News and Reviews European Economic Zone

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News and Review of European Economic Zone

 

Eurozone Business Activity back stretch

Monday, August 5, 2013

 

For the first time since January 2012 the Euro zone business sector activity returned to growth in July, adding to evidence that the economy is hit by the crisis is stabilizing after a long recession.

 

Markit report showed a composite index, which is calculated based on a poll of corporate executives of manufacturing and services sectors, rose to 50.5 in July from 48.7 in June.

 

The increase was driven by growth in manufacturing beyond slight contraction in the service sector. Factory activity in Germany, the economy as well as a major exporter of euro zone, showed the best performance in 18-months.

 

"PMI is released on Monday again reinforce signs of economic growth in the euro zone beginning at the start of the 3rd quarter, adding to hopes that the region eventually able to move out of the longest recession," said Rob Dobson, senior economist at Markit.

 

But the unemployment rate remained at near record highs and government austerity measures to retain control their debt, any economic recovery will likely take place only moderate and still potentially slowing back.

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News and Review of European Economic Zone

 

PMI Data Supporting Performance in Early European stocks Week

Monday, August 5, 2013

 

The majority of European stocks traded higher earlier this week, after a series of service sector data block 17 indicates a solid-state stable economic recovery.

 

Germany's DAX and CAC40 French perched the green zones, with each pack increase 0.2% and 0.4%. Similarly, the British FTSE terpapresiasi 0.2% in the first 2 hours of trading.

 

Euro zone service sector PMI rose to its highest level since January 2012 to 49.8 in July. As expected, the strongest growth in the services sector are shown by Germany to rise to 51.3 last month. Acceleration of service sector activity also recorded Italian, with up to 48.7 in July from 45.8 in June. While the French service sector activity capable of touching 11-month highs with up to 48.6 from 47.2 in June. While the Spanish service sector is still shrinking, albeit at the slowest pace since 2011.

 

Market sentiment was also quite amused by Chinese economic data at the end of last week, which showed non-manufacturing PMI rose to 54.1 in July. The data is at least able to reduce the negative impact of U.S. July employment figures are worse than expected on Friday.

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News and Review of European Economic Zone (Italy)

 

Economic contraction Italy subside in Q2 in 2013

Tuesday, August 6, 2013

 

Italian economy contracted less than expected in the 2nd quarter of 2013, with only shrank 0.2% from the previous 3-month period. These results triggered by slightly declining activity in all sectors, according to the national statistics agency, Istat, on Tuesday. At an annual rate, Italy's GDP contracted 2.0% from the same period in 2012. Data on Tuesday is also getting closer to the Italian economy contracted nicks 8 consecutive quarters.

 

Economists in a previous survey estimates that Italian GDP will record a 0.4% quarterly decline and shrank at an annual pace of 2.2%.

 

Italian coalition government under the leadership of Prime Minister Enrico Letta recently predicted if the economy will begin to re-experience moderate growth in the 2nd half of 2013, supported by record low interest rates on sovereign bonds issued by the Treasury this year.

 

"In the 3rd quarter and 4th this year we will finally be able to see a positive GDP, which may also be marking the end of a recession," said Secretary of Labor, Enrico Giovannini, in a radio interview on Tuesday.

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News and Review of European Economic Zone (UK)

 

The British Industrial Sector Momentum Gains

Tuesday, August 6, 2013

 

Increased production and industrial plants in the UK in June has pushed the sector scored the strongest quarterly performance in more than 2-years, based on an official data released on Tuesday.

 

Office for National Statistics report showed industrial output rose 1.1% in June compared to May, and 1.2% higher than a year ago. Production of the manufacturing sector also grew 1.9% in June and 2.0% stronger on an annual basis. But the ONS said that if production figures released today will not affect the estimate of Q2 GDP which amounted to 0.6%.

 

Economists had expected industrial output to rise 0.6% at the monthly level and 0.8% at an annual rate, with manufacturing output registered a growth of 1.0% on a monthly basis the annual fund.

 

The latest figures also support the view of the government, which saw the manufacturing and industrial sector more competitive as the key to economic rebalancing plan that aims to shift the economy from dependence on consumer spending and the financial services sector.

