News and Reviews European Economic Zone

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News and Review of European Economic Zone

 

The euro soared after the Goldman Sachs Earnings Report

Tuesday, October 16, 2012

 

German economic expectations improved data and a successful Spanish bond auction results trigger Euro rallied against the Dollar and the stability of the bond markets of Spain.

 

Market participants also responded positively to the flexibility of Spain to apply for official bailout from the European Union.

 

Ahead of the opening of Wall Street, pairing observed EURUSD rose 0.80% to a level of 1.3050, after reaching 1.3054 intraday highs and lows in the 1.2944 daily. Meanwhile, Spanish borrowing costs on 10-year tenor declined to 5.81%, after Spain successfully sold bonds at maturity of 12 and 18 months of 4863 billion euros, above the target of 3.5 - 4.5 billion euros.

 

The results of a positive bond auction was triggered by a statement from the finance ministry official Spanish stating that Madrid are considering filing a credit line from the European Union's ESM facilities.

 

Another positive catalyst is a positive earnings report from Goldman Sachs, which reported an increase in revenue of 49% compared to last year, although down 3% compared to the previous quarter.

 

Technically, the intraday bias to bullish targeting 1.3090 area, again through the above area should trigger further bullish momentum targeting targets in the range of 1.3150 resistance next. On the bottom side, look at the area nearest support 1.2960 and 1.2900.

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News and Review of European Economic Zone (UK)

 

BoE Not Agree To Increase Stimulus

Wednesday, October 17, 2012

 

BoE Meeting Minutes in October showed central bankers have not found an agreement whether to provide more monetary stimulus and its doubtful benefits to boost economic activity significantly. Minutes also show all 9 BoE officials agreed to keep interest rates at low levels of 0.5% and did not change the program of asset purchases totaling £ 375 billion at the October meeting.

 

Although the implementation of the program of asset purchases to be completed in early November, but officials have not been able to find a deal BoE stimulus is still required. Recent Reuters survey showed the BoE will increase asset purchases as much as £ 50 billion.

 

Some BoE officials acknowledge there is still room to increase its asset purchase program. However, some officials even admit stimulus-BoE to lower borrowing costs for long-term question of the impact of low borrowing costs on the performance of the economy.

 

Meanwhile, sterling rose in the London session. GBP / USD is now trading 1.6157, moving away from a daily low of 1.6112

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News and Review of European Economic Zone (UK)

 

BoE: British Bankers Must Confront Besiap The "Worst"

Wednesday, October 17, 2012

 

The worst may still be yet to come for the UK banking sector, and they should not refuse to increase their resilience to the risk of the "worst" that could happen, says Bank of England deputy governor Paul Tucker on Wednesday. "We are still in a difficult situation at this time in light of the substantial risk of waiting. There is still a slight chance that the worst is going to happen, "Tucker said at the annual conference of the British Bankers' Association. Tucker are the leading candidate to replace Mervyn King as Governor of the Bank of England warned that the new Basel rules are designed after the financial crisis is not enough to guarantee that banking sector has sufficient resilience.

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News and Review of European Economic Zone (Spain)

 

Spanish Bond Yields Sharply Melorot

Wednesday, October 17, 2012

 

Spanish government bond yields fell after credit rating agency Moody's Investors Service maintained the country's investment grade rating.

 

Potential Moody's to downgrade the credit rating of the Spanish government have plagued the market since the statement of the agency in the month of June that Spain in a potential downgrade.

 

Yield Bonds Spain 10-year, down by 0.24 percentage point to 5.52%, its lowest level since early April, while the bond yield dropped to 4.81%.

 

Although Moody's rating outlook for Spain maish negative, which means the possibility of a downgrade is still open opportunities, but Moody's decision to maintain the current rating is sufficient to increase the confidence of investors at least until there is a result of a request for help Spain and the ECB bond buying program.

 

A senior German government confirmed on Wednesday Berlin support the efforts of the Spanish government to change the Spanish economy, said Spain was "on the right track."

 

The stability of Spain's bond market helped trigger the reinforcement pairing EURUSD above 1.3100 for the first time in a month. Spain's stock market also rallied sharply due to optimism in Europe. However Moody's decision is still a small micro factors with other risk factors are still looming.

[mynameisandhy]

News and Review of European Economic Zone (Cyprus)

 

Cyprus Bailout Negotiations Start Next Week

Thursday, October 18, 2012

 

Cyprus finance minister expects the bailout negotiations could begin next week. The finance minister also express Vassos Shiarly government has yet to determine how many would be required to the international creditors because there is still a difference in perception between the government and creditors.

