News and Reviews European Economic Zone

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News and Review of European Economic Zone (Portugal)

 

Fitch Ratings revised the Outlook Portugal Being Positive

Friday, April 11, 2014

 

Fitch Ratings has revised the outlook Issuer Default Ratings (IDRs) of Portugal to positive from negative, saying that Portugal has been significant progress in menmbuat cut its budget deficit. Fitch also warned that Portugal's economy was recovering and revised projected growth rate for Portugal to 1.3% in 2014 and 1.5% in 2015, from 0.5% and 1% previously.

 

"Portugal's fiscal funding conditions have improved since the previous Fitch rating review in October 2013 and the government had regained market access effectively," said Fitch Ratings. Fitch maintains ratings of Portugal IDRs at 'BB

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News and Review of European Economic Zone (UK)

 

Osborne Defends Economic Recovery Britain

Friday, April 11, 2014

 

British Finance Minister George Osborne defended the strong growth rates in recent English as a justification of pengetatannya program has been criticized by the International Monetary Fund last year . Osborne , who attended the spring meeting of the IMF in Washington this week , said the bank is getting healthier and well thought out plan to fix public finances is important to re- grow after the financial crisis .

 

" In the UK , the condition is happening , and our economy has been growing faster than other G7 countries last year and is currently estimated by the IMF for the same results in 2014, " he said . " It is manifest so despite warnings from some parties that the target of our economic plans have made it impossible . " " All this shows fiscal consolidation and economic recovery at the same time , and press the pessimistic view that the only additional fiscal stimulus that can trigger a prolonged growth , " he said .

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News and Review of European Economic Zone

 

Industrial Output Block Euro Experiencing Slight Improvement

Monday, April 14, 2014

 

Industrial output across the 18 - nation euro currency users noted a slight increase in February , although there are still many member states in the south are suffering from a decline in production .

 

Continued moderate expansion of the industry highlights the weakness of the Euro zone recovery , forcing the European Central Bank policymakers to consider new measures to fight the period of very low inflation .

 

Report of the European Union's statistics agency Monday showed industrial output in February grew by 0.2 % , with the annual rate also showed an increase of 1.7 % over the previous year . These figures cover is still in line with expectations . In the same occasion Eurostat also revised up the numbers in January to no change from initial publication showed a decrease of 0.2% .

 

The increase in output was , however , can increase the confidence of the members of the ECB governing council that they expect moderate growth will be realized this year . But they also need to be aware of the signs of continued weakness in consumer demand , which indicates if inflationary pressures will remain weak .

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News and Review of European Economic Zone

 

Domestic Demand Still Weak Euro Zone

Monday, April 14, 2014

 

The rate of industrial production in the euro zone improved in February, although the rate of production in some South European region decreased.

 

Overall expansion of industrial sector still showed moderate weakness in the Euro zone recovery. Industrial output rose 0.2% in the report of the previous month and grew 1.7% over the same period last year.

 

The increase in industrial output is likely to convince the ECB officials that moderate growth is expected to occur this year will soon appear. However still looked signal weakening consumer demand, an indication that the potential inflationary pressure is still weak.

 

The euro zone has to rely on exports to continue the recovery rate since Q2 2013, but the pace of domestic demand is still weak. In addition, the competitiveness of export products on the world market is increasingly threatened due to the strengthening of the Euro exchange rate.

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News and Review of European Economic Zone (UK)

 

House Prices in London Rise To Record High In April

Monday, April 14, 2014

 

House prices in London rose to a record this month as rising home values ​​in all but one of the 32 districts of the capital , according to a report from Rightmove Plc .

 

UK house prices in the capital rose by 3.6 % from March to an average of 572.348 pounds ( $ 958,000 ) , taking advantage of a year ago , which rose nearly 16 % , the site operator said in a report that is sent via email today . Across England and Wales , home values ​​rose by 2.6 % to 262 594 pounds , is also an all-time record high , amid sluggish sales of property in the region of southern England .

