mynameisandhy Posted March 17, 2013 Author Report Share Posted March 17, 2013 News and Review of European Economic Zone (UK) BoE Must Stay Focused With Inflation Friday, March 15, 2013 The central bank must remain to fight inflation and avoid calls for more focus on accelerating economic growth, according to the BoE's monetary board member Spencer Dale. BoE chief economist seems to confirm that a low and stable inflation is a prerequisite for economic growth. BoE's Dale seemed intimated that he would oppose any change if the BoE's mandate to focus on inflation. "There's concern that inflation is nothing to worry about at this time. Was that stigma appears that the central bank should be more focused on economic growth where high inflation can be tolerated to help the recovery. This is the consensus is wrong," says BoE's Dale. "The best contribution that can be provided by the central bank is price stability in order to ensure sustainable economic growth." Meanwhile, sterling rose in the New York session. GBP / USD is now trading 1.5152; away from the daily low of 1.5067 Quote Link to comment Share on other sites More sharing options...
mynameisandhy Posted March 17, 2013 Author Report Share Posted March 17, 2013 News and Review of European Economic Zone (Cyprus) Bailout Cyprus Maybe Ranging € 12-13 billion Friday, March 15, 2013 Euro-zone finance ministers will discuss the bailout for Cyprus today but still there is uncertainty about how big contribution to the IMF. The size of the banking sector has complicated the Cyprus problem by the ratio of deposits that reach 8x GDP. Initial assessment needs help predict Cyprus € 17 billion which € 10 billion will be used to stabilize the banking sector. It's certainly big enough load for the Cyprus economy value only reached € 18 billion. Informants Dow Jones reported troika-committee consisting of the EU, IMF and ECB bailout was trying to arrange a Budget around € 12-13 billion for Cyprus. However, the troika should develop programs that may complicate other euro-zone members. If the troika forcing customers of the bank to contribute to rescuing the banks then this can trigger anxiety. Troika also may be requested Cyprus to raise the corporate tax from 10% to 12.5% as part of the bailout deal. Quote Link to comment Share on other sites More sharing options...
mynameisandhy Posted March 18, 2013 Author Report Share Posted March 18, 2013 News and Review of European Economic Zone Euro-Zone Trade Surplus Decreases Monday, March 18, 2013 Tough performance of the euro seems to have reduced trade surplus in the euro zone at the beginning of 2013. Exports still please register growth of 2%, but imports grew by 3.1% so that only the trade surplus reached € 9 billion for the month of January. This is lower than the estimate of € 10.4 billion and publication in December to reach € 10.3 billion. Reduced surplus may indicate the euro-zone economy would contract in the first quarter of 2013 primarily by weak consumer spending and businesses. Although the German trade surplus, the Netherlands, Ireland, and Italy, but the terms of trade improved Spain, Greece, Portugal, and Cyprus deteriorated. Meanwhile, the euro looks difficult to maintain the momentum of recovery in the London session. EUR / USD is now trading 1.2942; trying to avoid high levels of daily 1.2975 Quote Link to comment Share on other sites More sharing options...
mynameisandhy Posted March 18, 2013 Author Report Share Posted March 18, 2013 News and Review of European Economic Zone (Cyprus) Preparing to Face the Parliamentary Voting Cyprus Monday, March 18, 2013 Cyprus Government is trying to do revision for parliament to be able to get the desired bailout schemes euro zone. The euro-zone have requested that Cyprus banks to tax (which only worn 1x) as part of the € 10 billion bailout scheme. Reuters reported that the government will raise taxes for deposits over € 100,000 from 9.9% to 12.5% while tax deposits under € 100,000 will be cut from 6.7% to 3%. Cyprus Parliament is scheduled to begin hearings on the bailout scheme at 21.00 pm. Vote if parliament agrees to a bailout scheme can be implemented immediately after the trial began. It is difficult to determine whether parliament would approve such a scheme although Cyprus does not seem to have much choice. No single party control of parliament that has only 56 members. Three parties have uttered would not support the bailout scheme whereas the present government of the ruling party had previously promised not to involve depositors in bailout scheme. Meanwhile, the euro is seen trying to reduce the attenuation in the London session. EUR / USD is now trading 1.2951, try to stay away from daily lows 1.2880 Quote Link to comment Share on other sites More sharing options...
