News and Reviews European Economic Zone

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News and Review of European Economic Zone

 

UBS Cut Euro-zone Economic Outlook

Wednesday, March 27, 2013

 

UBS cut its outlook for the euro-zone economy in 2013 and 2014. Leading financial institutions are predicting the euro-zone economy would contract by 0.4% in 2013; This is lower than the previous estimate predicted economic growth of 0.1%. UBS also lowered growth estimates for the euro-zone economy in 2014 from 0.9% to 0.7%.

 

Estimates of economic growth is certainly confirms the weak performance of the euro-zone economy in the last quarter of 2012 and the prudential assessment of the economic outlook, especially against France and Italy. UBS estimates that the euro-zone economy will stagnate in the first half before recovering in the second half of 2013 and also 2014. "Weak domestic demand will be a stumbling block to the growth of the euro-zone for the year and a good export performance could not have a significant impact. Domestic demand will bounce back in 2014," wrote UBS research report obtained by Dow Jones News Wires.

[mynameisandhy]

News and Review of European Economic Zone

 

ECB: Euro zone banks € 7 Billion Will Return Next Week

Thursday, March 28, 2013

 

Euro zone banks next week will return more than € 7 billion ($ 9 billion) loan that they obtained through the Long Term Refinancing Operation (LTRO), according to the European Central Bank on Thursday. The report shows if the rate of payment by banks to accelerate again after they just return the € 2 billion this week.

 

The ECB said that a total of 5 banks will refund € 3.845 billion loan funds received through the first stage of the liquidity operations, while 6 other banks will refund € 3.160 billion of operating liquidity loans to the stage-2.

 

As is known in advance if the ECB has disbursed nearly € 1.02 trillion through two liquidity operations in December 2011 and February 2012, in an effort to ensure adequate funding of euro zone banking sector.

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News and Review of European Economic Zone (Portugal)

 

Constitutional Court of Portugal Worries

Thursday, March 28, 2013

 

Portuguese Prime Minister, Pedro Passos Coelho, has expressed concern the government will fall if the constitutional court rejected its austerity policies, the newspaper Publico. Rejection of the austerity policies could make the government failed to reach the target budget deficit which could interfere with the discharge of Portugal's bailout program and also worsen the euro-zone debt problems.

 

Government of Portugal declined to comment on the newspaper report. Publico newspaper also wrote that the government will not be able to find an alternative policy if the Constitutional Court rejected the planned austerity policies. When asked about the impact of Supreme Court decisions, Coelho declined to predict the outcome but said, "The Constitutional Court shall be responsible for the decision and the impact that can be caused to Portugal."

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News and Review of European Economic Zone (Italy)

 

Italy Budget Deficit Will Respect Limits

Thursday, March 28, 2013

 

Italy get out of pressure the EU deficit procedure and also make sure the ratio of the budget deficit is still within the range of restrictions stipulated EU although the economy is still natural recession, according to Economy Minister Vittorio Grilli. Italy last week have raised the budget deficit targets for 2013 and 2014 due to protracted recession and the government's efforts to pump liquidity into the economy.

 

"The government is confident to get out of the excessive deficit procedure even though the economy is still weak," said Grilli in front of the parliament as he uttered that the government would ensure the deficit ratio will not exceed 3% of GDP. Meanwhile, the euro rose on the New York session. EUR / USD is now trading 1.2809, moving away from a daily low of 1.2754

[mynameisandhy]

News and Review of European Economic Zone (France)

 

French Consumer Spending Still Weak

Friday, March 29, 2013

 

French consumer spending still contracting as households in the largest economy in the euro-zone 2 is spend less clothing and shoes. Consumer spending fell 0.2% for the month of February; worse than the estimated rise of 0.3% but still higher than the revised previous publications which fell 0.9%. Value of consumer spending only reached € 41.5 billion; lowest level since June 2010.

 

Meanwhile, the euro recorded a thin reinforcement London session. EUR / USD is now trading 1.2817, try to stay away from daily lows 1.2719

[mynameisandhy]

News and Review of European Economic Zone (Italy)

 

President of Italy Try Overcome Political Impasse

Friday, March 29, 2013

 

President of Italy, Giorgio Napolitano, will meet with leaders of political parties today to help end the political deadlock that has not been able to form a government. Left-wing leaders, Pier Luigi Bersani, who excels as the winner of the election but failed to reach a majority in the Senate has expressed an inability to form a coalition government. The President will meet privately with the People of Freedom party leader, Silvio Berlusconi, at 17.00 pm and will be followed by a 5-Star leadership and the Democratic Party.

