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News and Reviews European Economic Zone (France)

 

France Consumer Confidence April 83 Versus May 84

Thursday, May 26, 2011

 

French consumer confidence edged up in May, as households became more optimistic about the country's economic conditions, data showed on Thursday.

 

Consumer sentiment rose to 84 May from 83 in April, the French statistics office Insee said in a release. Economists surveyed by Dow Jones Newswires had expected the indicator remained unchanged at 83.

 

"Households are more optimistic about their living standards now and the future," said statistics bureau, records obtained by measuring both in May, each by two and six points, from reading the previous month.

 

Measuring the prospect of unemployment showed significant improvement, suggesting French consumers anticipating fewer in May increased unemployment. Data, which has lost 18 points since February, fell back into a long-term average, according to Insee.

 

Consumer perceptions of the labor market is consistent with recent data on unemployment published Wednesday by the labor ministry, shows that the number of unemployed people actively seeking employment in the euro zone's second-biggest economy fell by 0.4% on month in April.

 

French President Nicolas Sarkozy has made a priority of reducing unemployment, as the country heads into a presidential election in May next year. The latest data showed the unemployment rate was 9.2% in the fourth quarter. Unemployment in France rose to about 10% following a global recession in 2008 and 2009 from about 7.5% by mid-2007.

 

Households also shed pessimism about rising prices, Insee noted. In May, the gauge measures the perception of past inflation and the prospect of future price increases fell by eight and 15 points, respectively.

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News and Reviews European Economic Zone (Switzerland)

 

The European Stocks will Opens Higher

 

Thursday, May 26, 2011

 

European stock markets opened mostly predicted higher Thursday following gains on Wall Street and Asia overnight as rising commodity and energy sectors.

 

IG Markets 10 tips FTSE up 20 points in 5890, the DAX up 21 at 7192, and the CAC-40 flat in 3928. IG warned, however, that the dual fears the euro zone sovereign debt and lackluster economic growth - particularly in the U.S. - the focus of most of the market, because investors will watch economic data closely in the next few days.

 

French consumer confidence data will come out at 0645 GMT, but the main event on Thursday was the second release 1Q U.S. GDP at 1230 GMT.

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News and Reviews European Economic Zone (Germany)

 

Beware the Euro-price German Import Data

Thursday, May 26, 2011

 

While recovering from the low level against the U.S. dollar on Thursday, some analysts expect the euro will still remain under selling pressure until this weekend.

 

While market participants today re wary of economic data import price for monthly and yearly from the German states in the expectation that the numbers will drop sharply (release 1300 GMT).

 

And the potential correction seems to continue in EUR when import price figures to appear worse than market expectations amid fears of further contributing to the Euro zone debt problems.

 

Technically today investor focus turned to the EUR is still going to test the key $ 1.40 level for a number of negative news will trigger investors to hold off position.

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News and Reviews European Economic Zone (UK)

 

Despite Increases, British Pound Threatened Economic Outlook

Friday, May 27, 2011

 

£ survive on a firm near 2-week highs versus the U.S. dollar on Thursday, fueled by physical buying from Asian investors. Although the strengthening of them may be limited by expectations of recovery are not evenly England and interest rates remain low.

Against Euro, Pound actually slipped from the strongest position in the 2-month printed on the previous session after China was reported interested in buying bonds bailout for Portugal.

 

Sterling began to get a boost after a survey from Citigroup / YouGov showed UK inflation expectations for next year rose slightly in May after falling in April. However, estimates higher inflation unlikely to push the Bank of England to raise interest rates soon, considering the majority of policy makers more concerned about the slowdown in activity.

 

While on the same day, a private sector survey of British companies engaged in consumer services shows the level of business and profitability will decline more sharply in the next 3 months.

 

"Cable Outlook remains negative," said Kit Jukes, currency analyst at Societe Generale. "Bank of England will still be watching next week's report on the activities, which will probably bring up some weak PMI figures. The components of GDP that was released last Wednesday has also shown some weakness."