 

The housing market in the UK has been triggered by strong economic growth , borrowing costs are at record lows and government incentive programs . In London , where many buyers are wealthy and foreign investors seek safe assets , it has fueled the demand , so it has increased the price of the house and tjuga pretext has contributed to rising home prices in the suburbs of London , Rightmove said .

 

" At the time of the rise of growth since October 2007 in the city of London , its impact has been made ​​of the capital as a buffer area in the south began to catch up . " Said Rightmove director , Miles Shipside in a report . " But with enough supply in the southern strip , may be slightly dampen the rise in house prices in the region . "

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News and Review of European Economic Zone (Portugal)

 

Portugal : The ECB will Remove Aggressive Policy

Tuesday, April 15, 2014

 

European Central Bank ( ECB ) is struggling to combat the problem of low inflation and stagnant economic growth . Various start strategies presented on the table , including the injection of stimulus discourse .

 

Although many criticized the failure of the ECB to raise prices at the consumer level , there is still a representative of the Euro zone are optimistic Mario Draghi and colleagues were able to resolve this issue . One of them was Maria Luis Albequerque , Minister of Finance of Portugal . According to him , the ECB will issue a super- loose policy in the near future . Mary believes the central bank's board of decision-makers were able to spawn an idea to bring changes in the Euro zone . " We're just waiting for the details of the program alone , " said Mary told CNBC . Even so , he cautioned that the central bank was cautious in making policy for the economic conditions of each country are not the same . " Euro member countries do not face the same problems and challenges . , But I 'm sure the ECB is able to resolve the problem , 'said Mary .

 

Trend is still overshadowing the economic slowdown after the euro zone debt crisis three years ago . The central bank has not successfully address these challenges despite monetary easing perform a variety of strategies . For that reason , the European Central Bank ( ECB ) indicated their willingness to adapt a longstanding policy in the United States . The combination of negative interest rates and the printing of new money into a last resort to boost inflation in countries using the single currency . Mario Draghi seems no longer allergic to mimic the strategy of the Federal Reserve Bank after they implement various programs failed to see the results . However, the new stimulus actually disbursed if the slowdown is still visible indication at next month's meeting of the central bank .

 

Pressure to launch an economic stimulus more prominent after inflation data for the euro zone fell to 0.5 % (March ) or the lowest level since November 2009 . Though the central bank to target inflation rate of 2% is ideal near to medium term . The slow process of rising prices severely hampered efforts to accelerate the economy in most countries . On the other hand , the latest purchasing managers' survey showed that the trend of economic recovery continue and expand for nine consecutive months . But in order to continue to operate , companies and factories were forced menunrunkan sale price for consumers to buy products not yet fully recovered . The decline in spending power of European citizens in line with the euro zone high unemployment , which has reached a record high of 12 % .

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News and Review of European Economic Zone

 

Draghi worrisome strengthening euro

Tuesday, April 15, 2014

 

Draghi patience against the euro began to fade .

 

" Strengthening the exchange rate would require further monetary stimulus , " said European Central Bank President Mario Draghi told reporters in Washington on April 12 . " It is an important dimension to our price stability . "

 

The warning was on the mark with the tough stance taken by Draghi since he and his fellow policy makers began to complain about the rise in the euro in early March . With inflation being a quarter of the ECB's target , the currency rose almost 6 % against the dollar in the past year , it has been endangering the stability of the prices with cheap imports and exports injury .

 

Euro this afternoon slipped 0.5% to $ 1.3825 at 17:05 pm . The currency has appreciated by 1.3 % in the last week .

 

Rhetoric increases , it also echoing other ECB officials , are made in the theme of the weekend meeting with the IMF and the World Bank with global policy makers use to urge European officials to tackle weak before price inflation turned into deflation like the Japanese style .

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News and Review of European Economic Zone (UK)

 

UK Inflation Slows to Lowest Level Since October 2009

Tuesday, April 15, 2014

 

UK inflation rate slowed to its lowest level in more than four years last month , falling further below the target of the Bank of England and relieve pressure on the living standards of English society .