 

However, there are rumors circulating that the bailout for Cyprus could exceed € 10 billion, equivalent to 60% of GDP. Cyprus has requested a bailout last month after healthy banking sector battered by losses on the asset size of Greece.

 

Meanwhile, the euro rose on the New York session. EUR / USD is now trading 1.3121, close to the level of 1.3137 daily high

[mynameisandhy]

News and Review of European Economic Zone

 

Germany Wants Accelerate Euro-Zone Integration

Thursday, October 18, 2012

 

German Finance Minister Wolfgang Schaeuble, wants accelerated integration in the euro zone by setting up a special committee that will oversee the government's budget. "We have taken great steps to form a fiscal union. We must use the opportunity," said Schaeuble.

 

Schäuble has said that the commission should have the power to reject budgets that are not in line with the government's fiscal policy area. Schäuble see EU competition commission as a good example for the commission. Schäuble also called for a more flexible voting agreement in the European Parliament in order to accommodate a more rapid integration among euro-zone members.

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News and Review of European Economic Zone (Greece)

 

Samaras: Negotiations Nearing Deal With The Troika

Thursday, October 18, 2012

 

Greece getting closer to an agreement to receive financial assistance payments next stage of international creditors, according to Prime Minister Antonis Samaras on Wednesday.

 

"We're getting close," Samaras said when responding to questions about the progress of the negotiations with the Troika comprising the European Commission, the European Central Bank and the International Monetary Fund.

 

Discussion related austerity measures worth € 13.5 billion ($ 17.5 billion) continues between Athens and the Troika, following a difference of opinion on issues of labor and other examinations. Without a deal, Greece will not receive the next disbursement of bailout stages and threatened run out of funds in November.

 

"We believe that if a deal will be reached soon," said Samaras told reporters on the sidelines of the European People's Party conference in Bucharest, Romania.

[mynameisandhy]

News and Review of European Economic Zone

 

Germany And France Have A Different Agenda

Friday, October 19, 2012

 

Germany and France, the two biggest economies in the euro zone, has a different agenda in the EU summit. German Chancellor Angela Merkel, want a greater authority for the European Commissioner to veto government budgets that violate the Constitution of the European Union. However, the French president, Francois Hollande, express topic is on the agenda of the meeting and must prioritize the acceleration of the formation of unions in the EU banking system.

 

Merkel seems to want to slow down the formation of the European banking watchdog said, emphasize the importance of quality rather than speed. Germany wants oversight only to large multinational banks and rejected the establishment of deposit insurance together to make rich countries help banks in countries where different bermasalah.Di Hollande said: "The topic of the meeting is not a trade union banking and fiscal., So the decisions will be taken only the unionization of banking at the end of the year and especially on banking supervision. "

 

In the meantime, please register weakening euro thin in the New York session. EUR / USD is now trading 1.3097, try to avoid high levels of daily 1.3128

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

The British Government Loans Reduced in September

Friday, October 19, 2012

 

Total UK government net borrowing (Public Sector Net Borrowing) reached £ 10.73 billion for the month of September; less than the estimated £ 11.4 billion and revision before publication £ 10.75 billion. Sterling try reducing the attenuation after the data was released. GBP / USD is now trading 1.6050, try to stay away from daily lows 1.6032

[mynameisandhy]

News and Review of European Economic Zone

 

European Leaders Agree on Establishment of Single Banking Supervisors

Friday, October 19, 2012

 

European leaders agreed to have a watchdog / supervisor for the new euro zone banks and will be effective from next year, as this move will pave the way block the flow of Europe's bailout fund go directly to banks across Europe.

 

Recapitalize banks directly by the bailout fund is seen as an important step in the response of policy makers to tackle the euro zone debt crisis. Euro zone officials said this should help solve the government's problem with weak public finances such as Spain for example are less able to support their national banking systems. European Union leaders have pledged to allow the bailout fund to recapitalize banks to flow directly, but only if a single supervisor is already operating effectively.

 

The government says the legislation for the establishment of a single banking supervisor will be placed under the authority of the European Central Bank (ECB), is targeted to be completed by the end of this year.

