News and Reviews European Economic Zone

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

Good Data, Reduce Risk of Recession Britain

Tuesday, April 9, 2013

 

Figures of the UK industrial production report released Grama higher than expected in February. This new fact reduce the risk of economic recession in the first quarter of 2013.

 

UK Central Statistical Office said today that the national industrial production rose 1% compared to January. Major contribution given by the oil and gas processing sector, and energy crops, are affected by the amount of demand in the cold weather. The manufacturing output rose 0.8% compared to January.

 

The ratio of rise in industrial production was higher than analysts forecast the market. British Economists had forecast an increase of 0.5% (monthly) and manufacturing production also rose 0.5%. However, when compared with the same period last year, industrial production was 2.2% lower and manufacturing production was also 1.4% lower.

 

The recovery time is quite industrial sector could ease concerns about an economic recession in the first quarter of 2013. The UK economy shrank in the last three months of 2012 and a series of bad data in the month of January, increasingly strengthened assumptions similar to the first quarter of 2013. If that is the case, then the UK economy officially slipped into a double-dip recession or a slowdown in the third over the last five years. An official country into recession when its GDP numbers fell for two consecutive quarters.

 

Meanwhile, separate data released by the government showed that the UK's trade performance also fell in February. Finished goods trade deficit widened 9.4 billion pounds from 8.2 billion pounds (January). The overall UK trade balance, including the surplus in the services sector, widening from 2.5 billion to 3.6 billion Poundterling. The exchange rate of pound sterling is now traded at 1.53094 against the dollar.

[mynameisandhy]

News and Review of European Economic Zone (Germany)

 

Although Surplus Increases, German exports Weak

Tuesday, April 9, 2013

 

German state export performance declined in the month of February 2013. This indicates that the European economic recovery is slower than expected.

 

Value of German exports fell 1.5% in February compared to the record of the previous month and down 2.8% from the same period in 2012. Thus the results reported statistical German headquarters today, which has been adjusted for seasonal factors and count calendar.

 

Recent reports increasingly strengthened export line assessment that Europe's biggest economy was affected by the climate come the global economic slowdown. Moreover, components of the country's gross domestic product had contracted in the month in the fourth quarter of 2012. Pemuliihan economy is under way, but its speed is slower than analysts' expectations.

 

The volume of trade with business partners in the euro zone fell sharply in February. Exports to the members of the euro fell 4.1% versus the same period in 2012. Similarly, the volume of imports of Germany, which subsided due to the low level of domestic consumption. Imports fell as much as 3.8% compared to a record in January and fell 5.9% from the same period in 2012.

 

The consequences of the downturn German import activity is widening trade surplus of 15.6 billion euros (January) to 17.1 billion euros in February. Surplus is larger above analyst estimates expected a figure of 15 billion euros. While the current account surplus appears at number 16 billion in February, higher than expectations of 13.8 billion. The euro exchange rate is currently observed at 1.30225 against the dollar.

[mynameisandhy]

News and Review of European Economic Zone (Germany)

 

Soros: Germany Should Leave Euro

Wednesday, April 10, 2013

 

As a reaction to the austerity and rising in the euro zone's bailout fund, billionaire investor George Soros was the last person to criticize the role of Germany, he said of the country on Tuesday that the economy "is not working" and it should be considered even they should leave it alone Europe .

 

"The problem is that the German finance imposing the wrong policies in the euro zone. The savings is not running. You can not shrink the debt burden by reducing the budget deficit, "said Soros, who is the founder and chairman of Soros Fund Management, the speech at the financial center of Germany, Frankfurt on Tuesday.

 

Soros, known as "those who break the Bank of England" to bet on the pound in early 1990, said the paymaster of Europe and the great economist others have made ​​a mistake on the bailout for Cyprus which amounted to 10 billion euros ($ 13.07 billion), which forces depositors to share the cost.

 

"In Cyprus bailout, Germany went too far, because of what happened in Cyprus could undermine the business model of European banks that rely heavily on deposits," he added.