mynameisandhy Posted March 18, 2013 Author Report Share Posted March 18, 2013 News and Review of European Economic Zone (UK) BoE Ready to Support Economic Recovery Monday, March 18, 2013 Bank of England is ready to support the UK's economic recovery, according to the BoE's McCafferty when interviewed by the Yorkshire Post. "The central bank is ready to use monetary instruments which exists to support the recovery," said a member of the BoE monetary council, Ian McCafferty. "We believe the economy will recover next year, although the recovery will be slow." McCafferty also said the BoE's inflation impact of further weakening of sterling will also be bad. His comments are in line with the BoE's King a few days ago pointed out that the central bank does not attempt to further weaken sterling. Meanwhile, sterling has not changed much in the London session. GBP / USD is now trading 1.5105; were not so far from Friday's closing level of 1.5101 Quote Link to comment Share on other sites More sharing options...
mynameisandhy Posted March 19, 2013 Author Report Share Posted March 19, 2013 News and Review of European Economic Zone European Zone Urges Cyprus To Avoid Tax Small Account Tuesday, March 19, 2013 The European zone finance ministers urged Cyprus to not levy a tax on bank deposits, before a parliamentary vote on Tuesday said that the country's finances may not be saved. An announcement at the weekend said that Cyprus would impose a tax on any bank accounts as part to cope with the burden of the EU bailout worth 10 billion euros (equivalent to $ 13 billion). Quote Link to comment Share on other sites More sharing options...
mynameisandhy Posted March 19, 2013 Author Report Share Posted March 19, 2013 News and Review of European Economic Zone (Cyprus) Potentially Fitch Downgrade 3 Bank Cyprus Tuesday, March 19, 2013 Fitch Ratings on Tuesday placed Cyprus rating 3 bank on negative outlook, reflecting the increased risk of downgrade as a result of the imposition of taxation on bank deposits. Fitch move was announced after tax on bank deposits, which has never happened before, introduced as part of the bailout program for Cyprus. It has sparked concerns about the massive withdrawals from the banks in the country, which remains closed until Thursday. All three banks downgraded Cyprus's most likely the rating by Fitch is the Bank of Cyprus, Cyprus Popular Bank and Hellenic Bank. Quote Link to comment Share on other sites More sharing options...
mynameisandhy Posted March 19, 2013 Author Report Share Posted March 19, 2013 News and Review of European Economic Zone (Spain) Credit Loss Ratio Spanish Up Tuesday, March 19, 2013 Spanish bad loans ratio increased again in January after being dropped in December when the government launched the "bad bank" to manage troubled real estate assets. Bank of Spain data show the ratio of non-performing loans increased from 10.44% to 10.78% in early 2013. Total non-performing loans reached € 3.2 billion as protracted economic recession. Decline in the ratio in December was the first time in two years, given the ratio of non-performing loans continued to rise after the outbreak of the property bubble to make the banking sector and the abundance of debt troubled clients. Analysts predict the ratio of bad loans will continue to increase in the year 2013 as they collapsed in the recession economy and high unemployment. Quote Link to comment Share on other sites More sharing options...
mynameisandhy Posted March 20, 2013 Author Report Share Posted March 20, 2013 News and Review of European Economic Zone (UK) UK Mortgage Activity Improves Wednesday, March 20, 2013 British banks have increased the housing loan scheme as part of the BoE and the Finance Ministry to encourage the flow of credit, according to survey results released by the Bank of England. However, credit conditions for businesses are diverse in which small companies lose the opportunity to take advantage of falling borrowing costs. "There is more evidence to show increased activity in the housing sector as the falling cost of mortgages," wrote the results of a survey conducted from late January to late February. "Securities Lending Scheme Funding program began to appear from the credit cost and availability of credit." Although lending to businesses fell in late 2012, but the BoE credit conditions remain confident the business is better than indicated by the data. Meanwhile, sterling rose in the London session. GBP / USD is now diperdagangakn 1.5134, moving away from a daily low of 1.5025 Quote Link to comment Share on other sites More sharing options...
