News and Reviews European Economic Zone

[mynameisandhy]

News and Review of European Economic Zone

 

Germany Wants EU UK Permanent

Wednesday, January 23, 2013

 

German Foreign Minister, Guido Westerwelle, express a desire for Britain to remain in the European Union. Prime Minister David Cameron's express will hold a referendum on Britain's membership status in the European Union if it wins the election 2015. Cameron stressed Europe must change if it wants to remain a member of the UK EU.

 

London has uttered willingness to ask some of the authority that has been delegated to Brussels as a consequence of EU membership. Westerwelle said that Germany did not believe the decision should be taken in Brussesl point out that while it was an overly ambitious plan. However, Westerwelle insisted German attitude is different from the UK. "We want more integration. States will not succeed if the government chooses what policies will be followed."

[mynameisandhy]

News and Review of European Economic Zone (France)

 

French Business Activity Weakens

Thursday, January 24, 2013

 

French business activity weakened in January and it certainly can aggravate the biggest fears of an economic slowdown in the euro-zone 2 is. French manufacturing index fell to 42.9 for the month of January; worse than the predicted 44.9 and 44.6 the previous publication. Services sector index also fell to a level of 46.6; lower-than-expected 45.6 and 45.2 in December publication.

 

Worsening economic indicators will certainly complicate the efforts of President Francois Hollande to reduce the ratio of government debt and spur economic growth. So far, France is still protected from the euro-zone debt crisis, but there are fears the French resistance began to weaken.

[mynameisandhy]

News and Review of European Economic Zone

 

Current Account Surplus Rises Euro-Zone

Thursday, January 24, 2013

 

Increased trade surplus helped the current account surplus increases (current balance) to the euro-zone scoring record. This is certainly good news for the euro-zone economy was hit by recession in the protracted European debt problems. Current account surplus reached € 14.8 billion for the month of November 2012; better than the predictions of € 6.5 billion and revision before publication of € 8 billion.

 

The trade surplus increased from € 10.2 billion to € 12.6 billion, while the services surplus decreased slightly from € 7.4 billion to € 7.1 billion. Natural capital account surplus also fell to € 26.2 billion; less than € 35.2 billion in October publication. Meanwhile, the euro recorded a thin reinforcement London session. EUR / USD is now trading 1.3330, moving away from a daily low of 1.3286

[mynameisandhy]

News and Review of European Economic Zone (Spain)

 

Spanish Unemployment Rate Up

Thursday, January 24, 2013

 

Protracted economic recession seems to come worsening labor market conditions in Spain. It can be seen from the unemployment rate back to a record in the fourth quarter of 2012. The unemployment rate rose to 26%, worse than the 25.9% forecast and the publication of the third quarter 25%. Spain's economy is still feeling the effects of the real estate bubble burst and the government's drastic austerity budget policy.

 

Spanish unemployment rate is the highest in the euro-zone 2 and just a little adrift from Greece reached 26.8%. Spanish and Greek unemployment rate far above average unemployment rate in the euro zone at the level of 11.7%.

[achelia]

Analysts at Barclays Capital call the current EUR/USD $1.3250/1.3400 price action “wild and choppy”.

 

In a short term analysts recommend selling EUR/USD at $1.3340/70 and buying at $1.3270/50.

 

It is a risky trade, however. More cautious investors are advised to wait and be ready to trade euro in the direction of a breakthrough of the current price range.

[mynameisandhy]

News and Review of European Economic Zone

 

Merkel: Europe Must Survive With Reform

Friday, January 25, 2013

 

German Chancellor Angela Merkel urged European countries to continue economic reforms they have started, and he argued that the debt crisis that occurs will provide a good opportunity for the EU to become more competitive.

 

"Politicians are experienced is if he continues to get pressure for structural reform politics," he told delegates at the World Economic Forum in Davos, Switzerland.

 

"If Europe is having difficulty today, we need to implement structural reforms at this time so we can live better the next day," he said.

