the third quarter.

 

But sterling was supported in the center of speculation over the possibility of further monetary easing from the U.S. central bank to prop up growth and spur employment, ahead of next week's policy meeting.

 

Touch the pound tracked down the session against the dollar at 1.5471 level in European morning trading, then consolidated to a level of 1.5474, or only down 0.15%. Against the euro, pound recorded gains, up 0.11% to 0.7834 level.

 

On this day, the U.S. will release official data on durable goods orders and initial claims for unemployment benefits, as well as pending home sales industry data.

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News and Review of European Economic Zone (Spain)

 

Spanish unemployment Broken Record!

Friday, July 27, 2012

 

Unemployment in Spain reaches its highest level since the second quarter of the country's return to democracy in the mid-1970s, because these companies spend a lot of workers, these factors are driven by fears of prolonged recession and a crisis of confidence among consumers.

 

The unemployment rate rose to 24.6 percent from 24.4 percent in the first quarter, the data quoted from the National Statistics Institute on Friday, the result is below the 24.9 percent forecast by Reuters. The number of Spaniards who are unemployed rose to 5.7 million.

 

"This is another example of the terrible conditions in today's economy, with economic possibilities can not be lifted any time soon, it may tend to fall deeper into recession, the conditions will only worsen the situation," said Ben May, an economist at Capital Economics.

 

Spain's economy has stagnated or been in recession since early 2008 after the labor sector, and luxury property no longer stops after cheap credit.

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News and Review of European Economic Zone (Italy)

 

Lamborghini sales skyrocket Drastically

Friday, July 27, 2012

 

The Italian supercar manufacturer Lamborghini SpA recorded a sales increase success in the first half of 2012. 1109 Lamborghini able to remove the unit variants around the world.

This figure is obviously much different compared to last year's revenue. Lamborghini in 2011 and only recorded sales reached 674 units. Thus, the Lamborghini recorded an increase of 64.5 percent.

 

Lamborghini achievement in 2012 was not just stop there. This bull bearing manufacturers have also announced production of 1,000 units Aventador variants.

 

Selanjutmya, Lambo Mind spawned a variant of the SUV concept. The plan, Lamborghini Mind will be released with prices starting at 171 thousand Euro. Care will be a Lambo car with the cheapest price. But the new Mind began to be sold in 2017.

 

Lamborghini plans to release Utrus SUV market for the United States, Britain, Germany, Russia, Middle East and China. Production volume reached 3,000 units.

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News and Review of European Economic Zone

 

Spanish and German Discussion Bailout

Friday, July 27, 2012

 

Spain admitted earlier this week may require a full bailout funds from the European Union and International Monetary Fund as much? 300 billion ($ 366 billion) but the cost of borrowing that does not match the expected, Reuters reported Friday, citing an official with the euro zone on condition of anonymity. The report said the Minister of Economy Luis de Guindos discussed the issue with German Finance Minister Wolfgang Schaeuble in Berlin at a meeting on Tuesday after a 10-year Spanish bond yields traded near 7.6%, according to the report. Informant says Germans are not comfortable with the idea of ​​a bailout now, according to a Reuters report. In public, Spain has repeatedly asserted will not ask for a full bailout. Spanish 10-year bond yield fell sharply on Thursday after the expectations of the European Central Bank will take action to overcome the yield surge.

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News and Review of European Economic Zone (Spain)

 

Semester I, Spain's GDP is only 0.4%

Monday, July 30, 2012

 

Gross domestic product (GDP) of Spain is in the level of 0.4% in the second quarter of 2012. Annually, the department reported the Spanish statistics, the GDP to contract 1%.

 

Both numbers are exactly predicted by the Bank of Spain. The International Monetary Fund (IMF) on Friday (27/7) states, the Spanish economy is still difficult to develop and are vulnerable to risk.

 

Spain makes a lot of people are worried and Matador country these estimates require a full bailout. Treasury bond yields jumped and touched the point of 6.62% for the 10-year bonds.

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News and Review of European Economic Zone

 

European unemployment reached a record predictable, lackluster euro

Monday, July 30, 2012

 

Weakened against the euro to record the movement of a number of major world currencies. In fact, last week, the euro could move towards the most powerful level in the last two weeks against the yen.

