mynameisandhy Posted February 18, 2013 Author Report Share Posted February 18, 2013 News and Review of European Economic Zone IMF's Lagarde: No Currency War Monday, February 18, 2013 IMF chief Christine Lagarde said that she did not fear for the existence of a currency war at the sidelines of a meeting of finance ministers and central bankers from the G-20 in Moscow. "There's a lot of talk about a currency war, and we do not see a problem as a currency war. We heard the concerns on the currency, but it is not a currency war. "Said Lagarde." We do not see any confrontation, but more toward deliberation, dialogue, discussion, and obviously the G-20 is very helpful and productive. " Lagarde's comments came at a meeting of G-20 on Saturday, which states that there is no currency war. It has eased the heat issue on Japan, which criticized the expansive policies have pushed the yen down menyusuk election of Prime Minister Shinzo Abe. Quote Link to comment Share on other sites More sharing options...
mynameisandhy Posted February 19, 2013 Author Report Share Posted February 19, 2013 News and Review of European Economic Zone Draghi: Exchange Rate Target Is Not a Policy Tuesday, February 19 201 The exchange rate is not a target of the central bank's policy, according to European Central Bank President Mario Draghi on Monday. However, Draghi asserted if the exchange rate has an important role to help the central bank in assessing price stability became the main mandate. The comments expressed Draghi before attending the European Parliament's Committee on Economic and Monetary Affairs in Brussels. Draghi Statement is consistent with the results of the meeting of the G20 industrialized and developing countries over the weekend, where they announced that the competition of currency devaluation will not occur. The issue of 'currency war' simmering since the election of Shinzo Abe as Japan's new prime minister. Abe assessed market will encourage a more accommodative monetary policy, which will further weaken the Japanese currency. Discussion about the currency war is also becoming widespread in Europe as surging euro, which was helped by the growing belief that the worst phase of the European crisis has passed. Euro observed so far has strengthened against other major currencies, so that presents a threat to exports and the rate of recovery of the euro zone. In the same occasion Draghi also warned that the ECB began to realize the risk of hold policies in a period berkepanjangang. Low interest rates, which has been maintained since July last year, housing prices penggelembunga risk provoking or assets in the Euro zone. "As painful crises, bubbles may also generate large cost to the real economy," Draghi added. Quote Link to comment Share on other sites More sharing options...
mynameisandhy Posted February 19, 2013 Author Report Share Posted February 19, 2013 News and Review of European Economic Zone (Germany) Bundesbank Optimistic With German Economy in Q1 2013 Tuesday, February 19 201 The German economy is likely to return to the path of growth in the current quarter, and avoid a recession after contracting in the final quarter of last year, according to the Bundesbank monthly report. "From the current point of view, an increase in overall economic output will be visible in the first quarter of 2013. Latter view is supported by the outlook for the industrial sector, in particular, showed a response adequate adjustment of output at the end of 2012," said the German central bank. Bundesbank also added if they see "signs of improvement in economic activity for the entire year 2013, although the external environment is still not promising to launch a strong surge in demand," added the Bundesbank. Quote Link to comment Share on other sites More sharing options...
mynameisandhy Posted February 19, 2013 Author Report Share Posted February 19, 2013 News and Review of European Economic Zone European stocks Welcomes German situation Tuesday, February 19, 2013 European stocks rose after German economic sentiment data provide hope for avoiding the biggest economy in the euro zone from the brink of recession. German economic sentiment jumped to the highest level since 2010 as easing worries over euro-zone debt crisis. It certainly raised expectations of improvement in the German economy will thus contribute positively impact the European region. Britain's FTSE rose 0.35%, while Germany's DAX and France's CAC rose respectively by 0.8% and 1%. Meanwhile, shares of the world's leading food company, Danone, jumped 4.7% after the company reported sales figures were better than expected and announced cuts in the number of employees as many as 900 employees. Danone will reiterate a brilliant performance recorded in 2013 as companies cut back on spending. The automotive sector rose, but rally limited by news reports that new car registrations in Europe reached its lowest level in January. Quote Link to comment Share on other sites More sharing options...