[mynameisandhy]

News and Review of European Economic Zone

 

ECB's Bonnici: Trimming Interest Rates Could Impact Positive

Wednesday, April 10, 2013

 

Eurozone interest rate cut may bring further positive impact on the economy of the 17-nation bloc, despite a marginal advantage may not be great, according to one member of the Board of Governors of the European Central Bank, Josef Bonnici, on Tuesday. Bonnici statement is in line with comments made by ECB President Mario Draghi last week, who said if the central bank is open to further interest rate cuts.

 

"Interest rates are already very low, so that the marginal benefit of further cuts might not be too big though it could have a positive impact," said Bonnici, who is also the Head of the Central Bank of Malta, told Dow Jones Newswires. "But at this stage, we have to ensure measures non-standard capable of running well."

 

In particular, he also said if the program Outright Monetary Transactions (OMT), which launched the ECB to buy bonds of troubled nations, have more positive impact in lowering borrowing costs compared with lower interest rates.

 

In a press conference held last week ECB President Mario Draghi has said that the central bank will monitor economic developments closely and be ready to act if necessary. Which is defined by most analysts as a statement of readiness of the ECB to lower its key interest rate to a record low below 0.75% that has endured since July last year. On the contrary, the ECB also has a mandate to keep consumer price inflation below 2% in the medium term.

[mynameisandhy]

News and Review of European Economic Zone (Italy)

 

Bersani Try Approach Berlusconi

Wednesday, April 10, 2013

 

The central party leaders left Italy, Pier Luigi Bersani, said to have met the central-right rival, Silvio Berlusconi, to discuss the next Presidential election. It offers the hope of softening the deadlock in Parliament as a result of the election in February.

 

"It was a good meeting but we were still in the early stages," said Enrico Letta, deputy chairman of the Democratic Party leadership Bersani, told reporters in parliament. Letta said that if the meeting was only focused on the discussion of the next president, not the possibility of a deal to form a government.

 

Letta also added that a further meeting is scheduled to take place in the coming days to include other high-ranking party leadership of Berlusconi's People of Freedom. Italian Presidential election process will be held on April 18.

[mynameisandhy]

News and Review of European Economic Zone (Greece)

 

Greece Successfully Exceeding Target Q1 Fiscal Year 2013

Thursday, April 11, 2013

 

A Greek Finance Ministry official on Wednesday said that if Greece managed to record a budget figure was better than expected in the first quarter of 2013. Government spending cuts are implemented judged to have helped state and local government budgets to beat the targets set by international lenders.

 

Greece's central government receives a surplus of € 508 million ($ 663 million) during the first 3 months of this year, after posting a deficit of € 334 million in the same quarter of 2012. The figure also beat deficit target of € 2.3 billion.

 

Also reported to the state budget deficit shrank to € 1.4 billion in the first quarter of this year, much better than the € 7.3 billion deficit recorded in the first quarter of last year and targets a deficit of € 4.2 billion.

 

"Preliminary data for the execution of the state budget during the first 3 months of 2013 showed that Greece, with hard work and without a doubt, continue to reform, adjustment and painful fiscal discipline," says surrogate Finance Minister Christos Staikouras.

[mynameisandhy]

News and Review of European Economic Zone

 

European Commission warns Spain and Slovenia

Thursday, April 11, 2013

 

Spain's economic reform gain in-depth critique of the body of the European Commission in a report Wednesday stating that the adjustment of the country began to lose direction, threatening the financial sector and reduce the effort to boost the competitive power of Spain.

 

Chief Economist of the European Commission Olli Rehn commented after the publication of the report, Spain face significant challenges based on 11 economic indicators, including the current-account balance, international investment, unit labor cost and financial sector debt.

 

The main threat in Spain is in recession, asset impairment and difficulty of access to finance, while France as the country's second most powerful economy in Europe began to lose the ability to overcome the economic downturn.

 

In addition the European Commission warned Italy's debt level is estimated to reach 127.1% of GDP output in 2012. While Slovenia is still under strict supervision of the European Commission, and stated that the country needs to address the bloated corporate debt levels pose a risk to the stability of the banking sector, Slovenia.

[mynameisandhy]

News and Review of European Economic Zone

 

Troika Suggest Debt Maturity Extension Portugal & Ireland

Thursday, April 11, 2013

 

Troika officials on Wednesday declared if they will be urged EU policymakers to extend the maturity of the loan repayment bailout for Ireland and Portugal for 7 years. Troika hope these recommendations will help the country to-2 to return to the bond markets in full.

