News and Reviews European Economic Zone

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News and Review of European Economic Zone (UK)

 

Inflation Expectations Reduced By British Society

Friday, March 7, 2014

 

British public expectations for a rate hike in the next year despite rising inflation projections as they fell , according to a quarterly survey by the Bank of England on Friday . BoE inflation survey showed that 40% of the British public expected a rise in interest rates within the next 12 months , however, from 34 % in November and the highest level since May 2012 . However , inflation expectations for the next year fell to 2.8 % from 3.6 % and touched the lowest level in 4 years . Inflation expectations in 2 years and 5 years also dropped to its lowest level since August 2012 . Estimates of inflation is likely to strengthen the Bank of England's statement that the central bank is not in a hurry to raise interest rates .

 

The UK economy path to recovery faster than expected last year , making the BoE revise its policy guidance in February , and signaled no tightening of monetary conditions in the near future . Bersamaa with it , the BoE also signaled that the first rate hike will occur in the second quarter of 2015. A number of BoE officials have signaled that an interest rate increase may occur earlier if the pressure is greater than the estimated inflation or wage rate increases more rapidly than anticipated .

 

But the economy is still 1.4 % below the high level of inflation in 2008 and today's consumers are under the BoE's target of 2% , easing pressure on the central bank to raise interest rates . Kespektasi to rise with the increasing interest shown in the survey results signaled Friday BoE Governor Mark Carney must continue to assure the public that the BoE market and convenient to maintain the interest rate at a record low for longer.

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News and Review of European Economic Zone

 

Draghi : Risk of Deflation Will subside As Economy Recovers

Friday, March 7, 2014

 

European Central Bank President Mario Draghi signaled that the risk of deflation in the euro zone eased for now after a new forecast shows inflation will be close to the central bank's target by the end of 2016. " The data released since the last policy meeting mostly positive , " he told reporters in Frankfurt today after the central bank kept interest rates at 0:25 % . He also indicated that the financial markets are still under control at this time , which means reducing the need for emergency liquidity policy .

 

Draghi is facing the threat of deflation apda economy was recovering from a debt crisis that threatens the unity of the European Union is less than 2 years ago . The new projection ECB Draghi underlines the view that the euro bloc will avoid periods of declining prices in Japan such as the momentum of the economy grew stronger .

 

" We have been and still take the first step firmly on the side of monetary policy , " said Draghi . " Information received confirming that the modest recovery in the euro zone economy in line with our previous assessment . " Draghi said inflation would be around 1.7 % by the end of 2016, consistent with the ECB's target of annual price increases to ad below , but close to 2 % . The projection is more than double the inflation rate in February , while consumer prices rose by 0.8 %

[mynameisandhy]

News and Review of European Economic Zone (France)

 

French Minister of Finance : More Important Than Competitiveness Strengthening Euro

Monday, March 10, 2014

 

Competitiveness in France and Europe must be increased regardless of how strong the euro , French Finance Minister said on Sunday , responding to critics who blame a strengthening currency that reduce the level of exports of the French company . A number of French politicians and companies including automakers Renault and Schneider Electric's energy management companies in recent months to cast criticism on the impact of the strengthening of the euro against their profits .

 

" The euro is at a high level ... But we should not blame the currency , " said French Finance Minister Pierre Moscovici on BFM TV . " What should we restore the first time is the health of our companies , their competitiveness strengthening of the euro ... should not be a scapegoat or excuse for reform menhindar from Europe and France . "

 

Desifit French trade , which reached a record high of 74 billion euros in 2011 , is one of the signal loss perusahana French competitiveness in the international market . Although it has been narrowed since then , the data showed that the main cause is the level of exports fell less rapidly than imports . French Industry Minister Arnaud Montebourg has proposed a more aggressive emphasis on Europe and the European Central Bank to weaken the euro to boost the export sector .

[mynameisandhy]

News and Review of European Economic Zone (Ukraine)

 

Ukrainian PM : We Will Not Remove the Crimea

Monday, March 10, 2014

 

Arseniy Yatsenyuk , Prime Minister of Ukraine , said that he was not ready to let go of Crimea , regions of Ukraine which is currently at the center of tensions between Russia and the West . Crimea , which is now a part of Ukraine but most residents use the Russian language , will hold a referendum next March 16 to decide whether it would be part of Russia at risk of potential tension .

