News and Reviews European Economic Zone

[mynameisandhy]

News and Review of European Economic Zone

 

Consumers Durability Solid Amid Euro Crisis

Wednesday, October 3, 2012

 

Release of data showing eurozone retail sales of consumer spending power in the midst of the economic crisis and high winding unemployment.

 

The volume of retail sales in the 17 countries that use the euro rose for the fourth month in a row in August. Surprisingly, consumer purchasing power is strong enough offset the sluggish economy. Although modest, the increase in retail sales figures provide optimism to stakeholders that there is no indication of the economic collapse in the middle of the fiscal shocks and banking crises.

 

European statistics agency, Eurostat, some time ago stated that euro zone retail sales rose 0.1% from a record in July. The results of the data marks the rise for three consecutive months since the surge in retail sales of 0.9% in May. Sales have fallen 1.3% over the same period last year. But the increase in August broke the expectations of analysts surveyed by Dow Jones, where most of them predict a decline in retail sales as compared to 0.1% last month and 2.0% compared to August 2011.

 

Eurostat also revised up its estimate of sales in July to 0.1% on a monthly basis and minus 1.4% compared to the same period last year. The sustainability performance of retail sales is fairly impressive given the economic climate, most states are not stabilized. Program cuts spread everywhere so the unemployment rate continues to increase. Conditions increasingly difficult as demand for exports from the euro zone also sluggish.

 

In the two countries with the most chronic crisis, Spain and Portugal, and even retail sales figures increased by 2.1% and 2.8%. Similarly with Slovenia, which joined the bailout fever, retail sales rose 2.2% from the previous month. While in Europe's biggest economy, Germany, the sales figures grew only 0.3%, and in France it fell 0.8%.

[mynameisandhy]

News and Review of European Economic Zone

 

Lagarde: Europe Still Strong

Thursday, October 4, 2012

 

Of the International Monetary Fund, Christine Lagarde, said in an interview with French daily newspaper, Le Figaro, published yesterday, said that Lagarde was not mempecayai that split Europe will occur.

 

But he urged the governments of member states to immediately move to strengthen its currency before the European Central Bank, without exception, to overcome the crisis.

 

"No one has more time," said Lagarde.

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

Data in the UK House Prices Continue to Decline

Thursday, October 4, 2012

 

UK housing indicators weakened again as the decline in the performance of the domestic economy and the purchasing power of consumers.

 

UK house prices fell for the third month in a row in September. This fact is increasingly reflecting the general economic slowdown in the country's Queen Elizabeth, the official statement the publisher data, Halifax.

 

House prices down by 0.4% compared to August and even lower by 1.2% compared to the same period of record in 2011. But this time the annual decline was the slimmest since February. In August, home prices fell 0.5% MoM and 0.9% over the same month last year.

 

"The weakening of the economy in general be a major factor facing housing demand," he says Martin Ellis, economist at Halifax. Ellis also look at the level of mortgage loan payments to income is relatively low at this time, but able to sustain prices from falling further. "We estimate the housing sector conditions did not change much until 2013," he concluded.

 

Halifax research results do not differ much with similar institutions, such as Nationwide, which predicts monthly price decline of 0.4%. In the three months to September, house prices 0.5% cheaper even than the period preceding quarter.

[mynameisandhy]

News and Review of European Economic Zone

 

Lagarde: Spain Can Get Help Versatile

Thursday, October 4, 2012

 

IMF chief Christine Lagarde has expressed support for Spanish and ensure that the agency would assist countries who were distressed with a more appropriate, based on the interview in the newspaper Le Figaro.

 

Lagarde explained that he has a variety of ways to provide assistance. "If Spain wants it, We can help in many ways. Example, by simply doing audits and oversight of fiscal reforms negotiated with other European countries without IMF participated in the financing," he said. However, Lagarde also did not rule out the International Monetary Fund play a role in funding down.

 

Related to the process of bank recapitalization Spain, Lagarde claimed that the IMF was impressed by the steps that have been taken by the government so far. Lagarde added that IMF intervention will be carried out commensurate with the ECB even though the two institutions operate at different levels.