 

 

Throughout the euro zone debt crisis, Merkel has given significant pressure against austerity measures in response to the soaring debt and a widening budget deficit.

 

 

Other leaders, including French President Francois Hollande believes that such measures must be balanced with existing initiatives to spur growth. They fear that the savings would not be able to move the economy.

 

"Consolidation and growth is the basis of the two sides of the same coin," said Merkel.

 

Merkel called for the formation of "competitiveness pact" in addition to the existing fiscal pact, which aims to ensure that members of the European Union on a commitment to remain with their budget.

Edited January 26, 2013 by mynameisandhy

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

UK's Economy In Risk

Friday, January 25, 2013

 

UK economy to shrink again in Q4 2012 and, increasing the risk to get technical recession for his third time since the financial crisis of 2008.

 

The rate of UK GDP is predicted to fall -0.1% in the period from October to December (Q4) compared to +0.9% in the previous quarter ddengan.

 

If the reported rate of UK GDP contracted further in early 2013, it will formally repeat the technical recession, and increases the pressure on the government led by conservatives in order to loosen the budget cuts and tax increases are expected by economists to be the main cause of the decline in consumer spending, consumption and investment rate.

Edited January 26, 2013 by mynameisandhy

[mynameisandhy]

News and Review of European Economic Zone

 

ECB Draghi: Economic Activity From Stable

Friday, January 25, 2013

 

European Central Bank President Mario Draghi said on Friday that financial markets experienced "relative ketenagan" at the beginning of this year and all the indices showed a substantial improvement in economic conditions.

 

"The level of economic activity is currently in the process stabilized at very low levels, and we predict that the economic recovery will occur in the second half of this year," Draghi said at the World Economic Forum in Davos.

 

He praised the structural reforms that followed by the euro zone and said that the year 2012 has been a year of "re-launch of the euro."

 

Current account surpluses are now starting, improved fiscal position, "said Draghi." Government should be given credit for what they do. "

[mynameisandhy]

News and Review of European Economic Zone

 

ECB: Lending Private Sector Reduced on December

Monday, January 28, 2013

 

Loans to households and companies in the euro zone contracted for the eighth consecutive month in December as recession-hit level loan demand. Loans fatherly private sector fell 0.7% from a year earlier after declining to 0.8% in November, according to the European Central Bank in Frankfurt today. Loan rate fell to 0.2% monthly rate.

 

17th euro zone country is struggling to get out of a second recession in four years as the government of Greece and Spain face spending cuts to reduce the excessive deficit. There are a number sinyak that perkeonomian will recover soon, the level of economic confidence improved for a second month in December, with an increase in the stock market and bond yields fell, and the ECB will pay worth 137.2 billion euros (184.4 billion dollars) in emergency loans next week, more than economists forecast and the 2 years prior to maturity.

[mynameisandhy]

News and Review of European Economic Zone

 

ECB: Banks Paying Debt LTRO More Than Estimated

Monday, January 28, 2013

 

European Central Bank (ECB) reported that Eurozone banks borrowing emergency funds to pay a 3-year tenure more than the estimate, where it is a signal in addition to easing the region's debt crisis.

 

Around 278 European financial institutions will repay about 137.2 billion euros, or the equivalent of $ 184.4 billion on 30 January, according to a statement on the Frankfurt-based ECB, beyond the central estimate for 84 billion euros.

 

Total loans LTRO first stage provided by the ECB for 489 billion euros, is expected to be fully reimbursed by the banks in the weeks ahead. ECB council member, Ewald Nowotny stated that debt faster is a positive signal of the condition of health of European banks.

 

Side effects from early debt repayment supply siphon money from the financial system, triggering inter-bank interest rate hike (Euribor) which so far has risen 0.54%.

[mynameisandhy]

News and Review of European Economic Zone

 

Rajoy: EU Needs Expansionary Policy

Monday, January 28, 2013

 

Spanish Prime Minister Mariano Rajoy said Friday that some European Union countries have audacious run expansionary policies to boost economic growth in the region, as part of efforts to help other countries who were distressed by the cuts in public spending and debt.