mynameisandhy Posted February 20, 2013 Author Report Share Posted February 20, 2013 News and Review of European Economic Zone (UK) British Labor Sector Still Weak Wednesday, February 20, 2013 Britain's unemployment rate rose in December as the UK economy contracted in the last quarter of 2012. Although jobless claims decreased for three consecutive months in January, but this rate it may be intimated reduced and the weak UK labor sector. The unemployment rate rose from 7.7% in November to 7.8% in December. Jobless claims decreased 12,500 in January, but not as good as the publication December that showed a reduction of 15 800. UK companies are still reluctant to hire more employees on gloomy economic outlook. Stable inflation at high levels has undermined the purchasing power of consumers. Vigorous implementation of budget austerity policies further aggravated the condition. On the other hand, the outlook is pretty bleak exports to the euro-zone economy to be struggling with recession. Meanwhile, sterling weakened in the London session. GBP / USD is now trading 1.5320, moving away from a daily high level 1.5449 Quote Link to comment Share on other sites More sharing options...
mynameisandhy Posted February 20, 2013 Author Report Share Posted February 20, 2013 News and Review of European Economic Zone Hollande Promote Growth Plan In Visit Athens Wednesday, February 20, 2013 French President, Francois Hollande met with the Greek prime minister, Antonis Samaras in Athens to discuss the debt crisis that occurred. He spoke about conditions in France, where there economy grew below expectations. French leaders offered their support and stressed the importance of the stimulus in the euro zone. "We need to ensure that growth and employment back in Greece", he said, "We need growth in Europe. That's how we are to achieve the goal of deficit reduction. " Hollande said that the target growth of 0.8% recorded in France, which will not be reached and announced a more realistic projections that will be conducted at the end of March, along with a budget plan for 2014, according to the reference of the Commission of the European Union. Quote Link to comment Share on other sites More sharing options...
mynameisandhy Posted February 20, 2013 Author Report Share Posted February 20, 2013 News and Review of European Economic Zone Draghi's comments discredit Euro Wednesday, February 20, 2013 The euro slipped against the U.S. dollar after European Central Bank President Mario Draghi said that the appreciation of the single currency has increased the risk of slowing inflation and threaten the euro zone's economic outlook. But the decline in euro still seems limited as traders tend to buy on dips, especially against the yen weakened broadly. Trade on Monday also took place with thin volumes due to the closure of the U.S. market to commemorate the 'President Day'. "Draghi comments have derailed Euro, although on the other hand it provides a better level to buy," said Jeremy Stretch, head of currency strategy at CIBC. "Buy on dips on the Euro is still reasonable, given the rise in the Euro / Yen seems after G20 meeting gave the green light for its member countries to weaken their currencies." Quote Link to comment Share on other sites More sharing options...
mynameisandhy Posted February 21, 2013 Author Report Share Posted February 21, 2013 News and Review of European Economic Zone ECB Nowotny: Currency Exchange Rate Today No Need In Disturb Thursday, February 14, 2013 No need to interrupt the exchange rate at this time, said one member of the board of the European Central Bank told the newspaper on Thursday. "I do not think it is justified to talk about the currency war," Ewald Nowotny said in an interview with the Austrian newspaper Salzburger Nachrichten, although it is important to keep an eye on currency exchange rates as they are "elements that are sensitive to economic activity." "At the moment, I do not see the need for action," he said, adding that the development of the exchange rate is still within the range of history. On Tuesday, members of the G-7 issued a statement that they reaffirmed their commitment to allow market forces to determine the exchange rate. The statement also said that the policy of the central banks of the G-7 will only focus on domestic targets. The statement came following the comments from the Japanese Prime Minister Shinzo Abe and his aide-pambantunya lately that target aggressive decline in the value of the yen to prop up exports and boost the economy. Nowotny said that the exchange rate is only relevant for the ECB as long as they use it to stabilize prices in the euro zone, he adds that he does not see the risk of inflation or deflation at this time. Eurozone crisis slightly reduced, he said, but the problem still persists as weak petumbuhan and public finances in some countries that are not satisfactory. Quote Link to comment Share on other sites More sharing options...
