News and Reviews European Economic Zone

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News and Review of European Economic Zone

 

ECB: LTRO Week Returns Home a Little More

Friday, May 31, 2013

 

Long-term loan repayment amount obtained by euro zone banks through two stages of the Long Term Refinancing Operation (LTRO) will decline next week, according to the European Cental Bank reported on Friday.

 

According to the ECB, the bank will pay 6 € 2.81 billion loan obtained through the LTRO first phase by the end of 2011. While 6 other bank will return the € 271 million loan from the LTRO to phase-2, which was launched in February 2012. Total payments under the next week € 8.12 billion returned by euro zone banks this week.

 

Until now Euro zone banks have returned the borrowed funds worth a total of € 291 billion, more than half of the ECB injected liquidity into the euro zone banking system. However, funds worth a total of € 520 billion available through the LTRO seems to have failed to spur lending to households and businesses, which is essential for economic growth.

[mynameisandhy]

News and Review of European Economic Zone (Spain)

 

Spanish Labor Sector Can Improved

Monday, June 3, 2013

 

Prime Minister of Spain, Mariano Rajoy, looks upbeat with the labor sector, the biggest economy in the euro zone 4 is. "I was your attention to the employment data to be released on June 4. If the pattern continues, it will give a positive signal," said Rajoy. Spain will release employment data on Tuesday. Predicted jobless claims decreased by 50,200 for the month of May; better than April's publications were reduced by 46 100.

 

Spain is now one-third of the labor force has been unemployed for more than two years with an unemployment rate of 27.2% in April. Rajoy uttered Spain has come out of the worst period and the unemployment rate is now starting to improve. Rajoy hopes that the government may soon lower the immediate tax and income tax cut in 2015. "Spain is not teetering on the edge and not on the verge of collapse. Indeed there is turmoil but I am optimistic that Spain can handle it," said Rajoy.

 

Meanwhile, the euro posted a slim gain in early Asian session. EUR / USD is now trading 1.3008; trying to stay away from daily lows 1.2983

[mynameisandhy]

News and Review of European Economic Zone

 

Draghi: Eurozone Show 'Positive Symptoms'

Monday, June 3, 2013

 

President of the European Central Bank (ECB), Mario Draghi spoke about the current conditions in the euro area while visiting China today. According to him, the situation was 'very challenging' so that the central bank does not expect to see any significant changes during the year 2013.

 

Speaking in Shanghai just three days ahead of the announcement of the forecast annual inflation growth and the ECB, Mario Draghi said he saw 'the symptoms of stabilization'. However, he called on all parties not to expect too much because the ECB has its own script, which is targeting positive growth at the end of the year. The central bank hopes improved running economy gradually in accordance with the estimated policy boards. He was optimistic that conditions will change the region starting next year.

 

President of the ECB statement is not much different from what has been put forward in recent months. Most of analytics expect the ECB lowered its growth forecast this year in a report released Thursday. Currently the central bank projected the economy euro minus 0.5% for the year 2013 and then turned positive for next year. A series of new economic data announced reinforce indications that the Euro area will remain contracted throughout the spring thus fulfilling period of contraction during 7 consecutive quarters. Exchange rate of EUR / USD is now seen at 1.30084.

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

Manufacturing PMI Policy will Affect Bank of England

Monday, June 3, 2013

 

UK manufacturing sector expanded in May 2013 at the fastest pace in more than a year. Manufacturing performance in May could be closing the possibility of additional monetary stimulus at a meeting of the Bank of England (BOE) the middle weekend.

 

Monthly purchasing managers' index released by Markit and the Chartered Institute of Purchasing and Supply rose to 51.3 in May, compared to April, reports that only 50.2. Survey in May as well be the best since the monthly PMI report in March 2012 which amounted to 51.8.

 

Previously economists surveyed by Dow Jones Newswires had forecast PMI will only reach 50.3. "Most of the components such as the mean score improved performance as well as producers and consumers of investment products," said Markit Senior Economist Rob Dobson. Improved export demand, especially from the regions of North America, East Asia, Russia, Germany and France.

