News and Reviews European Economic Zone

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News and Review of European Economic Zone

 

Weidmann: Europe Not Ready to End Expansive Monetary Policy

Monday, July 22, 2013

 

Now is not the right time for Europe to get out of the expansionary monetary policy, the European Central Bank policy makers and heads the German Bundesbank, Jens Weidmann.

 

Did not stop the U.S. Federal Reserve monetary policy, Weidmann said after a summit of finance ministers and central bankers from the banks of the G-20 in Moscow.

 

It will only reduce the power on the gas pedal, he said.

 

Weidmann added that the German economy will probably grow strongly in the second quarter of this year. He predicted more moderate growth for the third quarter.

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News and Review of European Economic Zone (UK)

 

British exports Jumped Into Highest Level In Six Years

Tuesday, July 23, 2013

 

British export activity surged to its highest level in almost six years in the second quarter, and this provides the initial impetus for the UK's economic recovery, companies - companies in the UK are increasingly convinced that their exports will rise further this year, the show in a survey on Tuesday.

 

A quarterly report will be undertaken by the British Chamber of Commerce and logistics company DHL showed an increase in sales and export orders that pushed the index to 118.2 in the second quarter of this year. It was the highest level since the start of the survey index in the third quarter of 2007 and an increase of 2.85% from the first quarter last year.

 

"For the first time on record, the result is positive for the economy," said John Longworth, BCC director general. "But we do not have to remove the gas from our feet. We still need more of Integration who take risks in international trade and also for those who are already exporting, to try and diversify into new markets, "said Longworth.

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News and Review of European Economic Zone (France)

 

French Industrial Sentiment Improves in July

Tuesday, July 23, 2013

 

French industrial sentiment rose slightly from estimates in July to its highest level in more than a year, providing more evidence that the fragile recovery is underway in the country's second-largest economy the euro zone. Statistics agency INSEE said that his monthly industry sentiment indicator improved for 4 months in a row to reach 95 from 93 in June, breaking estimate of 94 economists. Although still quite far from the long-term average of 100, this increase brings the indicator to its highest level since May 2012.

 

The improving economic outlook sparked this month President Francois Hollande declared that the recovery is underway, although the unemployment rate remained at a record high. On Tuesday, Finance Minister Pierre Moscovici said that the recession has ended, referring to estimates of the Bank of France and INSEE for growth of 0.2% in the second quarter compared to a contraction of 0.2% in the first quarter. "Currently we are after we get out of the recession we had to turn it into a real recovery," he said on Europe 1 radio, related to recent policy aimed at helping finance company.

 

ING economist Julien Manceaux said the rate of industrial production appears to be stable in the second quarter and will begin to improve in this quarter. "Meskid emikian, the level of industrial production is still 10% lower than in 2008, which means that the road to full recovery still far away," he said.

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News and Review of European Economic Zone (Germany)

 

Germany Delays Decision Financial Aid Greece

Wednesday, July 24, 2013

 

Germany will delay a decision next disbursement of financial aid for Greece until Monday to ensure the fulfillment of all the requirements, according to documents obtained by Reuters. The European Commission is still awaiting confirmation of whether Greece has already met all the requirements for the disbursement next bailout worth € 2.5 billion. Greece desperately needs the disbursement of bailout funds in order to avoid default when government bonds maturing in August. However, disbursement of bailout funds requires the approval of all euro-zone members, including Germany.

 

"Only 17 of the 22 requirements that have been met by the Greek.'s Not enough to get the approval of the budget committee of the German parliament. To give the committee sufficient time dateline bailout disbursement decisions will be extended until July 29," wrote the German Deputy Finance Minister, Steffen Kampeter, seen by Reuters. Previous dateline for the German parliament to decide on the next Greek bailout disbursement is July 24.