 

Napolitano will try to assess whether the policy alternatives will appoint technocrat government, cross-party alliances, or declare new elections. There are several candidates for a government technocrat Prime Minister that Fabrizio Saccomanni (central bankers Italy), Franco Gallo (head of the Constitutional Court), or former Prime Minister Giuliano Amato.

[mynameisandhy]

News and Review of European Economic Zone (Greece)

 

Greek Retail Sales Down

Friday, March 29, 2013

 

Greek retail sales fell sharply in early 2012 as the economy enters the sixth year in a recession. Retail sales fell 15.7% for the month of January; worse than December's revised publications fell by 8.6%. The fall in retail sales of consumer pessimism seems to confirm since the Greek bailout apply to the European Union in April 2010.

 

No signal will be improving conditions in the Greek economy as the government continues its implementation of austerity policies as a condition for disbursement of bailout funds. The high level of unemployment, lack of interest in the business community to invest in the economy seems to be difficult to get out of the recession.

[mynameisandhy]

News and Review of European Economic Zone

 

Italy And Spain Worries Small Business

Monday, April 1, 2013

 

Small companies hardship to repay the loan in Italy and Spain signaling a bigger problem waiting for euro zone bailout after the Cyprus issue can be resolved. Bankruptcies by small and medium companies start worrying, causing problems in the banking system and the two major powers in the European debt crisis.

 

"Certainly the level of debt of these companies increased, there will be more bad loans to households and credit card bills will not be paid," said Javier Santoma, finance professor at the IESE business school in Spain. The ability of Italy and Spain, which covers 28% of the eurozone economy, Friday to save himself from the crisis and bailout fully dependent on the health of the banking sector.

[mynameisandhy]

News and Review of European Economic Zone (Italy)

 

Italian President Still Trying to Overcome Political Impasse

Monday, April 1, 2013

 

President of Italy, Giorgio Napolitano, asking counsel of various political parties to end the political stalemate that has led to Italy yet choose the next prime minister after elections last month. MPs from the coalition of parties led by Pier Luigi Bersani and Silvio Berlusconi are some of the 10 people appointed adviser to Napolitano. However, Beppe Grillo, head of the Party of Five Star, declined to provide representation.

 

Napolitano apparently still hoping Bersani and Berlusconi would form a coalition government although Bersani has refused to form a coalition with Berlusconi. Former Prime Minister, Silvio Berlusconi, is still an opportunity to form a coalition government with the party Bersani. Italy desperately need a coalition government that has a majority in both the House and Senate levels to ensure Italy can implement policies to prevent the country falling into recession.

 

In the meantime, try reducing the euro weakening in the London session. EUR / USD is now trading 1.2815, moving away from a daily low of 1.2770

[mynameisandhy]

News and Review of European Economic Zone (Cyprus)

 

Depositors Cyprus Banking Can Natural Big Losses

Monday, April 1, 2013

 

Cyprus bank depositors may suffer losses up to 60%, according to CNBC. This amount exceeds the initial estimate but required as a condition to get and bailout. 37.5% of the value of deposits in excess of € 100,000 on Bank of Cyprus will be converted into shares, while 22.5% will be used to increase banks' capital reserves. However, this is not a final judgment because it will continue to be discussed.

 

"40% of the value of large depositors in Bank of Cyprus will be frozen for liquidity reasons, but the funds were frozen will still earn interest," the central bank said in a statement Cyprus. Conversion of customer funds into stocks will give depositors the opportunity to reduce losses; nonetheless Cyprus banks are now almost worthless and no one knows when the value of bank shares Cyprus could rise to cover customer losses.

[mynameisandhy]

News and Review of European Economic Zone (Spain)

 

The Spanish Economic Outlook Negative

Tuesday, April 2, 2013

 

The Spanish government reportedly immediately lowered economic growth projections for 2013. According to a Reuters source in the government, the estimated gross domestic product for this year will be revised from minus 0.5% to more than double negatives ie -1%.

 

Parties Madrid are also reportedly being 'seduced' in order to broaden the EU deficit target for Spain from 4.5% to 6%. Thus, the government has a budget to accelerate economic performance each month minus. In 2012, Spain recorded a deficit of 7% or far above the EU target for last year by 6.3%.