 

As expected UK consumer prices grew at an annual pace of 1.6 % in March , the slowest since October 2009 . Figure is also lower than the 1.7 % growth that is inscribed in February . Office for National Statistics said that the largest contribution to annual inflation rates decline in March comes from motor fuel , clothing and furniture .

 

The data also narrow the gap between inflation and average growth to the smallest level since April 2010 . Wage last time England recorded consistently grow faster than inflation in mid-2008 , the ONS added .

 

Reduced price pressures have supported the view that the BoE will maintain accommodative monetary policy for the time being , without having to face the risk of igniting inflation as the economic recovery . Most markets predicted the BoE 's first rate hike will occur in the 2nd quarter 2015 .

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News and Review of European Economic Zone

 

Dual position of Supervisor , Legal Eligible ECB Banks Naughty

Wednesday, April 16, 2014

 

European Central Bank ( ECB ) will be a super - power in the organization structure of the banking industry supervision in blue continent . Under the new banking rules , the agency 's chairman Mario Draghi has the authority to punish banks that ' naughty ' .

 

ECB member and Deputy Governor of the Central Bank of Ireland , Cyril Roux , said last moment when it becomes official later European banking supervisor , the ECB is not authorized to impose sanctions on individuals who violate the rules . However, this agency has the power in the punishment to banks that violate EU regulations . Not only that , the ECB also has the right to impose sanctions on financial institutions that are smaller than private banks .

 

" Punishment and the process will vary , but the approach taken by the ECB and the central banks of each country more or less the same , " said Roux told the media crew . ECB official will indeed hold a dual role as monetary authority and banking supervisory Europe in the near future this year . EU governments are doing administrative processing and dissemination to the industry prior to this ruling applies .

 

The main purpose of granting authority to the ECB bank supervision is to tighten the space of speculation and abuses in this sector . EU members agree not to repeat the mistakes that led to several state system bankrupt and was forced to accept bailout funds . " Not only for Ireland , ECB supervision would mean a lot to all members of the euro zone and the European Union , " said Roux .

 

Prior to his new assignment was inaugurated , the ECB called on all banks in Europe to carry out a stress test or endurance test in the fall of this year . The goal is to determine the financial status of each bank and the extent to which they can survive in the midst of a systemic crisis scenario like that hit the U.S. and Europe a few years ago . After that , the ECB will provide specific recommendations as well as provide oversight for banks balance sheet less than ideal conditions . " Private banks should be able to record 8pc capital adequacy for normal scenarios and 5.5pc in the middle of a crisis situation , " said Roux .

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News and Review of European Economic Zone (UK)

 

Sterling Look forward Labor Data

Wednesday, April 16, 2014

 

In three days last seen stuck in sterling 1.6725 area , and in Asian trade this morning the British currency against the dollar has not moved much . Traders seemed to await jobs data to be released in the UK this afternoon .

 

In trading Tuesday steling daily lows it touched 1.6655 before eventually recovered and ended flat after UK inflation data corresponding market expectations of 1.6 % . The inflation data , and the continued increase in house prices in the UK to make a rate hike expectations the Bank of England in the next year is still maintained .

 

Employment data and the unemployment rate of the UK which will be released today will be a " test " for the rate hike expectations . Reuters survey showed UK unemployment rate in the three months that ends in February fell to 7.1 % from 7.2 % , approaching the limits set by 7.0 % BOE . While the estimated number of unemployed decreased 30,000. If the data released sesuasi potential to strengthen sterling expectations .

 

GBPUSD is currently trading at around 1.6722 with daily highs and lows 1.6718 1.6733 .

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News and Review of European Economic Zone

 

Mighty Euro Deflation Despite German pressure High Enough

Thursday, April 17, 2014

 

The movement of various currencies relative tinged with minimal weakening dollar due to profit taking ahead of the long holiday Easter investors , while the euro jumped above 1.3850 despite the additional evidence of deflationary pressures in Germany

 

German PPI inflation rate reported -0.3 % 0.0 % below expectations , as well as a third consecutive month wholesale prices tend to be flat or even negative . German PPI index is now at the level of -0.9 % YoY indicating deflationary pressures not subsided . Nevertheless euro currency remains strong and break above resistance level 1.3850 .