 

At 13:29 pm Tokyo time, the euro fell 0.3% to U.S. $ 1.2290. Throughout last week, the euro reached 1.4%. In addition, the euro also cluck 0.3% to 96.34 yen, after earlier hitting its highest level in two weeks at the level of 97.34 yen on July 27. The exchange rate of the dollar was at 78.39 yen from 78.46 positions in the yen last week.

 

The weakening of the euro before the release of European unemployment rate data. Market speculation, the data will be released tomorrow (31/7) it will show Europe the unemployment rate surged to a record high in history.

Just a note, a number of economists surveyed by Bloomberg predict the jobless rate will rise to the level of Europe 11.2% in June from a record high of 11.1% in May.

In addition, Moody's Investors Service rate, although the European Central Bank (ECB) is committed to maintaining the euro, but the ECB can not handle the debt crisis alone.

 

"Although the ECB easing policy, it will take time to see the impact of the policy. At present, the economic data will remain weak and will continue to hit eurp sell if the data released by the negative," said Masakazu Sato, foreign exchange adviser Gaitame Online Co in Tokyo.

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News and Review of European Economic Zone

 

Waiting for Market ECB meeting

Monday, July 30, 2012

 

This will be a busy week in Europe ahead of a meeting on Thursday of the highly anticipated by the market. Bloomberg News noted that the proposal Draghi will likely involve primary market bond purchases by the EFSF / ESM and flanked by the ECB in the secondary market purchases.

 

They say that LTROs more important than the ECB rate cut, both of which are subject to be discussed later. German Central Bank on Friday said that they would remain opposed to start buying government and corporate bonds also keep in mind that the letter "leaked" four months ago, Weidmann Draghi urged to tighten security rules and warned growth imbalance in TARGET 2.

 

According to the Analysis of Macro Strategy J. Reid and C. Tan at Deutsche Bank, "Unless major changes menjadilebih negative news, while it appears the market will remain strong enough ahead of Thursday's meeting and we will then wait for the results.

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News and Review of European Economic Zone

 

Sluggish Market Ahead of Fed Meeting 2

Tuesday, July 31, 2012

 

Enter the European market, a number of listless trading floor seems to move because the market makers tend to be 'wait and see' traded on Tuesday (31/07).

 

Market sentiment has been much influenced by the speculation that the ECB (European Central Bank) at its meeting Thursday, the day after tomorrow, is likely to continue the bond purchase program in order to reduce the loan interest rate hikes Spain and Italy. However ketidakpstian back broke because of Germany reiterated its rejection of the measure.

 

While the Fed is also great pressure to take aggressive action related-data datda pretty disappointing lately. But some economists to make sure there would be no further easing until September. Parties to the Fed today will begin its meetings for two days to decide policy on interest rates currently range in lower leve.

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News and Review of European Economic Zone

 

Focus on the central bank, the pound weakened against the dollar

Tuesday, July 31, 2012

 

The pound slid down against the U.S. dollar Tuesday, are both moving down to the sterling euro but still has the support of the expectations of central bank policy actions in Europe and the U.S. to shore up the global economy.

 

Market sentiment was supported by expectations that the European Central Bank will announce measures to address the eurozone debt crisis that has long plagued the euro after the central bank president, Mario Draghi, last week pledged to do everything to maintain the euro.

 

But investors remained cautious amid fears that the less aggressive policy response is expected from the ECB would further aggravate the situation.

 

Bank of England will not announce any change in monetary policy meeting on Thursday menejelang.

 

Market participants also anticipate the Federal Reserve's policy setting meeting on Wednesday, amid speculation over whether the U.S. central bank to signal easing measures further.

 

Pound observed at lower levels against the dollar reached 1.5688 session in morning European trading, then consolidated to a level of 1.5688, down 0.13%. The pound fell slightly against the euro, falling by 0.10% to a level of 0.7811.

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News and Review of European Economic Zone

 

German Unemployment Up 6.8% in July

Tuesday, July 31, 2012

 

Unemployment in Germany is a country with terbesardi European economy, is currently experiencing an increase in July, amid fears that the momentum of the labor market is slowing.

 

German Federal Labor Office said on Tuesday that the adjusted unemployment rate rose to 6.8 percent in July from the previous 6.6 percent in June. The number of people registered as unemployed climbed 67,000 compared with the previous month's figures are in 2876 million people.