 

Setting up a single supervisor "is not as easy as one or two months," said German Chancellor Angela Merkel after the European Union summit in Brussels. But he expects supervisors can fulfill its role effectively during 2013. "

[mynameisandhy]

News and Review of European Economic Zone

 

Moving Tight, Euro Self Recover

Monday, October 22, 2012

 

Post-consolidation in tight range above 1.3010 base (200-hr EMA), EUR / USD is trading slightly higher in the Asian session but currency movements are predicted pressured by uncertainty over Spanish and Greek problems.

 

EUR / USD is currently trading in the range 1.3050 (up 30 points), but Valeria Bednarik, chief analyst at FXstreet.com, said overall momentum is still strong as seen from graik four hours. Strong support level at 1.2980, (50%, 1.2825/1.3140). "Bearish pressure will increase if not successfully penetrated the resistance level," according to analysts. In the figure, the 21-EMA describes the level of support at 1.2960.

 

EU summit that lasted two days and ended on Friday (19/10) did not give the expected results, especially regarding the clarity issue markets bailout for Spain and plans further aid for Greece. Greek prime minister is expected to receive further support by the end of November after reports that a deal Trokia has reached 90%.

[mynameisandhy]

News and Review of European Economic Zone

 

Pessimism-European summit Trigger Negative Market

Monday, October 22, 2012

 

Starting this week (Monday, 22/10) trade with world markets seem sluggish in negative territory, especially as market participants return pessimistic outcome weekend European summit ended without producing a concrete decision on the issue faced by Spain and Greece.

 

European leaders actually looks more likely to discuss the discourse sole oversight for the banking sector. And Asian markets also move today due to the falling back negative risk sentiment after disappointing earnings reports from American companies, as well as the collapse of Japan's export figures which is the major driver of the world's third-largest economy is.

 

From these conditions, it is also an opportunity for investors to take profits after a rally last week after weak U.S. corporate earnings reports particularly from General Electrics and McDonalds, where the two companies is a 'barometer' of the condition of the overall health of the U.S. economy .

 

While the single currency Euro seems depressed, but is still moving back above critical level of $ 1.3 due to the slow development of the Spanish fiscal remedies exacerbate investor concerns over the global economic downturn. And continued uncertainty about when Spain will ask for a bailout has also made investors hesitant to push the euro higher.

[mynameisandhy]

News and Review of European Economic Zone

 

ECB Watch Negative Effects of the Crisis Policy

Monday, October 22, 2012

 

European Central Bank (ECB) should continue to monitor the impact of all the policies that created the crisis in order to avoid adverse effects later in life.

 

Thus the opinion considerations ECB governing council member Yves Mersch, when asked by the European Parliament some time ago. The European Banking Authority is committed to maintaining a breakthrough policy of 'as long as possible', until the fundamentals improve. "Our policy has so far done well to price stability in the market," said Mersch.

 

The ECB has launched a range of policies to offset the effects of the European debt crisis, including poured 3-year tenor loans to banks. Not only that, Mario Draghi and colleagues also purchase debt troubled states in very large numbers. "We monitor the situation and study the policy so that negative effects can be mitigated," Mersch defense.

 

The comments raised by the ECB report to the European Parliament. Mersch himself must explain his views in the process of submitting themselves as ECB executive board. According to documents received by Dow Jones report, the European Parliament rejected the proposal will require the emergence of Mersch as the woman in the chair ECB. Today, a strong candidate for ECB executive board is still dominated by men.

 

Although praised the ECB's monetary policy during the crisis, Mersch warned of the recovery beyond the authority of the central bank. The government of any country should understand how mengatasai own problems. "Integration of European economic and monetary rules is essential to maintain growth, market stabilization and sustainable prosperity," he wrote in the report.

[mynameisandhy]

News and Review of European Economic Zone

 

Eurozone Fiscal Deficit Decreases In 2011, The Debt Up

Tuesday, October 23, 2012

 

Eurozone fiscal deficit fell sharply last year as the government cut spending and raise taxes to regain the trust of the public financial markets, but the level of public debt is still rising, as shown by data from the Statistical Office of the European Union on Monday. Eurostat said the difference in the budget deficit in 17 countries using the euro fell to 4.1% of GDP in 2011 from 6.2% in 2010 which is the first year the European debt crisis. However the level of public debt euro zone rose to 87.3% of GDP in 2011 from 85.4%, according to Eurostat.