mynameisandhy Posted March 20, 2013 Author Report Share Posted March 20, 2013 News and Review of European Economic Zone (Cyprus) Cyprus Try Secure Help Russia Wednesday, March 20, 2013 Cyprus finance minister, Michalis Sarris, hoping to get a positive result when it presents the plan to ask for financial assistance to the Russian officials in Moscow today. "We expect a positive outcome," said Sarris when entering the Russian Finance Ministry building. Sarris hopes to secure financial aid worth billions of dollars from Moscow in order to avoid the deterioration of the financial sector. Moscow is the last that can be expected to help Cyprus after parliament rejected the bailout scheme offered by the euro-zone. Delegation of Cyprus will offer shares in the financial and energy companies as collateral for financial aid Russia. Meanwhile, the euro recorded gains on the London session. EUR / USD is now trading 1.2914, moving away from a daily low of 1.2855 Quote Link to comment Share on other sites More sharing options...
mynameisandhy Posted March 20, 2013 Author Report Share Posted March 20, 2013 News and Review of European Economic Zone ECB's Asmusssen: Must Cyprus banking recapitalization. Wednesday, March 20, 2013 Bank of Cyprus will still be able to pay its debts if the country is fighting against the crisis received a bailout from the euro zone and recapitalize banking, said one member of the executive board of the European Central Bank on Wednesday, the condition is the increasing pressure on the country after parliament rejected the terms of the agreement approved over the weekend by the European Union. Countries in the Mediterranean is not guaranteed ability to repay the debt "if the program aid to Cyprus to ensure the recapitalization of the banking sector was not immediately approved," said ECB executive board member Joerg Asmussen in an interview with German newspaper Die Zeit. Asmussen also confirms the ECB rules that central banks can only provide emergency liquidity assistance to help the bank repay its debts. Quote Link to comment Share on other sites More sharing options...
mynameisandhy Posted March 21, 2013 Author Report Share Posted March 21, 2013 News and Review of European Economic Zone Give ECB Liquidity Assistance Deadline Cyprus Until Next Week Thursday, March 21, 2013 Based on the www.ecb.int, ECB governing council decided to keep the level ELA (Emergency Liquidity Assistance) to keep the troubled banking liquidity Cyprus unchanged until the day Monday, March 25, 2013. Once past that date, the continuation of liquidity support can only be considered if the program can be implemented by the government Troika Cyprus. This means that only Cyprus has until next Monday to raise funds needed for 5.8 billion euros to secure bailout EU / IMF. Cyprus Parliament itself has rejected the proposal EU / IMF to seek additional funds from depositors tax under 100.000 Euro, thus allowing the proposal is a tax on depositors above 100.000 Euro by 16%, while the depositors under the amount exempted from the tax. But the level of tax of 16% would be bad for most depositors Cyprus from Russia. Therefore Cyprus began asking for help to Russia, which also has an interest in some natural gas assets Cyprus. Quote Link to comment Share on other sites More sharing options...
mynameisandhy Posted March 21, 2013 Author Report Share Posted March 21, 2013 News and Review of European Economic Zone Cyprus chance Exit From Euro Zone Thursday, March 21, 2013 Euro zone officials acknowledge unfavorable development of teleconferencing with Cyprus and discuss capital controls to insulate Europe from the collapse of the economic opportunity Cyprus. In teleconferencing between senior finance officials zones 17 members of the euro zone, the less likely to obtain a rational solution for Cyprus representatives themselves are reluctant to follow the conference call have been scheduled, the resulting discussion Cyprus discharge scenario of the euro zone, after the two largest banking collapse in Cyprus . If there is an exit scenario Cyprus, euro zone officials will take the necessary steps to prevent the risk of transmission to other euro zone region, particularly to Greece. One issue is the risk of the most dangerous currents are very large capital outflow when banks reopened Tuesday Cyprus next week. But so far the market has not discounting scenarios exitnya Cyprus Euro zone and just hope for a solution in the near future to reach bailout deal for Cyprus. Quote Link to comment Share on other sites More sharing options...