 

Employment agency head Frank-Juergen Weise blamed the rise in unemployment is largely due to seasonal factors, unemployment typically rises during the summer holidays, but he said there was also "a weaker indication of progress" in the labor market.

 

Seasonally adjusted, the unemployment rate of 6.8 percent static in July even though the number of people without a job increased by 7,000 people.

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News and Review of European Economic Zone

 

Bundesbank: Do not Expect the ECB Continues

Wednesday, August 1, 2012

 

Meeting of the European Central Bank does not yet begun, but the Bundesbank has warned all parties not to expect too.

 

Bundesbank's website today, the Head of the Central Bank of Germany, Jens Weidmann warned that the ECB remains concerned that adopting the mandate before deciding anything. "The independence of the ECB must be accompanied by respect for the law's mandate," said the man, who also serves as the ECB governing council of this.

 

Broadly speaking, Weidmann cautioned Mario Draghi and colleagues in order not to release a policy that is too revolutionary for the sake of pleasing certain circles. "The best political decision, not necessarily the best decisions for the economy," she said. Weidmann emphasized the main purpose of the ECB is limited to fiscal policy, regardless of any action taken, either in the form of interest rate adjustments and other breakthrough. Bundesbank judging political officials expect too much in the recovery efforts related to the ECB. "They think the central bank can directly mengandalikan prices, spur economic growth, reduce unemployment and build a banking system," Weidmann said. As is known, Mario Draghi last week trying to calm the region's economic and political actors with a commitment to protect the stability of the euro currency. The comment was immediately welcomed by the global financial markets and the governments of European countries. Germany seems to expect this kind of euphoria did not affect Draghi for many people is always fun.

 

Weidmann understand correctly that the public really wants the emergence of new hope. Mario Draghi, and the ranks of the figure of central bank is considered as a change agent is free to move. Financial market expectations and economic officials of the ECB continues to occur each hold an important event. "The ECB is considered an institution that could do anything," he concluded.

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News and Review of European Economic Zone (UK)

 

British banks can access the Government Loan Facility

Wednesday, August 1, 2012

 

Banks can begin to take advantage of cheap funds provided by the government so that credit can flow more to the economy, according to the British Treasury. The Government has launched a financing facility that will provide funding FLS with lower interest rates if banks extend or provide credit to businesses and consumers. This is a realization of the Finance Minister Osborne pledge to help the UK out of recession.

 

"The facility will be activated FLS for 18 months in which the banking and financial institutions can borrow up to four years," said British Treasury. "The facility is expected to help smooth the flow of credit so that helped boost economic activity." The government is allocating funds? 80 billion for FLS, but its effect depends on the number of requests submitted by the banks.

 

Meanwhile, sterling visible effort to reduce the attenuation in the London session. GBP / USD is now trading 1.5645, trying to stay away from daily lows 1.5618

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News and Review of European Economic Zone

 

Statements of income, prop FTSE higher

Wednesday, August 1, 2012

 

London's main stock index opened higher Wednesday, boosted by strong results in the corporations sector, while mining stocks after a report would put pressure on UK manufacturing data in July.

 

The FTSE 100 rose 0.4% to a level of 5657.28.

 

Mining stocks turned lower after the report purchasing managers index of manufacturing sector showed a decline in July to 45.4 from 48.4 in June. Shares of Eurasian Natural Resources Corp PLC fell 1.6%, while Vedanta Resources PLC slumped 1.2% and Xstrata PLC slipped 0.3%. Most metal prices recorded a decrease.

 

Contrary to the decline, the company's clothing chain Next PLC jumped 5.4% after it raised its full-year earnings guidance following the sales performance better than expected.

 

In the banking sector, Standard Chartered PLC of which recorded an increase, its shares rose 2.8% after it announced that net income rose to record highs in the first half of this year.

 

Bucked the trend in the mining sector, Antofagasta PLC shares rose 1.8% after reaffirming its full-year target of copper output following an increase in output in the second quarter.

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News and Review of European Economic Zone (UK)

 

UK Manufacturing Data injures Sterling

Thursday, August 2, 2012

 

Decline in UK manufacturing activity has been pressing the pound down to its lowest level this week against the greenback on Wednesday, as investors became increasingly concerned with the possibility of further monetary easing by the Bank of England.

 

Once struck by the sharp contraction of the British economy during the second quarter, Sterling again be hit by the results of a survey which showed UK manufacturing sector shrinks at fastest pace in more than three years in July.