 

The financial markets continue to cut its rate hike expectations the Bank of England, and shift opportunities for an increase in UK interest rates by 0.25 basis points to be in February next year, from January to the beginning of this month.

 

Currently, GBP / USD traded at around $ 1.6375, an increase of 0.6% from today's opening price level.

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News and Reviews European Economic Zone

 

Record low euro vs francs on risk aversion towards by Greece

Friday, May 27, 2011

 

The euro fell for the fifth straight day versus the Swiss franc on Thursday to a record low, with a new valley looks possible if the continuing uncertainty about the next stage of the Greek aid.

 

Comment from the President of Eurogroup Jean-Claude Juncker confused market participants and raised doubts about whether the International Monetary Fund will release the next round of financial aid to Greece in late June.

 

Increased levels of anxiety to the debt crisis of the European countries continue to trigger a fall in the euro versus the Swissie as a safe haven.

 

"The performance of the currency pair is a reflection of extreme anxiety in the market in connection with sovereign debt crises," said Kathy Lien, director of currency research at GFT Forex in New York. "There has been much back and forth between the European Union (EU) and ECB (European Central Bank) on IMF aid to Greece and it also does not help the euro at all."

 

Switzerland is very dependent on exports, so the Swiss National Bank could try to talk francs lower as direct intervention in the past have fallen short of expectations, said Lien GFT Forex.

 

"Performance of the Swiss franc is something to watch because it serves as an important gauge sentiment in the eurozone."

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News and Reviews Economic Zone of Europe (Greece)

 

Discuss European Greek Bailout Terms

Monday, May 30, 2011

 

European leaders prepare limits to outsiders in Greek debt settlement intervention. Clearer provisions required for international intervention against the tax and the privatization of assets can be avoided.

 

Parties involved in the talks said that the new bailout package will include the provision of incentives for asset holders Greece. Especially for those who are willing to accept the rescheduling repayment of Greece. Not only that, Europe is currently discussing a new volume trimming mechanism which will apply Athens.

 

To achieve 60-70 billion euro loan, Greece was forced to give up state assets as part of the rescheduling repayment terms. EU and IMF could then be given an additional injection of 30-40 billion euros to complete the commitment of aid worth a total of 110 billion euros. European officials warned that any part of the bailout agreement vulnerable trigger resistance. Either by the government and institutions concerned.

 

On Friday, the government failed to reach an agreement with the various political parties Happenings new bailout. Yet the political consensus is a prerequisite for European assistance. At the same time, the ECB continued to argue the issue of restructuring the outstanding debt to the surface. An ECB officials claim that everything can be controlled if all things neat.

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News and Reviews European Economic Zone (UK)

 

BoE: Should Delay Tightening

Monday, May 30, 2011

 

British Chamber of Commerce (BCC) warned higher interest rates the Bank of England could damage the economic recovery. BoE have to wait until the recovery is more certain and stable, said David Kern, BCC chief economist said, announcing the revision of economic growth to 0.1% from 1.3% to 2011.

 

BCC sure BoE will Tighten monetary policy in early August despite the optimistic analyst's central bank will not change the policy until early next year. Kern believes the central bank will begin tightening in August but still opposes the policy. Kern believes the UK economic recovery was still too fragile at this time to face the next shock when the government is trimming the deficit Boost program. However, the BCC believes England will not be re-dropped into the abyss of recession. "Although the BoE should Tighten monetary policy by damping inflationary pressures, but we expect the central bank will provide the opportunity for recovery to stable first," said Kern told CNBC.

 

Meanwhile, the sterling weakened in trading on Monday, trading near 1.6468 1.6457 daily low levels.

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News and European Economic Review (Portugal)

 

Arrived in Portugal, IMF Prepare Monitoring

Monday, May 30, 2011

 

IMF arrived in Portugal on Monday to begin to lay the groundwork in order to monitor the readiness of these countries in meeting the requirements of the bailout agreement worth? 78 billion that occurred in early May.

