News and Reviews European Economic Zone

[mynameisandhy]

News and Review of European Economic Zone (Greece)

 

Step Saving Greece Successfully Kikis Budget Deficit

Tuesday, September 11, 2012

 

Greece's budget deficit shrank more than a third in the first 8 months of 2012 compared with the same period last year. But state revenues decreased slightly as the country continues to struggle with a recession that has entered the 5th year.

 

According to Treasury Department report on Tuesday, the budget deficit fell to € 12.37 billion ($ 15.8 billion) from € 18.67 billion recorded in the same period the previous year. While the primary deficit over 8 months also fell sharply to just € 1.3 billion, compared with € 5.92 billion previously.

 

Overall, the decrease in deficit to beat target of 8 months at € 15.21 billion, mainly as a result of deep cuts in public spending. As of August, the state budget has been reduced to € 45.45 billion from € 51.24 billion a year earlier.

 

"These results reflect the significant tightening of fiscal spending, as well as restrictions on public investment spending," according to a finance ministry statement. The report also highlights the military expenditure is lower than the target.

[mynameisandhy]

News and Review of European Economic Zone

 

Also the European Small Banks Can Create Problems

Tuesday, September 11, 2012

 

Non-systemic banks which have a crucial role is the real problem and this is the reason why small banks in the euro zone must be under the supervision of the ECB, according to European Commissioner Michael Barnier. European officials seem to want to argue the view of Finance Minister of Germany who saw that the ECB should focus only supervise large banks in the euro-zone. Bernier cited British bank Northern Rock, Spain Bankia, the French-Belgian bank Dexia as non-sistemic that creates the problem.

 

"They're not the banking sistemic, but they still give you problems," said Barnier. "There should be a watchdog that can act effectively and credibly, and possessed the authority to look at any situation in all banks. We should be able to take lessons from the crisis, and not one actors and financial products that escaped regulation." The European Commission is scheduled to publish the European banking supervision plan on Wednesday.

 

Meanwhile, the euro rose on the London session. EUR / USD is now trading 1.2794, moving away from a daily low of 1.2757

[mynameisandhy]

News and Review of European Economic Zone (Germany)

 

Germany Optimistic With Growth Into 2nd Semester

Tuesday, September 11, 2012

 

The German economy is expected to remain stable, despite the fragility of the southern European economies are still bringing considerable pressure, according to the German Economics Ministry statement in a press release on Tuesday.

 

With exports in July were recorded growth of 0.5% from the previous month and rose 9.2% from a year earlier, the Ministry of Economy optimistic that the German economy could grow by "fairly stable" in the 2nd half of 2012.

 

While the European Central Bank regarding the plan to buy euro zone government bonds, they argue that if such a move will only help while securing liquidity for the crisis-stricken economy. "The action will still not be able to replace the role of structural reforms and economic needs."

 

"Exports to the euro zone, which is Germany's biggest export market, slumped in the first half of this year. While imports from the euro zone showed an increase, which indicates if the structural reforms in countries such as Portugal has been able to improve their competitiveness," according to the statement .

[mynameisandhy]

News and Review of European Economic Zone

 

German criticism of European Banking Plan

Wednesday, September 12, 2012

 

Germany criticized the European banking regulators plan authorizes the ECB to oversee all banks in the euro-zone. European Komis President, Jose Manuel Barroso, has described the proposal as he uttered the banking regulator granting authority to the ECB as a first step to creating a union of European banks. The desire to make Europe's banking regulator is an attempt to break the link between banking problems with the amount of government debt that had contributed to the crisis utang.Rencana still have to get the approval of 27 members of the European Union to be realized.

 

Nevertheless, Germany remains adamant that the ECB only supervise large banks have sistemic risk given the limited resources the European Central Bank. Chancellor Angela Merkel and Finance Minister Wolfgang Schaeuble has uttered ECB policy will be more effective if you just keep an eye on big banks that have systematic risk populations that vary from 25 to 30. The number is certainly much smaller than 6,000 banks in the euro-zone.

 

Meanwhile, the euro reduce reinforcement in the New York session. EUR / USD is now trading 1.2905, moving away from a daily high level 1.2936

[mynameisandhy]

News and Review of European Economic Zone (Switzerland)

 

UBS Swiss GDP Projected Crop Year 2012

Wednesday, September 12, 2012

 

UBS AG on Wednesday has lowered the GDP growth forecast for this year following Swiss terpukulnya exporter by the global economic slowdown and a prolonged debt crisis in the Euro zone. Switzerland's largest bank to cut 2012 growth forecast to 1.1% from 1.3% to its increased resistance to Swiss business sector.