 

Spanish economy likely will be recovered at the end of 2013 to record moderate growth later in the year. According to the Bank of Spain, the budget deficit is predicted to persist in the current range until the end of 2013.

 

In an economic forecast report for two years, the Bank of Spain says the country's 4th largest economy of the euro zone will still be in fases recession this year, with an average of approximately 1.5% contraction. Projection is 3 times bigger than anticipated contraction ratio by the government. While the 0.6% growth predicted will occur in 2014 as rising current account surplus due to solid exports. The euro exchange rate is currently observed at $ 1.28673.

[mynameisandhy]

News and Review of European Economic Zone

 

Eurozone Unemployment Rate Steady At 12.0%

Tuesday, April 2, 2013

 

Eurozone unemployment rate stable at 12.0% in February, according to the statistics office Eurostat euro zone on Tuesday, which could add to the pressure to cut interest rates by the European Central Bank. Data in February according economists' expectations and unchanged from the publication in January were revised up to 12.0%. The data showed the euro zone added 33.000 as unemployment in February, nearly 1.8 million more than last year. The unemployment rate for ages under 24 rose to 23.9%, the unemployment rate in Greece and Spain is still above 50%.

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

Distribution of British Credit Still Low

Tuesday, April 2, 2013

 

UK bank lending levels seem low when viewed from a reduced number of housing loan and business world. BoE data shows only 51 653 mortgage application approved for the month of February 2013. This is lower than the previous estimate of 54,000 and publication that reaches 54,187. Lending to the corporate world (non-financial) decreased by £ 2.2 billion.

 

Britain's finance ministry and the Bank of England has identified weak lending rate as one of the factors inhibiting economic recovery. BoE has run low funding scheme (FLS) to spur lending. The finance minister George Osborne also announced last week that policies can restore the housing sector. However, consumers and businesses seem to still not convinced to apply for more credit on gloomy economic outlook.

 

Meanwhile, sterling weakened in the London session. GBP / USD is now trading 1.5193; away from 1.5257 daily high level

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

UK Construction Sector Still Natural Contraction

Wednesday, April 3, 2013

 

Poor weather and weak demand makes the UK construction sector contracted for the third consecutive month in March. UK construction index reached the level of 47.2 for the month of March; less than the estimate of 47.5. However, it is still higher than the previous 46.8 publications. Sterling looks difficult to continue the momentum of gains after the data was released. GBP / USD is now trading 1.5109, try to avoid high levels of daily 1.5117

 

"Weak construction data matching the manufacturing data is still natural contraction. Now only a sector of data services that can prevent the UK economy worsened in the first quarter of 2013," said Tim Moore, economist at Markit which released the data. Markit will release tomorrow the UK services sector index which surveys estimate service sector activity is reduced in March.

[mynameisandhy]

News and Review of European Economic Zone

 

Euro Zone Inflation Slowing In March

Wednesday, April 3, 2013

 

Consumer prices in the euro zone grew at the slowest pace in more than two years in March, according to data from statistics agency Eurostat on Wednesday.

 

The results of preliminary calculations Eurostat showed consumer price inflation in the 17-nation euro bloc grew 1.7% in March after posting a 1.8% rise in February. Growth is the weakest since August 2010, when consumer price inflation perched at the level of 1.6%. The slowdown is still in line with economists' expectations, reflecting slower growth due to increased energy costs compared to a year ago.

 

On the other hand, the easing of inflation will provide additional space for the European Central Bank to make decisions that pro-growth policies without having to worry about inflationary pressures. The ECB is scheduled to announce its rate decision and the recent policy on Thursday.

[mynameisandhy]

News and Review of European Economic Zone

 

European Need Pro-Growth Policies

Wednesday, April 3, 2013

 

Spain calls for Europe to run a pro-growth policies to offset the savings desired policies of Germany. "Countries that have the capacity should increase fiscal spending," said Prime Minister Mariano Rajoy. "Europe was in recession. Needed to overcome a more integrated European and pro-growth policies." Comments Rajoy is certainly intimated that Germany, the only country in Europe that has more capacity, to adopt an expansionary fiscal policy.

 

Rajoy optimistic Spain to record economic growth in 2014 despite difficult conditions still 2013. However, optimism Rajoy is still more pessimistic than last comment that express Spain's economy could grow by the end of 2013. Informants Reuters has reported that Spain will revise down economic growth for the year 2013 in the month of April next year and will request additional time from the EU to cut its budget deficit.