mynameisandhy Posted February 21, 2013 Author Report Share Posted February 21, 2013 News and Review of European Economic Zone (Spain) Spain Deficit Down Below 7 Percent GDP Thursday, February 14, 2013 Prime Minister of Spain, Mariano Rajoy declared that his government will not reduce efforts to boost the economy of Spain after Spain managed to keep the deficit during 2012 under 7% of GDP, to 21 billion euros, still above the target of EU-approved deficit of 6.3% of GDP. In his first state address since December 2011, Rajoy issued a statement that his administration was the first target turnaround situation expected the Spanish economy shrank for two consecutive years in the year. Various analysts also predicted that Spain will still miss its deficit targets in 2013 amounted to 4.5% of GDP. The European Commission will report on the economic projections for the 27 EU member states on Friday. Quote Link to comment Share on other sites More sharing options...
mynameisandhy Posted February 21, 2013 Author Report Share Posted February 21, 2013 News and Review of European Economic Zone Merkel Euro Exchange Rate Still Normal Thursday, February 14, 2013 German Chancellor Angela Merkel made the comments to dampen fears the euro overvalued and warned the relevant international efforts to devalue their currencies in order to boost exports. Ms. Merkel stated that the Euro value in the range of $ 1.30 up to $ 1.40 is still in the normal range historically. Observed so far pairing perched in the range 1.3376 EURUSD bounced from the $ 1.20 level since the ECB has promised to do everything to save the Euro, EURUSD pairing won the 15-month highs at 1.3711 in early February before it finally fell down due to political concerns Spain and Italy. Other leaders in Europe, particularly France had expressed concern that the strengthening of the Euro exchange rate lately will hamper economic growth, but the German government repeatedly denied this and instead see the euro began to return to its historically normal levels. Quote Link to comment Share on other sites More sharing options...
mynameisandhy Posted February 23, 2013 Author Report Share Posted February 23, 2013 News and Review of European Economic Zone EU: High Unemployment weakening European economy Friday, February 22, 2013 Euro zone economy will shrink for the second year in 2013, driven by high levels of unemployment as governments, consumers and companies to limit spending, the European Commission said. GDP of the 17-nation eurozone will fall by 0.3 percent this year, worse than its previous forecast in November that said would grow by 0.1 percent, the European Commission said today. The unemployment rate will rise to 12.2 percent, up from the previous estimate of 11.8 percent a year earlier and 11.4 percent in number, they said. "The labor market is a serious problem," said Marco Buti, head of the economics department of the commission said in a statement. "It has serious social consequences and will happen, if the unemployment rate to an entrenched problem, because it can also weigh on growth in perspective the future. " Eurozone powerless because public finances are fragile, and the vulnerability of banking, said Buti. Weak economy improved in contrast to financial markets, as countries, banks and households continue to improve their balance sheets and delaying new demand. Quote Link to comment Share on other sites More sharing options...
mynameisandhy Posted February 23, 2013 Author Report Share Posted February 23, 2013 News and Review of European Economic Zone Figures Disappointing Return LTRO Euros Friday, February 22, 2013 The euro fell to a 6-week lows versus the U.S. dollar after the European Central Bank announced a number of bank loan payments far below market expectations, triggering doubts over the health of the euro zone's financial system. Projections from the European Commission showed the euro zone still has the potential to return to contract in 2013 also helped weigh on the Euro, which has recorded a three-session winning streak. ECB on Friday said that European banks will restore approximately € 61.1 billion in loans they received last year through the Long Term Refinancing Operation (LTRO), well below the estimated € 130 billion. The data suggest that some banks still feel the need for an emergency loan fund, which on the other hand indicates if the ECB balance sheet will shrink at a slower pace. "The low number of low payments will maintain an accommodative liquidity conditions for a while in the euro zone," said Nick Bennenbroek, head of currency strategy at Wells Fargo Bank in New York. Quote Link to comment Share on other sites More sharing options...