 

"Spain is not in condition to run an expansionary policy, but countries that are able to do it," said Prime Minister Rajoy told a news conference after meeting with President of Chile, Sebastian Pinera. Rajoy found expansionary policies will help the region cope with the pressure that has significantly slowed economic growth in the European region.

 

Rajoy also confirmed that the Spanish government will continue to pursue structural reforms in order to lower the budget deficit. Throughout this year Spain has issued approximately € 20 billion in Treasury debt, which indicates if the steps taken by the European Union to boost investor confidence and the euro started to gain traction

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

Fitch: UK Face Significant Risk of Downgrade

Tuesday, January 29, 2013

 

Britain is facing a significant risk of losing AAA rating hers, as the worsening economy since outlooknya changed to negative last year, according to David Riley, director of global rating Fitch Ratings. "We have set a negative outlook for the UK for almost 12 months and during that time the economic and fiscal outlook even worse," according to Riley.

[mynameisandhy]

News and Review of European Economic Zone

 

Europe Continues Trying to Cut Unemployment

Wednesday, January 30, 2013

 

Greece, Portugal and Spain today continue to try to reverse the fall of the level of competition in the sector workforce significantly to the cause of the crisis in Europe, the Conference Board said Wednesday.

 

An organization that does research say that the cost of labor, measured datri workers' earnings per hour for each output dihasikan, suffered a fall of as much as 9.2% in Greece between the second quarter of 2011 and the same period in 2012.

 

In Spain and Portugal itself, the fall of the same is happening as much as 5.9% and 2.1%, which makes the level of their exports become more competitive and provide advantages that these countries are quite adequate investment destination.

[mynameisandhy]

News and Review of European Economic Zone

 

ECB Nowotny: Euro Movement Still Normal

Wednesday, January 30, 2013

 

The exchange rate of the euro against the U.S. dollar is currently "still in the normal range, long-term," said a member of the board of governors the European Central Bank, Ewald Nowotny, on the sidelines of an event at the Austrian Ministry of Finance. For the first time since the end of 2011 Euro area managed to climb back above $ 1.35 in trading Wednesday.

 

Nowotny found appreciation of the single currency is more driven by the improving economic outlook and the ECB's policy success in bringing stability to the economy.

 

Improvement in sentiment in financial markets also reflects the trend will contribute to improvement in the real economy. These developments also make it possible for the Austrian government to slightly revise the national GDP growth prospects, Nowotny added.

[mynameisandhy]

News and Review of European Economic Zone (Spain)

 

Spain Recession In The Middle On Tightening

Wednesday, January 30, 2013

 

Recession in Spain to more than economists forecast in the fourth quarter as government efforts to cut budget deficits reduce the level of domestic demand. Gross domestic product fell by 0.7% in the fourth quarter from the previous quarter, when it fell by 0.3%, according to the National Statistics Institute in Madrid today. The data overruns Bank of Spain on January 23 to a contraction of 0.6%. GDP dropped by 1.8% in the previous quarter from a year ago and 1.37% for an annualized rate in 2011, according to the INE.

 

The European Commission this week signaling is likely to set a budget target of Spain's fourth seiting Spanish jobless rate rose to 26% by the end of the first year of the government of Prime Minister Mariano Rajoy. "We have to consider other factors, the contraction of domestic demand is quite heavy and will likely remain so in the first half of 2013," said Guillaume Menuet, a senior economist at Citigroup Inc. in London. "The momentum of the current market rally is that investors should pursue."

[mynameisandhy]

News and Review of European Economic Zone (Italy)

 

Bond Yield Italy Crawling Up to 2013 High Level

Thursday, January 31, 2013

 

Italian government bond yields soared to its highest level this year on Thursday as Italian bank Banca investigation Monti dei Paschi sparked concern among investors ahead of the national general elections at the end of February.