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News and Review of European Economic Zone

 

Eurozone Consumer Confidence Continues Improving

Wednesday, July 24, 2013

 

Consumer pessimism over the outlook for the Euro zone continues to decrease, a development that could boost spending and help moderate the 17-nation economic bloc to get out of the longest post-war contraction phase.

 

European Commission data on Tuesday showed consumer confidence in the euro bloc rose to -17.4 in June from -18.8 in the previous month. Rise for 8th month in a row that also bring consumer confidence to its highest level since August 2011. Nevertheless, the level is still far below the historical average since 1990 recorded at -13.3.

 

The level of consumer confidence is relatively low indicating that consumer spending will still moderate growth. Although on the other hand it does not diminish any hope of a recovery.

 

Throughout the first quarter since the contraction began in late 2011, consumers look to reduce spending in the first three months of this year. There are even indications that they may have increased spending on the 2nd quarter, with retail sales recorded an increase of 1.0% in May from April.

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News and Review of European Economic Zone (UK)

 

The UK economy accelerated At Q2

Thursday, July 25, 2013

 

UK economic growth accelerated in the second quarter as the whole sector expanding for the first time in nearly 3 years, which will increase the hopes of a sustainable recovery.

 

Based on initial estimates of the Office for National Statistics, UK GDP grew 0.6% in the April-June period. On an annual basis, the ONS preliminary estimate shows 2.4% growth rate.

 

Economic output also recorded the strongest expansion since the first quarter of 2011 to increase 1.4% higher compared to the 2nd quarter of 2012. However, the output is still 3.3% below its pre-crisis peak in the first quarter of 2008.

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News and Review of European Economic Zone (UK)

 

Limit weaker UK GDP Optimism Sterling

Thursday, July 25, 2013

 

Sterling slipped from position 1-month peak against the U.S. dollar rose after data showed an increase in new home sales in the U.S.. But depreciation Cable still constrained by expectations that growth figures scheduled to be released Thursday will show the economic recovery is underway. GDP data for the 2nd quarter is expected to show the UK economy grew 0.6% or 2-fold from 0.3% recorded in the first quarter.

 

"UK economic performance seems to be better than earlier this year. Sterling is likely to move higher, even if the GDP figures released in line with forecasts," said Craig Erlam, market analyst at Alpari.

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News and Review of European Economic Zone (Greece)

 

Greek Bailout Could Get Immediate Funds Disbursement

Friday, July 26, 2013

 

Greek parliament passed a new policy to immediately get a bailout disbursement is needed by members of the troubled euro zone. Parliament approved the new tax legislation and settlement reduction scheme of civil servants. In order to persuade members of parliament, Prime Minister Samaras stressed there will be no further austerity measures. Greek government coalition parties only have a slight advantage in parliament and is quite dangerous with widespread rejection of other MPs and the people of Greece.

 

Greece is expected to begin to get the next bailout fund worth € 5.8 billion on Monday. This includes € 2.5 billion from the EFSF, € 1.5 billion of bonds profits earned by the central bank in the euro zone, and € 1.8 billion from the IMF. If Athens can carry out economic reforms as planned then Greece could get another bailout disbursement of € 1 billion in October. EUR / USD is now trading 1.3273; near 5-week high level of 1.3294 was achieved yesterday.

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News and Review of European Economic Zone

 

Melt the Euro Zone Bailout Greece

Friday, July 26, 2013

 

Euro zone authorities reportedly just signed a new bailout for Greece disbursement of 2.5 billion euros ($ 3.3 billion). The amount is part of the bailout package that was loaned to prevent the country from bankruptcy.

 

Senior officials representing the forum of finance ministers held a teleconference euro zone to decide whether the country is eligible to receive advanced packages. The discussion centered on the principal himself all the obligations imposed on Athens, including any component that has been fulfilled. Besides receiving a 2.5 billion euro bailout, the country is likely also entitled to a profit of about 1.5 billion euros of bond buying program by the European Central Bank.

