News and Reviews European Economic Zone

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News and Review of European Economic Zone (Italy)

 

There Still Hope To Reign Italia

Monday, April 22, 2013

 

Re-election as President of Italy Giorgio Napolitano opened the hope of a solution to form a coalition government of Italy. Napolitano can now force the left and right wing parties to form a coalition government or face re-election. Italy has not had a coalition government since February elections resulted in three winning parties are reluctant to coalesce with each other.

 

Napolitano was the first president in the history of Italy who asked for a second term in office. Napolitano is expected to spell out his strategy before Parliament today, but he has stressed the desire to form a coalition government in the near future rather than doing re-election. Solutions that may be taken by Napolitano was able to form a government of technocrats backed by a parliamentary majority after the mediation process in the last two months did not produce a solution.

 

Meanwhile, the euro rose in Asian session. EUR / USD is now trading 1.3073; trying to stay away from daily lows 1.3052

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News and Review of European Economic Zone

 

France, Spain Fails to Reach Deficit Targets

Monday, April 22, 2013

 

France failed to reach its deficit targets in 2012, while Spain's budget deficit widened more than expected, according to data from the European Union on Monday, but the European bloc has shifted from a tightening which may relieve pressure on Paris and Madrid.

 

Defisist French budget at 4.8% of economic output last year, according to European Union statistics office Eurostat, was slightly higher than the target of 4.5% French. While Spain's budget deficit reached 10.6% of GDP, higher than the European Commission's estimate of 10.2%. The data is also much higher than the Spanish government publications by 7%, due to the impact of the Eurostat include bank recapitalization and support for financial institutions.

 

The European Commission is considering to provide additional time France and Spain to reduce defisist to the limit of 3% in the EU, to help revive economic growth as the euro zone faces recession in the second attempt.

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News and Review of European Economic Zone

 

Poland Plans to Join the Euro Zone

Monday, April 22, 2013

 

Polish Prime Minister Donald Tusk on Monday said he wants his country to join the euro zone "immediately" even though the majority of the country having an anxiety over the move given the euro zone debt crisis. Adopted the euro as the currency has become a major destination Tusk since taking office in 2007, but lately he is signaling its readiness to support a referendum on the issue, which could complicate plans to join the euro zone.

 

"The majority of the Polish population has anxiety given what is happening in the euro zone," Tusk said in Berlin, while attending a book launch with German Chancellor Angela Merkel, her best friend on the European political stage.

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News and Review of European Economic Zone (Italy)

 

Napolitano Still Want Coalition Government Italy

Tuesday, April 23, 2013

 

President of Italy, Giorgio Napolitano, has approved the re-election as head of the 3 largest countries in the euro zone due to the protracted political chaotic. Until now, Italy has not had a coalition government after the February elections resulted in three winning parties are not willing to compromise with each other. The market is still hoping Italy can form a coalition government and also the Prime Minister to save the economy against the euro zone debt crisis.

 

Napolitano also stressed its desire for the election winning party to form a coalition government and threatened to resign if the party fails to carry out the necessary economic reforms. Napolitano criticized the attitude of the political parties are not responsible for the current conditions. Unclear what steps will be taken next Napolitano in order to overcome the political impasse Italy but there is hope Napolitano will encourage the formation of a technocratic government can be supported by a majority of MPs.

 

Meanwhile, the euro weakened thin record in the Asian session. EUR / USD is now trading 1.3047; trying to stay away from daily highs 1.3065

[mynameisandhy]

News and Review of European Economic Zone

 

Improved Eurozone, Germany Appears Anxiety

Tuesday, April 23, 2013

 

The sharp decline in business activity in Germany covering the improving situation in France in April, according to a survey on Tuesday, raising concerns about the deepening economic contraction in the euro zone. Service sector by Markit PMI rose to 46.6 in April from 46.4 in March, still below the 50 level which distinguishes between contraction and expansion, but still fit economists' estimates. Markit warned not to regard the increase as a sign that the euro zone recession is over, look at the company's unexpected drop in German as the main pillar of the eurozone economy.