 

"The appreciation of the franc, particularly against the euro, also is still considered to be one of the biggest obstacles for the Swiss economy," said UBS chief economist, Daniel Kalt. "The strengthening of the currency led to export to Switzerland's biggest market becomes less competitive."

 

While the main driver of economic growth in Switzerland for the year is expected to come from the strengthening of domestic consumption, which is expected to accelerate to 2.3% from 1.9% previously forecast.

 

UBS gloomy outlook comes a day after the agency cut its forecast for economic BAKBasel Swiss GDP expansion this year, although they also stressed that Switzerland was not heading for a recession.

[mynameisandhy]

News and Review of European Economic Zone

 

Euro-Zone Industrial Production Rises

Wednesday, September 12, 2012

 

Industrial production rose in July; This could give the euro-zone hopes to avoid a recession this year. Industrial production rose 0.6% better than predicted 0% and the publication in June were down 0.6%. The increase in production is dominated by a successful surge in capital goods offset the decline in production of consumer goods. The euro extended gains after the news was released. EUR / USD is now trading 1.2930, moving away from a daily low of 1.2815.

 

Meanwhile, Morgan Stanley is still optimistic about the euro can continue to rally. "We still believe the EUR / USD will continue to strengthen in the near future. Our strategy retains buy on pull-backs despite limited correction down this far," wrote Morgan Stanley report obtained by Reuters.

[mynameisandhy]

News and Review of European Economic Zone

 

EIB Will Provide Funds For Greece

Thursday, September 13, 2012

 

The European Investment Bank (EIB) will contribute € 750 million to Greece, Greek Finance Ministry said in a statement. This is the result of an agreement between the EIB President Werner Hoyer with Greek Finance Minister Yannis Stournaras where these funds will be invested in various sectors such as energy, education, transportation, and small and medium enterprises.

 

"This is a step for transferring funds to the real economy in the current difficult market liquidity," said Stournaras. EIB will also help Greece resolve some of the projects on which construction flyover delayed in recent months. Greek private sector experience financial difficulties as protracted recession for the fifth year.

[mynameisandhy]

News and Review of European Economic Zone (Italy)

 

Italian Bond Auction Success Back

Thursday, September 13, 2012

 

Italy managed to sell the debt back; This is certainly a signal from easing euro-zone debt crisis. Sentiment against the troubled euro-zone members began to improve after the ECB announced its bond buying program, the Supreme Court Germany approves bailout fund ESM ratification, and a pro-European party won the elections in the Netherlands.

 

Italy managed to get a € 6.5 billion fund in accordance with a predetermined maximum target of the government. Borrowing costs also fell with the 15-year bond yield is only 2.75%; less than the previous auction which reached 4.65%. "The market seems to be optimistic after the ECB announced readiness to buy government bonds-euro zone members," said Marc Ostwald, a strategist Monument Securities. Analysts also welcomed the re-sold 15-year bond for the first time since July 2011 because it certainly can ease the fiscal burden Italy.

 

In the meantime, please register strengthening euro thin on the London session. EUR / USD is now trading 1.2909, not far from the level 1.2896 daily high

[mynameisandhy]

News and Review of European Economic Zone

 

ECB May Not Need to Buy Government Bonds

Thursday, September 13, 2012

 

European Central Bank may eventually no longer need to buy government bonds, given the strong commitment of the central bank to do anything to maintain the euro, according to the statement of a member of the Board of the ECB in an interview on Thursday.

 

"Nobody wants to speculate against the weapons is not limited to the central bank. This is what has been keeping the currency stable countries concerned. Conditions present example, where market participants are reluctant to bet against the Federal Reserve," said Panicos Demetriades, who also served as governor Central Bank of Cyprus.

 

"The fact that government borrowing costs of Spain and Italy have declined sharply since last week., And it may be triggered ECB President Mario Draghi announcement about a new bond purchase plan last week, so in the end the ECB's actions may not be necessary," said Demetriades.

 

While related opportunities ECB to cut interest rates at its next meeting in October, Demetriades assess if the ECB is not ready to lower the deposit interest rate below the current zero.

[mynameisandhy]

News and Review of European Economic Zone

 

Greece probably can Additional Time To Fulfill Promise

Friday, September 14, 2012

 

Greece could be given more time to fulfill the bailout commitments if the recession is worse than expected, but the funds provided by its partners in Europe will not be more, Dutch Finance Minister Jan Kees de Jager said on Friday.