 

Strengthening of the euro reflects that investors are pessimistic enough if the ECB can take out a policy to respond to deflationary pressures as central banks still tend to be passive while hoping the region 's economic recovery to be able to pull out of the euro zone economy deflation trap .

 

Therefore the Euro zone PMI report next week will be key to the expectations of the ECB monetary policy response . If the PMI index showed improvement of the ECB is likely to remain passive , otherwise if the PMI index fell then Mr . Draghi and ECB council members will likely take more accommodative policies .

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

Sterling Continue Dominance Against Dollar

Thursday, April 17, 2014

 

Sterling continued its dominance against the dollar after a report showed UK unemployment rate in the three months to February fell below market estimates . While the dollar is under pressure from Janet Yellen statement remains committed to retain its accommodative policy to support U.S. economic recovery .

 

Office National Statistics on Wednesday reported a British unemployment rate down to 6.9 % from 7.2 % in the three months ended January. The unemployment rate in February was the lowest since 2009 , and below market estimates of 7.1 % , and the Bank of England under the limit of 7.0 % .

 

While the dollar under pressure after the Federal Reserve chairman , Janet Yellen , affirms its commitment to remain accommodative , and asked investors to pay attention to a variety of U.S. economic data to see when the Fed will start raising interest rates .

 

Yellen said the U.S. central bank focuses on the gap between the current level of unemployment and low inflation , the unemployment rate and the Fed's price stability is desirable . The level of U.S. unemployment is still at 6.7 % or 1 % of the desired full employment by 5.2 % Fed - 5.6 % , while the inflation rate is still more than 1 % below the Fed's target of 2% . Yellen said the U.S. economy took two years to achieve the target .

 

GBPUSD is currently trading at around 1.6834 1.6793 away from daily lows .

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News and Review of European Economic Zone

 

EU Consumer Price Slows , Increasing Risk of Deflation

Thursday, April 17, 2014

 

Consumer prices in the 28 member EU grow at the slowest pace in a 4 ½ - year period during the 12 months to March . Which indicates that the slowdown in the rate of inflation also hit other European countries , not only the countries of the euro currency users .

 

Report of the European Union's statistics agency , Eurostat , on Wednesday showed consumer prices in the 18 countries that use the euro currency rose 0.9 % from February and 0.5 % higher than March 2013 . Such results confirm the initial estimate released late last month , and is the lowest annual rate since November 2009 .

 

Meanwhile, core consumer prices , which do not take into account food and energy prices are volatile , re- printed touched a record low in December 2013 with slipped to 0.7 % last month from 1.0 % in February .

 

Eurostat also said that the annual inflation rate in the EU , which includes 10 countries nonusers euro , fell to its lowest level since October 2009 to 0.6 % from 0.8 % in February .

 

The European Central Bank policy makers have repeatedly said that they did not expect the occurrence of a prolonged period of falling prices in the currency bloc . However, they admitted that very low inflation rate has raised concerns about the dangers of deflation , and start focusing on the appreciation of the Euro which has weighed on prices of imported and activities

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News and Review of European Economic Zone

 

Stimulus Speculation ECB Shoot for Value Bonds Europe

Friday, April 18, 2014

 

Drove European government bonds rose, with Italian and Irish bond yields hit a record low, as the outlook for additional stimulus from the European Central Bank bonds lead to higher demand for the European region. Portuguese 10-year bond yields fell to the lowest since 2006 thaun and Spanish bond yields fell to a level not reached since 2005 after a report showed eurozone inflation rate stood at 4-year low and a decrease in the level of investor confidence in Germany amplifies the signal that the recovery is being hampered. Investors buy bonds as a transition from a developing country in the middle of anxiety in Ukraine, less than 2 years after ECB President Mario Draghi noted the need to provide ongoing support pledged for debt burdened European countries.