 

Lagarde also urged the Spanish Prime Minister Mariano Rajoy to not delay the bailout decision thoroughly. The course of the election should not deter European governments to take action, Lagarde said at the end of the interview.

[mynameisandhy]

News and Review of European Economic Zone (Greece)

 

Greek Banks Consider Merger

On Friday. October 5, 2012

 

The two big banks in Greece, National Bank and Eurobank, is reviewing the possibility of a merger to create the largest bank in Greece, according to a Reuters report citing To Viman news network. Proposed merger is likely to get approval from the government and the central bank of Greece.

 

Greek central bank under pressure to consolidate in order to maintain business continuity in the midst of economic recession it. Banks even have to rely on Greek central bank to meet its funding needs as they closed access to the interbank market and the ECB. Earlier this week, Credit Agricoleh express a desire to sell the unit in Greece, Emporiki, the Alpha Bank; Societe Generale also are negotiating to sell the unit in Greece, Geniki Bank, the Piraeus Bank.

 

Meanwhile, the euro rose on the London session. EUR / USD is now trading 1.3011, close to the level of 1.3022 daily high

[mynameisandhy]

News and Review of European Economic Zone (Spain)

 

Spain Will not Ask Additional Bailout

On Friday. October 5, 2012

 

The Spanish government will not request additional bailout funds in the near future, according to euro-zone officials were the resource persons reuters. When asked to comment on reports that Madrid would request financial assistance at the beginning of next week's Eurogroup meeting, euro zone officials said, "There is no request from Spain. I'm sure if there is any, is not in the near future."

 

The finance minister Luis de Guindos also confirms that Spain does not need additional bailout funds. Guindos believes that reform policies implemented Madrid will be enough to avoid a bailout and the ECB's bond-buying program to help the recovery of the Spanish economy.

 

Meanwhile, the euro strengthened thin record in the New York session. EUR / USD is now trading 1.3006, not far from the level 1.3022 daily high.

[mynameisandhy]

News and Review of European Economic Zone (Greece)

 

No Scheduling Back Debt Greece

On Friday. October 5, 2012

 

Greek debt rescheduling does not exist in any of the scenarios considered by the euro-zone finance ministers, Reuters reported citing the euro-zone officials. Greece has asked the ECB to reschedule Greek government bonds held to ease Greece's debt burden as Athens is still struggling to come out of the recession. Euro-zone finance ministers will do a meeting on Monday and Tuesday to discuss the future development of the current situation.

 

Informants also told Reuters the EU summit on October 18 to 19 will not take any decision on Greece as yet unprepared report on Greece's economic reforms. "I'm pretty sure, the Greek problem is not in the agenda of discussions," according to euro-zone officials are reluctant to publication name.

 

In the meantime, please register weakening euro thin in the New York session. EUR / USD is now trading 1.3000, moving away from a daily high level 1.3022

[mynameisandhy]

News and Review of European Economic Zone (Germany)

 

Solid German Export Data Released

Monday, October 8, 2012

 

Volume orders from non-euro countries to offset sluggish orders from within the region.

 

Figures German exports rose sharply in August. Latest facts indicate that the number of requests from abroad continue to have an important role in economic growth.

 

Export volumes rose 2.4% compared to July and surged a record 5.8% compared to August 2011 export figures. Data released today showed that the number of orders from countries outside the EU increased by 13% compared to last year.

 

Export volumes were above expectations will lead to the expectation that the German economy is expanding again in the third quarter. Though regionally, phase descend likely euro zone recession until the end of the year.

 

Thus, the German trade surplus widened so adjusted 18.3 billion euros ($ 23.9 billion) in August, up from the revised July, 16.3 billion euros. This surplus was better than analyst expectations for the month of August which only amounted to 15.5 billion euros. While the current account surplus amounted to 11.1 billion in the month of August or as expected.

[mynameisandhy]

News and Review of European Economic Zone

 

Schäuble: Spain Does not Need Financial Aid Supplement

Monday, October 8, 2012

 

German finance minister Wolfgang Schäuble told reporters ahead of the Eurogroup meeting in Luxembourg on Monday, the Spanish "does not require additional financial assistance," he added that the Spanish government to do all the way to fight the crisis.