 

"Previously, Germany expands while other countries, namely Italy and France to contract," said Chris Williamson, chief economist at Markit. "At this time it seems contraction was followed by a decrease in the country's biggest economy is Germany, and it is definitely going to drag down the growth rate."

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News and Review of European Economic Zone (Cyprus)

 

Cyprus Minister of Finance: Gold Sales Not Listed

Tuesday, April 23, 2013

 

Cyprus does not prioritize the sale of gold reserves in international bailout agreed this month and are still looking for other options to meet part of the deal, Treasury Secretary Harris Georgiades said in an interview. Georgiades also said he had currency controls, which apply after the bailout last month which triggers closure of the banking system for 15 days, can be revoked back in a matter of time or weekends.

 

Cyprus agreement to sell gold reserves worth 400 million euros was one of a number of breakthroughs to the market through the European financial bailout earlier this month. Amount of gold sales by the Cyprus does little but set an example for the euro zone central bank gold reserves to partially remove the spark biggest drop in the price of gold in 30 years. Investors are worried that entral banks in a number of struggling eurozone compelled to follow the example of Cyprus fatherly. But while it Georgiades said gold sales is one of a number of commitments to international lenders Cyprus, he said that it is not a priority.

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News and Review of European Economic Zone (Spain)

 

Along recession subside Spain Rajoy Prepares Growth Plan

Wednesday, April 24, 2013

 

Spain recession eased in the first quarter as Prime Minister Mariano Rajoy prepares a plan to boost growth and reduce its budget deficit.

 

Spanish GDP fell by 0.5% from the first quarter, when it fell by 0.8%, it is the largest since 2009, the Bank of Spain said in its monthly bulletin today. The decline was the seventh quarterly contraction. Data today is in line with the median forecast of 15 economists in a Bloomberg News survey.

 

Rajoy on 17 April promises to reveal the steps to stimulate the economy and create jobs by the end of this week. His administration tried to ask the time of its partners in the European Union to reorder public finances in the country after the bailout of the banking sector pushed Spain experienced the largest deficit in Europe last year.

 

"This is a good sign after the last quarter of 2012 were terrible, but we are still in a strong recession," said Jose Carlos Diez, chief economist at Intermoney SA, Madrid. "It's hard to see the recovery. Our major trading partners are not doing well and unemployment will continue to rise. "

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News and Review of European Economic Zone (UK)

 

BOE Extends Funding Program for Lending Scheme

Wednesday, April 24, 2013

 

Bank of England will extend the plan to provide cheap loans to companies and consumers and increase incentives to acquire funds from smaller companies for another year, extending the program to stimulate the economy is already 9 months old. Funding for Lending Scheme will now take place until January 2015, making loans more attractive fatherly small companies and is open to non-bank borrowers, and Dep.Keuangan BOE said in London today. While the conditions of the loan has been making batik since the start of FLS, "there is still a risk on banks' capital market" due to the European crisis, they said.

 

Finance Minister George Osborne and Bank of England governor Mervyn King to extend the program the night before the release of economic data which may indicate that the UK economy is close to a third recession in the first quarter. This announcement also precedes the UK audit by the International Monetary Fund, the delegation will visit London next month after saying Osborne should loosen pengetatannya plan to help the growth rate.

 

FLS extension will give banks "ama sense to market risk if funding levels increase, primarily due to continued uncertainty in the eurozone," said King on Osborne. It will "help maintain easy financing conditions for banks until 2015, and with the help of credit conditions and recovery."

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News and Review of European Economic Zone

 

ECB: Lending By Banks Still Low

Wednesday, April 24, 2013

 

Credit conditions in the Euro zone is still shadowing the deteriorating economic outlook in the first quarter of this year, based on Bank Lending Survey, released in April the European Central Bank on Wednesday.

 

European banks tighten lending tended both for companies and home buyers, as a result of expectations of economic gloom. Nevertheless, the net balance of banks tightening standards for loans under the venture is still smaller than in the previous survey.

 

The decline in loan demand from enterprises and households, reflecting a loss of confidence among consumers, the prospect of a weak housing market. In terms of business, it represents a lack of interest to invest anyway.