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News and Review of European Economic Zone (UK)

 

Weather Factor UK Retail Sales Boost

Tuesday, August 6, 2013

 

Value of total retail sales (retail sales) in the UK rose 3.9% in July 2013. While sales per store (same-store sales) also rose 2.2% thanks to the influence of the warm weather conditions in the country.

 

Growth in retail sales (monthly) as a whole is the fastest since July 2006, as stated by the British Retail Consortium (BRC) and HSBC. "In addition to weather factors, the manufacturers competing to provide services and discounts to consumers. Thing it managed to hoist the retail sales figures in the middle of the year," explained BRC.

 

Summer make residents increased buying interest especially for clothing and food products. In essence, the more consumers 'pocket money' when the weather is warmer than in previous months. What is unique is the contribution of the tools and sports equipment to total retail sales. Andy Murray wins at Wimbledon tennis tournament and also raise the prestige of some brands supporting the champions. Even if there are not only a decrease in total sales via online as much as 7.9% or turned dramatically compared to the total increase in July of 2012 which reached 15.6%. Exchange rate GBP / USD is now seen at 1.5350 per dollar level.

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News and Review of European Economic Zone (UK)

 

Sterling soars Post BoE Inflation Report

Wednesday, August 7, 2013

 

Policy guidance for the Bank of England has prompted investors to start considering the potential of rising interest rates, which catapulted Sterling to a 1 ½-month highs versus the U.S. Dollar. Inflation in the first quarterly report under the new governor Mark Carney, Bank of England confirmed if the rate hike will not occur before the unemployment rate fell to 7% in at least 3 years. But if the majority of market participants believe the unemployment rate will go down faster than the central bank's projection, given England a solid set of data recently.

 

"The target set BoE unemployment is still higher than market expectations. Market has the perception that the economic recovery will push up interest rates more quickly," said Paul Robson, currency strategist at RBS. Robson added that from now on will depend on the appreciation of Sterling strong UK economic data, particularly employment data.

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News and Review of European Economic Zone (UK)

 

UK Economic Recovery Spreads, But Still Slow

Wednesday, August 7, 2013

 

BoE Governor, Mark Carney, said the UK's economic recovery is being expanded but still lower than the pre-crisis period. "The new economic recovery now underway in the UK, and appears widespread. GDP is not expected to reach pre-crisis levels as the time until the next one year from now, this means that the recovery was still slower than the output "Carney said.

 

BoE estimates that the annual economic pertimbuhan will reach 2.6% in the next two years, the prediction is improved compared to three months ago when the BoE predicts annual growth rate of 2.2%. A series of economic data better than predicted a few weeks ago has raised hopes the UK economy will continue to strengthen after stagnating in the last two years.

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News and Review of European Economic Zone (Germany)

 

German Industrial Output Jumps in June

Wednesday, August 7, 2013

 

German industrial production surged in June, raising hopes for stronger economic performance of Europe's biggest on the 2nd quarter after posting a bad start this year.

 

Industrial output rose 2.4% in June from May, while noting a decline of 0.8%, according to the Economy Ministry reported Wednesday. The figure also surpassed the 0.3% rise expected by economists.

 

"German industry seems to have been able to go through periods of weakness and the latest indicators continue to signal a continuation of a positive trend," the Economy Ministry said in the report.

 

Production of capital goods also rose 4.1% in June, which supports the growth expectations of the company's investment. Previously, domestic investment in machinery and equipment has suffered pernurunan since the 4th quarter of 2011.

 

Solid data released today in line with the data released on Tuesday, which the German manufacturing orders recorded an increase of 3.8% in June, driven by a surge in orders from the Paris Air Show.

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News and Review of European Economic Zone (Germany)

 

German Exports Rise in June

Thursday, August 8, 2013

 

Trade balance data from Germany released today showed an increase in June from the previous month. German trade surplus for June was 15.7 billion euros, compared with a revised surplus in May amounted to 14.6 billion euros. German exports in June rose slightly by 0.6% from May, but down 2.1% from the previous year.

 

Exports were the key economic growth in Germany which is the largest economy in the euro zone fell 0.6% in the period January to June compared with the previous year. While the Germans imports fell for the first time in four months. German imports in June down 0.8% from the previous month, and down 1.2% over the previous year.