 

Although the BoE still expected to keep interest rates unchanged and the target QE policy meeting on Thursday, a series of recent economic data that has been growing weaker increase the likelihood of further monetary easing in the months ahead.

 

"The market seems to start debating the chances of interest rate cuts in the UK given some poor recent data also began to affect the currency," said Adam Cole, chief currency strategist at RBC.

 

In the BoE policy meeting minutes of July, the attitude of policy makers to lower interest rates discourse looks to soften. Nevertheless, most analysts are still unsure if the rate cuts will not happen before the current quantitative easing program ends in November.

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News and Review of European Economic Zone

 

Manufacturing growth in Europe reached their lowest point in 3 Years

Thursday, August 2, 2012

 

Euro zone manufacturing sector contracted at its fastest rate in three years in July, according to a closely watched survey. Manufacturing Purchasing Managers Index (PMI), compiled by Markit, fell to 44 from 45.1 in June. Any reading below 50 indicates contraction.

 

Company focused on cutting costs as falling orders cause more job losses, Markit said. German industrial power base in Europe, posted one of the lowest scores. PMI for July 43, also the lowest in three years. Only Spain and Greece saw their contract manufacturing sector more quickly.

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News and Review of European Economic Zone

 

EUR / USD Trading on Top 1.22, Signals More ECB Expected from

Thursday, August 2, 2012

 

Fewer bids to buy the dollar against the single currency in the determination of Tokyo, a continuing theme of the session after the Fed left U.S. economic policy is not subject to change without notice QE3.

 

At the time of writing, however, the EUR / USD is largely unchanged, consolidating above the 1.22 figure as traders awaited a meeting of the European Central Bank economic future of Europe during the next session. ECB president Mario Draghi faces intense pressure from investors to meet its promise last week to do whatever it takes to save the euro.

 

"From a technical standpoint, hourly charts show indicators aimed at oversold levels for a number of corrective movements upwards again towards the 1.2250 resistance zone of static," said Valeria Bednarik, Chief Analyst at FXstreet.com. "The continuation of below 1.2140, will put the long-term trend is bearish on track, with the couple and then target new annual lows."

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News and review European Economic Zone (Germany)

 

German bonds fell ahead of the eurozone retail data

Friday, August 3, 2012

 

German government bonds melmeah before the release of data expected by economists will show Eurozone retail sales fall in June which in turn suggests that the crisis is still crippling debt recovery regionnya economists.

 

Two-year bond yield rose from its lowest level. While the Spanish 10-year bonds yesterday rose to the top level of 7%, a level that brings together a bailout for Greece, Ireland, and Portugal after the European Central Bank president Mario Draghi failed to convince investors that policy makers can stabilize the cost of borrowing.

 

Slovenia lowered the debt ratings of three levels by Moody's Investors

Service. Data to be released today are expected to show that the manufacturing and service sector shrinking euro zone. Last June the European retail sales fell 0.1%.

 

10-year German bond yield rose three basis points, or 0.03 percentage points to 1.26%. Berkupon bonds 1.75% and ended in July 2022 was down 0.315% or? 3.15 per? 1.00 ($ 1,219) to 104.53.

 

Two-year bond yields rose two basis points to minus 0.07%, this means investors who buy these bonds will receive less than their purchase price.

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News and Review of European Economic Zone

 

Initially 7 Members Oppose ECB Bond Purchases

Friday, August 3, 2012

 

Actually, not just the President of the Bundesbank Jens Weidmann who opposes the plan the President of the European Central Bank to buy more government bonds, but there are still six other central banks are also rejected the plan, reported by the German newspaper Handelsblatt said on Friday.

 

Six other central bank governors at first opposed the plan in a debate on the ECB's Draghi, but in the end they agreed to participate, the newspaper said, without saying where it got the information.

 

Draghi announced on Thursday that the ECB would immediately intervene to buy government bonds on the open market, may purchase bonds in the amount of "infinite", and will consider measures other unconventional to lower borrowing costs "very high" that can financially stressed the euro zone economy. Draghi emphasized that the ECB would only act in strict conditions and after any country that claimed to apply for assistance.

 

In response to recent objections that the talk by Weidmann to the purchase of bonds by the ECB, Draghi said that one member has expressed his desire for a discussion of the ECB on Thursday.