 

Has the arrival to begin a two-day discussion between European finance ministers in the capital of Cyprus, De Jager said that Greece does not have much fleskibilitas like trying to get more time to achieve budget cuts and runs the reform measures required lenders rescue fund.

 

 

"If the deficit turned out to be somewhat worse than expected due to a temporary decline in the economy, there may be additional time but not money, not extra money," said De Jager.

[mynameisandhy]

News and Review of European Economic Zone (Greece)

 

Greece Denies Need Bailout III

Friday, September 14, 2012

 

Greek Finance Minister denied reports that Athens needed the bailout package III. IMF officials also said the report was inaccurate. Dow Jones previously had to write a report stating that Greece needs bailout package III and Greece only meet 22% of the target set by the bailout Thanos Catsambas II quotes, IMF officials for the Greek.

 

Catsambas also issued a statement expressing the inaccuracy of the report. "There was never any discussion that refers to the third bailout package as written report," said Catsambas who also denied that he had said the euro-zone and the ECB had to fill the shortage of funds experienced by Greece. "I am not in the position of the euro-zone partners Greece. Statement I is the Fund has provided funding through the four-year Extended Fund Facility and no review of the need for additional funding," said Catsambas.

 

Troika representatives from the IMF, ECB and European Commission are still in Athens Greece to evaluate progress in meeting bailout targets before giving approval to release the next bailout fund of € 32 billion. Meanwhile, the euro rose on the London session. EUR / USD is now trading 1.3088, moving away from a daily low of 1.2980

[mynameisandhy]

News and Review of European Economic Zone (Germany)

 

Germany No Need to Worry With ECB

Friday, September 14, 2012

 

Germany does not have to worry about the ECB bond purchase program is not limited, according to Finance Minister Wolfgang Schaeuble said in an interview with German radio. Schaeuble wants to convince the German people that the bond-buying program will not be used to finance certain euro-zone members, as feared by the Bundesbank and German politicians.

 

"There is no state funding mandate. ECB will not take the decision that led to it because it could violate its mandate. I believe with the ECB," said Schaeuble as saying the number is not limited to attempts to evade the action of speculators if the ECB bond purchase quantity restrictions.

 

Meanwhile, the euro rose on the London session. EUR / USD is now trading 1.3106, moving away from a daily low of 1.2980

[mynameisandhy]

News and Review of European Economic Zone

 

Merkel: Euro Zone Must Coordination Closer

Monday, September 17, 2012

 

German Chancellor Angela Merkel on Monday said it hopes to reach a deal by the end of a political process towards closer coordination and responsibility in the Euro zone. "There are further steps we should take. Given this crisis must dipercahkan together, we must do what we have not done when the euro was first introduced, which has the coordination and greater responsibility," he said at a press conference. He menambahwa that the euro zone also needs a mechanism to help the country less competitive.

[mynameisandhy]

News and Review of European Economic Zone (Spain)

 

Spain Aims Revenue € 2.74 Billion From Energy Sector

Monday, September 17, 2012

 

The Spanish government on Friday has outlined plans to overhaul the energy sector, by raising taxes on fossil fuels and reduce subsidies for certain types of renewable energy generation.

 

The bill was announced after a cabinet meeting on Friday the government aims to increase revenue from the energy sector amounted Spain € 2.74 billion ($ 3.5 billion).

 

At a press conference after the announcement, the Minister of Industry and Energy Jose Manuel Soria also pointed out that the Spanish government will begin imposing taxes by 6% against all types of power plants, while preparing two new taxes to nuclear power and hydropower.

 

In recent years Spain has spent about € 24 billion in so-called deficit rates, largely due to the subsidies of renewable energy generation. The deficit is the difference in rates between the actual cost and the cost of energy for consumers to get energy. Soria added that the government intends to limit the maximum increase in the deficit this year at € 1.5 billion, and has no new deficit in 2013.

[mynameisandhy]

News and Review of European Economic Zone

 

Lagarde Denies Rumors About Bailout Spain

Monday, September 17, 2012

 

Managing Director of the International Monetary Fund, Christine Lagarde, on Friday has denied a rumor that says if ECB President Mario Darghi and he was in negotiations with a Spanish bailout.

 

"A headline says if Mario Draghi and I seriously negotiating with Spain, it's not true," said Lagarde responded to it. A Dutch newspaper, Het Financieele Dagblad reported on Friday that the talks related to the bailout of € 300 billion ($ 386 billion) in progress between the ECB, the IMF and the Spanish government. The discussion was reportedly made ​​at a meeting of the Minister of Finance Europe and the IMF are being held in Cyprus on Friday.