 

Commenting on other important issues on the agenda of the Eurogroup meeting, that a decision on the Greek bailout, Schäuble acknowledged that the outcome of the matter can not be expected on this day, because of the Troika report has not been completed, he said, however, "hope is not lost for the Greek decision October "

 

 

Finally, the German finance minister welcomes Eurogroup official decision on ESM, he warned however it was enough to end the crisis in the European region.

[mynameisandhy]

News and Review of European Economic Zone

 

Eurogroup Give Green Light For ESM

Monday, October 8, 2012

 

Eurozone finance ministers will meet today in Luxembourg in order to formally approve the ESM as a permanent rescue fund and to discuss the latest developments of the debt crisis in the euro zone, especially the situation in Spain and Greece.

 

Top of the agenda at Monday's meeting was the launch of the ESM of 500 billion euros. With the first loan a maximum of 200 billion euros. EU finance ministers also issued a statement on the situation in Greece, the information from the results of negotiations with the Troika inspectors last week.

 

It is estimated that Spain will be the first EU country to be filed ESM funding, but most likely it will not happen, because Sapnyol bond yields have declined recently, while the massive budget cuts have increased public confidence in the opposition party. But the bailout funds already available on the investor, then it will increase even more pressure on Rajoy government for financial assistance.

[mynameisandhy]

News and Review of European Economic Zone (Greece)

 

Merkel landing in Greece Welcomes Demonstration

Tuesday, October 09, 2012

 

German Chancellor Angela Merkel arrived in Greece, this is his first visit since the outbreak of the debt crisis in Europe here in three years ago, he tried to give a message of support for the protesters, but did not provide additional financial assistance, Greece is one of the country hit hard by the recession and struggled to remain in the euro zone.

 

Thousands of Greeks protest, they gathered in Syntagma square in central Athens over Merkel plane landing. Even two protesters dressed in German military uniforms waving swastikas and Nazi greeting reached.

 

The majority of Greeks blame Merkel cut financial aid package from the EU and IMF by 200 billion euros.

 

Once away from Greece for five years, decided to visit Greek Merkela back for some reason.

 

 

He wanted to show his support for Samaras, fellow conservatives, because he tried to impose more cuts to the public after five years of recession.

 

"He's been to Athens mainly about his political position and the opportunity to clarify his position on Greece," said Alex White, an analyst at JP Morgan.

Edited October 9, 2012 by mynameisandhy

[mynameisandhy]

News and Review of European Economic Zone

 

IMF: The Euro Zone Conditions Conducive

Tuesday, October 09, 2012

 

IMF appreciate the efforts of stakeholders to tackle the euro zone financial crisis.

 

Chief Economist of the International Monetary Fund (IMF), Olivier Blanchard, stated that the attitude of officials euro zone change for the better, in the context of solving the crisis. "If the circuit terlengkapi puzzle, then we can achieve better results," said Blanchard.

 

In June, the leaders of the euro members agreed on the outline of the discourse of fiscal union and banking regulation. They also agreed to continue to assist countries that are currently funding trouble. Moreover, the central bank also has committed to disburse funds are not unlimited whenever necessary during the process according to the procedure. The series of steps was quite unwilling to reconcile the hearts of investors. At least market participants could be more optimistic if the eurozone will not ultimately divided.

 

Blanchard also gave a message to the two countries amid debt, namely Spain and Italy. "Both countries should be able to borrow at a reasonable interest rate," he said. But he believes that it is almost impossible for them to avoid a bail out. Given the sentiment in the market was already negative and fundraising in difficult credit markets.

 

Similar statements came from Jorg Decressin, Senior Economist of the IMF. He mentions that the IMF is ready to help in terms of funding and technical whenever needed. "Our involvement depends on the needs of the government of Spain, according to our capacity," said Decressin. Related to bail out Greece, he called Troika to continue to communicate with Athens regardless of whether they deserve a bailout of 31 billion euros, or not.

Edited October 9, 2012 by mynameisandhy

[mynameisandhy]

News and Review of European Economic Zone

 

Eurogroup: Currently Spain Does not Need Help

Tuesday, October 09, 2012

 

Euro zone finance ministers to comment on Spain on Monday, said Spain was repairing the economy, and have sufficient funds to survive the financial markets and does not need a bailout, at least for now. Arriving at a meeting in Luxembourg to discuss Spain and Greece and the euro zone's permanent bailout mechanism ESM, German Finance Minister Wolfgang Schaeuble said the Madrid sure do need help.