The IMF will be in Lisbon for 2 days (30 & May 31) to melakukankan some preliminary work before running a more thorough review in September, where Portugal will obtain appraisals for the first time linked the country's progress in meeting the requirements of the bailout package 3 years, according to a press Portugal news agency, RTP Noticias, on Monday.

 

Portugal has agreed to get a bailout package from the IMF, the European Union and the European Central Bank in May in an attempt to help overcome the shortage of capital in the banking sector, while the country itself are struggling with large budget deficits and structural reform of its institutions aimed at creating strong economic growth and sustainable.

 

"Technical assistance has become one of the IMF mission, which would monitor public finances and provide some technical assistance on public financial management," said Public Relations Director of the IMF, Caroline Atkinson.

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News and European Economic Review (Germany)

 

German Support the Euro, but the Greek Drag Euro

Tuesday, May 31, 2011

 

Investors this week will be confusion due to the German attitude that underpin the euro currency but instead with Greece.

 

News maze between Germans are positive, so the currency is strengthening euro rally but still vulnerable because of the increase is only supported by the euphoria of optimism that is not necessarily occur.

 

Germany's decision to allow time for the Greeks not mean that the restructuring will be inevitable, when the investors realize it is not impossible to turn back the Euro currency to weaken.

 

Based on technical studies, the pair EUR / USD is still in progress wave-5 from the Elliott Wave pattern since the rally from 1.3970 area after the target 1.4435. At the level of the new possibilities occur correction to the area width up to 1.4345 & 1.4245. Fell below that area could trigger further bearish momentum to test key support level of 1.4200. Above the 1.4435 resistance level lies at 1.4495 area.

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News and European Economic Review (Greece)

 

Euro Stronger As Fears subside Greece

Tuesday, May 31, 2011

 

The euro had gained on the stock on Tuesday in line with the fears of the Greek situation eased slightly after the report that Germany will push scheduling plan Greek bond maturity to facilitate the new loan assistance package to that country.

 

The euro traded so far gained 0.88% to the 1.4406 level against the dollar, touching its highest point and 4-week terkerek rose against the pound sterling, yen and Swiss franc.

 

Optimism over the prospects for settlement of Greece seemed to produce a rally in the Euro, though for a while this uncertainty is still high because the ECB officials, the IMF and European Union are still doing further reviews in Athens so that market participants are still waiting for further comment about the IMF program at the end this week and early next week.

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News and European Economic Review (Ireland)

 

Irish No Need Bailout Supplement

Tuesday, May 31, 2011

 

Dublin Ireland denies speculation the bailout will add a second from the EU / IMF. Dublin is remove yourself from the debt crisis that struck the Greeks, who were trying to avoid default and seems to need a second bailout to cover the funding needs.

 

"No need for additional bailout," said Finance Minister Michael Noonan told RTE. "EU Funds / IMF enough to help Ireland run the program until the end of 2013." Noonan pointed out Dublin will test the bond market sentiment towards the Irish in the final quarter of 2012 after an absence of two years. "We will not fully return to the market, but we expect the debt management agencies can collect some private funds in the last quarter of next year."

 

Many economists predict the additional aid and debt restructuring may not be avoided by the Irish. Although the portion of the debt is reduced, but remained high at 120% of GDP and Irish bond yield continues to increase.

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News and Reviews European Economic Zone (France)

 

First Quarter Unemployment Rate in Plains France 9.3% Vs 9.2% Fourth Quarter

Wednesday, June 1, 2011

 

France's unemployment rate fell slightly in the first quarter of 2011 to 9.2% from 9.3% in the fourth quarter to the plains of France, Insee statistics agency said Wednesday.

 

Including overseas territory, the unemployment rate unchanged at 9.7%, Insee said.

 

The market expects the unemployment rate including overseas territory to fall to 9.5% in the first quarter, according to a survey of economists by Dow Jones Newswires.