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News and Review of European Economic Zone (France)

 

French Consumer Confidence Improves In July

Friday, July 26, 2013

 

French consumer confidence is able to rebound in July, which is a further indication that the 2nd largest economy in the euro zone was in line to get out of the recession.

 

French consumer confidence rose to 82 in July from 79 in June, according to the national statistics bureau Insee. The survey results also indicate if the household looks more confident about their financial condition for the present and future, which encourages consumers more willing to make a major purchase.

 

The monthly consumer survey comes after a survey of business leaders at the beginning of the week, which showed an increase in confidence in July to its highest level since May 2012.

 

In a television interview earlier this month French President Francois Hollande has said that "the recovery started running", after GDP contracted for the second consecutive quarter at the beginning of the year.

 

While France Insee expects the economy will expand only 0.2% in the 2nd quarter of the first 3-month period in 2013, and recorded a contraction of 0.1% for the entire year 2013. Weak performance as it will not be enough to help curb rising unemployment Hollande, who became the government's main target for this year.

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News and Review of European Economic Zone

 

Juergen Stark: ECB May Need to Help French Soon Again

Friday, July 26, 2013

 

The euro zone debt crisis will be re-warmed towards the end of this fall, said former European Central Bank chief economist Juergen Stark in the German daily Handelsblatt on Friday, warning that we are about to enter a new phase of crisis management. A year after ECB President Mario Draghi said he would do "anything" to preserve the euro, Stark said he worried that the ECB may have helped France soon by buying government bonds.

 

Stark said the bond-buying program is expected to be needed by countries with large debt burdens such as Italy and Spain. "But the pressure will increase bond purchases done so well for France," Stark said in Handelsblatt. ECB may even be forced to mengakitfkan the program without the requirement of a strict fiscal reform program. This is in contrast to the emphasis of Draghi about bond purchases that requirement .

 

Stark is an important figure on the ECB and his resignation in 2011, which was rumored to have disagreements about the purchase of government bonds by the ECB, surprising many market participants. The ECB started buying government bonds in May 2010 after agreeing to provide emergency loans to Greece. Stark acknowledged that the speech by Draghi in London have calmed financial markets. "But I doubt that peace can last long," he said.

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News and Review of European Economic Zone (Germany)

 

Germany Still Wants Greece Run Savings

Monday, July 29, 2013

 

German Finance Minister, Wolfgang Schaeuble, said Europe must keep pressing Greece to carry out austerity measures. Schauble also affirmed the election does not mean delayed German crisis management. Greek development was monitored after the euro-zone bailout fund approved the disbursement of the next. German parliament only have until tonight to appeal the Greek bailout disbursement. "German election will not affect control of Greece," said Schaeuble told Deutschlandfunk radio.

 

In a magazine interview with Bild am Sonntag, Schaeuble denied the existence of a Greek debt write-bukuan Schaeuble said the government despite the euro zone will continue to support Greece. "Greece will get help as needed for Greece making a commitment," said Schaeuble. EU officials see Greek funding shortfall as much as € 3.8 billion for 2014. Policies that can be taken to overcome this may include the use of funds previously allocated to the banking, Greek government bonds for short-term, or provide more funds to Greece.

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News and Review of European Economic Zone (Italy)

 

Italian Business Confidence Rise in July

Monday, July 29, 2013

 

Business sentiment in Italy showed a sharp increase in July, by reversing the previous month, as the recovery in confidence in all sectors.

 

Reports the national statistics institute, Istat, show the composite index of business confidence, which includes domestic demand and construction services sectors, rose to 79.4 in July from 76.4 last month.

 

Manufacturing business confidence index rose to 91.7 in July from 90.5 in June, driven by growth prospects for orders and output, Istat added. In the manufacturing sector, the largest growth prospects donated by the companies that produce intermediate goods and capital needs and the needs of consumers. Companies engaged in the retail sector also showed strong confidence, referring to the Istat survey.