 

Monetary Policy Committee will embark on a two-day meeting next Wednesday to discuss new strategies to accelerate the pace of the economy. But if you see the current economic conditions, the BOE seems to be complacent and resist attitude while. Portion of bond purchases by 375 billion ($ 572.7 billion) pounds may still be maintained as the application of 0:50% interest rate, according to a Dow Jones Newswires poll of economists. Exchange rate GBP / USD is currently observed at the level of 1.5269 per dollar.

[mynameisandhy]

News and Review of European Economic Zone (Spain)

 

Spanish Unemployment Claims Fall Sharply in May

Tuesday, June 4, 2013

 

Number of Spain filing for unemployment benefits fell by 2% in May to 4.89 million, according to government statistics report on Tuesday. In addition a second monthly decline in a row, the number of jobless claims in May was also the lowest since December last year.

 

Spanish jobless rate has reached 27.2% in the first quarter and for the first time jumped to over 6 million people in April. Until now the unemployment rate in Spain was listed as the 2nd highest among all 27 EU countries.

[mynameisandhy]

News and Review of European Economic Zone

 

Eurozone Coeure Seeing Growth In Year End

Tuesday, June 4, 2013

 

According to Benoit Coeure, executive member of the ECB, the economic situation in the euro zone is still fragile, but it is likely to grow at the end of this year. "We are on a slow path to recovery, but we see GDP growth moved into positive territory, perhaps later this year" said Coeure in Seoul. Coeure attend the conference which is held the Bank of Korea.

 

ECB president insists Coeure statement yesterday in Shang Hai, which was not too expect the ECB stated increase in the euro zone economy before the end of the year. The ECB will release growth and inflation forecasts this year on Thursday. Many analysts expect the ECB to cut its growth forecast in 2013.

 

In addition Coeure also said BoJ monetary policy, known as "Abenomics" not proven negative effects to the global market. "The BoJ monetary policy sparked fears of a" currency war ", has so far not proven to have a negative impact on global Psar" said Coeure.

[mynameisandhy]

News and Review of European Economic Zone (Germany)

 

IMF Downgrade Germany's Growth Projections

Tuesday, June 4, 2013

 

Having cut its forecast for growth in China some time ago to 7.75% vs 8%, now IMF recently reduced its forecasts for growth in Germany during the 2013's to 0.3% compared to the previous estimate of 0.6%.

 

Germany's growth forecast downgrade due to the risk of recession in the Euro zone due to budget austerity strategy imposed by Germany, as well as the fragility of the European banking system is still looming despite the risk of default and volatility successfully suppressed by the promise of support from the central bank.

 

According to the IMF, the European banking system to prevent increasingly fragile, the policy makers need to immediately run or form a structural reform of the banking supervision ditandem single with the promise of liquidity by the ECB.

[mynameisandhy]

News and Review of European Economic Zone

 

European recovery will trigger exodus of Labor

Wednesday, June 5, 2013

 

European companies in the next three years should be aware of the exodus of labor. Transfer of employees from one place to another can not be avoided in the region's economic recovery.

 

Mass exodus in Europe is predicted to occur among workers in blue continent. But literally this is a positive cycle because many people will be tempted to move to find a job with a higher income. Business climate improvement and manufacturing for the next three years to increase the company's profit margin, so they are more able to pay employees in large numbers. These projections released by the institute management consultancy Hay Group and the Centre for Economics and Business Research (CEBR) in his study entitled 'Preparing Take-off' or 'Preparing to Takeoff'.

 

Flow or movement of labor turnover will reach its peak in 2016 the ratio was 18.7% of the total number of European workers. The percentage is equal to twice the labor movement in 2012 which only amounted to 9%. Nominally, HR 39 million will move from one company to another company in line with the opening of new opportunities in the midst of fundamental economic recovery.

 

By Ben Hubbard, Director of Hay Group, a combination of a slowing economy, government budget cuts and the crisis of the Euro has made a very low worker turnover lately. Many residents do not have to move because of the lack of job opportunities and prefer to be with the company now. "If you move in the middle of this economic climate is very risky. They will move when the situation improves and there is a higher salary offer, 'said Hubbard.

 

Sector, which is predicted to be the belle of job seekers are information, communication and technology (ICT), professional services and health services. Then followed by the retail sector, which will squirm with increasing purchasing power of consumers. "Currently, as many as 53% of workers are not satisfied with the standard of income, and 43% are not sure the company can provide a high concern for all workers," read one passage in the Hay Group report.