 

Insee noted that beginning with data for the first quarter, he had to change some definitions that are used for people in work placements in order to bring in line with unemployment statistics collected by Eurostat.

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News and Reviews European Economic Zone (UK)

 

UK Manufacturing PMI Falls To 20 Month Low

Wednesday, June 1, 2011

 

Growth in the UK manufacturing sector slowed in May, a survey showed on Wednesday (1 / 6), adding to doubts about the resilience of the economy in the second quarter.

 

Purchasing Managers' Index (PMI) manufacturing fell to 52.1 in May, the weakest in 20 months from 54.4 in April, said Markit Economics and the Chartered Institute of Purchasing and Supply.

 

Figures above 50 indicate expansion.

 

"British PMI showed manufacturing expanded rapidly moving from near stagnation," said Rob Dobson, economist at Markit lsenior.

 

However Markit also said some weakness in production due to the number of holidays around the royal wedding in April, which is included in the survey period.

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News and Reviews European Economic Zone (Switzerland)

 

PMI Switzerland Solid, Despite skyrocketing CHF

Wednesday, June 1, 2011

 

Indicators of manufacturing solid state back in Switzerland in May. This shows that the franc appreciation has not dispelled the demand for machine tools and electrical Switzerland.

Data Purchasing Manager Index (PMI) rose to 59.2 points in May. Note this is the first monthly rise in three months, compared to non-revision rate in April, 58.4. PMI Release date is above the average expectations of economists, 58.1 and above the threshold limit of 50 points.

 

"The index now sits near the range of 60 points since August to reflect solid economic growth in Switzerland," wrote pelansir government report, Credit Suisse AG. Thus, the PMI data in line with the KOF index, which rose for the fourth consecutive month.

 

Head of the Swiss National Bank, Phillip Hildebrand, said that growth is still high, but it will slow down the rest of this year. "Supply worries exporters of thinning profit margins," said Hildebrand. Strengthening francs a triggering factor lethargy exporter in the near future. This reason also that the central bank will keep interest rates on hold so that the level of 0.25% at the next meeting.

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News and Reviews European Economic Zone (UK)

 

UK Construction Growth Up in May

Friday, June 3, 2011

 

Growth in the UK construction industry increased in May after a decline in April and this suggests the sector could give impetus to the economy in the second quarter.

 

PMI for the construction sector increased slightly to 54.0 from 53.3 in April, said Markit Economics and the Chartered Institute of Purchasing and Supply Thursday.

 

This increase further put this sector on the threshold of 50 that indicates the activity is growing.

 

"Construction activity has increased again in May, with the rate of expansion accelerated since April, " said Sarah Ledger, an expert economist at Markit. "In addition, new orders growth is marked, indicate that the rate of increase in output would be maintained", he said.

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News and Reviews European Economic Zone (UK)

 

UK Services Sector Reports Growing Fatigue in May

Friday, June 3, 2011

 

Growth in the dominant services sector slowed in the UK May, touching a low of three months, a survey shows. Friday (3 / 6), further raising doubts about the performance of the economy in the second quarter.

 

Services PMI fell to 53.8 in May from 54.3 in April, said Markit Economics and the Chartered Institute of Purchasing and Supply.

 

A figure above 50 indicates the sector is expanding.

 

Figures for May are weaker than expected by economists dipolling Dow Jones Newswires estimated a note at 54.0.

 

Paul Smith, senior economist at Markit, said despite the slowdown in May may be partly due to the remaining effects of the extra holiday in April, the sector has lost some fundamental momentum in the last two months.

 

Figures on Friday came after data Wednesday slowed growth in the manufacturing sector also slowed in May.

 

PMI figures are weaker than expectations for service and manufacturing sectors bersaman make almost 90% of the UK economy - showed low record for the second quarter GDP product.