[mynameisandhy]

News and Review of European Economic Zone (Germany)

 

Germany denies Merkel News EU Summit Will Cancel

Tuesday, October 23, 2012

 

The German government on Monday denied a report in the Financial Times that said Chancellor Angela Merkel may invalidate the EU summit on the long-term budget scheduled for next month unless the UK to change its stance. "The news is not true. I deny this report," said government spokesman Steffen Seibert told a news conference. "The German government wants success in November's summit and to support European Council President Herman van Rompuy to get agreement on a long-term budget years 2014 to 2020."

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News and Review of European Economic Zone (Spain)

 

PM Rajoy: Budget Savings Program may be more loosely Since Recession

Wednesday, October 24, 2012

 

Prime Minister of Spain, Mariano Rajoy said that there is a possible target Spanish budget deficit is reduced due to the recession that this country came from lower income taxes. The statement follows the Central Bank of Spain that the Spanish economy has contracted during the quarter to 5th (between July and October).

 

But two days earlier, the Minister of the Budget Spain, Cristobal Montoro, said that Spain will continue to follow the budget deficit targets demanded by the European Union and in 2012 Spain would reach the deficit target of 6.3% of GDP.

 

Market participants expect the Spanish will formally request a bailout to the European Union to increase confidence in the Spanish market. But with the 10-year Spanish bond yields are still at 5.6%, the Spanish government considers that the bailout not needed. Economy Minister Luis de Guindos said Spain access to market financing has improved. Foreign investors began to re-buy Spanish bonds. This is due to two reasons the government has done his duty, and because we all have casts doubt on the future of the euro.

[mynameisandhy]

News and Review of European Economic Zone (Germany)

 

Germany Praises ECB Performance

Wednesday, October 24, 2012

 

The German government has so far defended the policy of the European Central Bank (ECB) to resolve the crisis in the region.

 

The attitude expressed by the German finance ministry official, Steffen Kampeter, the media crew. But on the other side of the Berlin government also understand why so many publicly expressed objections to the ECB steps lately. "The ECB has played as mandated by law," said Kampeter. So far the Germans gave a plus for the performance of ECB debt crisis facing Europe.

 

"The ECB managed to prove itself as a model of an independent central bank, controlling inflation and maintaining the stability of the euro," puju financial expert who is also finance minister and adviser to the German chancellor. The comments appear shortly ahead of a meeting between the German government and the ECB. The Germans wanted to make sure that all temporary policy released by the ECB comes naturally and does not trigger negative effects in the future. ECB chief, Mario Draghi, must also explain his exit strategy to solve the crisis.

 

Kampeter also declined to comment on the daily Sueddeutsche Zeitung, which reported that the EU, IMF and ECB has given a two-year extension of time for Greece to cut its debt and deficit ratios. The Germans were reluctant to comment until the official report from the three agencies.

[mynameisandhy]

News and Review of European Economic Zone

 

Greece Will Cast Possible Allowance

Wednesday, October 24, 2012

 

Creditors of the European Union is likely to provide additional time allowance for Greece lower its budget deficit to four years than the previous deal for two years.

 

This means that Athens could still breathe until the year 2016 before lowering the deficit of 3% of GDP.

 

However ECB board members, Joerg Asmussen claimed that the troika composed of the ECB, the IMF and the European Union have reached a final agreement with the government of Greece. Where granting leniency is still a draft agreement and is expected to show positive progress and reduce the fear scenarios Greek exit from Europe.

[mynameisandhy]

News and Review of European Economic Zone

 

Euro-Zone Debt Ratio Rises

Thursday, October 25, 2012

 

The ratio of euro-zone government debt rose in the second quarter of 2012 despite austerity policies implemented. Euro-zone debt ratio rose from 88.2% of GDP to 90% of GDP despite the government to cut spending and raise tax rates, according to Eurostat. The increase experienced by the vast majority-troubled euro zone members Greece, Cyprus, and Portugal.

 

Despite the austerity policies promoted, but the majority of the government is still spending more money on shopping than the funds generated from tax revenue. This will surely add to the burden of debt, especially with the protracted economic contraction. Some governments-namely Greece, Portugal, and Ireland-have filed financial assistance from the European Union to meet financing needs. Eurostat expressed intergovernmental loan ratio at 1.6% of GDP in the second quarter.

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News and Review of European Economic Zone

 

ECB's Nowotny: ECB Interest Rate Not Need Adjustment

Thursday, October 25, 2012

 

Head of Austria's central bank and a member of the board of the ECB, Ewald Nowotny stated on Wednesday that the European Central Bank (ECB) does not need to lower the benchmark interest rate in the Euro zone.