 

The threat of military conflict against the Crimea has become increasingly large this week , after Russian troops appear berseragan troops there . Russian President Vladimir Putin has said that the troops were local soldiers who have bought Russian uniform .

 

" No one would be aware of this referendum , may be different from North Korea , Syria , and Venezuela , " said Yatsenyuk . " I would like to explain as clearly as possible , the Crimea was , is , and will remain a part of the Ukraine . No waiver . Point . "

 

The U.S. and Russia seems to be at odds on Friday , after the White reiterated his desire to protect the Russian -speaking citizens of Ukraine , and U.S. President Barack Obama announced an asset freeze and visa ban on a number of Russian and Ukrainian nationals who allegedly threatened the sovereignty of Ukraine .

 

Yatsenyuk , speaking in Kiev , said a statement more optimistic when asked about the possibility of opening negotiations with Russia . He described the current situation is " not as bad as pekiraan and not as good to be achieved . " Yatsenyuk defend his government "legitimate " to charges of " fascist " from Russia . He served as Prime Minister in February following a protest in Kiev against the leadership of Viktor Yanokovych supported by the Kremlin . He said that the government supported by a majority of members of the Ukrainian parliament , and by the minority who do not usually become part of the Ukrainian government .

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

UK Retail Sales Slows in February

Tuesday, March 11, 2014

 

British retail sales slowed sharply in February after being strong in January as the level of stagnant food sales , according to industry survey on Tuesday . The British Retail Consortium ( BRC ) said the number of retail sales were 0.7 % higher than a year ago , after rising as much as 5.4 % in January, which is the largest increase in nearly three years . The level of consumer spending and the housing sector has been a major driver menjaid rapid economic recovery since last year , but Tuesday's data underlines the difficulty to achieve a high level before the recession in early 2008 .

 

" The overall rate of sales is quite flat , which recalled that the recovery is far from certain , " said David McCorquodale , head of retail at KPMG , who held a joint survey with the BRC . Home accessories , followed by furniture and flooring , is the best-selling sector , thanks to the recovery in the UK housing market is benefiting from the interest rates are at a record low and the scheme of the government .

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

UK Manufacturing Production soared in January

Tuesday, March 11, 2014

 

Plant production in the UK rose more than analysts expected in January in signs that the economic recovery get traction .

 

Factory production rose by 0.4 % from December , when production was revised up by 0.4 % , the National Statistics Office said today in London . The median estimate in a Bloomberg survey of 25 economists had called for a reading of 0.3 % growth . Industrial production , which was also among utilities and mining sectors , rose by 0.1 % , below estimates of 0.2 % , due to bad weather reduces production of oil and gas .

 

A strong recovery is underway in the UK , although there is still a risk of fragility in Europe , which is Britain's biggest trading partner , said BOE Deputy Governor , Charles Bean in a speech yesterday . Officials pledged to keep its benchmark rate at a record low of 0.5 % until at least the level of the unemployment rate , which is currently at the level of 7.2 % , down to 7 % .

 

Nine of the 13 sectors of manufacturing production increased , led an increase of 6.2 % in the production of products such as rubber and plastics , said the ONS . Downward pressure came from a decrease of 13.9 % in the production of pharmaceuticals , the biggest monthly decline since 1968 .

 

Bean said that a sustainable recovery will require a shift towards net exports , and a stronger currency " will not help " in facilitating economic balance , he said . Sterling has gained about 10 % since March . It is still about 25 % weaker than the initial price movements on monetary crisis .

 

He also said that the benchmark interest rate will probably settle in the range of 2 % - 3 % after officials began Rev of record low interest rates currently at 0.5 % level . Governor Mark Carney and its partners will be asked by MPs today over their forecasts for economic growth and the labor market .

[mynameisandhy]

News and Review of European Economic Zone

 

The European Union will soon impose sanctions on Russia

Tuesday, March 11, 2014

 

French Foreign Minister, Laurent Fabius, on Tuesday said that if the European Union will not remain silent in response to the crisis in the Crimea and plans to impose sanctions against Russia this weekend.