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

UK Service Sector Expansion Continues in May

Wednesday, June 5, 2013

 

UK service sector is able to grow at the fastest pace in more than a year in May, and mash holds the potential to further growth, as new orders surged to its highest level in more than 3-years, according to a survey released Wednesday.

 

Expansion gives a strong signal that the recovery that began in the first quarter to continue in the 2nd quarter onwards. The development is likely to force Bank of England to refrain from providing additional monetary stimulus in its policy meeting on Thursday that will end tomorrow.

 

Index of service sector activity rose to 54.9 in May, the strongest level since March 2012, from 52.9 in April, based on a monthly survey compiled by Markit Economics and the Chartered Institute of Purchasing & Supply. The figure beat expectations for a rise to 53.0 from economists.

 

"For the first time in a year, the manufacturing, services and construction are both reported higher levels of activity," said Chris Williamson, chief economist at Markit. "The data indicate that if economic growth will accelerate in the 2nd quarter of this year." Williamson also added under the evidence of new business growth in the 3 dominant sector will support further growth acceleration.

[mynameisandhy]

News and Review of European Economic Zone

 

Eurozone Business Activity Still Sluggish

Wednesday, June 5, 2013

 

Business activity in the Eurozone fell back in May 2013. This fact further strengthens the assumption of continued economic decline in the short term, although on the other side the business situation in Germany and Spain improved.

 

Company data provider Markit today reported its manufacturing and service sector activity in the 17 countries that use the euro rose to 47.7 in May from 46.9 in the previous month records. A reading below 50 indicates contraction is still going but the decline was not as bad as the ratio of the previous three months.

 

Conditions of the manufacturing sector in each country is fairly diverse. German state data was revised up because it shows a marginal growth, while business contraction in Spain is not as bad as two years ago.

 

Rate of decline in manufacturing activity across the country is getting lower. However, activity in the services sector, which contributes more to the value of the euro zone, still looks half-and-half, which is worse in Italy and is unlikely to change in Germany and France.

 

Chris Williamson, Chief Economist at Markit, said the stabilization of symptoms businesses in Germany and signal improvements in other countries. This opens optimism will soon end the economic crisis are intimately related to the debt repayment program several countries. Even so, Williamson assess investors have less reason to hope for a quick economic recovery. "The reality is the Euro area and the maximum acceleration of the motor deficiencies can only maintain the current stability," he added. The euro exchange rate is now seen at 1.3062 per dollar level.

[mynameisandhy]

News and Review of European Economic Zone (Greece)

 

Greek Unemployment Rate Rises Back

Thursday, June 6, 2013

 

The unemployment rate in Greece has increased again in March as recession due to the debt crisis, which has entered the 6th year, continues to take its toll and inhibit all investments.

 

Data released on Thursday Elstat statistics agency, showed the unemployment rate in Greece rose to 26.8% in March from 26.7% in the previous month.

 

In the midst of growing unemployment, the Bank of Greece in the last week it has expressed optimism that the economy will be able to move out of recession in 2014 if the government is able to maintain their consistency in implementing austerity measures and restructuring.

 

"If the implementation of structural reforms can be accelerated and improved economic sentiment, then it makes sense if we expect the result will be felt in the real economy as well," Bank of Greece said in a report.

[mynameisandhy]

News and Review of European Economic Zone

 

ECB Keep Interest Rate

Thursday, June 6, 2013

 

European Central Bank (ECB) stop of its phase rate cuts on Thursday, in line with analysts' expectations of the majority of the ECB's benchmark interest rate at a record low last 0.5% after a previous cut of 0.75%.

 

Despite the insistence of economists to cut interest rates again soon, but economic indicators rebounded in May seems to have convinced the ECB to act otherwise.

 

PMI surveys earlier this week showed that manufacturing activity increased across Europe in May. Confidence also increased in a variety of businesses and consumers in the euro zone in May by the European Commission released indicators.

 

Furthermore, investors will wait for the press conference, ECB President Mario Draghi who will provide an update projections for growth and inflation in 2013 and 2014, which is expected to remain at the level of -0.5% GDP growth this year, with a range of -0.9% to -0.1%.

 

Mario Draghi had commented earlier on Monday, that he still expects a gradual recovery to start by the end of this year, the momentum began to increase in 2014.