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News and Review of European Economic Zone (France)

 

French Industrial Output Drops Sharply

Friday, August 9, 2013

 

French industrial production data released for the month of June, which are surprisingly sharp anjok. French Bureau of Statistics said industrial output fell in almost all sectors. Industrial production in the country with the second largest economy in the euro zone fell 1.4% from May, while economists expected French industrial production would rise by 0.3%

 

The decline in May following a fall of 0.3%. The report is in contrast to the optimism of the French government's economic recovery will be French. Frabcois president Hollande said in July last today is the recovery. Overall during the second quarter of French industrial production increased by 1.4% from the previous quarter, and 0.2% from the same period in the prior year.

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News and Review of European Economic Zone (UK)

 

British exports Touching Record in Second Quarter

Friday, August 9, 2013

 

UK Statistics Bureau reported British exports in the second quarter of 2013 reached a record high. The data provide evidence of English was recovering after the economic stagnation since a few years ago. Exports of goods and suit England reached 43.2 billion pounds (467.02 billion) in June, is the highest level recorded since 1998.

 

Exports reached a record high of GBP26.9 billion, and exports to non-euro zone countries also reached a record GBP14.2 billion. Exports in March until June, touched a new record at GBP127 billion. Bureau of Statistics said the increase in exports was driven by exports of aircraft, aircraft parts and artwork. Balance of trade deficit narrowed to GBP1.5 billion in June from the previous month at GBP2.6 billion. Another report also mentions construction output in the second quarter rose by 1.4% compared to the previous quarter.

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News and Review of European Economic Zone (Italy)

 

The Italian Debt Load Swelling

Monday, August 12, 2013

 

Bank of Italy some time ago announced that the national debt increased by 600 million euros ($ 800.19 million) in June 2012. Thus the total value of Italian debt has now reached 2,075 billion euros, thanks in part to increase the amount of liquid assets held by the finance ministry.

 

As published by the Bank of Italy, the share of liquidity held by the finance ministry is one component of the burden of national debt amount from the accounting point of view. Liquidity is used by the government is used by the government to finance public administration. The central bank also said that the tax revenue up 21.5% to 46.3 billion euros compared to June of 2012.

 

In the first six months of this year, the value of public debt rose as much as 86.5 billion euros. This surge reflects the country's budget deficit or often referred to as sector-state budget requirement and the accumulated liquidity owned by the finance ministry. The central bank has not given any hints about strategies to reduce the burden of debt that piled up to the equivalent of 130% of total national GDP. The euro exchange rate is now observed at the level of 1.32905 per dollar.

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News and Review of European Economic Zone

 

Thousands of European Bank Office 'disappeared' swallowed Crisis

Monday, August 12, 2013

 

At every occurrence of 'Armageddon' in the world financial system, the banking industry has always been the first sector that suffered a severe blow in its balance sheet. This is possible because the consequences of the damage usually leads to instability of the financial markets post investment banks, particularly those based in developed countries. The most authentic examples of the close business ties and dynamics of the bank's operations in the financial world was at the time of the 2008 crisis and the European debt crisis two years ago. Banks and many investment-based business unit that went bankrupt and if they can survive, it must be through government intervention via the bailout program.

 

Chain crisis hit European financial markets even forced some banks to save their existence upside down. One of the most popular strategy is to reduce the number of branches with no other major purpose uadalah ntuk reduce spending. According to statistics of the European Central Bank (ECB) reported by Reuters, as many as 20,000 bank offices in the EU cap since the crisis hit in 2008. For the past year alone, as many as 5,500 branches, equivalent to 2.5% of total EU representatives of commercial banks 'disappeared' so only due to central policy.

 

If you look in the mirror on the number of bank branches were closed in 2011 (7.200 locations), the closing rate last year including smaller. But of course it is not a phenomenon which is encouraging because it means many banks are still struggling to save expenses. Influenced by factors in addition to expenses, closing branches also caused by the transition to a system of online governance and servicing via telephone.