 

The sanctions will likely include an asset freeze and visa cancellation, according to Fabius in an interview with a local radio France Inter. Fabius hope the Russian government is willing to consider proposals Western countries to defuse the crisis in the Crimean peninsula, Ukraine, which is currently occupied by the Russian army.

 

Fabius also insisted that the referendum to be held this weekend in the Crimean peninsula, home to many Russians, is an illegal act.

[mynameisandhy]

News and Review of European Economic Zone

 

ECB 's Coeure : No Deflation in the Eurozone

Wednesday, March 12, 2014

 

There are no signs of deflation in the euro zone , although it is possible risk , said a senior European Central Bank on Wednesday .

 

" We did not see any signs of deflation in the euro zone , but we still see it as a possible risk . And we must be ready to act if the risk is realized , " said Benoit Coeure , ECB executive board member . Coeure added that the central bank still has a number of instruments that may be used to resolve the issue .

 

Eurozone inflation continues to sit well below the 2% target of the central bank for months has prompted concern about deflation , which is defined as the persistent downward trend in prices that threaten consumer spending and investment . While ECB President Mario Draghi has repeatedly said that there are no such signs in the euro zone .

 

The ECB itself has lowered its forecast for inflation this year to 1 % from last December are projected at 1.1 % . But the ECB is optimistic that inflation will gradually rise to 1.3 % in 2015 . Assuming a steady movement of the Euro , annual inflation is expected to rise gradually to 1.7 % by the end of 2016, getting closer to the ECB's target .

[mynameisandhy]

News and Review of European Economic Zone

 

Eurozone Industrial Output Decline in January Back

Wednesday, March 12, 2014

 

Industrial output in the 18 countries that use the euro currency registered a decline for the 2nd month in a row in January , which highlighted the fragility of the economic recovery of the Euro zone .

 

The European Union's statistics agency reports Wednesday showed output fell by 0.2 % from the month of December 2013 , although recorded an increase of 2.1 % from January 2013. The results dispelled 0.5% rise expected by economists .

 

However , the decline in output may be triggered fears European Central Bank even though they had expected the economy will still expand moderately over the next few years . Last week , the central bank economists project the economy will grow 1.2 Euro bloc % this year and 1.5 % the following year . At the same time the ECB also maintains policy unchanged , which signaled if policy makers start with the optimistic economic recovery and consumer prices would be able to grow without further assistance .

[mynameisandhy]

News and Review of European Economic Zone (Germany)

 

Bundesbank : Germany Will Return Growth Rate Increase

Thursday, March 13, 2014

 

Consumer spending will help drive the growth of the German economy this year and next year , according to the Bundesbank 's annual press conference held on Thursday .

 

" Germany 's economic growth rate is likely to increase again in 2014 and 2015 . Was due to the strong German economic conditions , " said the president of Germany's central bank , Jens Weidmann , referring to the low level of unemployment and wage increases . " The combination of these factors with low interest rates in the Euro zone has triggered development , particularly in the housing sector . "

 

Increased optimism in Europe 's biggest economy is good news for the euro zone as a whole , which is slowly beginning to show recovery from the 18 - month economic contraction .

 

German current account surplus , which measures the flow of trade and financial transactions with the rest of the world , is also likely to continue to increase in the future , the Bundesbank added .

 

Germany had previously drawn criticism from the U.S. and some European countries , which assesses if a surplus is created because Germany did not buy enough goods and services from other countries . The European Commission last year even special supervision of the German surplus , which has exceeded 6 % of GDP over the last 8 years . While Berlin itself has issued a rebuttal to the argument that the surplus is a result of the German exporters a competitive advantage

[mynameisandhy]

News and Review of European Economic Zone

 

ECB 's Knot : Risk of Deflation Very Limited

Thursday, March 13, 2014

 

President of the Dutch central bank on Thursday said that the risk of deflation in the euro zone is very limited and , if necessary , the European Central Bank still has sufficient policy instruments to counter the threat of decline in consumer prices .