 

In the question and answer session later Mario Draghi will likely review the deposit interest rate outlook to negative levels at a press conference. Investors will also be wary if there Draghi's comments that interest rates near zero should be maintained in a longer period than previously estimated.

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

BoE Keep policy in Final Term of King

Thursday, June 6, 2013

 

Bank of England Mervyn King is likely to lose out in the end as a voting member of the board of England's monetary policy on Thursday, amid signs that the pace of recovery of the UK economy will grow faster. 9 members of the panel agreed fatherly hold interest rates at 0.5% level and stimulus programs at 375 billion pounds (577 billion dollars). As usual when the BoE does not change the policy, the committee will not issue a statement explaining the decision.

 

Sterling is relatively flat after the decision dimumkan, an indication that the decision was in line with expectations. King has been urged to increase stimulus since February. Although the results of voting committee members will not be released until June 19 minutes later, economists forecast King proposal on additional quantitative easing by 25 billion pounds will not get support.

 

"It appears that the minutes will be released in 2 weeks later will show that King failed fatherly continue to urge rise in QE program for the fifth consecutive month," said Philip Shaw, economist at Investec Bank. King and two other council members David Miles and Paul Fisher has urged his colleagues to support the addition of stimulus to trigger recovery and ensure that the high unemployment rate does not result in lasting damage to the economy. But they failed to get enough support to become the majority, because the other BoE board members would prefer the status quo.

[mynameisandhy]

News and Review of European Economic Zone (Germany)

 

German Exports Rise, Gives Signal Recovery

Friday, June 7, 2013

 

German exports rose more than economists forecast, giving a sign the largest economy in Europe began to strengthen. Data from the Federal Statistics Office showed German exports jumped 1.9% from March, when it rose 0.5%. Economists predict exports rose 0.1%. German business confidence also rose in May for the first time in three months, after a winter of unusual hamper Germany's economic recovery. At the same time the German factory orders declined, and industrial production will be released later predicted to weaken. Bundesbank will release its latest growth forecast Germany today.

 

President of the European Central Bank, Mario Draghi, said the euro zone economy will return to growth by the end of this year, this is one of the reasons of policy makers to resist new stimulus. Eurozone economic activity should be stabilized and recovered at the end of the year, albeit at a slow pace.

 

In addition to maintaining a 0.5% interest rate, the ECB also revised the outlook for the eurozone economy. Dipredikisi economic growth declined 0.6% before rising 1.1%.

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

UK trade deficit narrows in April

Friday, June 7, 2013

 

UK trade deficit narrowed more than expected in April, according to data on Friday, but progress on the performance of limited English trade amid the economic downturn in its major export markets. Office for National Statistics said the UK's trade deficit narrowed to 8.2 billion pounds (12.8 billion dollars) from 9.2 billion pounds last month. Economists had expected the deficit to narrow to 8.8 billion pounds.

 

The improvement in the trade balance in the UK in April triggered by a decrease in the level of imports, which fell as much as 1.3 billion pounds, the level of exports actually fell by 400 million pounds in April. "After a period of time, recent data fatherly volume of exports and imports showed little movement, seoerti the last 2 years," according to the ONS. Since the coalition government office in 2010, the government has urged a strategy to promote trade with developing countries, such as China, Brazil, and India, to reduce dependence on the markets that troubled euro zone, where many countries are still in a recession. The ONS said the level of exports to China rose by 11% in the three months to April.

[mynameisandhy]

News and Review of European Economic Zone

 

ECB: Payment LTRO More Next Week Low

Friday, June 7, 2013

 

The refund loans obtained Euro zone banks through the Long Term Refinancing Operation (LTRO) will be lower than that paid in the week, according to the report of the European Central Bank on Friday.

 

According to the ECB, as many as 6, the bank will return the € 2.8 billion loan obtained from the first phase of the LTRO was launched in late 2011. While 4 other banks will refund € 130 million of loans LTRO 2nd stage which took place in February 2012.

 

Total payments over the next week is still below the € 3.08 billion paid by banks in the euro zone this week. As from January 2013, euro zone banks have returned the € 293.9 billion ($ 386 billion) or more than half the loan funds are disbursed through 2 ECB liquidity operations.