 

In the last four years up to 2012, European banks have cut the total number of branches as much as 8%. Now the number of branches 218 687 or stay on average then one branch serving 2,300 customers. Banks in countries with severe crises dominate the list of branch closures, led by Greece, with a reduction ratio of 5.7% to reach office. A total of 210 branches is eliminated because the banks in the country opted for merger with similar companies that can still exist in the financial industry. Trend is predicted to continue closing offices this year especially when referring to the negative effects arising from the crisis in the neighboring country, Cyprus.

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News and Review of European Economic Zone (Greece)

 

Greece Still Negative Economic Growth Record

Monday, August 12, 2013

 

Greece confirmed the country's economy slowed again in the second quarter of 2012. Recent data indicate contraction gods country reached 4.6% compared to the second quarter last year.

 

Greece was treading recession for sixth year in a row due to budget cuts stuck in a program and agenda of national debt reduction. In the first quarter of this year Greek contraction rate is 5.6%. Slowing the rate of decline is in line with analysts' forecasts, where the economy is believed to have turned positive in 2014.

 

After the first official entry in the phase of recession, the unemployment rate in Greece jumped to 27.6% (data May) marked the highest record in modern history. In just one month, the ratio of people without jobs increased by more than half a percent of 27% in April. The biggest concern at the high number of residents pursed young age (15-25 years) who do not have a fixed income, the ratio reached 65%. Rate calculation includes calculation of absorption in the human resources during the holiday season, where Greece is one of the most in demand tourist destinations in Europe.

 

While the number of people who lost their jobs have gone up almost 200,000 to a total of 1:38 million people in the last 12 months. In total over the past 5 years, the escalation of the crisis has led to 1 million people in the category of unemployed.

 

Greece has been experiencing an economic slowdown since 2010, after being forced to reap loans worth a total of 240 billion euros from the European Union and the International Monetary Fund (IMF). Disbursement of stimulus effects proved unable to boost state revenue post in the last two years. IMF predicts even Greece will still be short of funds to 11 billion euros in the next two years because of the burden of their mortgage debt greater than their economic earnings. The euro exchange rate is now observed at the level of 1.32947 per dollar.

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News and Review of European Economic Zone (Germany)

 

Germany Denies Report on Greece

Tuesday, August 13, 2013

 

The German government has denied reports that Greece will need an additional bailout early next year. German Finance Ministry does not know anything about the documents obtained Bundesbank magazine Der Spiegel wrote that "Europe will approve a new bailout program for Greece and the bailout program now has a high risk." Der Spiegel also reported that the approval of disbursement of bailout funds for Greece in July last more political.

 

Germany still believes the policy reforms undertaken by Greece and this is reflected in the Greek economic data. "Latest reports indicate Greek troika perform well reform program. Programs bailout Greece now last until 2014. Now I can not speculate on what will happen next year," said Martin Kotthaus, spokesman for the German finance ministry. The euro fell sharply yesterday after the Der Spiegel report back to investors worried about Greece.

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News and Review of European Economic Zone (Spain)

 

Spain Consumer Inflation Rate Up 1.8%

Tuesday, August 13, 2013

 

The level of consumer prices in Spain rose 1.8% to an annual rate in July, according to data from the National Statistics Institute on Tuesday, compared with 2.1% in June and in line with economists' forecasts. Annual inflation eased in July from a month ago due to lower price increases for drugs, housing, and transportation this year compared with the same month in 2012, according to statistics institute. The price level of harmonization with the European Union belong to Spain rose 1.9% from last sethaun, down from 2.2% in June and also fit economists' estimates. Core inflation rate, in addition to the price of food and energy, at the level of 1.7% to an annual rate, compared with 2.0% a month ago.

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News and Review of European Economic Zone (UK)

 

Workforce Data and BoE Minutes Being Hints Interest Rate Outlook

Wednesday, August 14, 2013

 

UK unemployment data and the Bank of England policy minutes will be the focus of the market on Wednesday as it can put pressure on the commitment of the new BOE governor Mark Carney to lower interest rates. Carney said last week the BOE will not raise interest rates until the unemployment rate fell to 7%, and the data on Wednesday and the minutes will give you a hint how fast those levels can be achieved, and disclose whether all BOE officials support this commitment.