 

Meanwhile, the euro rose on the London session. EUR / USD is now trading 1.2845, moving away from a daily high level 1.2788

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

BoE Keep Interest Rate 0.5%

Thursday, April 4, 2013

 

Back BoE kept interest rates at the level of 0.5% and the asset purchase program did not change as much as £ 375 billion at the April meeting. This is according to predictions and unchanged from the previous meeting in March. Sterling seen trying to reduce the attenuation after the data was released. GBP / USD is now trading 1.5060, try to stay away from daily lows 1.5032

 

Stable inflation at high levels seems to still hold the majority of senior BoE to provide additional monetary stimulus. Some officials seem to see additional BoE stimulus will not provide a significant impact on the UK economy and only increase inflationary pressures. Minutes BoE meeting in March showed only the BoE's King, the BoE's Fisher, and the BoE's Miles who want additional monetary stimulus. The third seems BoE officials have not been able to convince other colleagues at a meeting that ended today.

[mynameisandhy]

News and Review of European Economic Zone (Greece)

 

Greek Economic Sentiment Improves

Thursday, April 4, 2013

 

Greek economic sentiment touch its highest level in 3 1/2 years as a stable business confidence, according to a survey released by the research institute IOBE. However, IOBE see high unemployment as factors that weigh on consumer spending remain. Economic sentiment rose from 86.9 to 88.1 for the month of March. This is the highest level since October 2009 when Greece's financial crisis appeared and forced the country to ask the European Union's bailout fund.

 

In its monthly report, IOBE expressed an improvement in the outlook for construction and service sectors although consumers still pessimistic due to a lack of job security, wage cuts, and the government's austerity policies. IOBE memperkirkan Greek economy will still experience a contraction of 4.6% for 2013;'s more pessimistic than the government estimates that predict a contraction of 4.5% for this year.

[mynameisandhy]

News and Review of European Economic Zone

 

President of the ECB, Mario Draghi bit more dovish

Thursday, April 4, 2013

 

After the ECB sets interest rates for unchanged at a record low level of 0.75% despite indications of economic contraction in the 17-nation euro zone members, ECB President Mario Draghi at the press conference said that the central bank will see the development of data and is an important opportunity for interest rate cuts if necessary.

 

Eurozone manufacturing survey this week has shown that economic output fell for the sixth consecutive quarter, while the unemployment rate in the euro zone hit a record back in February. While the inflation rate under control at 1.7% in March, the lowest rate since August 2010. ECB still maintain medium-term inflation target of just below 2%.

 

But in the opening comments in his press conference Draghi indicated that ECB board member of the assessment of economic outlook has not changed with the accommodative monetary stance leaning to stimulate recovery.

 

Overall Draghi more dovish comments so pairing EURUSD plummeted. Draghi signaled that the risk of an economic downturn are still there even though he expects a recovery in the second half of this year.

[mynameisandhy]

News and Review of European Economic Zone

 

ECB's Coeure: Euro Zone Inflation Still Out Line

Friday, April 5, 2013

 

European Central Bank will monitor the eurozone inflation rate carefully in the next 18 months as the risk of danger to fall further below the ECB's target of 2%, ECB executive board member said Benoit Coeure on Friday. Eurozone inflation rate fell in March for the third month to 1.7%, still near but not past 2%.

 

"We have inflation rates that seem to get away from the ECB's target of 2% in 18 months," said Coeure, adding that the decline in inflation is equally worrying increase. "Inflation remains close to the target of 2% but remained under it and this is something that is considered by the board of governors because we have a target of 2%," said Coeure. Recent economic data released in accordance ECB projections for the euro zone this year and next year, with "no bad surprises," added Coeure, saying that it caused the central bank took the decision not to cut interest rates this week, despite concerns about the weak the level of domestic demand.

[mynameisandhy]

News and Review of European Economic Zone (Germany)

 

German Factory Orders Level Up Despite Allegations

Friday, April 5, 2013

 

The level of orders to factories in Germany rose more than double analysts' estimates in February, reinforcing signs that Europe's biggest economies to grow again in the first quarter. The level of orders increased by 2.3% from January, which was revised down to 1.6%, according to the Economy Ministry in Berlin today. Economists forecast a gain of 1.1%. For the annual level, the level of orders on weekdays unchanged.