mynameisandhy Posted March 21, 2013 Author Report Share Posted March 21, 2013 News and Review of European Economic Zone (Cyprus) Most of The People Cyprus More Like Out Of European Zone Thursday, March 21, 2013 Most Cypriots would rather leave the euro zone than receive retribution unprecedented in that bank depositors are as part of the bailout package. Ekathimerini Greek newspapers reported on Thursday, citing a survey conducted by Prime Consulting. The survey showed that 91 per cent of Cypriots was behind the government's decision to reject the proposal for a tax on bank depositors, while 67 percent people of Cyprus would rather leave the euro zone over the country have the strong relationship with Russia. The former Prime Minister said that Cyprus Giorgo Lilikas international lenders advising that the levy on banks would destroy the banking system in the country, and if Cyprus exit will cause the collapse of the euro zone, according to the report. Cypriot MPs are scheduled to resume talks on the crisis on Thursday to produce a plan that could save the country from bankruptcy. The European Central Bank said it would suspend emergency aid to Cyprus until Monday the 25th of March, except for the struggling countries reach bailout deal with the EU and IMF. Quote Link to comment Share on other sites More sharing options...
mynameisandhy Posted March 24, 2013 Author Report Share Posted March 24, 2013 News and Review of European Economic Zone Germany Reject 'Plan B' Cyprus Friday, March 22, 2013 Plans for the new Cyprus to secure an international bailout package and stay in the Euro block again been rejected on Friday. In front parlemem Germany, Angela Merkel said they could not accept the Cyprus government's plans to use pension funds with assets of other countries as part of an investment fund to buy government bonds. Opposition to the plan's funding will likely force the Cyprus government to reconsider the implementation of a tax on bank deposits, in order to meet the requirements of the bailout. Euro zone finance ministers want Cyprus to boost revenues of € 5.8 billion ($ 7.5 billion) before a rescue package worth € 10 billion is transferred from international creditors. Quote Link to comment Share on other sites More sharing options...
mynameisandhy Posted March 24, 2013 Author Report Share Posted March 24, 2013 News and Review of European Economic Zone Negotiations between Russia and Cyprus Fail Friday, March 22, 2013 Cyprus finance minister returned to his country from Russia after a two-day meeting with Russian officials which results in failing to give a deal to save Cyprus. An official of the European Union and Cyprus spokesman told CNBC that Russia has received a five-year extension of loan set to end in 2016, but to date they have not provided more information about this issue. Reuters reported that Russia's finance minister Anton Siluanov said that talks had ended without any results, he said that Russian investors are not interested in managing gas reserves Cyprus. Cyprus offers to the Russians the opportunity to develop its gas reserves as part of the deal for financial aid. "The talks have ended because of the Russians worried," said Silanov told reporters on Friday. Quote Link to comment Share on other sites More sharing options...