 

Most economists expect the unemployment rate in the three months to June will be stable at 7.8%, and the number of jobless claims in the month of July will go down as much as 15.999, slightly lower than in June. However, these data are difficult to predict, Meksi signal that companies hire new employees in the fastest pace since 2007.

 

Refers to data that volatile monthly unemployment rate from April to May, Deutsche Bank economist George Buckley said the unemployment rate in the second quarter may rise to 8.0%, breaking a long-term downward trend. "The data this week could be worse than expected," he said, adding that in the long run he expects the unemployment rate will probably reach 7% by the end of 2015, a year earlier than expected BOE.

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News and Review of European Economic Zone (France)

 

French Exit From the Canyons Recession

Wednesday, August 14, 2013

 

Increased domestic demand successfully pushed the French out of the economic recession. French GDP grew 0.5% in the second quarter of 2013; better than expected 0.2% and the publication of the first quarter contracted 0.2%. 2 largest economy in the euro zone before experiencing negative economic growth in the last quarter of 2012 and first quarter of 2013 that indicate recession. The euro rose after the news was released. EUR / USD is now trading 1.3273; trying to stay away from daily lows 1.3252

 

Enough French GDP fluctuated between low growth, stagnation, and contraction in the last two years. But the newly released GDP data showed the presence of a trend change considering this is a behavior of economic growth was the highest since early 2011. Consumer spending and government spending each rose by 0.4% and 0.5%, although the rate of investment fell 0.1% in the second quarter.

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News and Review of European Economic Zone

 

Euro Zone Exit From Recession Records Longest

Wednesday, August 14, 2013

 

Economy in the eurozone began to recover from the longest recession on record for the second quarter, led by Germany and France, the first time amid sustained period since the onset of the financial markets calm the debt crisis.

 

GDP figures in the 17-nation euro zone rose by 0.3% in April-June after contracting by 0.3% in the previous three months, the European Union stasitik Agency said today in Luxemburg. The results exceeded the median forecast for 0.2% growth in the Bloomberg News survey of 41 economists. From the previous year, the economy shrank by 0.7% in the second quarter.

 

Germany and France, two countries with the largest economies in the eurozone, both showed expansion faster than expected in the second quarter. While the overall outlook has improved, the recession has pushed the unemployment rate to a record, and most of southern Europe is still mired in crisis, with more than half of young people in Spain and Greece stops working.

 

"This shocking increase shows that the existence of a fundamental improvement in the euro zone as exports have weakened the strength of contractions in Spain and Italy and spur growth in the core countries, especially in France," said Ricardo Santos, seoran economist at BNP Paribas SA in London . "We have to wait much longer to see any improvement in the labor market, but it shows that the worst part of the recession may be over."

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News and Review of European Economic Zone (UK)

 

Pound Raised Up, Sustained Retail Sales Report

Thursday, August 15, 2013

 

The pound rose to its highest level in eight weeks against the dollar after a report showed UK retail sales rose in July than economists predicted, adding a signal that the economic recovery began to gather speed.

 

Sterling rose for a fifth day against the euro, reaching the strongest level in six weeks. Retail sales including fuel rose by 1.1 percent from June, when in June rose by 0.2 percent, the National Statistics Office said. Previous economic predictions will only increase by 0.7 percent. Meanwhile bond yiel England's 10-year little changed.

 

"Restoration England runs konsistem with all the data that came out recently," said Adam Cole, chief currency strategist at Royal Bank of Canada in London. "We generally still look bullish for sterling."

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News and Review of European Economic Zone (UK)

 

UK Unemployment Rate 7.8% Persisting in Level

Thursday, August 15, 2013

 

UK unemployment rate in the second quarter at the level of 7.8% survive amid signs that the labor market began to improve as the economy gained momentum gains.

 

The unemployment rate is a standard measure by the International Labour Organisation (international labor organization) is unchanged from the first quarter, the national stasistik Agency said today in London. The results according to the median forecast of 30 economists surveyed by Bloomberg News. Jobless claims fell twice that predicted in July.

 

Bank of England Governor Mark Carney last week in unemployment to make the focal point of the monetary policy for the first time BOE refrain from raising interest rates until the unemployment rate fell to 7%. Prime Minister David Cameron believes that the benchmark interest rate at 0.5% which survived a record low will spur job creation in the private sector as government workers to help trim the budget deficit memperkceil.