 

"Fundamental to the current bond positive," said Paresh Upadhyaya, director of currency strategist at Pioneer Investment Management Inc.. in Boston. "ECN seems to ease policy further, either conventionally or not konovensional, as the inflation rate is still very low."

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News and Review of European Economic Zone (UK)

 

Survey : Increase in UK House Prices Will Continue

Friday, April 18, 2014

 

The majority of homeowners in the UK are hoping prices stay where they are going to continue to rise in the next 12 months , based on the results of a survey released on Friday . Which is raising concerns that the lack of inventory of homes for sale will further inflate the price of affordability British society .

 

Held monthly survey of real estate agents Knight Frank and Markit showed house price sentiment index rose to 62.7 in April from 61.5 in March . This index is calculated by subtracting the number of respondents who predict home prices will fall in the number of respondents who predicted otherwise .

 

" The housing market is gaining momentum in most areas of the UK , " said Grainne Gilmore , head of Knight Frank residential research . " Strong price growth occurred in several areas including London and the Southeast, either triggered by a lack of supply for a new home or a second home . "

 

Although house prices continue rising potential , the Bank of England remains optimistic that the implementation of new rules on mortgage loans starting this month will be enough to stop the risk of a bubble in the housing market . But the employment numbers in the UK which has reached a new record high in the period of 3 months to February , demand for homes will drive the price still seems to move higher .

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News and Review of European Economic Zone (Italy)

 

Italian Industrial Orders Decline in February

Friday, April 18, 2014

 

Italian industrial orders decline in February as falling domestic and overseas demand. Which highlights the fragility of the economic recovery 3rd largest in the euro zone.

 

Italian industrial orders slumped 3.1% in February, reversing most of the 4.8% rise in the previous month, according to the national statistics agency Istat reported Friday. The decline largely triggered by the fall of 4.4% in overseas orders, followed by a decline in domestic demand of around 2.2%. While at an annual rate, orders increased 2.8%.

 

Matteo Renzi PM Government has approved a plan proclaimed the new economy that aims to boost domestic demand, including tax cuts of € 10 billion is likely to be announced on Friday.

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News and Review of European Economic Zone (UK)

 

European Market Holidays , Sterling Still Tough Near the Top Level 4 Years

Monday, April 21, 2014

 

Still her off to welcome the Easter European markets made ​​currency trading tends to be quiet , look sterling traded in a narrow range against the dollar , but still near its highest level in four years .

 

In the last week noted the strengthening of sterling managed two consecutive weeks against the dollar after the UK unemployment rate unexpectedly dropped significantly . National Statistics Office on Wednesday ( 16.04.14 ) reported the UK unemployment rate in the three months ended February fell to 6.9 % from 7.2 % in the three months ended January. The unemployment rate in February was the lowest since 2009 , and below market estimates of 7.1 % , and the Bank of England under the limit of 7.0 % .

 

The data of the unemployment rate tightening speculation the Bank of England will soon raise interest rates , which makes solid sterling is still near its highest level in four years .

 

GBPUSD is currently trading at around 1.6799 , with daily lows 1.6781 , and 1.6817 high .

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News and Review of European Economic Zone (Ukraine)

 

The situation in Eastern Ukraine is still unstable

Monday, April 21, 2014

 

At least three people were killed in shootings in Slaviansk , one of the cities in the eastern region of Ukraine which is controlled by the pro - Russian separatists . It can sinyalkan situation in eastern Ukraine is still unstable despite U.S. , Europe , Russia , and Ukraine , has compiled an agreement in Geneva to ease the turmoil in the region . Both Ukraine and Russia blaming others for the shooting . Separatists say gunmen from a group of Ukrainian nationalists have carried out the attack . However , the group rejected the allegations as he uttered the Russians were behind the action .

 

If the deal fails to ease the turmoil Geneva this could worsen relations with Russia West . The U.S. and Europe have uttered would give further sanctions if it does not improve the situation in Ukraine . On the other hand , Russia still reviewing a military option if residents do not get a pro - Russian Ukrainian government protection . The market is also concerned with the potential disruption of Russian oil and gas exports to the EU as a result of the situation .