 

The proposal is likely to be one of the subjects in the EU finance ministers meeting in Dublin next weekend. The proposal to extend the debt payment maturities Ireland is likely to receive full approval. But Portugal is likely to be asked to perform new austerity measures first, given the budget gap of approximately € 1.3 billion.

 

Portugal's budget deficit came after the Constitutional Court last week ruled that 4 austerity measures proposed by the government in the budget for 2013 had violated the law.

[mynameisandhy]

ECB: LTRO Returns Next Week Rise

Friday, April 12, 2013

 

European banks are still continuing low refund loans that have been disbursed through the European Central Bank's Long Term Refinancing Operation (LTRO), which indicates if the banks in the region are less dependent on central bank funding.

 

For the next week, as many as 5 bank will pay € 6.55 billion ($ 8.57 billion) loan funds obtained from the first phase of the liquidity operations by the end of 2011, according to a report Friday ECB. While 14 other banks will refund € 4.24 billion loan from the LTRO to phase-2 in early 2012. Overall, the loan repayment rate for next week's ride compared to € 2.7 billion has been paid this week.

 

As is known, the ECB launched the second phase of a long-term refinancing operations with a maturity payment as long as the effort to help the financing of commercial financial institutions face a prolonged debt crisis in the Euro zone. If you enter the numbers next week, so far European banks had repaid € 263.8 billion of the total value of nearly € 1 trillion loan funds provided by the ECB.

[mynameisandhy]

News and Review of European Economic Zone (Cyprus)

 

Cyprus president Addition Request Financial Aid

Friday, April 12, 2013

 

President Cyrpus, Nicos Anastasiades, on Friday said that he would ask the European Union to increase the amount of financial assistance to ensure the island can return to the path of growth, according to an AFP report.

 

Ahead of euro zone finance ministers meeting in Dublin, Anastasiades claimed if he had discussed the discourse with European Commission Vice President Olli Rehn. Anastasiades also will meet with President of the European Commission, Jose Manuel Barroso, and European Council president, Herman van Rompuy, to discuss it.

 

While Euro zone finance ministers are expected to finalize a bailout for Cyprus in terms of Friday's meeting, which will bring together a step towards aid disbursement.

[mynameisandhy]

News and Review of European Economic Zone

 

Euro Zone Industrial Output Exceeds Expectations

Friday, April 12, 2013

 

Output of factories in the euro zone rose a stronger-than-expected in February, although it still failed to offset a decline in the previous month, according to an official data released Friday poada.

 

Eurostat reports, official EU statistics agency, showed industrial output in the 17-countries that use the euro rose by 0.4% in February after suffering a 0.6% decline in January. The figure beat expectations for a modest 0.1% increase from the economists.

 

While the annual rate, industrial output fell 3.1% in February as a prolonged fiscal crisis in the region forced the government to cut spending and raise taxes in an effort to curb the level of debt. The government's move has also hit domestic demand, which left the industry output growth depends only on sales in foreign markets.

[mynameisandhy]

News and Review of European Economic Zone

 

ECB Draghi: Gold sales Fully Cyprus Central Bank Decision

Monday, April 15, 2013

 

Rumors had circulated among traders that the ECB will cut its benchmark interest rate in the future ignored by the President of the ECB, Mario Draghi stated that monetary policy will not address the root problems in the European crisis.

 

Additionally Draghi acknowledged that the Eurozone problems are still not completely gone though looks repair, ECB policy therefore still be continued in its mandate.

 

Mario Draghi had earlier commented that the money obtained from the potential sale of gold reserves Cyprus should be used to cover losses the central bank to provide emergency liquidity to the banking sector of the Cyprus problem. So the decision is entirely up gold sales by central banks Cyprus.

 

Cyprus central bank governor, added in a statement to the press that he would cooperate with the government to address the economic crisis Cyprus.

 

However Draghi's comments sparked speculation investors that other European member states who have problems with debt such as Italy, Portugal, Greece, Spain may have followed an instant solution to the fulfillment of financing the troubled banking sector in their respective countries by selling gold reserves.