 

" Low inflation has raised fears about deflation . However I do not think if we had approached the phase , " Klaas Knot said in presenting the annual report of the Dutch central bank . " The risk of deflation is still very limited . "

 

Last week ECB lending rate unchanged at 0.25 % and the deposit rate at 0 % , although annual inflation perched at the level of 0.8 % , well below the 2% target of the central bank . It has added to concerns that the Eurozone heading for a period of decline in consumer prices , similar to Japan is still struggling to overcome deflation for decades .

 

Knot Responding to such concerns , which became a member of the ECB governing council , said that what is lived Euro zone is not the same as Japan , due in part caused by the currency bloc's efforts in cleaning up the banking industry .

 

As well as high-ranking ECB's comments earlier , Knot also reiterated that the central bank will take action only using the traditional tools of monetary policy if inflation outlook changes .

[mynameisandhy]

News and Review of European Economic Zone

 

George Soros : Europe Gives Slight , but Many Ask

Thursday, March 13, 2014

 

The crisis in Ukraine businessmen seized the attention of the world, including billionaire George Soros . According to people who 've rocked Southeast Asia 's monetary system , Ukraine needs a donation from the United States to be able to recover.

 

Since former president Viktor Yanukovych resign from his position , the performance of government into the vacuum . Ukraine lost the vision of the economy and do not have a blueprint that has been piling up debt payments . Refusal to grant citizens of Russia makes the government should look for other sources of funding to avoid bankruptcy . The first option of course is to submit a proposal to the EU bailout , which most likely will be his new ally . Even so , this scenario is not set in stone because usually Germany and the European Central Bank gave the loan terms that are too heavy .

 

Investor George Soros look at the most feasible to donate large amounts to Ukraine is the United States . According to him , the government aid package for Kiev should be in sufficient number and structured as the concept of the Marshall Plan . Marshall Plan itself is a program of American aid to European countries whose economies are destroyed after World War II .

 

" The European usually just give a little ( aid ) , but a lot of demand , " said Soros in London a few hours ago . Soros even dare to predict that the assistance will be offered by the EU can be easily rivaled by the amount of donations the Russian bid . " ( Vladimir ) Putin could give more money , " he added .

 

In addition to the chaotic economy , Ukraine also shadowed the Russian military intimidation . For the short term , political assertiveness against Vladimir Putin should preferably although not necessarily through embargo or sanction certain . " U.S. response should not be penalized but could take the form of material aid such as the Marshall Plan , 'said Soros .

 

In 1947 , Secretary of State at the time, George Marshall made ​​a draft plan funding billions of dollars to countries of Western Europe . In addition to money , which sent aid after World War shaped foodstuffs , fuel and machinery for industrial use . The program that runs until 1951 has become the basis for the well-being of European citizens and the creation of NATO and the European Union .

 

The European Union is now ' only ' bold $ 15 billion pledged donations given over the next two years in the form of loans , grants , investments and trade concessions . While Americans are ready to provide loan of $ 1 billion and the World Bank infrastructure projects thrusting and social security valued at $ 3 billion . Thus even if accumulated , the total contribution of the three parties still do not meet the amount required by the government of Kiev , which total about $ 35 billion . " Ukraine willing to sacrifice just to get closer to Europe , and now is the right time to make it happen , " Soros closed .

[mynameisandhy]

News and Review of European Economic Zone

 

Draghi : Forward Guidance Probably Will Help weakening Euro

Friday, March 14, 2014

 

European Central Bank President Mario Draghi said that under the forward guidance might help weaken the euro and lower real interest rates , as well as reduce the risk that inflation will not return to the goals set by policy makers .

 

Guidance " can create a de facto easing of policy stance , as the real interest rate is set to move down over the projection has not reached the target , " Draghi said in Vienna yesterday . " At the same time , real interest rate differentials between the euro zone and around the world is likely to go down , so it will put downward pressure on the exchange rate , which all things being equal . "

 

Draghi gave additional comments after the monetary policy meeting last week when he said the euro gained since the year 2012 has been made ​​weak consumer prices . While the target for the exchange rate policy of the ECB , Draghi said that the level of the currency will become " increasingly relevant in our assessment of price stability . "

 

The euro gained about 6.6 % against the dollar last year and an increase of 6.9 ^ to a series berkemabng country's currency . The euro today fell yesterday after slipping 0.3% yesterday after a statement from Draghi . The euro had reached the level of $ 1.3967 yesterday , the highest level since Oktoberi 2011.