 

Positive data released Monday is in line with Italian consumer confidence data on Thursday, which managed to reach the highest level in more than a year in July as rising optimism of households to the economic outlook improved.

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News and Review of European Economic Zone (Spain)

 

Spanish Inflation Down to Down 2%

Tuesday, July 30, 2013

 

Economic conditions Spain had not yet stabilized in the second half of this year. Indication of the look of the release of the latest inflation report released by the Office of Government Statistics INE.

 

In the first estimate report for the period of June, Spanish consumer price index (already adjusted for the calculation of the EU) rose only 1.9% over the same period last year. The inflation rate was lower than the annual inflation record in July by 2.2%.

 

INE said inflation rate declines triggered by the lack of electricity price increases and medicine. European Central Bank is itself set an annual inflation below but close to 2% over the medium term. Meanwhile, if using the method Spain itself, CPI rose 1.8% in the month of July or lower than June's record of 2.1%.

 

* The euro exchange rate is now observed at the level of 1.32665 per dollar.

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News and Review of European Economic Zone (Germany)

 

GfK: German Consumer Sentiment Jumps to Highest Level 6-Year

Tuesday, July 30, 2013

 

Job prospects are strong and moderate inflation has pushed German consumer sentiment to its highest level of new 6-year, according to Germany's largest market research institute on Tuesday. This indicates that if private consumption will be the main driver of growth in Europe's largest economy for the year 2013.

 

German consumer sentiment index recorded an increase of GfK version for 7th month in a row, with the move to 7.0 in August from 6.8 in July. The highest level since September 2007 it managed to beat expectations for a slight rise to 6.9 from economists. economists' forecasts of a smaller increase to 6.9 points.

 

GfK also estimates private consumption, which accounts for more than half the GDP of Germany, will record growth of around 1% this year after adjusting for inflation as export and investment limited company.

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News and Review of European Economic Zone (Spain)

 

Spanish Economic Growth Trend Start Improved

Tuesday, July 30, 2013

 

Although contracted for 8 consecutive quarters in the second quarter of 2013, signaling that the Spanish economy can re-grow the economy in the near future, according to analysts. Gross domestic product (GDP) contracted by 0.1% in the second quarter from the first quarter, according to data released Tuesday. These data correspond Degnan and economists forecast a quarterly decline in a row to-8. Spain's economy contracted by 0.5% in the first quarter.

 

This data follows unemployment data and bank earnings were slightly more positive last week indicating that the ailing economy is now recovering. Virginie Maisonneuve, head of global and international stock markets at Schroders, said that the data are "very encouraging." "Even if we exclude seasonal factors, since Spain is a tourist destination, there are a number of advances in the export sector," he said. "Even as we are in the situation there is still very difficult. "

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News and Review of European Economic Zone (Germany)

 

Supporting Increased Economic Activity German Labor Market

Wednesday, July 31, 2013

 

German jobless claims unexpectedly declined in July amid accelerating growth in Europe's largest economy, according to data released by the Labor Department on Wednesday. Recent data also indicate that if the labor market continues to improve after starting this year with the weak.

 

German jobless claims fell by 7,000 in July after posting a decline of 13,000 in the previous month. While economists had expected jobless claims figures will not change.

 

German labor market continues to benefit from increased activity ekoonmi in the 2nd quarter, the Labor Department said the chief, Frank-Juergen Weise. The majority of economists, including researchers Bundesbank, remains optimistic that 2nd quarter GDP Germany will show strong growth after almost no growth in early 2013.

 

While the German unemployment rate in July was reported stable at close to record lows perched at 6.8%. German labor market is one of the strongest in the euro zone, where the unemployment rate has exceeded 12%.