mynameisandhy Posted March 24, 2013 Author Report Share Posted March 24, 2013 News and Review of European Economic Zone (Germany) German Business Confidence Decline Sharply in March Friday, March 22, 2013 German business confidence unexpectedly fell from its highest level in 10-months in March as reviving the Cyprus crisis in the euro area debt crisis. Ifo institute in Munich said its business climate index, based on a 7000 survey of executives, dropped to 106.7 from 107.4 in February. This is the first decline in five months sbeelumnya. Economists had expected there would be an increase in the level of 107.8 in February, according to the median estimate of 42 economists in a Bloomberg News survey. With the European Central Bank threatens to cut off emergency fund for banks Cyprus unless they agree to the terms of the EU aid package, this time in the Mediterranean countries has sparked fears in the euro zone and make the financial market turmoil. However, the level of investor confidence in Germany unexpectedly rose to its highest level in three years this month and the Bundesbank said that the recovery in the country is still on track. "So far, only Cyprus that pose a potential threat to German companies," said Andreas Scheuerle, an economist at Dekabank in Frankfurt. "But, once the financial markets begin mempertayakan ability of Europe to overcome the problem, the uncertainty of the return and the company will be more careful. " traderx4 1 Quote Link to comment Share on other sites More sharing options...
mynameisandhy Posted March 25, 2013 Author Report Share Posted March 25, 2013 News and Review of European Economic Zone Cyprus and EU Agree on Proposal Help Monday, March 25, 2013 Cyprus, the EU and the IMF has approved a proposal to assist Cyprus to help provide a solution to the Cyprus and the country's financial sector, said an official of the European Union on Monday. The proposal, which will be discussed at a meeting of European finance ministers, would involve the classification of "good bank" and a "bad bank", which means lead to the closure of Popular Bank of Cyprus, known as the "Laiki". Deposits under 100,000 Euros in Laiki will be transferred to the Bank of Cyprus. Deposits under 100.00 Euros, which under EU rules do not get bail, will be frozen and will be used to address the debt. It is still not clear how long to take effect. EU spokesman said there will be no tax savings imposed by banks Cyprus. Quote Link to comment Share on other sites More sharing options...
mynameisandhy Posted March 25, 2013 Author Report Share Posted March 25, 2013 News and Review of European Economic Zone (Italy) Italian Consumer Confidence Down Monday, March 25, 2013 Protracted economic recession seems to successfully undermined optimism Italian society. It can be seen from the consumer confidence index fell from 86.0 to 85.2 level for the month of March, according to survey results released by the central statistics agency ISTAT Italy. Italian society even less enthusiastic about the economic outlook and the sector of employment. However, the survey did not ask how people's perception of the Italian election results until now have not been able to produce a coalition government. President Giorgio Napolitano has asked the leadership of the Democratic Party to try to construct a coalition government but is likely to be a difficult task given the contrasting attitudes of the third largest party politics in Italy. Meanwhile, the euro looks reducing reinforcement in the London session. EUR / USD is now trading 1.2990, try to avoid high levels of daily 1.3047 Quote Link to comment Share on other sites More sharing options...
mynameisandhy Posted March 25, 2013 Author Report Share Posted March 25, 2013 News and Review of European Economic Zone European Finance Ministers Approve Proposals Cyprus Monday, March 25, 2013 European finance ministers gave their approval to the proposal Monday's Cyprus bailout, put its stamp on a proposal that would fundamentally improve the country's second biggest bank. A senior official of the European Union focus group confirmed that the 17 European finance ministers have approved the rescue plan, which had been previously negotiated between the president of Cyprus on Sunday and leaders of the European Union and the IMF. "It has been approved", said an official in a text message. The proposal will provide a separation of "good bank" and a "bad bank", a deposit under 100,000 Euros in Popular Bank of Cyprus to be transferred to the Bank of Cyprus, the biggest lender in Cyprus. Quote Link to comment Share on other sites More sharing options...
mynameisandhy Posted March 26, 2013 Author Report Share Posted March 26, 2013 News and Review of European Economic Zone (UK) CBI: UK Retail Sales Weak Most Since Last August Tuesday, March 26, 2013 Governor of the Bank of Japan, BoJ, Kuroda, said Tuesday that the purchase of government bonds with maturities of five years or more to be one option for the central bank to conduct policy easing, providing new clues about the changes that might be made under the leadership of BoJ the new governor. "We will consider any options," Haruhiko Kuroda said in a meeting with parliament, which asked about the idea of buying government bonds with a deadline of 5 years or more. Quote Link to comment Share on other sites More sharing options...