[mynameisandhy]

News and Review of European Economic Zone (Spain)

 

Spain Wants Additional Time To Cut Deficit

Monday, April 15, 2013

 

The Spanish government wants additional time to 2016 to cut its budget deficit to 3% of GDP, according to the daily El Mundo reported. However, Brussels called for the speedy economic reform program as a prerequisite. Spain had been scheduled to reach the target of 3% of GDP budget deficit in 2014 but protracted economic recession makes the government believes it can achieve the target next year. Spain also wanted a lighter deficit target for 2013 from 4.5% to 6.2%.

 

The Spanish government will present the plan to the stability and the reform program of the European Union prior to the closure in April. "95% of the elements of the program have been approved by the European Commission. Fairly optimistic we will get easing the deficit targets," according to the Spanish Finance Ministry officials were the resource persons of El Mundo.

 

Meanwhile, the euro fell in Asia session. EUR / USD is now trading 1.3075; away from 1.3109 daily high level

[mynameisandhy]

News and Review of European Economic Zone (Greece)

 

Troika Welcomes Greek Progress

Tuesday, April 16, 2013

 

Troika welcomed the economic reform program that has run Greece after Athens agreed to sack 15,000 civil servants. Approval of this troika is a positive development because it can increase the chances of disbursement next bailout. Troika of international creditors is a team that is representative of the ECB, the IMF, and the European Commission.

 

"I am quite satisfied with the actions of the Greek government," said Poul Thomson, IMF officials are as much a part of the troika team. Athens will also stop the merger plan National Bank and Eurobank after the troika will express concern that too much will result merger so it would be difficult to be privatized. "The agreement with the troika would enable the disbursement next bailout worth € 6 billion in May," said the Prime Minister of Greece, Antonis Samaras.

 

In the meantime, try reducing the weakening euro in Asian session. EUR / USD is now trading 1.3048; trying to stay away from daily lows 1.3029

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

UK Inflation Stable In March

Tuesday, April 16, 2013

 

UK inflation observed steady in March, with wage increases and continued beyond the budget burden of consumers, based on official data released on Tuesday.

 

Annual rate of consumer price inflation persist at 2.8% in March from the previous month, according to the Office for National Statistics (ONS), which is relatively in line with economists' expectations. Slowdown of rising gasoline prices, alcohol and furniture offset by a greater annual increase in prices for books, DVDs, and motor vehicle insurance premiums, said the ONS.

 

While the reported factory gate inflation slowed in March, thus reducing the pressure on companies to raise prices. Pabril gate inflation fell to 2% this year, the lowest level since July last year, from 2.3% in February. Crude oil prices are lower also has helped reduce the cost of raw materials for the company fell by 0.1% between February and March.

 

However, some analysts still believe if the stability of consumer prices and the slowdown in producer price inflation may only be short-lived. Bank of England would have predicted that annual inflation will accelerate this year and remain above the 2% target by 2016.

[mynameisandhy]

News and Review of European Economic Zone (Germany)

 

ZEW: German Economic Sentiment Worsens

Tuesday, April 16, 2013

 

Index of German economic sentiment deteriorated reported in April, which is another indication that the recovery in Europe's largest economy will require waktur longer than previously thought.

 

The report shows the ZEW economic expectations index for the first time in 5 months dropped to 36.3 in April from 48.5 in March. These results are well below the 43.0 forecast by economists.

 

"The decline in economic sentiment was consistent with the release of economic data fell short of expectations," said ZEW President, Clemens Fuest, referring to the lack of German exports and a prolonged debt crisis in Europe.

 

A number of private financial institutions have reacted to a series of economic data from Germany which is weaker than expected, especially from key sectors such as manufacturing and construction. Barclays economists last March has cut its forecast for German growth in the first quarter to 1.7% from 2.4% previously. Commerzbank last week Germany also lowered its growth forecast for the full year to 0.5%.

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

BoE Stimulus Steps Attempting to Formulate New

Wednesday, April 17, 2013

 

Bank of England officials began to consider the need for new measures to increase the supply of business loans in the UK in April, based on the policy meeting minutes on 3-4 April. While some policy makers are still kept calling for the addition of further stimulus. but remained divided over the need for more stimulus.