 

Together with other recent economic data, the results of this survey will reinforce the view that the euro zone economy still stuck in recession. Triggering speculation that the ECB will take action, to provide additional monetary stimulus, in a policy meeting next week.

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News and Review of European Economic Zone (Spain)

 

Spanish Unemployment Rate Up

Thursday, April 25, 2013

 

The continuing recession and the implementation of austerity policies incessant worsening labor market conditions Spain. It can be seen from the Spanish unemployment rate back to a record for the first quarter of 2013. The unemployment rate rose to 27.16%, worse than the 26.5% forecast and the publication of the last quarter of 2012 which reached 26.02%. This is also the 2 highest unemployment rate in the euro zone with the first position occupied by Greece.

 

The economy lost 322,000 jobs in the first quarter as the business community with a pessimistic outlook for the Spanish economy in the midst of the implementation of austerity policies and global economic uncertainty. The high level of unemployment would further worsen the performance of the Spanish economy since consumers will spend more and more selective income. Euro looks difficult to continue the momentum of gains after the data was released. EUR / USD is now trading 1.3049; trying to stay away from daily highs 1.3060

[mynameisandhy]

News and Review of European Economic Zone

 

ECB: Stimulus Not Drugs All Ills

Thursday, April 25, 2013

 

The European Central Bank has denied the assumption that mentions that the program budget cuts in some Euro countries failed to meet expectations. According to the ECB Executive Board member, Joerg Asmussen, a fiscal consolidation strategy to achieve long-term financial balance of the post and not the current crisis solution.

 

"Fiscal consolidation policy is not without consequences (negative)," Asmussen said in a conference in London today. According to him, fiscal consolidation is the only way for a country to be free from cruel financial markets. In addition, state income is usually used to pay debt can now be invested for the betterment of the future economy. Asmussen also stated that it has limitations to stimulate economic system, so that all parties should support at the same time.

 

Therefore, the ECB considers that the effects of interest rate cuts to troubled countries will be very limited. This is where the role of fiscal consolidation is needed so that the central bank's policies supportive not be in vain. Asmussen considers the application of interest rates too low for a long time also have negative consequences, such as reducing the incentives for a government and banks to adjust the interest rate climate.

 

Based on various comments of the high officials, the ECB signaled reluctance to emulate what has been done by the central banks of developed countries, especially in terms of launching the stimulus. What has been decided by the Bank of Japan, the Federal Reserve or the Bank of England is not necessarily going to work in Europe. Asset purchases on a large scale is not considered to be effective impact on the economy of the euro, given the weaker currency is not always beneficial to all countries. The slide is more difficult to digest in the single currency users as uni-monetary rely interest rates are different too. "Monetary policy is not the guns that money can cure all economic ills," he said.

[mynameisandhy]

News and Review of European Economic Zone (Germany)

 

Merkel: ECB Will Raise Interest Rates If Only Consider Germany

Thursday, April 25, 2013

 

The European Central Bank will raise interest rates if only considering the Germans themselves, but the ECB is in a difficult position because of differences in the economic bloc, German Chancellor Angela Merkel said on Thursday. "The ECB is in a difficult position. For the German ECB actually raised rates a little at this point, but for other countries the ECB should do more to increase the liquidity available," Merkel said at a banking conference.

 

Meanwhile, the German government has raised its forecast for economic growth in 2013 of 0.1% to 0.5% and did not change the estimates for 2014 to growth of 1.6%, according to the German economy minister Philipp Roesler. "We are optimistic on the economy in the future. Economy begins to improve," he said, adding that the unemployment rate is falling.

[mynameisandhy]

News and Review of European Economic Zone

 

Bundesbank Back Criticism ECB OMT Program

Friday, April 26, 2013

 

Leaders strongly criticized the Bundesbank back ECB bond-buying plan. In a report prepared for the German Constitutional Court, the Bundesbank warned bond purchase program could disrupt the independence of the central bank and will be difficult to stop, according to a leading German daily paper Handelsblatt.