mynameisandhy Posted February 23, 2013 Author Report Share Posted February 23, 2013 News and Review of European Economic Zone (UK) Recommendations Bank of England Helps Sterling Friday, February 22, 2013 Sterling moved away from the lowest level 2 ½-year low against the greenback as some investors take advantage of a recent decline to make a purchase, although Sterling remains vulnerable to selling pressure recently. Some British banks issued a recommendation "buy" for Sterling on Friday. However, any increase in Sterling may only be temporary given the bleak outlook the UK and the fact that the Bank of England assessing the currency to plunge to help them rebalance the economy. Quote Link to comment Share on other sites More sharing options...
mynameisandhy Posted February 25, 2013 Author Report Share Posted February 25, 2013 News and Review of European Economic Zone Assess Troika Portugal Bailout Program Monday, February 25, 2013 Troika representatives EU, IMF and ECB-are now beginning to examine the implementation of Portugal's bailout program. The Portuguese government is expected to propose easing the budget deficit target achievement as the recession continues for three consecutive years. Pedro Passos Coelho Prime Minister that his government had difficulty sinyalkan cut its deficit to 3% of GDP in 2014. Troika has previously praised Portugal's commitment to a policy of economic reform. Investors also began eyeing Portugal government bonds as the government prepares to re-enter the bond market gradually in the second half of 2013. Meanwhile, the euro rose on the London session. EUR / USD is now trading 1.3268, moving away from a daily low of 1.3180 Quote Link to comment Share on other sites More sharing options...
mynameisandhy Posted February 25, 2013 Author Report Share Posted February 25, 2013 News and Review of European Economic Zone (Cyprus) Welcomes Euro Elections Cyprus Monday, February 25, 2013 The euro rose after Cyprus election results give hope for immediate commencement of negotiations for the bailout of the euro-zone members. Nicos Anastasiades out as the winner in the presidential election in Cyprus and pledged to speed up the negotiation process with the EU bailout. Anastasiades policy is quite a contrast with the previous government first asked for help before finally asking Russia to the EU bailout. "We want to be on the same side with Europe. We will be consistent and fulfill all the promises. Cyprus's future is in Europe. Cyprus We will restore credibility both at European and international level," said Anastasiades who will be sworn in on Thursday and officially served as president on 1 March. Anastasiades victory shows a strong mandate from the people of Cyprus for the government to take aggressive action and pro-bailout in order to overcome financial problems. EUR / USD is now trading 1.3269, moving away from a daily low of 1.3180 Quote Link to comment Share on other sites More sharing options...
mynameisandhy Posted February 25, 2013 Author Report Share Posted February 25, 2013 News and Review of European Economic Zone (UK) Mortgage approvals in the UK Down In January Monday, February 25, 2013 UK mortgage approvals fell outside digaan to 32.288 from 33.440 in January in the previous month, according to the British Bankers' Association on Monday. The report is expected to increase to 34.000. Consumer demand for loans and overdraft are relative and personal loan repayment rate still exceeds the rate of new loans, according to the report. "Bad weather in January, the outlook for debt level of households and businesses," said BBA statistics director dacid Dooks. "While the general economic growth rate of retention, weak consumer confidence and business creates a tendency to suppress appetite to borrow and pay back loans where possible to accumulate cash and deposits," said Dooks. Quote Link to comment Share on other sites More sharing options...
mynameisandhy Posted February 26, 2013 Author Report Share Posted February 26, 2013 News and Review of European Economic Zone (UK) UK Retail Sales Weak Tuesday, February 26, 2013 Gloomy economic outlook seems to successfully reduce the interest of the British public spending. It can be seen from the retail sales index released by the Association of British Industry (CBI), which fell to a level 8 for the month of January; less than predicted earlier publication 15 and 17. Sterling looks difficult to continue the momentum of gains after the data was released. GBP / USD is now trading 1.5196, try to avoid high levels of daily 1.5218 The UK economy contracted in the last quarter of 2012 and the UK now have to prepare for a natural recession in early 2013. With the gloomy economic conditions, people seem to be more cautious in spending money, especially with inflation stable at a high level. Quote Link to comment Share on other sites More sharing options...