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News and Reviews European Economic Zone

 

The EU and the IMF Immediately Finalize Help

Friday, June 3, 2011

 

EU officials and the International Monetary Fund (IMF) today going to finalize plans for the Greek aid worth 78 billion euros (equivalent to $ 113 billion). Clause also includes asset sales and other efficiency measures for Greece. All requirements must be done so that funds will be disbursed.

Greek financial crisis encourage Moody's Investors Service to consider the prospects for further credit of this country. Prime Minister George Papandreou will discuss the issue during a meeting with the Leader of the European Union Finance Minister, Jean-Claude Juncker. "Most of the medium-term plan has been completed, although some technical details still simmering," says George Petalois, a spokesman for Papandreou.

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News and European Economic Review (UK)

 

Outlook Recovery disturb Sterling Performance

Tuesday, June 7, 2011

 

Sterling weakened in London after the session had achieved a high level 3 daily 1.6460 in early Asian session. Traders dismayed by the British outlook recovery after recent economic indicators suggests the fragility of the recovery. Gloomy economic outlook will certainly give a reason for the Bank of England to hold rates again in the near future. BoE's Fisher even consider additional stimulus if the economy continues to deteriorate. BoE will langsungkan monthly meeting on Thursday.

 

Sterling was also pressured by the daily reports the Observer, who wrote the previous government advisers see a coalition government may need to revise the budget-cutting plan for dealing with growth attenuation. "The publication of economic data last quite bad and there is a question of tightening fiscal policy," said John Wraith, strategic Bank of America-Merrill Lynch. "Bank of England may have to maintain a low interest rate policy as long as possible in order imbangi fiscal tightening."

 

Nevertheless, the weakening of sterling may be limited as the dollar weakened sentiment after the outbreak of bad publicity the U.S. non-farm payroll. "$ 1.63 will be strong support," said Alejandro Zambrano, strategic interviewed by Reuters. "Sterling may reach $ 1.6350 in the near future, but for sterling stay above $ 1.6285 then there is an opportunity to test the highest price of $ 1.6547 May 31."

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News and Reviews European Economic Zone (UK)

 

Sterling Not Moving From Negative Territory

Tuesday, June 7, 2011

 

By noon Sterling continues to move dikisaran correction on Tuesday after falling to levels in one-month low against the euro on positive sentiment related to the interest rate gap differences make the single currency is likely to strengthen.

While the International Monetary Fund (IMF) on Monday reported it raised the prospect of England monetary policy loose next.

 

Estimated annual economy from the IMF stipulates the general UK economic recovery is on track but continued quantitative easing may prove necessary if growth continued to weaken.

 

Technically for the moment the nearest resistance is at $ 1.6360 Sterling, through this level will be strong enough to carry the GBP to a level of $ 1.6400 which is the moving average indicator of the level of MA-7 day at the daily charts.

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News and Reviews European Economic Zone (France)

 

Consistent Swiss franc weakened

Tuesday, June 7, 2011

 

The weakening of the Swiss Franc likely continue in the foreseeable future. Thus the view of some forex technical analysts recently.

Having gained more than 130 pips against the U.S. dollar last week, the Swiss Franc was traded in the range of 0.8384 and 0.8325. "USD / CHF fell sharply last Friday (03/06), near the low level of 0.8328 is seen today," said Kshitij Consultancy Services. "Looking at the weekly candle, there is a potential fall back towards 0.8250 or even 0.8200. Looking at the monthly candle movement, may be seen towards 0.8000. "

 

Currently the currency is 0.8355, about 10 pips above the opening of the Asian session. Resistance is probably going to be in the level of 0.8381 (high June 1), 0.8464 (May 31 low) and 0.8510 (low May 27). In the movement of the decline, according to analyst team of Kshitij Consultancy Services, the level of support will be at the level of 0.8253 and 0.8200 (psychological support level).