 

According to Handelsblatt, ECB executive board member Joerg Asmussen and Benoit Coeure has acted as mediator to defuse the growing conflict in the ECB governing council of the central bank governor is focused on fighting inflation, as Weidmann and others who are interested in a more lax monetary policy.

 

Asmussen has talked to Weidmann and Draghi several times over the weekend by telephone in an attempt to bridge the gap between them, but they both positions were too far away, the newspaper said, citing the central bank. Even a private conversation between Weidmann and Draghi, Monday did not produce a breakthrough.

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News and Review of European Economic Zone

 

Euro: Long-term Projections Remain Bearish

Friday, August 3, 2012

 

The single currency Euro continued to gradually recover to record highs at $ 1.2269 today as motivated U.S. employment data (Non-farm payrolls NFP) that the prediction would be weakened again, and thanks to the euro zone PMI data services are improving.

 

But no doubt, the facts show the weakness of economic growth (GDP) and unemployment rate hit a record high in the euro zone, including 'retail sales' declining, likely will lead to opportunities in the ECB cutting rates anytime soon. So the fact it helped create the Euro remains bearish sentiment in the long run.

 

After yesterday's sharp decline, as technically it makes the daily MACD and Stochastic indicators also bearish with a sharp maneuver. So that the two indicators are now completing the previous bearish trend is shown by the Moving Average. And overall, has three main indicators of the daily Euro has returned in a downtrend pattern.

 

So with these conditions have the potential for the euro slid back into a number of support 1.2240, then the next resistance at 1.2200 and 1.2170. While the strengthening Euro is only possible for the rally that is minor and will at least test the 1.2300 resistance and 1.2330, and 1.2370 as strong resistance.

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News and Review of European Economic Zone

 

Spanish and Italian bond yields declined sharply

Monday, August 6, 2012

 

Turmoil Spanish and Italian bond yields more damping on Monday, after the onset of the Spanish bond purchase program expectations in the short tenures by post additional comments from ECB officials ECB, the central bank may intervene in the bond market without the consent of a majority vote.

 

However, the Spanish Finance Minister Luis De Guindos also commented on the weekend that Spain has not been so pressed to ask for a bailout, the government could still meet the projected target of 70% of the bonds maturing in 2012.

 

Spanish bond yields in the 10-year tenor work from the top 7% to as low as 6.74%, while the Spanish IBEX stock index soared to a level of 6,935.0 3:10%. While the yield on 2-year tenor down to 3:31% The yield on the 10-year Italian tenor sank below 5.99% and two-year tenure dropped to 2.93%.

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News and Review of European Economic Zone

 

Still Refuse ECB Bundesbank Plan

Monday, August 6, 2012

 

Bundesbank re-affirm the rejection of the ECB plan to buy government bonds. "Our position on the bond purchase program has not changed," said the German central bank spokesman told Dow Jones Newswires. Bundesbank attitude is certainly going to be a barrier for the ECB to relieve the debt crisis further turmoil after the cost of borrowing the Spanish and Italian government bonds are still close to the critical level of 7%.

 

President of the ECB, Mario Draghi, has uttered the central bank is preparing to reactivate the bond purchase program if there is a euro-zone members that asked for bailout funds. However, in konverensi press last week, the ECB's Draghi intimated that the President of the Bundesbank Jens Weidmann against the program.

 

Meanwhile, the euro weakened in the London session. EUR / USD is now trading 1.2358, 1.2443 daily high level away from

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News and Review of European Economic Zone

 

Euro Turn Optimistic With ECB

Monday, August 06, 2012

 

The euro managed to carve the best daily rise in a month against the U.S. dollar on Friday. The single currency rallied after investors began to view more positively to the European Central Bank policy meeting on Thursday, suggesting the existence of further support to help Spain and Italy. "After terkecewakan by the ECB's decision today (Thursday), the market began to realize that the steps further support for Spanish, Italian and other troubled countries is still possible in the medium term," said Greg Anderson, head of forex strategy at Citigroup in New York.

 

The ECB on Thursday has said that they would develop a plan in the coming weeks to launch a direct bond purchases in an effort to stabilize the yield volatility in the Euro zone, which had disappointed the expectations of most investors to an aggressive act. ECB president Mario Draghi also confirmed that the intervention will only be done if the Euro zone government has activated a permanent European bailout facility and are willing to make the purchase of bonds as well as the ECB.