 

In the ECB's monthly press conference on Thursday, President Mario Draghi said that the return of LTRO indicate if financial conditions continue to improve. But Draghi also warned about "the fact that the LTRO is a full terlunasinya are the first signs of weakening credit fundamentals."

[mynameisandhy]

News and Review of European Economic Zone

 

Governor Bundesbank: The trial of OMT is not 'ECB versus Bundesbank'

Monday, June 10, 2013

 

Germany's Constitutional Court will open hearings this week on the legality of the program or OMT Outright Monetary Transactions conducted by the European Central Bank (ECB). Getting judges appointed to hear the explanation of the ECB's bond-buying program troubled nations.

 

Combined politicians, advocates sued the ECB and the Germans captured OMT policy related European monetary authorities. The plaintiff wants the court to decide whether in fact the German parliament has decision-making authority regarding the steps the euro zone rescue. They assess OMT has a great risk that harm vulnerable citizens of Germany because of the money used in the mechanism is the result of the tax. Plaintiff essentially wanted to find out the extent to which parliamentary authority in granting approval of government policies and the ECB. Given the legislature never able to resist all efforts to address the European debt crisis.

 

Hearing between the judge and the ECB constitution will take place in Karlsruhe on Tuesday and Wednesday. German Party Central Bank will also be present to didengarken expert testimony as monetary. It is worth noting that the Bundesbank is not part of the plaintiff, but the German monetary authorities repeatedly expressed his criticism of the measures the ECB's crisis response including OMT program. So do not be surprised if at the hearing the next day Bundesbank would really shed a sense of unresolved objections so far.

 

Responding to what will happen in the next 3 days, the Bundesbank governor clearly stated that the hearing not later lah arena battle between his side and the ECB. "(The trial) is not about the two central banks, even though both parties were invited to speak as an expert of experts," said Jens Weidmann few moments ago. He affirmed the decision of the trial will determine the constitutional validity of the OMT from the legislative point of view and is not intended to attack an institution. Weidmann itself is one of the most critical figure in response to the ECB's policy, in particular the purchase of bonds. He called the move tantamount to finance other state governments and the risk of triggering inflation. In a conference he even suggested the European Central Bank's mandate should be tightened and supervised by law.

[mynameisandhy]

News and Review of European Economic Zone (Italy)

 

Italian Industrial Production Minus 3 Months streak

Monday, June 10, 2013

 

Industrial production figures (monthly) Italy fell 0.3% in the month of April 2013 marked the decline in the industrial data for three months straight. However, production of capital goods recorded a growth as reported by the statistical office Istat.

 

Industrial output in the country's 3rd largest economy of the euro zone fell 4.6% in April compared to the same period in 2012. Istat said it wears workday-adjusted benchmark for calculating annual decline.

 

Italian energy sector production fell 1.5% compared to May, while the production of services (one of the important business indicators) grew 1.2%. Production of goods to the categories of intermediate goods fell 0.1% and the manufacture of consumer goods also fell 0.9%, with a reduction ratio reached 4.9% for the production of durable goods types.

 

Energy, transport and the biggest monthly decline in textile printing. While manufacturers of electronic and optical Italy recorded an increase in production of 4.9%. Ratio reduction Italian industrial production data are similar to the predictions made by economists at UniCredit, based in Milan. Istat also reported that industrial production fell 4.4% in the first quarter compared to the same quarter in 2012. Yield reduction ratio is higher than the annual GDP decline in Italy is only 2.3% on the same period scale (Q1 2012-Q1 2013). The euro exchange rate is recorded at the level of 1.32090 per dollar.

[mynameisandhy]

News and Review of European Economic Zone

 

ECB Nowotny: Loose Monetary Policy Still Necessary

Monday, June 10, 2013

 

Monetary policy who accommodative at this time from central banks is still in need, said one council member policy of Central Bank the European on Monday.

 

Moment Ewald Nowotny say had been "enough" stability of financial system, he still saw the existence "big challenge for banking sector, and especially it in Europe, we still saw economics rill is being struggling and public finances overwhelmed.

 

"This is why policy monetary who accommodative still needed," said Nowotny.

 

Every action central banks memilki side effects which must be reckoned by the central bank it's itself, he added.

 

"However the central bank also must have a clear view about what the priorities and potential cost of macroeconomic which moving away from stance policy current monetary this," said Nowotny.