 

While still immersed in the euro zone in recession, the German economy is likely to grow successfully again in the first quarter after contracting by 0.6% in the last 3 months of 2012. Retail sales rose beyond expectations in February and the unemployment rate is still near the low level 2 decades. At the same time, business confidence fell for the first time in five months in March amid concerns about the European sovereign debt crisis.

 

"Indicators lately quite the opposite," said Heinrich Bayer, an economist at Deutsche Postbank AG in Bonn. "The German economy is likely to recover in the first quarter but there is still a lot of uncertainty. We have to wait and see whether the recovery can last for a long time. "Level of exports rose by 2.3% in February, with exports from the euro zone increased by 1.6%, according to a report today. The level of domestic sales increased by 2.2%. The level of investment goods orders increased by 3.5%.

[mynameisandhy]

News and Review of European Economic Zone

 

ECB Still Keep Interest Rate 0.75%

Friday, April 5, 2013

 

The ECB kept interest rates again at the level of 0.75% at the April meeting. This is according to predictions and unchanged from the previous meeting in February. Trying to reduce the weakening euro after the data was released. EUR / USD is now trading 1.2815, moving away from a daily low of 1.2782

 

ECB monetary policy seems pretty sure is still quite loose and can still help improve economic conditions in the euro zone. Even with inflation reaching 1.7% in March-the lowest since August 2010 - ECB reluctant to ease monetary policy further to help out the economy from the brink of recession. Investors are now waiting for the ECB's Draghi press konverensi at 19.30 pm for further instructions will monetary policy outlook.

[mynameisandhy]

News and Review of European Economic Zone (Greece)

 

Greek Bank Merger Hampered

Monday, April 8, 2013

 

Second largest Greek bank debtors will likely be taken by the state after their merger process is hampered by the government at the end of last week. This surprising movement occurred after the National Bank of Greece (NBG), and Eurobank deficiencies in their plans to raise capital and amid concerns from international lenders that the combination of the two banks will be too large to give bailouts (bailouts ) by the Greek government.

 

In a statement Sunday, a senior Greek finance ministry said that the binding of this partnership, which was announced at the end of last year, and have been going pretty well, it will freeze the Greek banks and funds will be disbursed to both dbitur separately, as a step that brings the two banks under state control.

 

The suspension was passed amidst growing concerns in Europe against the threat diimbulkan by major banks, especially in small countries, such as Cyprus, where the banking crisis recently cut public funding and government emmaksa using depositor funds for his two bank restructuring biggest debtor country.

 

Both the Bank yuanni is not to comment on the developments Sunday. Greek banks suffered a setback from the combined impact of the country's deep recession and a protracted and last year's debt obligations amounted to 200 billion euro, which has caused a huge hole in the country's trade balance.

[mynameisandhy]

News and Review of European Economic Zone

 

Consumer Sentiment Concerns Over European sales drop Cyprus

Monday, April 8, 2013

 

Eurozone consumer sentiment fell for two consecutive months in April due to anxiety and uncertainty Cyprus bailout Italian politics.

 

Sentix report showed investor sentiment in the 17 countries members dipped to -17.3, its lowest level since November and below -13.1 estimates. This decrease was mostly due to the situation in Cyprus which forced most of the depositors to suffer losses in order to secure a rescue fund of 10 billion euros from the Troika.

 

Sentix sub-index measuring expectations fell to 0.5 in April from the previous 8.3 in March, while the current conditions weakened slightly to -33.5 from -27.8 in the previous March.

 

Separate index in Germany also showed consumer sentiment fell to 17.6, its lowest level since January. But overall sentiment indicators in Germany is still in positive territory this year, suggesting the economy is still trying to get up during the first quarter.

[mynameisandhy]

News and Review of European Economic Zone (Germany)

 

German Industrial Production Rises

Monday, April 8, 2013

 

German industrial production rose in February after a record of poor performance at the beginning of 2013. It can certainly provide hope that the largest economy in the euro zone to avoid the recession in 2013. Industrial production rose 0.5%, better than the predicted 0.3% and the revised previous publications which fell 0.6%. Euro still hold gains after the data was released. EUR / USD is now trading 1.3006 1.2967 away from daily lows

 

"Industrial production data isyarakatkan that Germany's manufacturing sector remains strong, at least for now," said Dirk Schumacher, an economist at Goldman Sachs. Germany's economy ministry said the rise in manufacturing output managed to sustain an increase in industrial production in the current construction sector output fell. Construction sector output fell 2.7%, while manufacturing output and energy respectively increased by 3.9% and 0.5%.