 

ECB bond-buying program launched in September last OMT by eliminating fears of euro zone break-up. There is no euro-zone member states that use the program but the ECB measures have succeeded in reducing the cost of borrowing troubled government bonds in the euro zone. Head of the Bundesbank, Jens Weidmann, the only council member who opposed the ECB's monetary OMT program stressing the program will reduce the incentive for the government to undertake necessary economic reforms. German Constitutional Court will discuss the ECB OMT program in June.

 

Meanwhile, the euro rose in Asian session. EUR / USD is now trading 1.3034; away from daily lows 1.2996

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News and Review of European Economic Zone

 

Interest Rate Problem, Germany Give Green Light to ECB

Friday, April 26, 2013

 

German Chancellor stated that the capacity of the European Central Bank (ECB) to ensure the economic recovery in the blue continent is very limited. The comments made ​​by Angela Merkel, the implementation of the controversy related interest rates by the central bank.

 

In a banking conference today, Merkel saw the ECB has the power to raise interest rates if the judgment refers to the economic climate in Germany. However, if the prism of the overall economic conditions in the euro area, it is hard to do.

 

The Germans seemed to give the blessing of a rate cut by the central bank in the next meeting. Deteriorating business passion in many countries make it possible for the ECB to cut interest rates, first time since July 2012. "The ECB is clearly in a difficult position. For Germany, rising interest rates, but not necessarily more relevant for yng countries are in need of cheap credit," he told the forum participants. Merkel's stance could be interpreted as a green light for the ECB to tamper with interest rate policy that has lasted for almost a year.

 

Mario Draghi and colleagues is the difficulty in making policy that is acceptable to all parties. Given the function, ECB interest rate enforcement adheres evenly to all member countries and not make the rules specifically designed for each rule. Potential interest rate cuts culminated with the entry into the euro zone recession and inflation has not met the target of 2%.

[mynameisandhy]

News and Review of European Economic Zone

 

Bini Smaghi: Europe should weaken its currency

Friday, April 26, 2013

 

European Central Bank (ECB) should respond to aggressive monetary policy by the central bank in the world, according to ECB board member. "If we look at Asia, the U.S., and Europe, Europe is the weakest point. Thus we estimate the value of the euro will be weaker than the others, but because monetary policy actions are very agersif of others, instead tend to be stronger euro. Therefore , Europe must respond to it, "said Lorenzo Bini Smaghi, a former member of the board of the ECB.

 

Bini Smaghi said that policy the Bank of Japan can "create new problems." "What was done by the Japanese against the proceeds of the assets of the central bank instead? They buy foreign assets, so the yen exchange rate dropped dramatically and it affects other countries in the world. Mareka buy new assets, so as to have a major impact, and is still not clear that there will be a new issue, "he said

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News and Review of European Economic Zone

 

ECB Under Pressure To Cut SME Lending

Monday, April 29, 2013

 

Based on the report that was released some time ago Eurozone credit markets seem berjlaan in place so that put pressure on the central bank (ECB) to take action.

 

The published data show that lending activity in the 17 euro member countries still at a very low level, not only due to weak demand, but also due to the difficulty of credit to finance companies.

 

Survey of the various small and medium scale businesses (SME Lending) also shows that to get a bank loan is very difficult. Money supply data on euro zone bank lending to the private sector declined 0.8% in March, compared to the same month in 2012.

 

ECB itself argued that weak credit conditions in the Euro zone largely reflecting weak credit demand rather than due to more stringent lending conditions. But many analysts argue that the ECB's actions must be taken to re-stimulate credit activity on the Small and Medium Enterprises (ESM Lending). There are also expectations that the new SME Lending will be pruned in mid-June.

[mynameisandhy]

News and Review of European Economic Zone (Greece)

 

Look forward Disbursement Greek Bailout Next Phase

Monday, April 29, 2013

 

Greek parliament passed a Bill (the Bill) which prepares the dismissal in the public sector amid recession sixth year in Greece. The bill package is a condition of disbursement of the two stage program assistance (bailout) for Greece, which totals $ 8.8 billion euros.