 

"Spain does not need the assistance program. Spain is doing his best, in fiscal policy and structural reforms," he said while attending a meeting to discuss the euro zone banking single supervisor. "Spain has its own problems with banking as a consequence of the real estate bubble in previous years," he said. "That's why Spain to recapitalize the banking system." Luxembourg Finance Minister Luc Frieden also commented the same, adding that if Spain asked for help more than 100 billion euros that had been prepared to recapitalize its banking sector, it will be reviewed.

Edited October 9, 2012 by mynameisandhy

[mynameisandhy]

News and Review of European Economic Zone (Italy)

 

Italian Lower Income Tax

Wednesday, October 10, 2012

 

Italy cut income taxes for low-income groups while reiterate commitment to remain a policy of austerity. The government lowered the tax rate from 23% to 22% for employees earning less than € 19,299 per year and reduce tariffs from 27% to 26% for workers earning between € 15,001 to € 28,000. The government seems to want to reduce the burden on low-income communities in the midst of protracted recession.

 

However, the government would continue its austerity policies fit the original commitment. Government optimistic to achieve the target of cutting the budget deficit to health care and the implementation of a financial transaction tax. The government also decided to continue the reform of public administration expenditure control by focusing on 20 local governments.

[mynameisandhy]

News and Review of European Economic Zone

 

Merkel backs Greek Euro Survive On the Block

Wednesday, October 10, 2012

 

German Chancellor Angela Merkel on Tuesday has confirmed its support for the membership of Greece in the euro bloc. Merkel's visit to Athens itself was greeted by tens of thousands of demonstrators, who are also protesting against the government's austerity policies.

 

Speaking at a press conference held on national television, Merkel said that "Germany wants to be a good partner and a real friend to the Greek". Merkel also said if Greece still have to run the reform commitments, and hopes that "Greece will remain part of the euro," he added. "We're starting to see a glimmer of light at the end of the tunnel."

 

German Chancellor visits, which is the first time since the Greek debt crisis began to suffer from three years ago, is seen as a form of support for the coalition government led Prime Minister Antonis Samaras.

 

The visit also comes amid government efforts to prepare new austerity measures worth € 13.5 billion ($ 17.4 billion), which has sparked massive protests in Athens.

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

NIESR: UK GDP Grow 0.8 Percent in Q3 Being

Wednesday, October 10, 2012

 

UK GDP grown to 0.8 percent in the third quarter, according to estimates released by the National Institute for Economic and Social Research on Tuesday.

 

NIESR is one institution that has long researched the British economy, they said the estimated performance of the economy in the third quarter reflect a temporary boost in the activity of economic recovery after the loss of output due to the extra holiday on the anniversary of Queen Elizabeth in June and ticket sales for the London Olympics.

"Economic growth is expected to be at a significantly slower pace in the coming quarters," NIESR said in a statement

 

An estimated third-quarter GDP will be released officially on October 25.

[mynameisandhy]

News and Review of European Economic Zone (Spain)

 

S & P Downgrade Of Spain So Bad News For Euro

Thursday, October 11, 2012

 

Towards the end of the closing of the U.S. trading session, the Standard & Poor's surprised the market by cutting the debt rating of Spain from the previous BBB + to BBB-. This sudden decision to bring back euro weakened against the U.S. dollar and other currencies and bring back the Euro slumped in which S & P brought back Spanish debt rating to be more aligned with Moody's rating is pinned. Spain currently get downgrade 1 level, still above the status of "junk" by the two rating agencies, which also puts a negative status monitoring for possible further downgrade.

 

Over the past two months, has been seen that Moody's has made ​​keputudan for Spanish debt rating and the current market view, rating agency which will put first the status of "junk" to the Spanish. Although the placement of a downgrade to Spain is not too surprising in frontal, but it still is bad news for the Euro. Spain has maintained its investment rating good enough but still the tip of the horn to immediately trimmed and today is the day that the possibility of the decision of S & P may have triggered Moody's decision to immediately provide rating, which may be further muddy the market.