 

Minutes released on Wednesday also showed 9 members of the policy committee of the central bank decided to keep its benchmark rate unchanged at 0.5%. But the differences seen in the voting stimulus, which BoE Governor Mervyn King, executive director for markets Paul Fisher and other MPC member David Miles repeated their calls for additional stimulus. But the proposal was rejected by 6 other policy makers, who prefer to maintain the amount of bond purchases at £ 375 billion ($ 574.35 billion).

 

In addition, the minutes have shown the majority view member MPC (Monetary Policy Committee) who think that the addition of further asset purchases risk pushing inflation expectations higher and hurt Sterling. They argue that policies to increase the supply of loans should be able to be more effective assistance to the UK economy.

 

Policy makers also began to see the opportunities of sustainability Funding for Lending Scheme (FLS) to increase lending further. So far, the program has been running since August last year it has not shown an increase in demand although bank lending rates have fallen.

[mynameisandhy]

News and Review of European Economic Zone (France)

 

Recession Threat Closer to France

Wednesday, April 17, 2013

 

Although France to avoid the same fate as Greece, Portugal and Ireland were forced to ask for bailout with the termination of funding or the fate of Spain and Italy were punished by the market for reform, but the French increasingly at risk of collapse.

 

This is evident in the manufacturing PMI index last March which fell to its lowest level in 4-year 41.9, indicating a sharp decline below ekonmi PMI index for Germany, Italy and Spain. Besides French current account deficit even higher, signaling lack of competitive export products.

 

However market participants seem not to speculate on the potential recession France, as seen in the French bond yield closed at a record low. But over time, the possibility of market pressure on French bond market and eventually forced the French to make changes like other countries in the European debt problems.

[mynameisandhy]

News and Review of European Economic Zone (France)

 

French Budget Deficit Target As much as 2.9% of GDP in 2014

Wednesday, April 17, 2013

 

French government plans to bring the budget deficit down to around 2.9% of GDP in 2014, according to a spokesman for the French government, Najat Vallaud-Belkacemm, in a radio interview on Tuesday.

 

"We will continue to make efforts to achieve a deficit of 3%, or more precisely the target of 2.9% which we, in 2014," said Vallaud-Belkacem told French radio station RMC. "Two-thirds of the deficit cuts would come from cuts in government spending, and the remaining third from tax increases, including an increase in value added tax."

 

As known earlier, the economic slowdown has hampered efforts to pressure the French government budget deficit. The latest economic data showed the budget deficit in 2012 ended at around 4.8% of GDP, which exceeded the official target of 4.5%. Thus forcing the French government to postpone its promise to bring the budget deficit in 2013 to the 3% limit set out the European Union.

[mynameisandhy]

News and Review of European Economic Zone (Cyprus)

 

Growing opposition, Cyprus Bailout Threatened

Thursday, April 18, 2013

 

Financial aid deal worth € 10 billion to save Cyprus from bankruptcy re-cast into new uncertainty, as the headlines that the Cyprus parliament will hold a final vote on the bailout package.

 

The vote is scheduled surprising just be an early sign that nearly half of the 56 members of parliament may oppose the bailout, which is considered very important to keep the membership status of Cyprus in Euro block.

 

Minor opposition Greens Party on Wednesday said if the parliament is likely to choose to reject the aid deal. While the Communist Party and the Socialist EDEK Akel, who together controlled 24 seats in parliament, is also expected to maintain their opposition to the bailout or choose to abstain.

 

"We have fought for freedom, and we will continue to fight to defend the Republic of Cyprus," said one lawmaker, George Perdikis. "According to Me, giving Cyprus into the hands of the Troika is a crime and wrong."

 

European Parliament had previously made ​​were surprised in March when the initial bailout plan, which includes a controversial tax on depositors, got a full rejection of the Cyprus parliament.

[mynameisandhy]

News and Review of European Economic Zone

 

EU Plan Template Usage Cyprus

Thursday, April 18, 2013

 

Based on media reports Süddeutsche Zeitung Germany some time ago, there was a draft internal strategy of the European Commission which indicates that the EU is preparing a special law that will hit investors banking and account holders before any assistance provided by permanan bailout fund (ESM).

 

This proposal would establish a hierarchy for the first time the loss affected when banks liquidate, ie shareholders and creditors first, then depositors who have funds of more than 100,000 euros in their account.