 

The economy is currently divided on whether the ECB will act to prevent further strengthening of the euro or not , is based on the Bloomberg monthly survey released yesterday . Twenty- one of 40 analysts analysts say that the ECB would hinder the strengthening of the euro , while the remaining 20 said that they would not hinder the strengthening of the euro , according to a survey done on March 7-12 .

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

Sterling Drops Post UK Trade Data

Friday, March 14, 2014

 

Sterling slipped from 1.66 area against the U.S. Dollar on Friday after the latest economic data releases indicate if the risk of faltering economic growth in the first quarter of this year.

 

Office for National Statistics report showed the UK goods trade deficit widened in January to £ 9.8 billion ($ 16.3 billion) from £ 7.7 billion in the previous month, following a drop in exports of products such as pharmaceuticals and aircraft.

 

The trade data was released following the disappointing reports from industry on Tuesday, which showed production expanded only 0.1% in January after rising 0.5% in December.

[mynameisandhy]

News and Review of European Economic Zone

 

Euro Weakness Continue The Asian Session

Friday, March 14, 2014

 

The euro continued weakness in yesterday's trading session in Asia today. Successful euro touched its highest level in more than two years yesterday on a direct hit by profit taking and declined sharply after European Central Bank President , Mario Draghi , said the central bank has prepared a supplemental policy to protect the economy from the threat of deflation . Draghi statement is slightly different from that rule out a statement last week saying the threat of deflation and inflation will grow gradually .

 

Speaking in Viena yesterday , Draghi said policy guidelines in the future is likely to help the weakening euro and lower interest rates , lower the risk of not achieving the inflation target of the ECB set . In monetary development policy meeting last week , Draghi said the euro since 2012 has held inflation remains low . In the past year the euro rose 7.2 % against the dollar .

 

Statement Draghi yesterday hinted at the existence of further monetary easing if inflation remains low , giving emphasis to the movement of the euro . EURUSD is currently trading lower in the range of 1.3860 to 1.3872 daily highs and lows 1.3855 .

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

Carney Will Use Strategy Mais Lecture

Monday, March 17, 2014

 

Mark Carney will release the results of a review of McKinsey & Co. . of the Bank of England tomorrow , using the platform used by his predecessor , the UK chancellor , and the Prime Minister to express his views . Governor BOE will hold the annual Mais Lecture at the financial district of London , an event held every governor of the Bank of England since more than 3 decades ago and heard the finance minister 's ambitions for the market and the economy . He will use the event to further a radical overhaul said the institution was more than three centuries it .

 

Carney , whose 49th birthday yesterday , will be the first outsider to lead the BOE . He broke down the BOE monetary policy framework last year before bringing consultants from the U.S. to help review the long-term strategy BOE . As he carries this reshuffle , he also maintains the reputation of being the BOE are entangled in the currency - rigging scandal . " Mais Lecture will be held during the existence of the city and monetary policy , " said Forrest Capie , who co- edited issue of the event. " The speech given by the previous governor was decisive central bank strategy . "

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

Osborne Hinting Support For UK Construction Sector

Monday, March 17, 2014

 

British Finance Minister George Osborne plan to boost the construction sector in the budget to extend the program - to- Order Help for new homes by 2020 and encourage the expansion of the commuter town in the southeast of London . England will increase the investment of 6 billion pounds ( 10 billion dollars ) in the program Help - to- Buy, which will allow people to buy a new house for 600,000 pounds with a deposit of 5 % , according to a statement yesterday Dep.Keuangan . This additional funding will encourage the construction of 120,000 properties , according Dep.Keuangan . Original development plan for the residential garden city in Ebbsfleet , Kent , reaching 15,000 homes .

 

"The people of Britain should have a home , " Osborne said in an interview yesterday . " An important part of economic security was able to buy my own house . " Two days until the budget statement on March 19 and 14 months before the election , Osborne broke the allegations of the opposition Labour party said that the government just pay attention to the rich in the society . He also admitted that while he saw as signaling a successful recovery , the UK economy must be balanced in order to overcome a reprieve .