 

It also put pressure on the Spanish government to immediately ask for bailout funds because the rate for 10-year bond yield has moved increasingly to rise when trading opened yesterday. The euro will be dropped when the European markets opened and saw the decision issued by S & P.

[mynameisandhy]

News and Review of European Economic Zone

 

Rajoy & Hollande calls for Accelerated Implementation of the EU Treaty

Thursday, October 11, 2012

 

French President Francois Hollande and Spanish Prime Minister Mariano Rajoy on Wednesday urged Germany to immediately implement the agreements reached in the European Council summit in June. The call is addressed to-2 leader in a joint press conference after the bilateral meeting to the French-Spanish-12 in Paris.

 

On that occasion, Rajoy and Hollande declared that the activation of the European Stability Mechanism (ESM) should be followed by implementation, especially the German Constitutional Court has approved the ratification of the facility. Leader of Spain and France are also hoping for a clearer signal of the Council of Europe to improve the integration and implementation of the EU banking growth pact.

 

Related conditions of Spain, Rajoy found if the IMF growth projections recently may not be accurate and expects Spain to record the growth of a better result this year. Spanish Prime Minister also confirmed that he will continue to work to prevent such pessimistic projections come true. While Hollande added that in the absence of growth in Spain, then France will not be able to show strong growth.

[mynameisandhy]

News and Review of European Economic Zone (Ireland)

 

Irish Banks Still Depend To ECB

Friday, October 12, 2012

 

Irish banks still rely on the ECB for their funding needs as Ireland was isolated from the international financial market bailout after asking two years ago. ECB provides cheap loans to banks as Ireland € 79.07 billion for the month of September; does not change much from the August publication of € 79.12 billion.

 

Since the banking crisis of 2008, the Irish banking relies heavily on the ECB to conduct operasionalny. Irish bailout deal in 2008 even has forced Irish banks to make loans and deleverage by selling business units. Banking Ireland even still receive liquidity support from central banks Ireland for € 40.57 billion for the month of September; does not change much from the publication in August € 40.8 billion.

 

Meanwhile, the euro rose on the London session. EUR / USD is now trading 1.2969, moving away from a daily low of 1.2922

[mynameisandhy]

News and Review of European Economic Zone (Spain)

 

Spain: ECB Ready to Run His program, No Resistance From Europe

Friday, October 12, 2012

 

Spain on Friday said that the bond purchase plan is fully ready for use, and there is absolutely no political opposition from within the euro zone that Spain asked for a bailout.

 

The situation in Spain is currently considering seeking aid program to reduce funding pressures, the issue dominated the conversation between the Minister of Finance at the annual meeting of the IMF and World Bank in Tokyo.

 

 

The country is the center of attention for the moment in the euro zone debt crisis, which began nearly three years ago, and investors believe that Spain can not reduce the growing budget deficit, control soaring debt and reform the economy without outside help.

 

"The instrument is real, not virtual. Because it's real, then it is ready for use at any time, "said Spanish Economy Minister Luis de Guindos, referring to the European Central Bank pledge to buy bonds without limit to help the debt crisis engulfing the euro zone countries.

[mynameisandhy]

News and Review of European Economic Zone (Germany)

 

Germany Still Same Attitude Over Greece

Friday, October 12, 2012

 

Germany still maintain the attitude towards Greece as he uttered premature decision to give Greece more time to reach the target of cutting the budget deficit. Director of the IMF, Christine Lagarde, has uttered that Athens needed more time. However, German Finance Minister Wolfgang Schaeuble Lagarde criticized the troika report before the completion of the implementation of the Greek bailout program. "We should not speculate on the condition of Greek troika report before they will be," said Schaeuble.

 

IMF sees forcing Greece to slash the deficit in a short time is not productive because it can hurt the performance of the economy. But Germany, the biggest contributor to the bailout fund, said reversing the policy cuts will only undermine the credibility deficit.