mynameisandhy Posted March 26, 2013 Author Report Share Posted March 26, 2013 News and Review of European Economic Zone (Spain) Bank of Spain: Spanish Difficulty Pruning Meet Deficit Target Tuesday, March 26, 2013 New Spanish economy will likely show a recovery in late 2013 to record moderate growth later in the year, despite the state budget deficit is predicted to persist at around current levels, the Bank of Spain said in a statement Tuesday. In a report covering the economic projections for 2-years, the Bank of Spain said that the 4th largest economy euro zone will remain in recession throughout the year, with an average of approximately 1.5% contraction. Projection is 3 times greater than what is anticipated by the government. While the 0.6% growth predicted will occur in 2014 as rising current account surplus due to solid exports. However, household spending will likely remain flat menyususl small decline in the average wage per worker. With the austerity measures will continue, Spanish budget deficit likely will not depart from the range of 6% of GDP in 2013 and 5.9% of GDP out front, reflecting the weak economy. Projected deficit figures that are far above the target of 3% of GDP in 2014 which was called for by the European Union. Quote Link to comment Share on other sites More sharing options...
mynameisandhy Posted March 26, 2013 Author Report Share Posted March 26, 2013 News and Review of European Economic Zone (Cyprus) Bank of Cyprus Chairman Resigns Tuesday, March 26, 2013 Chairman of Bank of Cyprus, Andreas Artemis, on Tuesday tendered his resignation, following a disagreement with the relevant central bank recapitalization measures the lender as part of the bailout agreement Cyprus, according to a media report. In his resignation letter Artemis said that the Central Bank of Cyprus has been appointed administrator for the Bank of Cyprus without informing the board of directors, according to a report online Greek news site, ekathimerini.com. Artemis also alleges further if the central bank actually has a plan recapitalize Bank of Cyprus since the beginning of the year. Quote Link to comment Share on other sites More sharing options...
mynameisandhy Posted March 27, 2013 Author Report Share Posted March 27, 2013 News and Review of European Economic Zone (UK) British Bankers Need Additional Capital Wednesday, March 27, 2013 British banks need additional capital as much as £ 25 billion at the end of 2013, according to the BoE's finance committee (FPC). The committee also recommends that banks have a common equity ratio of 7% of total assets at risk. Some banks already meet the ratios, but banks need to adjust to possible loan losses, a higher burden of risk, and expense of ethics. FPC did not publish the name of the bank that still need to reform institutions but uttered FPC will conduct strict monitoring. FPC also warned that the agency could force banks to issue shares or sell assets to improve capital ratios. Meanwhile, sterling weakened in the London session. GBP / USD is now trading 1.5137, moving away from a daily high level 1.5179 Quote Link to comment Share on other sites More sharing options...
mynameisandhy Posted March 27, 2013 Author Report Share Posted March 27, 2013 News and Review of European Economic Zone (Italy) Italian Economy Still Weak Wednesday, March 27, 2013 The uncertainty of the political situation, high unemployment and inflation, as well as the vigorous implementation of the government's austerity policies seem successful economic conditions worsen Italy. It can be seen from weak industrial orders data and retail sales the largest economy in the euro-zone 3 is. Industrial orders fell 1.3% in January; This represents a decline for three consecutive months. Retail sales also deteriorated from -0.1% to -0.5% for the beginning of 2013. Concerns over the outlook for the Italian economy is also seen from the bond auctions are not so encouraging. Italy did manage to get funding when it sold € 6.91 billion bond 5 and 10 years this afternoon. However, the cost of borrowing for the 5-year bond rose from 3.59% to 3.65%. Although the cost of borrowing for 10-year bond fell from 4.83% to 4.66%, but the ratio of the bid-to-cover reduced from 1.7x to 1.3x. Meanwhile, the euro weakened on the London session. EUR / USD is now trading 1.2793; away from 1.2865 daily high level Quote Link to comment Share on other sites More sharing options...
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