 

While the Spanish Finance Minister, Luis de Guindos, on Friday reiterated that if the government needs more details on how to program the European Central Bank bond purchases would operate before deciding whether to ask for a bailout.

[mynameisandhy]

News and Review of European Economic Zone (Greece)

 

Conditions Recession difficult for Greece

Tuesday, September 18, 2012

 

Greece's finance minister predicts the economic recession it would make Athena posted a wider deficit, although still able to meet the limits set by international lenders. Finance Minister Yannis Stournaras said primary deficit, excluding the cost of debt buanga, will reach 1.5% of GDP; higher than the previous forecast of 1%.

 

However, Stournaras express nominal deficit for 2012 will still achieving the set targets despite recession will still be prohibitive. "The government's budget this year is approaching the limits set by the troika," said Stournaras. "The recession is quite a significant impact. Recession is now entering its fifth year."

 

Meanwhile, the euro weakened on the London session. EUR / USD is now trading 1.3054, moving away from a daily high level 1.3119

[mynameisandhy]

News and Review of European Economic Zone (Spain)

 

Simply Successful Spanish Bond Auction

Tuesday, September 18, 2012

 

Spain successfully sell the debt as investors remain confident Madrid will submit request for financial assistance so that the ECB could intervene in bond markets biggest economy in the euro zone 4 is. Spain managed to get funding € 4.6 billion, higher than the target of € 4.5 billion. Borrowing costs also fell by 12 month bond yield reached 2.835% lower than the previous auction 3.07%. Investor demand also quite high when viewed from the ratio of the bid-to-cover to reach 2.03x higher than the previous auction 1.91x.

 

Trying to reduce the weakening euro after the news was released. EUR / USD is now trading 1.3063, trying to stay away from the daily low of 1.3046. Meanwhile, Rabobank saw the euro drop correction is still quite reasonable. Jane Foley, strategic Rabobank, said the euro's recent strong rally and the uncertainty of the time bailout Spain gave investors a reason to conduct profit-taking on long euro positions. However, Foley is still advised to apply the strategy buy-on-dips for EUR / USD while eyeing rallu 1:35 the next 12 months.

[mynameisandhy]

News and Review of European Economic Zone

 

ECB's Weidmann Affirm Importance of Independence

Tuesday, September 18, 2012

 

Central bank independence and monetary policy stability plays an important role to maintain confidence in the currency and its purchasing power, according to Bundesbank President Jens Weidmann. ECB's Weidmann expressed the role of government that is too big for the central bank often lead to an increase in the money supply excessively triggering inflation. This is the reason the ECB's Weidmann who want an independent central bank and only focus on monetary policy.

 

ECB's Weidmann seem to want to come back to criticize the policy of the new bond purchase program introduced the European Central Bank. Weidmann, who also serves as President of the Bundesbank, is strongly opposed to the ECB's bond-buying policy. "The independence of monetary policy to focus on monetary stability is an important prerequisite to maintain the purchasing power of currencies and the public trust," said the ECB's Weidmann.

 

Meanwhile, the euro was down at the New York session. EUR / USD is now trading 1.3063 1.3119 daily high level away

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

Bank of England: Inflation Outlook Worsens

Wednesday, September 19, 2012

 

Bank of England policy makers assess the short-term inflation outlook has deteriorated this month, but some still feel the need to add more stimulus, according to minutes of the BoE meeting in September on Wednesday. The BoE said that rising oil prices and the threat of soaring food bills and equipment means that inflation is unlikely to slow down as they forecast last month, pushing the core income consumers. In the medium term, the recent rise in employment levels along with a weak output growth also raises the risk of price pressures on the labor market can push up the price of goods and services, according to the BoE.

 

However, the overall outlook for growth is still stuck - as evidenced by the presence of one of the 9 members of the Committee who said there was a "good idea" to add to its program of buying assets owned by the BoE today. Meanwhile, other MPC members are still in line with the decision to remain on the program four months for asset purchases worth 50 billion pounds were approved in July, which will end in November.

[mynameisandhy]

News and Review of European Economic Zone

 

French Give Green Light for EU Fiscal Pact

Wednesday, September 19, 2012

 

Government of the French president Francois Hollande start the ratification of the EU budget discipline pact on Wednesday, which should be accepted as the next step to get out of the Euro zone debt crisis. Cabinet of Prime Minister Jean-Marc Ayrault gave preliminary approval to the fiscal agreement agreed in March by the predecessor Nicolas Sarkozy and Hollande are 24 other European leaders, which require eurozone countries to trim their deficit should accept such sanctions or penalties.