 

As a result the Italian bond yield on the 10-year tenor crept up by 0.09 percent points from Wednesday to 4:36 penutunan%, while the highest level since 2 January, while the yield on two-year tenure come up to the level of 1.68%.

 

Banca Monte dei Paschi under investigation due to the scandal that can lead to large losses in the oldest bank in Italy. Credit rating agency Moody's Investors Service credit rating Paschi reviewing the watchlist downgrade, due to the uncertainty of the effects of trade that has been done by the previous management of the bank.

[mynameisandhy]

News and Review of European Economic Zone (Germany)

 

German Unemployment Rate Decreases Despite Allegations

Thursday, January 31, 2013

 

The unemployment rate in Germany was reduced beyond expectations in January, reinforcing signs that the pace of Europe's largest economy is accelerating. The number of unemployed fell by 16,000 to 2.92 million, according to the Federal Labor Agency in Nuremberg today. Economists expect an increase of 8,000. The unemployment rate for December was revised down by 2,000. The unemployment rate fell to 6.8% this month, the lowest level in two decades.

 

"Sentiment is improving everywhere," said Thomas Gitzel, chief economist at VP Bank AG in Vaduz, Liechtenstein. Temporal aperusahaan began more optimistic about the economic outlook, "the recovery job creation at a certain level will be difficult to survive, as well as the order situation is still not improved."

[mynameisandhy]

News and Review of European Economic Zone (Spain)

 

Rajoy Denies Secret Payments Scheme

Thursday, January 31, 2013

 

Prime Minister Mariano Rajoy and Spain's ruling party on Thursday denied that the party making payment of business donations to the Prime Minister and other leaders of the party after a newspaper published the news about the secret account of the party. El Pais published pictures some evidence of a written account for nearly 2 decades administered by the People's Party, showing donations from companies, especially builders, and the regular payments of thousands of euros for Rajoy and other party leaders.

 

"People's Party did not know about the published record and its contents, and it can not be recognized because it is keeping the party," said party of the People's Party in a statement. The statement says the payment from the party leaders and members done legally and follow the tax laws.

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

Manufacturing Sector Still Expanding in the UK in January

Friday, February 1, 2013

 

Britain's manufacturing sector expanded at a moderate pace in January as output growth in the fastest pace since September 2011, to give a little push to the economy are in danger of falling into a recession, according to a survey on Friday. Manufacturing PMI index from Markit / CIPS PMI fell to 50.8 from a downwardly revised 51.2 in December. The data are slightly exceeds expectations for 51.0. Output index rose last month at 53.4 compared to 54.2, despite the disruption of the bad weather, while the level of new orders rose for a third month, also helped by the housing market.

[mynameisandhy]

News and Review of European Economic Zone (Italy)

 

Italian Unemployment Rate Still Very High

Friday, February 1, 2013

 

The unemployment rate in Italy was at its highest level in 13 years in December as companies are reluctant to add workers amid concerns about the outlook for recession in Italy. The unemployment rate was unchanged from the revised 11.2% in the month of November, according to the national statistics agency ISTAT in Rome today. December data are consistent expectations of economists. The unemployment rate has been above 10% for 11 consecutive months.

 

Community and business confidence fell this month as Italian fourth recession since 2001, eroding optimism. Italy is the country's third-largest economy in Europe contracted at least 0.6% in the fourth quarter of last year, according to Confindustria. Italy entered recession in the last quarter of 2011. Slump deepened as the government of Prime Minister Mario Monti introduced spending cuts and tax increases to address the deficit.

[mynameisandhy]

News and Review of European Economic Zone

 

Euro Zone Inflation Target Near ECB

Friday, February 1, 2013

 

Eurozone inflation rate fell more than forecast in January to a signal that the company cut prices to attract buyers while the unemployment rate remained at a record high at the end of 2012. Consumer inflation rate in the euro zone fell to 2% in January compared to a year ago, according to Eurostat pad Friday. Data was lower than economists forecast of 2.2%, which is also the level in the month of December. The unemployment rate remained at a record high at 11.7% in December, according to Eurostat, slightly lower than economists' forecasts for 11.3%.