 

Ratification of this happened right before the meeting of euro zone finance ministry officials on Monday. Greece hopes delegates will agree on a bailout next stage is worth 2.8 billion euros. Rest about 6 billion euro bailout will be distributed after the next meeting of euro zone finance ministers, which will take place on May 13.

 

The bill package is discussed in a flash by the legislature. Because the government bonds held by the European Central Bank due out May 20. The bill is supported legalization three Greek coalition government parties, including the conservative New Democracy Party and their partners, or Pasok Socialist Party and the Democratic Left Party.

 

Package Parliament passed a new bill contains a number of programs, including work stoppages 4 thousand civil servants until the end of 2013 and 11 thousand other at the end of 2014. This step is meeting the demand of international lending institution to streamline the organizational structure of the public sector, a number of at least 150 thousand people by the end of 2015.

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News and Review of European Economic Zone (Italy)

 

Italian Bond Yields Drop to Lowest Level Since October 2010

Monday, April 29, 2013

 

5-year bond yields and 10-year Italian fell to the lowest level since October 2010 at an auction on Monday as the new Prime Minister Enrico Letta form a coalition government, ending a political impasse over 2 months.

 

Results as planned bond auction amounting to 3 billion euros (3.9 billion dollars) on the benchmark 10-year yield is 3.94%, far below the level of 4.66% at an auction last month. Roma Party also issued 5-year bonds worth 3 billion euros, at a yield of 2.84%, down from 3.65% at the end of the auction last March.

 

Letta is expected to have the support of the Democratic party and the left axle shaft right party of former Prime Minister Silvio Berlusconi at 20:00 PM confidence vote later.

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News and Review of European Economic Zone

 

Refer At the European Data Pruning ECB Interest Rate

Tuesday, April 30, 2013

 

The inflation rate in the euro zone has fallen to a low level of 3 years and the unemployment rate is at a new record high, according to data on Tuesday, reinforcing expectations of another rate cut by the European Central Bank to revive a stagnant economy. The inflation rate dropped to 1.2% in April, its lowest level since February 2010 and the biggest monthly drop in more than four years, according to European Union statistics office Eurostat, illustrates that the economy is in recession. The inflation rate was below the ECB's target of close to 2%, while economists had expected inflation to be at 1.6% this month.

 

With Eurostat data also showed that the euro zone unemployment rate is at a record high of 12.1% in March, economists mempercayau that the ECB will cut interest rates this week to stimulate the economy has fallen into a second recession since 2009. Most economists expect the cut by 25 basis points on Thursday, to bring interest rates to a record low at 0.5%. Data released on Monday that showed a decrease in the level of confidence in the euro zone economy in April also strengthens opportunities rate cuts, economists said.

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News and Review of European Economic Zone (UK)

 

Level in the UK Mortgage Approvals Rise in March

Tuesday, April 30, 2013

 

Rate of home loan approvals in the UK rose more than forecast in March as lax credit terms to help prop up the housing market. There are about 53.504 home loan application is approved, compared with the revision of 51.947 in February, according to the Bank of England said today in London. Economists expected an increase to 52.700 from 51.653 before the revision of.

 

The central bank earlier this month had said that loans become more affordable housing in the first kuatal and probably will continue to rise after the program Funding for Lending Scheme gives banks access to cheap loans. Hometrack Ltd.. yesterday said that the improvement in sentiment and the minimal number of properties for sale supporting house prices, while the new government policy will continue to shore up sentiment.

 

"Most of the indicators suggests that housing market activity has improved in recent months," said Howard Archer, economist at IHS Global Insight in London. "However, house prices are likely to remain depressed for a while given the low level of consumer confidence and the still fragile."

[mynameisandhy]

News and Review of European Economic Zone (Spain)

 

Spain recession more In On First Quarter

Tuesday, April 30, 2013

 

Spain's economy contracted for 7 consecutive quarter in the first quarter, according to data on Tuesday, and the recession is likely to last until next year. High unemployment and poor economic data from Spain and other euro zone countries has sparked debate over whether Europe should abandon its tightening policy is still an option Germany.