mynameisandhy Posted February 26, 2013 Author Report Share Posted February 26, 2013 News and Review of European Economic Zone (Italy) Italy Should Start Saving Commitment Tuesday, February 26, 2013 German foreign minister and European Commissioner calls for Italy to continue his policy of austerity and economic reform. "Italy should continue its commitment to budget cuts and other reforms that have been implemented by the previous government," said European Commissioner, Olivier Bailly. "Political leaders in Rome knows that Italy needs to continue its policy of reform and fiscal consolidation to increase public confidence and the market," said German Foreign Minister, Guido Westerwelle. Italian election results have made investors worried about the ability of Italy to fix its debt problems. No single party control of the Senate even though the coalition could Bersani control of Congress. This means that the next government will find it hard to pass further austerity policies. The election results also showed the majority of Italians do not like the austerity policies implemented by Prime Minister Mario Monti. Meanwhile, the euro rose in early New York session. EUR / USD is now trading 1.3089, moving away from a daily low of 1.3017 Quote Link to comment Share on other sites More sharing options...
mynameisandhy Posted February 26, 2013 Author Report Share Posted February 26, 2013 News and Review of European Economic Zone (UK) BoE's Bean worry about UK Credit Rating Tuesday, February 26, 2013 Another credit rating agency Moody's will likely follow in the footsteps' which has cut the UK's credit rating, according to the BoE's Bean. "The market had anticipated cuts in credit ratings of the UK and perhaps other agencies will do the same," said a member of the monetary board of the Bank of England, Charles Bean, the British parliament. Late last week, Moody's cut its credit rating of Aaa to Aa1 England due to gloomy economic outlook could weigh on government finances for several years. Meanwhile, sterling reduce strength in the London session. GBP / USD is now trading 1.5144, moving away from a daily high level 1.5218 Quote Link to comment Share on other sites More sharing options...
mynameisandhy Posted February 27, 2013 Author Report Share Posted February 27, 2013 News and Review of European Economic Zone (Italy) Italy Sells 10-Year Bonds Tenor At Higher Yield Wednesday, February 27, 2013 The Italian government successfully sold bonds maturing in 2023 to yield 4.83% compared to the previous auction in February at 4:17%. While the level of demand for the bonds was reported to be very high, even up overbidding. Italian asset markets become calmer post bond auction results, while the euro rose terkerek test the 1.3100 level. Chief manager of forex and financial products trading at Mitsubishi UFJ Trust & Banking Corporation, Tsunemasa Tsukada stated that the bond yield movements before and after the auction is still to be monitored further. Auction results are solid enough to meet demand likely sparked investor relief that will be reflected in the decline in Italian bond yields that could potentially trigger a correction up various assets fell sharply post-election Italy before. Quote Link to comment Share on other sites More sharing options...
mynameisandhy Posted February 27, 2013 Author Report Share Posted February 27, 2013 News and Review of European Economic Zone Euro-Zone Economic Confidence Up Wednesday, February 27, 2013 Economic confidence in the euro zone rose in January; This is certainly a sign that the euro zone could soon get out of recession. Index of consumer sentiment and business rose to 91.1 for the beginning of 2013; higher than the predicted 89.9 and 89.5 revised December publication. Manufacturing sentiment index improved from -13.8 to -11.2. Service sector confidence index increased from -7.7 to -5.4. "Economic conditions are improving in the euro zone but the situation is still quite fragile, especially with the proliferation of political uncertainty in Italy," said Jonathan Loynes, economist at Capital Economics. Natural back-euro zone recession in the fourth quarter of 2012, and economists expect economic conditions will remain weak in the first quarter before starting to improve in the second quarter of 2012. Meanwhile, the euro rose on the London session. EUR / USD is now trading 1.3089, moving away from a daily low of 1.3040 Quote Link to comment Share on other sites More sharing options...