 

The green light from the cabinet, paving the way for a legitimate parliamentary ratification next month, despite a lot of resistance to the coalition of the left axis Hollande and the growing public disillusionment towards the European Union. With the unemployment rate is at a high level of 13, the French are reluctant to prospect of tightening that will be determined later.

[mynameisandhy]

News and Review of European Economic Zone (Switzerland)

 

ZEW: Economic Outlook Worsens Slightly, Tends to Stable

Wednesday, September 19, 2012

 

Expectations of economic conditions for the country as Switzerland edged down 1.6 points in September 2012. Nevertheless ZEW indicator of economic sentiment are still in the range -34.9. Overall, the experts surveyed expect economic growth in Switzerland for change within the next 6 months has increased.

 

However, none of the 10 souls who anticipate the development of the economic situation. Approximately 44.2% of the stituasi analysts expect the economy to worsen in the next 6 months. Assessment of analysts finansilan economic conditions worsened in Switzerland is currently in the month of September.

[mynameisandhy]

News and Review of European Economic Zone

 

European Issues & Slowing Global Market Dropped

Thursday, September 20, 2012

 

Today the world market continues to show shrinkage because investors again worried about the problems in Europe. Investors became concerned with the uncertainty about whether or not Spain requested a bailout to ease its fiscal turmoil.

 

Investors today (Thursday, 20/09) also began to be alert to the slowdown in global growth will drive a number of central banks take action. It follows the release of Chinese manufacturing data from HSBC which scored 47.8. Though numbers below 50 mean the country's manufacturing activity contracted. And manufacturing numbers fell since last July and are under level 50 in the 10th straight month until August.

 

And the market seems increasingly negative sentiment because after the release of manufacturing data in China, Bank of China (PBOC) has also demonstrated the reaction to monetary melonggakran and launched stimulus. While tensions between China and Japan disputed islands in the East China Sea is still a vigilance among market participants.

[mynameisandhy]

News and Review of European Economic Zone

 

Despite slowing euro zone The Steps Of The ECB

Thursday, September 20, 2012

 

Plans for an aggressive buyer of bonds launched by the European Central Bank has so far failed to spark great progress on its troubled euro zone, indicated by poor survey results on Thursday. Slowdown in the euro zone service sector activity growing in this month, down from the highest rate since July 2009, according to Markit PMI index, with French companies performing badly. Good indicator for the performance of the economy, the European zone service sector PMI fell to 46.0 in September from 47.2 in August, lower than the most pessimistic forecast is 46.5.

 

Poor services sector data is in contrast to the increase in the survey in Germany, indicating a small country in the Euro zone economies like Spain and Italy have been performing badly, especially not this, encouraging opportunities rate cut by the ECB in October. And there are few signs that the ECB plans to buy sovereign bonds in the debt stricken eurozone was announced on 6 September, has prompted optimism among euro zone service sector companies, at least so far.

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

UK Retail turnover Affected Olympic Event

Thursday, September 20, 2012

 

UK retail sales fell in August as the Olympic events that attract buyers and internet shopping activity fell the most in five years. Including fuel turnover dropped by 0.2% from July, according to the Office for National Statistics in London. Economists estimate is for a decline of 0.3%. Meanwhile retail sale not in stores, online sales, decreased by 6.7%. This decrease was defeated surging sales of sports equipment and also items such as bicycles.

 

Olympic Games in London, which began on July 27 until August 12 to add volatility to the data consumer. Household spending has been reduced given the uncertainty in the economic outlook, and the Bank of England said yesterday that consumers will likely remain under pressure as rising energy prices. "It appears that retail sales will remain sluggish overall, at least in the near future," said Howard Archer, economist at IHS Global Insight. "Consumers still face serious obstacles that limit their ability and willingness to spend."

[mynameisandhy]

News and Review of European Economic Zone

 

Finnish Block Expansion ESM

Friday, September 21, 2012

 

Amenities permanent European bailout fund will almost certainly run in the months ahead without the two vehicles due to anxiety Finnish leverage the exposure is too large to fund the ESM.

 

Option is designed to leverage the ESM fund could grow from 500 billion euros to more than 1 trillion euros to combat the crisis. However support for the idea was blocked by Finland to the meeting in Cyprus on Friday.

 

Finland contributes to approximately 1.8% dair ESM capital, has long been wary of the exposure in the ESM fund. Still, as one of the members who were rated triple-A, Finland is still quite important for the credibility of the Eurozone group.