[mynameisandhy]

News and Review of European Economic Zone

 

Euro Zone Inflation Revised Down

Monday, March 17, 2014

 

Eurozone annual inflation in February was revised down from the initial estimate , and returned to the level of October of 2013 that pushed Europenan Central Bank monetary stimulus .

 

Eurostat said the inflation or the consumer price index in 18 countries rose 0.3 % in February from January , and rose 0.7 % from February 2013. The inflation rate was revised down from an initial estimate released by Eurostat last month by 0.8 % . This revision provides an overview lebi decrease away from the ECB's target of 2.0% , and became the lowest level since October last year , at which time the central bank of the euro zone to cut interest rates by 25 basis points to 0.25 % to prevent deflation .

 

ECB repeatedly said they do not expect deflation , but they also recognize that low inflation is worrying . In recent weeks EVB focuses on the impact of the euro which suppresses the activity and import prices .

 

President of the ECB , Mario Draghi , on Thursday told the strengthening of the euro curb inflation in the Eurozone , provides a clear picture of the European Central Bank smenaruh attention to the strengthening of the euro that could damage the euro zone 's economic recovery is still fragile .

[mynameisandhy]

News and Review of European Economic Zone (Germany)

 

Germany Will Confirm Legal Certainty Euro - Zone Bailout

Tuesday, March 18, 2014

 

German Constitutional Court predicted today will provide confirmation of legal certainty euro - zone bailout scheme during the German parliament has oversight of the scheme . German Finance Minister , Wolfgang Schaeuble , believes the European Stability Mechanism ( ESM ) would not otherwise contrary to law . Analysts said the German court will not make a decision contrary to the decision initially . In 2013 , the court has decided the bailout scheme in accordance with the German Law for the parliament has a veto and can ensure the limited burden for the German population .

 

London University legal expert , Gunnar Beck , uttered the decision may also provide clues to the legality of ECB bond-buying program , OMT , which was considered instrumental in the fight against the euro zone debt crisis . However , Berenberg bank economist Christian Schulz , speak German court also probably would not say anything about the OMT program . Last month , the German court has thrown the legality of the decision to the European Court of OMT .

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

Mark Carney Remodel Planning Board Member BoE

Tuesday, March 18, 2014

 

Massive overhaul first time the Bank of England by Governor Mark Carney may change the number of board members interest rate policy , the head of market risk out Paul Fisher . Carney , who took office last year , has plans to replace the upper echelons assembled central bank 's financial market manipulation scandal allegations . He will give details of the plan in a speech Wednesday at 0:45 early morning , which includes creating the position of deputy governor who will be responsible for overseeing markets and banking services .

 

This new position , which increased the number of deputy governors to four , showing great strength possessed by the BoE in the UK under the financial regulatory reform since the crisis keiangan . Until now Fisher , who is the Executive Director of the Market , would be a prime candidate for the new position which meluputi most of its work today , though with greater responsibility and are one level higher in the hierarchy of the BoE .

 

Nmaun download BoE has suspended an employee of the month in an internal investigation against the employee who accidentally let the signal manipulation London currency markets that reach 2.1 trillion dollars per day . There is no evidence of foul by Fisher , who was previously a manager in - suspended employee , but he kept pressed by a parliamentary committee last week about his role in the financial markets mengawai . Fisher betting is quite high , considering his position on the Monetary Policy Committee - where he is one of the officials who favor additional stimulus to the UK economy of post - financial crisis ended in May.

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

BOE Appoints New Deputy 3 To Accompany Carney

Tuesday, March 18, 2014

 

The Bank of England on Tuesday appointed three new senior officials to join with the central bank , including to fill up the post of Deputy Governor for Monetary Policy .

 

Ben Broadbent will take over as Deputy Governor of the BoE start date of July 1, 2014 . He will be responsible for research and analysis to support the decision of the British economy in the Monetary Policy Committee . Broadbent will also lead the MPC in the case of Governor Mark Carney absent . The Bank of England also oust Anthony Habgood to serve as Chief Justice and Chairman of the Judicial Oversight Committee , which is tasked to review the process and BoE policy actions . While Nemat Shafik has been appointed as Deputy Governor for Markets and Banking .