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News and Review of European Economic Zone

 

Anxiety ECB Still haunted Euro

Tuesday, April 22, 2014

 

Euro lay near a 2 week low against the dollar on Tuesday and weakened against the yen , as expectations that the ECB will try to stop the further strengthening of the euro kept investors away from the single currency . European Central Bank President Mario Draghi is scheduled to give an important speech in Amsterdam on Thursday . He has recently been asserted that the strengthening of the euro may be triggered monetary easing from the central bank . The euro traded flat near $ 1.3800 after falling to a low level of 2 weeks at around $ 1.3785 , the low volume as traders returned from the Easter holiday .

 

Investors also await the euro zone PMI data on Wednesday while the monthly German business sentiment data from the IFO will be released later . Last week , the German ZEW monthly poll showed analysts and investor sentiment fell for the fourth consecutive month in April due to the crisis in the Ukraine , and a series of other bad data can add to the pressure on the ECB to ease policy .

 

" Euro / dollar has the possibility of weakening bais this week ahead of the German IFO Data and speech from Draghi , " said Yujiro Goto , currency analyst at Nomura . " The weakening will be limited , as investors await inflation data next week . " Eurozone inflation rate is very weak , partly due to the strengthening exchange rate , has added to the pressure on the ECB to re- loosen monetary policy to stimulate growth . In recent weeks Draghi has made currency back into focus and warned that further gains can be made ​​using the euro zone central banks unconventional policy tools such as asset purchases .

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News and Review of European Economic Zone (UK)

 

Merger and acquisition news Supports Strengthening Sterling

Tuesday, April 22, 2014

 

Sterling back crawl up to a near four- year high against the dollar , buoyed by news of asset sales activity beberepa company .

 

Glaxo Smithkline obtain cash inflow of consensus with drug manufacturers from Switzerland , Novartis . Capital flows from the sale of a major business unit of Vodafone in the U.S. is said to be one reason for the strengthening of sterling in the first quarter . Britain is said to have benefited from the many mergers and acquisitions activity is .

 

Besides expectations of economic recovery will push the Bank of England to raise interest rates in the first half of next year remains a focus for sterling to continue to strengthen. Minutes of the last meeting of the BOE who will dirlis Wednesday will give you an idea of ​​the BOE plan that is likely to raise interest rates before the UK general election in May 2015.

 

Meanwhile the U.S. today will release a second home sales are estimated at 4.75 million units . Release data better than expected chance of correcting sterling which seemingly began limited gains . But otherwise if released worse -than-expected mengguat sterling will likely retest 1.6840 area .

 

GBPUSD is currently dipedagangkan in the range of 1.6820 , 1.6784 away from daily lows .

[mynameisandhy]

News and Review of European Economic Zone (France)

 

French Manufacturing and Services Sector Slows More Than Estimated

Wednesday, April 23, 2014

 

The pace of growth in manufacturing and services sectors of France slowed more than economists forecast this month as new business is stagnant and declining levels of employment . PMI factory sector activity fell to 50.9 from 52.1 the previous month , according to Markit Economics in London today ni . Economists expect the PMI to be at 51.9 . Index above 50 indicates expansion and the French had penetrated the level in March for the first time in 2 years . Service sector index fell to 50.3 in April from 51.5 in March , also lower than economists forecast . The combined index for both service and manufacturing industries fell to 50.5 from 51.8 , Markit said .

 

" Strong recovery in private sector output France loses momentum in April , " said Jack Kennedy , economist at Markit senior . " Hinnga we see any drastic changes in the level of trust , the business climate still seems to be fragile . "

 

The report also showed that business optimism dropped to a 11 -month low and factories both service providers and cut the price in a faster pace . It may sedikti relieve anxiety among officials of the European Central Bank regarding the euro zone inflation rate , which is currently less than 0.5 % of their targets . According Surey PMI input price inflation in the private sector of France fell to a low of 9 months with " only a fractional rise in costs . " Prices charged by companies fell the most in three months , according to composite index .