 

Meanwhile, the euro rose on the New York session. EUR / USD is now trading 1.2968, close to the level of 1.2985 daily high

[mynameisandhy]

News and Review of European Economic Zone

 

Euro-zone Rethinking Ways to Cut Greek Debt

Monday, October 15, 2012

 

Euro-zone officials are reviewing ways to reduce Greece's debt ratio is unlikely considering the target debt ratio reached 120% of GDP in 2020. Delays in the implementation of reform policies and protracted recession makes it difficult to achieve the target of Greek. "It seems that Greece's debt ratio will exceed 120% of GDP by 2020," said ECB board members, Joerg Asmussen told the daily Sueddeutsche Zeitung.

 

ECB's Asmussen advised Greece to buy back its bonds. "The money to buy the bonds from the ECB, but should not be able to lend the ESM," said the euro-zone officials interviewed by Reuters. "Because Greek bonds trading at a huge discount the ESM fund can reduce the amount of debt in the amount sifnifikan."

 

EFSF bailout fund has distributed to Greece as much as € 25 billion to recapitalize banks and still have € 23 billion, which has not been disbursed. Total Greek debt is predicted to reach € 330 billion, but the amount of the discount applied to the value of the Greek bonds actually only around € 48 miliar.Petinggi other euro-zone also suggest Athena to use the proceeds to buy bonds of state assets. Recent analysis shows revenue from the sale of state assets could reach € 45 billion by 2020 which € 12 billion can be obtained during the period from 2012 to 2014.

[mynameisandhy]

News and Review of European Economic Zone

 

Wait Euro Strong Catalysts

Monday, October 15, 2012

 

EUR / USD did not flinch response to China's trade data release. Foreign buying interest emerged in Asia session. The main focus of the market this week is meeting EU and U.S. fiscal data.

 

Last week the EUR / USD traded in a range of 1.2900 and was stuck in tight range on Friday (12/10), according to Sean Lee, founder FXWW. Allegedly currency will move in the range of 1.2825-1.3080, added Mr. Lee. "The sell EUR back up, but if the bearish momentum has not increased, while the prospect of short-covering rally would re-occur."

 

Level support EUR / USD at EMA 200-day EMA (1.2863), while the 38.2% Fibonacci retracement level at 1.3145 will be a key resistance level after exceeding 1.3070 level (level 5 Oct). Support level at 1.2900 and MA200 at 1.2825 (May 21 level). EUR / USD at 1.2920.

[mynameisandhy]

News and Review of European Economic Zone (Spain)

 

Simply Successful Spanish Bond Auction

Tuesday, October 16, 2012

 

Spain managed to get funding € 4.9 billion when it sold debt letter this afternoon. Investors are optimistic Spain will be able to navigate the euro-zone debt crisis as Madrid still consider to request additional bailout funds. Investors are not even affected by the decision of S & P cut the credit ratings of 15 Spanish banks.

 

The lower cost of borrowing indicates that a successful bond auction. Spain gained € 3.4 billion fund for 12 months with bond borrowing costs reached 2.82%, lower than the 2.84% the previous auction. Spain also sold bonds maturing 18 months worth of € 1.5 billion with a yield of 3.02%, lower than the 3.04% the previous auction.

 

Meanwhile, the euro rose on the London session. EUR / USD is now trading 1.3017, moving away from a daily low of 1.2942. On the other hand, Barclays also gave a bullish outlook for the EUR / USD;, but Barclays wants to see the success of the euro through the resistance 1.3025 and 1.3075 as a prerequisite for achieving the target 1.3200

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

Consumer Inflation UK sales drop to 3 Year Low Level

Tuesday, October 16, 2012

 

UK inflation rate fell to its lowest level in nearly three years in September pressured by a sharp rise in gasoline prices and electricity a year earlier, according to official data, but the level of producer prices rose most rapidly in the rate. Inflation in consumer prices will likely rebound in the coming months as the fourth largest energy provider company has announced prices would rise about 6 to 9 percent. Bank of England and the government had hoped that the fall in the inflation rate will reduce the pressure on the UK budget and allow them to spend more and support the fragile economy.

 

According to data from the Office for National Statistics on Tuesday consumer price inflation rate stood at 2.2% last month as expected, the lowest level since November 2009, and compared to 2.5% in August. Separate data showed that producer inflation rate increased to 2.5% to an annual rate compared to economists' forecast of 2.2%.