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News and Review of European Economic Zone (Italy)

 

10-Year Yield Down, Investors bought up Italian bonds

Wednesday, July 31, 2013

 

Italy reached the maximum sales at 5-year bond auction and the annual 10 today as investors shrugged off the potential risks meperintah of former Prime Minister Silvio Berlusconi in a tax fraud case. Italy managed to sell 10-year bonds worth 3.75 billion euros (4.97 billion dollars) maturing in March 2024 at a yield of 4:46%, 4:55% down from last month at auction. Italy also sold bonds maturing in 2018 at a yield of 3.22%, down from 3:47% at auction on 27 June.

 

Investors buying 1:36 fold 5-year bond sold and 1:32 times the number of 10-year bonds, compared to 1:30 and 1:46 to prior sale. This sale may be supported by the payment of bonds maturing around 25 billion euro on the 1st of August. "On the whole, both the bond gets enough demand," said Annalisa Piazza, fixed income analyst at Newedge Group in London.

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News and Review of European Economic Zone

 

ECB Cuts Interest Rates Still Likely, Despite Improved Data

Wednesday, July 31, 2013

 

The improving economic sentiment in the euro zone added to evidence that the crisis in Europe were eased, according to analysts on Tuesday, but the recovery is still weak, providing space for the European Central Bank to cut interest rates this week.

 

In the euro zone, economic sentiment rose to 92.5 in July from 91.3 in June, slightly below economists' forecasts for 92.6, according to data from the European Commission. In the EU as a whole, the sentiment index rose to 95.0, continuing the upward trend since May, plus the European Commission, said sentiment will continue to "improve."

 

Despite the fact that the economic sentiment has reached a 15-month high in July, there's nothing encouraging about these data, said Jennifer McKeown, senior European economist at Capital Economics. "Survey of the European Commission in July adds to the evidence that the crisis in the region began to subside, but did not show a strong recovery," he said. "At least for now the economy is still very weak and the growth rate of money and loans are still not able to recover, the ECB should provide more monetary policy support," according to McKeown, ahead of the ECB policy meeting on Thursday.

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News and Review of European Economic Zone

 

Maintaining ECB Interest Rate Policy Unchanged

Thursday, August 1, 2013

 

European Central Bank on Thursday decided to keep its key interest rate unchanged at 0.5%, in line with economists' expectations. The ECB did not change interest rates other with abandon marginal lending facility rate at 1% and the bank deposit interest rates at 0%.

 

Anyways, the market players are still waiting for the monthly news conference ECB President Mario Draghi is scheduled to take place starting at 19:30 pm in Frankfurt. A press conference is expected to provide further clues about the potential cuts in interest rates or plan implementation of new policy measures. Draghi last month surprised investors and traders by saying that interest rates will stay low for an "extended period".

 

Previous Bank of England also meets market expectations by maintaining its key lending rate at 0.5% and the asset purchase target at £ 375 billion.

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News and Review of European Economic Zone

 

Investors Waiting Hints from ECB

Thursday, August 1, 2013

 

Signs of economic recovery in the euro zone ease pressure on the European Central Bank to take on a new policy, and on Thursday the ECB is expected to re-state that interest rates will remain at a record low for a longer time. The good economic data recently expected the ECB to support the recovery by the end of this year, although the policy options are still influenced by the market response to the Federal Reserve's plan to slash its economic stimulus program.

 

Last month the ECB react to market unrest triggered by the tapering of the Fed's plan to take a different policy and said it would keep interest rates at a record low for longer and may be re-trimmed. ECB officials on the individual's interpretation of the ECB rate varied instructions last month, however with jepala Bundesbank Jens Weidmann insisted that the ECB "is not fixed '. The result is the inisiatig unable to calm the market completely.

 

"There are a number of hassle this month," said Nick Matthews economist at Nomura, who expects the ECB will keep interest rates at a record low 0.5%, even though he saw the risk of cuts.