mynameisandhy Posted February 27, 2013 Author Report Share Posted February 27, 2013 News and Review of European Economic Zone (Spain) Spanish Budget Deficit Reaches 6.7% of GDP Wednesday, February 27, 2013 Prime Minister of Spain, Mariano Rajoy, said the government's budget deficit for 2012 will reach 6.7% of GDP. Rajoy statement is consistent with his statement last week that said the deficit will fall below 7%. Madrid will send the data to the Brussels budget Spanish government this week. Although higher than the 2012 deficit target of 6.3% of GDP deficit but the European Commission will probably tolerate it considering the Spanish still slumped in the recession. Spain is trying to cut its deficit to assuage investor concerns over no.4 largest economy in the euro zone. Spain's budget deficit reached 9% of GDP in 2011 and Madrid certainly necessary effort to achieve the target of 3% of GDP in the coming years. Meanwhile, the euro rose on the London session. EUR / USD is now trading 1.3114, moving away from a daily low of 1.3040 Quote Link to comment Share on other sites More sharing options...
mynameisandhy Posted February 28, 2013 Author Report Share Posted February 28, 2013 News and Review of European Economic Zone Euro Zone Inflation Down Being 2% in January Thursday, February 28, 2013 Inflation in the eurozone fell to 2.0% in January, according to the Statistical Office of the European Union on Thursday, giving room for the European Central Bank to consider cutting interest rates at its meeting next week. The annual inflation rate fell from 2.2% in December, according to Eurostat. The decrease in the estimate of economists and previous estimates from Eurostat. Beyond energy, the average rate on the 12-month inflation was 1.9%, below the ECB's target of 2.0%, providing an environment that can allow the cutting interest rates to help stimulate the recovery of the region. Drop in world energy prices and the reluctance of Europeans to shop as recession-hit eurozone has driven down consumer prices in the past year. Quote Link to comment Share on other sites More sharing options...
mynameisandhy Posted February 28, 2013 Author Report Share Posted February 28, 2013 News and Review of European Economic Zone (Switzerland) Ignore Swiss Franc Strengthening Economy Thursday, February 28, 2013 Switzerland's economy grew beyond expectations in the fourth quarter last year as gains in consumer spending helped the economy faces obstacles by strengthening currency. Swiss GDP rose 0.2% from the third quarter, when it grew by 0.6%, according to the Secretariat of Economy in Bern today. Economists predict the existence of stagnation. Consumer spending rose by 1.1%. Consumption of the private sector has helped Switzerland to grow in recent years and the rise of the financial crisis Leih faster than most other countries in Europe. Increasing rate of the economy amplifies the signal, the output of the manufacturing sector expanded for the first time in 17 months in January and ZEW investor confidence index rose for the fifth month in February. "This is a positive sign amid the decline experienced by other industrial countries towards the end of last year," said Alexander Koch, an economist at UniCredit SpA in Munich. "If you look at the indicators of positive momentum should continue. We expect to grow faster this year. " Quote Link to comment Share on other sites More sharing options...
mynameisandhy Posted February 28, 2013 Author Report Share Posted February 28, 2013 News and Review of European Economic Zone Being EURUSD Under Pressure Despite Positive Reports German Labor Thursday, February 28, 2013 German unemployment rate showed improvement and continued its positive trend in the last 3 months, and a major factor behind the improvement in sentiment in the business sector and consumers Euro zone despite many other European region still shadowed by recession. However investors still doubt if Germany itself capable of lifting the euro zone out of the recession phase, and lift Q1 GDP growth out of positive territory this year. Moreover, the political situation in Italy is still not clear, as the various parties still have not started negotiations for the formation of the coalition. As a result, the market sentiment turned negative on the euro and trigger a weaker EURUSD testing 1.3100 support level, before eyeing strong support at 1.3050 in the next few days. If the political situation in Italy could indicate prospects for resolution of the pairing EURUSD coalition there is still hope to continue the relief rally as German economic data quite supportive. Quote Link to comment Share on other sites More sharing options...
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