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News and Reviews European Economic Zone (France)

 

Franch Broad Budget Deficit In Greek Loan Payment

Wednesday, 8 June 2011

 

French budget deficit to reach EUR61.4 billion at the end of April, wider than a year ago as an improvement in tax revenues and spending reductions more than offset by exceptional items, including cash advances to Greece, the budget ministry said Wednesday.

 

In late April last year, EUR56.2 billion budget deficit.

 

However, compared with previous years still subject to "little meaning" as the latest figures again marked by extraordinary items EUR14.6 billion, the ministry said budget. Extraordinary items consist primarily of cash disbursements to the Greek loans and advances to local governments, the ministry said.

 

Expenditures in the general budget to reach EUR128.2 billion at the end of April, down from EUR130.6 billion recorded at the same time in 2010.

 

Revenue increased to EUR88.6 billion at the end of April from EUR81.6 billion at the end of April 2010.

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News and Reviews European Economic Zone (Germany)

 

Germany's Manufacturing Output Down 0.6% In April

Wednesday, 8 June 2011

 

German manufacturing sector output fell 0.6% appear in April, the country's economic department reported on Wednesday (8 / 6).

 

Economists expect a flat note for the month of April. "Figures today showed German growth engine roar period may be over.

 

However, the machine does not stutter, it's a little buzzed, "said Carsten Brzeski, economist at ING Bank.

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News and Reviews European Economic Zone (France)

 

French Broad Budget Deficit In Greek Loan Payment

Wednesday, June 8, 2011

 

French budget deficit to reach EUR61.4 billion at the end of April, wider than a year ago as an improvement in tax revenues and spending reductions more than offset by exceptional items, including cash advances to Greece, the budget ministry said Wednesday.

 

In late April last year, EUR56.2 billion budget deficit.

 

However, compared with previous years still subject to "little meaning" as the latest figures again marked by extraordinary items EUR14.6 billion, the ministry said budget. Extraordinary items consist primarily of cash disbursements to the Greek loans and advances to local governments, the ministry said.

 

Expenditures in the general budget to reach EUR128.2 billion at the end of April, down from EUR130.6 billion recorded at the same time in 2010.

 

Revenue increased to EUR88.6 billion at the end of April from EUR81.6 billion at the end of April 2010.

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News and European Economic Review (UK)

 

Moody's Threatens Pounds

Thursday, June 9, 2011

 

Pound Sterling slipped against the U.S. dollar and slumped to the lowest 1-month high against the euro on Wednesday, after a media proclaim the comments an analyst with Moody's that said if Britain was facing the risk of losing rating of 'AAA' hers if growth continues to show weakness and the government failed to meet target fiscal consolidation, although according to the rating agency's outlook for the UK economy is still stable so far.

 

Fragility of the UK economy is expected to push the Bank of England to keep interest rates at record lows for several months in advance, which would widen the difference in yield between the UK and the Eurozone as well as improve the attractiveness of the Euro against the Pound.

 

BoE meeting on Thursday is predicted to leave interest rates unchanged at 0.5%, and likely only will have little impact on the market considering the results of voting at the meeting the new policy can be known within two weeks thereafter.

 

While economists from FxPro, Simon Smith, considered the possibility that at least one of the two members who continue to voice rising interest rates, Martin Weale and Spencer Dale, have revised their views following a poor recent British data.

 

Currently, GBP / USD traded at around $ 1.6395 or 0.27% is still below the level of today's opening price.

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Europe Economy News and Reviews

 

Trichet Never Change Interest Rates

Thursday, June 9, 2011

 

ECB Chairman Jean-Claude Trichet today will probably play a very important role in determining interest rates and provide a signal to the governments of European countries that the European debt crisis must be resolved by themselves.

2 days after Germany's finance minister, Wolfgang Schaeuble member pressure on the ECB regarding the handling of European debt. Trichet tends to give a signal that the ECB is ready to raise interest rates for the second time in 3 months in July, indicated by a survey by Bloomberg. The central bank today will keep interest rates fixed at 1.25% level, indicated a separate survey.

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