 

The addition is done as Deputy Governor of the BoE threatened entangled in the investigation of the case of forex , with Governor Carney last week had said that the bank will appoint a new senior officials to tighten internal controls .

[mynameisandhy]

News and Review of European Economic Zone (Greece)

 

Secure Greek Bailout Next Disbursement

Wednesday, March 19, 2014

 

Greece finally reached an agreement with its international creditors to get the next disbursement of bailout funds in late April. The deal will certainly be able to afford to make Greek bonds worth € 10 billion, which will be due in May. It also raised expectations that Greece could soon return to the bond markets slumped after the financial crisis since 4 years ago.

 

This is certainly good news for Prime Minister Antonis Samaras will face European and Greek elections in May. Samaras is now under pressure to convince the Greek people that there is a better future after tightening dramatically in recent years. Samaras has promised there will be no additional austerity policies and incentives promised € 500 million for the poor.

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

Osborne Will Keep Focus On Tightening Budget Agenda

Wednesday, March 19, 2014

 

George Osborne , the finance minister of Britain , is expected to continue to focus on the agenda of tightening the budget announcement Wednesday . Osborne may turn to next year's general election , which is expected in May , where his Conservative Party , which is currently partnering with the dominant Liberal Democratic Party in a coalition government , hoping to win a majority of votes . Under his leadership , the economy began to grow more than expected , and the unemployment rate has dropped faster than expected . This time the budget is expected to enter data and the improvement in the fiscal deficit of the UK debt profile and a more optimistic outlook for growth . Not as usual , not much given to the media leaks to date .

 

However, there is still a little anxiety about the tightening of fiscal pressure , and Osborne may have to re- tighten the budget after the election - if he is re-elected . " We suspect that the outlook for monetary and fiscal policy is much more uncertain than indicated by the budget and the minutes , " Citi economists said . " Most of the UK's fiscal tightening plans scheduled for after the elections in the spring of 2015, and the risk of political impact as the election approaches

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

UK Unemployment Rate Stable At 7.2 %

Wednesday, March 19, 2014

 

As per estimates , the unemployment rate in the UK has not changed and remains steady at 7.2 % in the 3 - month period to January , with the jobless claims figures showed back in February , according to the Office for National Statistics ( ONS ) on Wednesday .

 

The number of British people who filed applications for unemployment benefits fell by as much gain of 34,600 in January , compared with expectations for a decline of 25,000 . The latest data is likely to still support the Bank of England to maintain its policy guidelines , which set a threshold unemployment rate of 7% to consider a rate hike .

 

Meanwhile on Wednesday, the BoE meeting minutes released in March , which showed all 9 members of the Monetary Policy Committee voted to keep policy unchanged . In a March 6 meeting of the Bank of England decided to keep interest rates at a record low of 0.5 % and a total purchase of assets worth £ 375 billion ( $ 622 billion ) .

[mynameisandhy]

News and Review of European Economic Zone

 

Turned Euro Weakens on European Session

Thursday, March 20, 2014

 

The euro traded lower against the dollar , after a rebound in Asian session . Currency in 18 European countries fell sharply yesterday after the Federal Reserve cut its monetary stimulus and updating the guiding policy .

 

As expected by market participants , the Fed decided to cut back monetary stimulus of $ 10 billion to $ 55 billion per month , as well as change its policy guidelines . Limit unemployment rate of 6.5 % which is typically used as a guideline to raise interest rates is removed , instead the Fed will use a variety of economic indicators .

 

Fed Chairman Janet Yellen said interest rates will likely rise six months after the monetary stimulus is stopped . It is much faster than market expectations , making the dollar jumped sharply . In addition, most Fed officials predict interest rates will be at least equal to 1 % at the end of 2015 , and will be 2.25 % a year later .

 

Philadelphia manufacturing activity data and second home sales U.S. today has the potential to further depress the euro if released on estimates or higher .

 

EURUSD is currently trading at around 1.3785 , 1.3843 away from daily highs .