 

Spain's GDP contracted by 0.5% in the first quarter of this year from the last quarter of 2012, according to data from the National Statistics Institute, dragged down by a decline in the level of domestic demand. Spanish government slashed its economic forecasts for this year on Friday hair, although not announced significant changes to the plan of reforms designed to revive the economy.

 

"We recognize that the government has a significant reform, but the problem is that the initial conditions the Spanish economy is much worse than other European economies and needs time to adjust," said Silvio Peruzzo analyst at Nomura. "We think Spain will not grow back until next year." Spain's economy contracted 2% to an annualized pace in the first quarter, worse than the 1.9% in the previous quarter and the worst annual contraction since the beginning of the recession in the last quarter of 2011.

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News and Review of European Economic Zone (Cyprus)

 

Cyprus Parliament Approves Bailout

Wednesday, May 1, 2013

 

Cyprus parliament on Tuesday approved a European Union bailout including provisions to impose big losses on bank depositors and reduce one of the biggest banks in the country. With 29 members of parliament held tanganm menyetujuui ratification bailout bill and 27 others refused. The government has warned that without the consent of parliament, the economy is in danger of bankruptcy. Cyprus is expected to get its first disbursement of aid from the EU and the IMF on a total of 10 billion euros ($ 13.10 billion) around May.

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News and Review of European Economic Zone

 

Need to Spur Economic Growth in Europe

Wednesday, May 1, 2013

 

In his first visit to Berlin, Prime Minister of Italy Enrico Letta said the government would meet budget commitments. Letta also confirms desire to ignore European austerity policies and focus more on policies that spur economic growth. "Italian election results signal a need for change in policy," Letta said in a press conference which was also attended by German Chancellor Angela Merkel.

 

Germany is the pioneer of austerity measures in the euro zone and still remain intimated the importance of fiscal discipline in the economy. Merkel said the policy of fiscal consolidation and pro-growth policy is not exclusive. "The deficit or economic growth is not the main goal but encourages the creation of more jobs," Merkel said.

 

Meanwhile, the euro was trading near its highest level in the first half last week at the beginning of the Asian session. EUR / USD is now trading 1.3164; yesterday's high near 1.3184 level

[mynameisandhy]

News and Review of European Economic Zone (Spain)

 

Spanish Manufacturing Sector Stagnant Over 2 Years

Thursday, May 2, 2013

 

Spanish manufacturing activity in the country fell back in April 2013. If the condition continues like this, then the matador predicted the country's economy remains negative at the end of the second quarter later.

 

Markit data today shows the results of a survey of executives of national companies, where the index for April was recorded at 44.7, higher than the record of 44.2 in March. However, these results are not sufficient to make a manufacturing expansion parameter as an index below 50 is an indication of a slowdown. Over the last two years, Spain's manufacturing index consistently below the 50 level.

 

Decline in manufacturing activity in line with the national statistics agency reports this week, which showed that Spain's economy declined 0.5% between January and March 2013 compared to the previous quarter. Recession in this country is the impact of fiscal shocks and the debt crisis that has lasted a long time.

 

Markit pointed out that many companies experience a decline in orders in April, but the volume is not as big as what happened in March. Many employers expect this condition gradually improved so that passion can manufacture close to normal levels in a matter of months. "Slowing manufacturing activity in Spain are now getting longer, reaching two years and recent data also do not show symptoms of the end of all this," said Markit economist Andrew Harker.

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

Crawling Towards the UK Construction Sector Growth

Thursday, May 2, 2013

 

UK construction sector output grew almost back in April, according to the survey on Thursday, the best performance in 6 months to a sector which is a major expense of economic growth. Construction PMI index by Markit / CIPS rose to 49.4, slightly below the 50 level that separates growth and contraction but was well above the forecast of 48.0. Pound gainnya defend against the euro and the dollar after the PMI data was released. In March, the index stood at 47.2.

 

Tim Moore, senior economist at Markit, said that the construction sector seems driven by aftershocks after work was delayed by the cold weather at the beginning of the year. "Overall the survey shows early indications that the construction sector is no longer weigh on UK GDP for the second quarter of 2013," said Moore.