 

Currently, inflation is close to target of the European Central Bank, but the decline below 2%, and the unemployment rate reached a record high will give room for the ECB to cut interest rates again to stimulate the economy. However, improvement in the business sentiment in the euro zone for the third month in January as well as factory output menignkat indicate that the European bloc has passed the worst of the recession, which means that additional stimulus in the form of ECB rate cuts may not be necessary. "Inflation is still not really there," said Thomas Costerg, an economist at Standard Chartered in London. "Today, with inflation in Germany slowed, it will trigger a debate on how the ECB will ease policy," he said.

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

Collapse Threatens British Banking Size

Monday, February 4, 2013

 

Finance Minister, George Osborne, has threatened to reduce the size of UK banks if they fail to manage the risk from investment banking activities. Britain is to fix the banking sector after the financial crisis of 2008 when the government was forced to spend £ 65 billion to rescue the Royal Bank of Scotland and Lloyds. Banks have been ordered to restrict the activities of investment banking activities that have happened to Barclays, HSBC and RBS.

 

However, Osborne seemed ready to take more drastic measures. "If the bank fails to comply with the regulations will reduce the size of the banking regulator. Would be no separation of banking and not just the kind of restrictions." The Bank of England has been given a mandate to supervise banking activities to ensure activities do not jeopardize the investment banking retail banking activities. Osborne also confirmed directors of banks that fail to comply with the rules will be threatened with sanctions ban on business in the banking industry.

 

Meanwhile, sterling rose in early New York session. GBP / USD is now trading 1.57337, 1.57385 near the daily high level

[mynameisandhy]

News and Review of European Economic Zone (Spain)

 

Spanish Unemployment Claims Up

Monday, February 4, 2013

 

Protracted economic recession seems to succeed worsen labor conditions Spain. Jobless claims increased by 132,100 for the month of January 2013; worse than previous publications decreased by 59 100. Although the publication of data better than the prediction that expects an increase of 150,000 claims but the data still point out the poor condition no.4 largest economy in the euro zone. Continue weakening euro after the data was released. EUR / USD is now trading 1.36070; away from the daily high level of 1.36587

[mynameisandhy]

News and Review of European Economic Zone (Italy)

 

Italian Service Sector Activity Weakens

Tuesday, February 5, 2013

 

Protracted economic recession seems to successfully weaken the activity of the service sector in Italy. Italian service sector index fell to 43.9 for the month of January; worse than predicted 45.9 and 45.6 the previous publication. Euro looks are less affected by poor Italian publication data. EUR / USD is now diperdagangkan1.35205, near the daily high level of 1.35286.

 

The business world may be cautious ahead of Italian parliamentary elections which will take place at the end of February to decide the fate of Italy in addressing the euro-zone debt crisis. The pro-European and anti-European community continues to rally support ahead of the elections. There are fears of an economic recession Italy could deteriorate further if the government fails to dampen fears of Italy into the euro-zone debt crisis.

[mynameisandhy]

News and Review of European Economic Zone

 

Hollande complains Appreciation Euro

Tuesday, February 5, 2013

 

French President Francois Hollande on Tuesday called on European authorities to make an exchange mechanism to protect the euro from the movement of the "irrational", according to the Wall Street Journal reporting.

 

"The euro should not fluctuate following the market mood," said Hollande told the European Parliament in Strasbourg, France. "This block requires a policy of foreign currency exchange rates. Without it, the value of Euro will be incompatible with the real economy."

 

"Such comments will potentially weigh on euro if the European Central Bank also raised similar views," said Adam Cole, a currency analyst at RBC Capital Markets. The ECB has so far refused to comment on the exchange rate of Euro.