 

Interest rate specified ECB is now appropriate given the relatively low rate of growth in the euro zone, but it Nowotny also argue that the dangers of inflation have not looked at this and fully support the formation of the European Union's banking watchdog.

 

Besides Nowotny also quite optimistic on the future of the single currency Euro, he admits there is a problem in individual countries in Europe, but it is likely Euro zone split almost impossible.

[mynameisandhy]

News and Review of European Economic Zone (Greece)

 

Greece Has Finalized Package Tightening

Thursday, October 25, 2012

 

Greece will tell the meeting of Euro Working Group on Thursday that Greece has finalize the package tightening after adding qualified borrowers on labor reforms, Greece's finance minister said on Wednesday. The government plans to submit two budgets terpisar on tightening policy and labor reforms to Parliament depat week, said Yannis Stournaras confirmed by officials of the finance minister. But he was not about providing further details. Negotiations between the government and the borrower that the IMF and the European Union are close to an agreement but blocked by obstacles have not gotten the support of minority parties in the coalition against the proposal to cut wages and benefits.

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

BoE's Haldane Want to Limit the Size of Banking

Friday, October 26, 2012

 

Reform of the financial system that is run the UK and other developed countries may not be sufficient to limit the risk that the need for bank size limits, according to the BoE's Haldane. "It is important to find a solution to the problem too big to fail. Should look for ways to eliminate the perception of implicit subsidies on the banking sector since there will be no single government-even that would let big banks collapsed to the size of the potential damage that will result," says Andrew Haldane, director of financial stability at the Bank of England.

 

"The reform is being run, including limiting the space for banking unit with extra capital may not be sufficient. Requiring large banks to have more capital will help. However, size restrictions of a bank is required," says BoE's Haldane. BoE will contribute to the UK banking regulator from April 2013.

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News and Review of European Economic Zone (Greece)

 

'Greece Will Not Meet Target Success'

Friday, October 26, 2012

 

In his report to the Eurogroup Working Group (EWG), International Monetary Fund (IMF) stated that the Greek debt ratio will penetrate 120% of the total GDP in 2020. Efficiency program budget is currently considered insufficient to undermine the country's debt burden to the ideal level. Eurogroup Working Group (EWG) is itself a joint finance ministry official euro zone countries that are ready to boil central theme of discussion at a meeting of finance ministers.

 

"It is clear that Greece is outside the path of reducing the burden of debt and the worst is the burden of their debt reached 136%," explained an official of the European financial interviewed by CNBC. Sources who declined to be named, said that Greece needed a new breakthrough in the next 89 policies that have been set by the IMF and the European Union. Parties Troika already calculating how much funding is needed so that the government could continue to operate until 2016, or two years longer than the previous target of trimming debt. Injection of funds from the lender intended to Athens scored a primary surplus of 4.5% as agreed in February. Primary surplus or deficit itself is the financial balance of the debt burden of the government before it is put.

[mynameisandhy]

News and Review of European Economic Zone (Spain)

 

1 of 4 Residents Spain Not Working

Friday, October 26, 2012

 

The number of unemployed in Spain consistently penetrate a new record to the end of the third quarter 2012.

 

INE National Statistics Office reported that the unemployment rate in the country's fourth largest economy of Europe is already past the chronic level of 25%. A total of 25.02% of residents have no livelihood or higher than the second quarter last record as much as 24.63%.

 

In the middle phase of the recession, the company failed to absorb the labor force because they have to watch their financial balance. Spain is still struggling to recover from the housing crisis in the past decade. Conditions aggravated by the policy of the government budget cuts in order to cut the budget deficit from 9% to 6.3% of total national GDP. Thus, Spain is still the country with the highest unemployment in Europe.

[mynameisandhy]

News and Review of European Economic Zone

 

Leader of Spain and Italy Discuss Crisis

Monday, October 29, 2012

 

Leader of Spain and Italy will meet to discuss the economic crisis that has engulfed the two countries.

 

The meeting on Monday between Prime Minister Mariano Rajoy Spanish and Italian Prime Minister Mario Monti is part of a summit that brought the ministers and business representatives from both countries. This is the fourth meeting since they served at the end of last year.

 

Spain, a country that has a 25% unemployment rate, currently facing tremendous pressure, so they want to ask for outside assistance untukmembantu tackle its debts.