 

"That is a good number," said George Buckley, chief UK economist at Deutsche Bank AG in London. "We think the risks ahead for the unemployment rate will fall faster than the BOE thought, and today's figures show that risk."

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News and Review of European Economic Zone (Netherlands)

 

Quarter II, Dutch Glued in bondage Recession

Thursday, August 15, 2013

 

Euro zone countries diverse economic growth in the second quarter of 2013. This morning gross domestic products (GDP) grew 0.5% France reported in the second quarter of 2013 or better than expected (+0.2%) and the ratio of the first quarter contraction of 0.2%. Thus the state officially separated from the recession phase.

 

Unfortunately the French slick performance is not followed by other countries which today released a similar report, the Netherlands. Windmill country still stuck in recession in the second quarter of last year amid high unemployment. Gross domestic product fell 0.2% Dutch first quarter of this year also marks the contraction for four consecutive quarters, as reported by the statistics bureau CBS. However, the slowdown ratio is better than the record contraction in the last quarter to reach 0.4%.

 

In the midst of the current economic advancement euro zone countries, the Netherlands is still bound by the recession, which has hit over 2 years. Damage in the housing sector has been transmitted to all other sectors including domestic consumption. Export lines declined 0.8% compared to a year ago, while domestic consumption fell 2.4% and the rate of investment fell 9.4%. On the other hand, the unemployment rate jumped from 8.5% to 8.7%. The euro exchange rate is now seen at 1.3264 per dollar level.

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News and Review of European Economic Zone (UK)

 

Retail Sales Data catapulted Sterling

Friday, August 16, 2013

 

Sterling surged to 8-week high against the U.S. dollar after UK retail sales growth that topped forecasts, adding to evidence the economic recovery of the UK and supporting expectations of tightening monetary policy earlier. Retail sales grew 1.1% in July from the previous month, higher than expectations of 0.6%. The data are also consistent with several previous positive data as house prices rise, spike activity and an improving outlook for service sector jobs market.

 

"The data today (Thursday) with a consistent set of data that has been released before," said Adam Cole, head of G10 foreign exchange strategy at Royal Bank of Canada in London. "Overall we are still bullish with Sterling."

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News and Review of European Economic Zone

 

Eurozone current account surplus down in June

Friday, August 16, 2013

 

Eurozone current account surplus declined in June amid shrinking trade surplus in the region, at the point in the data from the European Central Bank on Friday.

 

The surplus in the trade balance, which is a measure widely in a financial position to the international economy, fell to 16.9 billion euros ($ 22.45 billion) after a decline in the month of May which was revised to 19.5 billion euros. Data adjusted for seasonal effects and take into account the number of working days per month.

 

The euro area recorded a trade surplus of 11.8 billion in June, down from an upwardly revised 18.3 billion euros in May. The data showed that exports in the region more than the imports, which in theory is supposed to provide support for the economy in the euro zone.

 

Global demand is still volatile which redundantly restrain export growth, suggesting that domestic demand will continue to play a role in the recovery of the euro zone.

 

The EU statistics agency said Wednesday that the combined GDP of the 17-country euro area has increased by 0.3%, higher than the first three months of this year, largely driven by strong domestic demand from Germany and France.

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News and Review of European Economic Zone

 

Related Comments Mighty Euro Bundesbank

Monday, August 19, 2013

 

Euro soared against the U.S. dollar due to the German central bank's comments stating that guides monetary / forward guidance provided by the relevant ECB interest rates low for a longer period is not a commitment that does not depend on economic conditions.

 

Bundesbank also said that the German economy is likely to slow down again until the end of the year after showing a brilliant performance in Q2 2013.

 

Pairing EURUSD soared on the Bundesbank's comments interpreted that low interest rates may not last long as the original post is expected from the ECB's Draghi comments.

 

ECB itself Bundesbank declined to comment on the report, but the report ECB Peter Praet who is chief economist at the central bank also said it is matching the guide depends on the ECB's monetary outlook of price stability the central bank.

 

So far the pairing EURUSD climbed 0:12% at the level of 1.3343, after reaching its highest point at 1.3374 and intraday lows at 1.3315 daily.