 

Bank stability fund in any euro zone member states will now also be used, so that the funds participating in the ESM bailout then only as a last resort. The passage of legislation expected to be most rapid in the month of June.

 

This report proves his naive hope that the policy makers Cyprus template will not be applied to other member countries. According to projections by Citigroup, the funds needed to save Europe now reached 3 trillion euros.

[mynameisandhy]

News and Review of European Economic Zone (Netherlands)

 

Dutch Unemployment Rate Jumps In March

Thursday, April 18, 2013

 

The unemployment rate in the Netherlands rose in March, which is a sign that the euro zone's fiscal crisis has increasingly spread to countries other bloc members. Unemployment spikes occurred as the 5th largest economy in Europe is struggling to come out of the recession that began in the 3rd quarter of last year, which is the 3rd recession since 2009. In Europe, a recession is usually defined as a decline in GDP for two consecutive quarters.

 

Figures released by the Dutch Central Bureau for Statistics shows the unemployment rate jumped to 8.1% in March from 7.7% in the previous month, with the average number of people looking for work rose 24,000 during the first 3 months of 2013.

 

Number of Dutch people aged 15 to 64 who are looking for work at least 12 hours a week, also recorded an increase to 643,000 in March, up 30,000 from the previous month.

 

Some analysts argue that the reversal of the housing market boom, recession, and a surge in unemployment has led to changes in the attitude of the Dutch government, which had previously been a strong supporter of the euro zone austerity policies.

[mynameisandhy]

News and Review of European Economic Zone

 

EU vows to Loosen Reduction Program At G20

Friday, April 19, 2013

 

Euro zone officials said that the EU will slow down the budget austerity program to stimulate economic growth, while indicating changes in policy direction as has been urged by the United States.

 

The pace of global fiscal tightening is likely to dominate discussions of finance ministers and central bank governors from the G20 group of nations met in Washington.

 

Other topics likely to be discussed that the target debt and long-term deficit reduction. Euro zone budget deficit reported falling 3.5% of GDP in 2012, from the previous 4.2% in 2011, thus pushing the 17-nation euro zone member to the phase of recession last year.

 

U.S. Treasury Secretary, Jack Lew urged that austerity programs (austerity) is overly strict in Europe worsened the economic situation in some other countries, so it requires more in-depth assessment of the impact of budget cuts on growth and unemployment. In addition, the U.S. also refused targeting specific debt reduction, and instead suggest to shift the focus on the improvement of growth from adversity.

[mynameisandhy]

News and Review of European Economic Zone

 

EU Plan Template Usage Cyprus

Friday, April 19, 2013

 

Based on media reports Süddeutsche Zeitung Germany some time ago, there was a draft internal strategy of the European Commission which indicates that the EU is preparing a special law that will hit investors banking and account holders before any assistance provided by permanan bailout fund (ESM).

 

This proposal would establish a hierarchy for the first time the loss affected when banks liquidate, ie shareholders and creditors first, then depositors who have funds of more than 100,000 euros in their account.

 

Bank stability fund in any euro zone member states will now also be used, so that the funds participating in the ESM bailout then only as a last resort. The passage of legislation expected to be most rapid in the month of June.

 

This report proves his naive hope that the policy makers Cyprus template will not be applied to other member countries. According to projections by Citigroup, the funds needed to save Europe now reached 3 trillion euros.

[mynameisandhy]

News and Review of European Economic Zone

 

ECB: Payment LTRO Next Week Slightly Rises

Friday, April 19, 2013

 

The refund loans obtained by European banks through the Long Term Refinancing Operation (LTRO) of the European Central Bank at the end of 2011 and beginning of 2012 will experience a marginal increase in the next week, according to data released Friday.

 

Next week, 14 banks will return the € 8.87 billion ($ 11.62 billion) loan funds obtained via the ECB liquidity operations first phase in December 2011. While the 15 listed banks will refund € 2.07 billion loan from the 2nd stage LTRO published about 2 months later. Total funds LTRO which will be refunded up € 140 million higher than that paid this week.

 

Overall European banks have paid around € 275 billion in nearly 3 months since the loan repayment allowed. Pour 2 ECB liquidity operation stage in an effort to help European banks overcome difficult times they may be having the time for payment of maturing debt, the risk of triggering a severe credit crisis on the real economy.