 

Nowotny say that the monetary policy is important to have a "limitation nominal," such as target of price stability ECB who below the inflation, yet near until 2%. However, he saying that does not is no economic indicators single which can provide clues which a complete for monetary policy.

 

Nowotny also spoke about the new role who proposed ECB as a supervisor banking arrangements. He repeated earlier statements that the ECB must be gearing be fully for his new role, because it requires existence responsibility which is big for that role.

 

Nowotny spoke in konsfrensi economics in Vienna.

[mynameisandhy]

News and Review of European Economic Zone

 

OMT program ECB Just To Keep Euro

Tuesday, June 11, 2013

 

Outright Monetary Transaction program (OMT) ECB only to sustain the euro, according to ECB President Mario Draghi. Draghi's comments seemed aimed at defusing German concerns over bond-buying program (OMT) before the commencement of the hearing the German Constitutional Court on the OMT program. The program has succeeded in calming the markets, but has caused kegelisihan in Germany which is the largest shareholder in the ECB.

 

"If there is a crisis of confidence in the euro that could threaten financial stability and is not supported by fundamentals, then we will be ready to intervene," said Mario Draghi when interviewed by ZDF German news agency. "However, we will not intervene to guarantee the debt of a country that could not be responsible." German Supreme Court will conduct hearings with various stakeholders on Tuesday and Wednesday to assess whether the OMT program violated German law. Analysts expect the German Constitutional Court probably will not give a final decision on Wednesday but will defer to Germany completed national elections on 22 September.

 

Meanwhile, the euro rose in Asian session. EUR / USD is now trading 1.3268, try to stay away from daily lows 1.3246

[mynameisandhy]

News and Review of European Economic Zone (Italy)

 

As the Italian economy contracted French Slow Confidence

Tuesday, June 11, 2013

 

Italy's economy shrank more than what was previously reported in the first quarter and the retention of French industrial confidence level in May, as the euro zone is struggling to get out of a long recession.

 

Italy's GDP fell by 0.6% from three months earlier, the national statistics agency based in Rome said today, after the May 5, is expected to drop 0.5%. While the index of sentiment among factory managers unchanged at 94, while the index of service companies fell to 88 from 89 according to the Bank of France.

 

"We expect the recovery in Italy is not going to happen this year or at the European level though," said Silvio Peruzzo, an economist at Nomura Holdings Inc. in London. "It's no longer a problem with the euro area's main problem, now we see the core countries as France is struggling too, while Germany continues to run on its own course. "

 

Economy in the eurozone to contract by 0.2% in the first three months of this year, extending a six-quarter recession, and expected to stagnation in the second quarter before returning to growth. Downturn has increased the pressure on leaders in the euro area and the Central Bank necessary to determine the way in order to spur growth.

[mynameisandhy]

News and Review of European Economic Zone

 

ECB Nowotny: Loose Monetary Policy Still Necessary

Tuesday, June 11, 2013

 

Accommodative monetary policy from the central bank at this time is still in need, said one member of the board of the European Central Bank's policy on Monday.

 

Moment Ewald Nowotny say had been "enough" stability of financial system, he still saw the existence "big challenge for banking sector, and especially it in Europe, we still saw economics rill is being struggling and public finances overwhelmed.

 

"This is why policy monetary who accommodative still needed," said Nowotny.

 

Every action central banks memilki side effects which must be reckoned by the central bank it's itself, he added.

 

"However the central bank also must have a clear view about what the priorities and potential cost of macroeconomic which moving away from stance policy current monetary this," said Nowotny.

 

Nowotny say that the monetary policy is important to have a "limitation nominal," such as target of price stability ECB who below the inflation, yet near until 2%. However, he saying that does not is no economic indicators single which can provide clues which a complete for monetary policy.

 

Nowotny also talk about the proposed new role as supervisor ECB banking arrangements. He repeated earlier statements that the ECB should be fully prepared for his new role, because it requires a great responsibility for that role.

 

Nowotny spoke in konsfrensi economics in Vienna.

[mynameisandhy]

News and Review of European Economic Zone

 

'ECB Still Have Room to Cut Interest'

Wednesday, June 12, 2013

 

Although the interest rate is set low at 0.5%, it does not mean the European Central Bank (ECB) will cease its main monetary easing belt in the next few months. Indications expressed continued interest rate cuts by ECB executive board member Peter Praet, in a forum some time ago.