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News and Review of European Economic Zone (Germany)

 

German Business Activity Rises in April

Wednesday, April 23, 2014

 

Private sector activity in Germany accelerated in April, with service providers and manufacturers to report the occurrence of output growth.

 

The results of the initial survey showed German composite PMI, which includes the manufacturing and service sector activity, rose to 56.3 from 54.3 in March. The results achieved by following a rise in the manufacturing PMI to 54.2 in April from 53.7 in March, and the increase in services PMI to 55.0 from 53.0 last month.

 

"The combination of increased activity and new orders and employment growth is sustainable, both in the manufacturing and services sectors, indicate if the companies in Germany will continue to be in expansion mode for the next few months," said Oliver Kolodseike, an economist at Markit.

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News and Review of European Economic Zone (UK)

 

Manufacturing Business Confidence British Actors Top Level Touch 40 Years

Wednesday, April 23, 2014

 

According to the Confederation of British Industry, the level of confidence for UK manufacturing businesses hit its highest level in 40 years, gives an overview of the UK's economic recovery continues to increase momentum in recent months.

 

Based on a survey of more than 400 manufacturing businesses, the proportion of larger companies are optimistic that 33% of companies are pessimistic, the figure is the highest quarterly result since April 1973. Optimistic the company will order from higher domestic than foreign orders .

 

The data added to signs the UK's economic recovery continued growth in the first quarter of this year. The manufacturing sector accounts for a tenth of the UK's economic growth. UK GDP data in the first quarter will dirlis on April 29.

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News and Review of European Economic Zone

 

Draghi Warns Back Euro Higher Value

Thursday, April 24, 2014

 

Speaking at De Nederlandsche Bank Conference 200 years : Central banking in the next two decades , in Amsterdam , the President of the European Central Bank , Mario Draghi , said the euro exchange rate becomes " important factor " in monetary policy and could lead to additional stimulus measures . Draghi said the exchange rate was not the target of monetary policy , but policy measures are likely to result from the impact of the continued strengthening of the euro currency .

 

" The increase in the exchange rate , as a whole , implying tight monetary conditions , reducing inflation and potentially threaten the ongoing economic recovery . If that happens , it will trigger the policy -making steps to maintain the current accommodative stance "Draghi said .

 

Regarding the low inflation in the region , Draghi said worsening inflation outlook in the medium term is likely to lead to widespread asset purchase program . All members of the ECB also said to agree to use unconventional kebijkanan to face the threat of deflation .

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News and Review of European Economic Zone

 

Ahead of Stress Test , Investors Ask European Banks Immediately Increase Capital

Thursday, April 24, 2014

 

The banks of continental origin of blue is facing new challenges in the banking and financial industry . Stress tests to be carried out by the European authorities ( ECB ) in the near future will determine the perpetrators of the banking business in the future .

 

Investors worried about the durability of the banks ahead of the stress test will be held in the near future . Shareholders of these banks put pressure on the board of directors in order to increase the liquidity post graduation ensure compliance with the endurance test . One of the institutions that are required to immediately manambah capital reserve is Deutsche Bank . The biggest German bank will not automatically qualify for a stress test because, according to various sources , the post is not very solid balance sheet . It is also experienced by Credit Suisse and Barclays , which in the last two years has been under the supervision of the government of each country .

 

Several high profile investors who own shares in these banks pleaded not satisfied with the response of directors in addressing regulatory demands . In addition to heading the capital are still lacking , some banks still have to undergo a legal process for various cases of irregularities in the past . Investors asked for financial companies to immediately inject new funds into cash each stress test because the news had raised concerns in the market . " I did not say the company's position is not good . However clear that directors must immediately raise the amount of capital due to current belief has been deteriorating , " said one of the 20 largest investor Deutsche Bank told CNBC .

 

As reported earlier , the European Central Bank ( ECB ) will be a super - power in the organization structure of the banking industry supervision in blue continent . Under the new banking rules , the agency 's chairman Mario Draghi has the authority to punish banks that ' naughty ' . But before it is directly under the ECB , the banks must pass the stress test that was held by the respective supervisory authorities and the European Union .