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News and Review of European Economic Zone (UK)

 

Factory activity in the UK Rises In Early Third Quarter

Thursday, August 1, 2013

 

Britain's manufacturing sector grew at its fastest pace in more than 2 years at the beginning of the third quarter and seemed to help the economic recovery is gaining momentum, according to survey results Thursday. Markit manufacturing PMI index / CIPS rose to 54.6 in July from a revised increase of 52.9 in June, expanding for 4 months in a row. This data was the highest since March 2011 and exceeded economists' estimates.

 

The latest signal that the UK economy is being menedekati prolonged growth will be the subject of the discussion Thursday sentrla bank, which will announce its policy decision at 18:00 pm later. Either can survive or not, the UK economy grew rapidly, with the International Monetary Fund predicts 0.9% increase in GDP this year, up from 0.2% in 2012.

 

Expansion of the manufacturing sector in July, which covers a tenth of the UK's GDP, driven by the sharp rise in the number of new orders and output since February 2011. Subindex for the number of new orders rose to 58.2 in July from 55.4 in June. The level of demand for domestic goods from within and outside the UK negerti including euro zone growth.

 

Additionally, the supply of goods has to be reduced at the fastest pace in more than 3 years, in accordance with the level of production in the coming months, according to Markit. "There is also a strong export component of this positive data, as UK manufacturing diuntunggkan by the highest growth in export orders in 2 years," said Rob Dobson, senior economist at Markit.

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News and Review of European Economic Zone

 

Draghi: The euro zone is already past the Worst

Friday, August 2, 2013

 

European Central Bank President Mario Draghi said that the signal indicator in the euro area economy is past the worst of the recession is the longest he has ever had, while he insisted that interest rates will remain at low levels for the foreseeable future.

 

"Indicators of the level of confidence has revealed a number of further improvements of the low level and while it confirms its forecast for stable economic activity in the euro area," Draghi said at a press konfernsi in Frankfurt after the ECB maintained its benchmark interest rate at 0.5% level. "Governing Council confirmed that they expect the ECB benchmark rate at the current level or lower untu longer period of time. "

 

Draghi said that even if the economy improves, "not an excuse" to raise interest rates. "ECB chairman tried to reassure investors that the central bank will not tighten policy too soon, as it did in 2011. Meanwhile manufacturing in the euro zone rose for the first time in two years in July and the level of business confidence improved for the third month, the cost of borrowing for firms and households fell to a record low in June.

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News and Review of European Economic Zone (Spain)

 

Unemployment in Spain Back Decreases in July

Friday, August 2, 2013

 

The number of unemployed in Spain fell in July from the previous month, decreased for 5 consecutive months, according to the Minister of Labour on Friday, boosted by seasonal factors including tourist holiday season. The unemployment rate fell by 1.4% in July, or sebayak 64.866 people, leaving about 4.7 million people unemployed, according to the data. This data following a quarterly survey of the National Statistics Institute reported an unemployment rate of 26.3% in the second quarter with 6 million people unemployed.

 

"From an annual perspective, the employment rate and the unemployment rate continued to pressure continues to increase, but not as before, and this refers to the change in trend. These data indicate the unemployment rate in the third quarter may be similar to the second quarter," said Estefania Ponte, director of strategic and economy at Cortal Consors.

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News and Review of European Economic Zone (UK)

 

UK House Prices Rise To Highest Level 5 years

Friday, August 2, 2013

 

Data from Nationalwide Building Society showed house prices in the UK for the month of July rose to the highest level in the last 5 years, and a rise in the 10 instead of straight. The data showed house prices rose 0.8% in July, from June, and home prices in July rose 3.9% higher than a year earlier. While economists predict home prices rose 0.4% in July, and up 3% from the previous year.

 

According to Robert Gardner, Chief Economist Nationalwide, rising house prices caused by increasing buyer confidence following the economic recovery combined with the support of government for funding and loan purchase scheme, which helps the availability of credit, and at the same time the inventory is still quite limited. The survey is in line with the level peniongkatan lending in the housing market, which is likely to foster concerns about the high price of homes in the UK.