 

According Praet, the ECB very concerned about the rate of inflation in the European monetary decision-making process. European consumer price indicator is still under the authority of the target so that it is not possible interest rate cuts do again in 2013. "We still have room to change the main monetary instruments," Praet said in a question and answer session at the Frankfurt School of Finance. He considers the inflation to be a weak point in efforts to accelerate the European economy and current level of 1.4% is less than the target. Inflation up closer to the ideal range of 2%, the ECB will not close the possibility of rate cuts.

 

"Is (inflation) to be our main problem? I prefer to refer to it as our primary focus and the level did not meet expectations," added Praet. Men who every day perform economic analysis of Europe's report expressed standard policy scenarios and non-standard central bank, including the question of negative interest rates. "Conceptually, negative interest rates may not apply. From an economic perspective, hard going because of the currency will be weak all the time," he explained to the audience. Although there is no policy stating that impossible was taken by a monetary authority, Praet indirectly confirms that the ECB will not act too extreme to boost the economy. "All policies can be selected, but the consequences could be dangerous," he added.

 

The ECB itself has cut its benchmark rate to 0.5% at the previous meeting and maintaining deposits at zero level. Although the time said it was ready to do anything for the sake of economic acceleration, the central bank did not change its stimulus at a meeting in June. Opinions many people are now torn between the possibility of further interest rate cuts in 2013 or not in this. Euro exchange rate observed at the level of 1.32919 per dollar.

[mynameisandhy]

News and Review of European Economic Zone (Greece)

 

Save Budget, Greek National TV Station Close

Wednesday, June 12, 2013

 

Greek government official reportedly closed the main broadcasting stations nationwide budget for efficiency. Hellenic Broadcasting Corporation (ERT) is closed because the government believes is wasteful spending of state companies. Although surprised many, discourse dissolution of the points contained in the EU bailout.

 

A total of 2500 employees were laid off protested outside the TV station ERT Wednesday after the government decision. Greek citizens suddenly found his TV laya vacant since Tuesday night. ERT has many business units that operate under the budget heading the government, that is 3 local TV channels, four national radio stations, local radio stations and 3 paid service Voice of Greece. The entire operation is funded by the ERT subsidiary 4:30 Euro levy results of each monthly electric bill residents.

 

"(The decision) was a shock to the nature of our democracy," said news anchor ERT, Antonis Alafogiorgos. All employees are suspended its activities until further reorganization program. Those who are laid off are entitled to receive severance pay and have access to work again if the government so independent broadcasting station opened a smaller scale in the future. "We sanat angry and shocked. Hard to accept the fact that this country does not have its own broadcasting station," said Odin Linardatou, Head of External Affairs to the BBC ERT.

 

Party authorities ensure ERT closed from Tuesday night. Closure itself is a program mandated by the government's public budget cuts Athens for 2013. ERT started up in 1983 and funded directly by the citizens of Greece. As part of the clause grants worth 8.8 billion euros to be provided by the European Union, Greece must cut its budget on salaries of postal workers and state departments, which amounted to 15,000 people. ERT closure is the latest efficiency measures taken by the government to issue a state of recession pressures. "ERT is a corporate entity which is less transparent and wasteful. All finished up here," government defense spokesman, Simos Kedikoglou. Greek city government must now prepare to stem the flow for 48-hour protest planned for by all citizens of various types of professions.

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

UK Unemployment Rate Stable At 7.8%

Wednesday, June 12, 2013

 

Revenue growth in the UK continue to roost around record lows in a period of 3 months to April, according to a government data released Wednesday. This fact could potentially hamper the economic recovery as the weakening purchasing power of the UK.

 

Labor market data recently released Office for National Statistics showed the number of Britons out of work decreased by 5,000 to 2.51 million in the three months to April period, which left the unemployment rate unchanged at 7.8%. Jobless claims also fell by 8,600 in May.

 

The ONS data also clearly describes the condition of the household budget is constantly under pressure, with the average earnings excluding bonuses remained that only grew 0.9% in the three months to April. In a period of 3 months to March, fixed income grew 0.8%, which is the lowest growth rate since record keeping began in 2001.

 

For comparison, the annual inflation rate reached 2.4% in April to indicate if the increase in labor costs is not enough to offset the price increase.