News and Reviews European Economic Zone

[mynameisandhy]

News and Review of European Economic Zone

 

Greek Labor Market Recovery Still Slow

Thursday, August 7, 2014

 

Greek unemployment rate remained above 27% in May, despite a slight decline from the previous month. Which indicates if the labor market recovery is still moderate in the middle of the emergence of signs of economic activity.

 

Greek statistics office reports, Elstat, showed the unemployment rate fell to 27.2% in May from 27.3% in April.

 

Until now Greece was still grappling with the recession that has lasted for 6 years, which has resulted in a decrease in economic output and unemployment surges to record high.

 

Since peaking approximately 28% in the past year, the unemployment rate Greece has shown a gradual decline. But the latest figures released Thursday still far above average unemployment rate of the Euro zone, which is perched at 11.6% in May. With about 1.3 million people do not have jobs, the unemployment rate is still the highest Greece in Europe.

[mynameisandhy]

News and Review of European Economic Zone

 

As per estimates, the ECB Maintain Interest Rate Policy Unchanged

Thursday, August 7, 2014

 

The European Central Bank on Thursday maintain policy interest rates unchanged, amid weak inflation and re terperosoknya one euro zone's largest economy into recession. ECB to hold its key rate at a record low of 0.15%, and the deposit rate at -0.1%.

 

Policy decisions today have been estimated market participants following a series of new measures the ECB introduced two months ago, which has made the ECB as the world's major central banks are adopting a negative deposit rates. The ECB has also launched a new loan package 4-year tenure for the banking sector, where the first two stages will be offered in September and December with an initial volume available around € 400 billion ($ 534.6 billion).

 

In recent weeks several ECB policymakers have signaled that they would not rule out further steps, but they want to see in advance the extent to which the measures have been launched impact on financial markets and the economy.

[mynameisandhy]

News and Review of European Economic Zone

 

ECB's Draghi: Geopolitical Risk Triggers Can Be ECB QE program

Thursday, August 7, 2014

 

ECB President Mario Draghi acknowledged that increased risk associated Eurozone economic recovery from the conflict in Ukraine.

 

According to Draghi, the escalation of geopolitical, and economic development in emerging countries and the global financial markets has the potential to cause adverse effects on economic conditions. The statement was issued after the ECB's Draghi set to not change the benchmark interest rate at a low level.

 

The challenges facing the Euro zone 18 member states are now increasing, after Italy turned into a recession, while the tension between Russia and the United States and European Union alliance to escalate its worst condition since the cold war era. Draghi had commented earlier in case of an external shock to the economy that could endanger the outlook for inflation should the central bank would be the trigger for the ECB to undertake a program of asset purchases, or quantitative easing.

 

At this time the ECB press conference Draghi also asserted that there is a unanimous vote on the ECB board members to use specific policies such as the purchase of ABS programs, such as QE, if medium-term inflation outlook changes. Therefore, the ECB will carefully monitor the potential disruption due to geopolitical risks and exchange rate changes.

[mynameisandhy]

News and Review of European Economic Zone (France)

 

Bank of France: French Growth Remains Slow

Friday, August 8, 2014

 

French economy will continue to expand at a slower pace in the 3rd quarter of this year, according to the Bank of France. In a monthly business climate survey released on Friday, the Bank of France said the 2nd largest economy in the euro zone will grow 0.2% in the July-September quarter from the previous quarter.

 

French GDP growth so far has been disappointing the expectations of economists. Insee statistics agency last month predicted the expansion would only range from 0.7% in the whole year 2014, below the 1% at the government to help achieve deficit reduction targets. Growth of 0.2% in the 2nd quarter and 3rd will leave a big gap in the last quarter, which would complicate the government's efforts to meet the target.

 

Bank of France survey results also showed a slight decline in business sentiment in July. Manufacturing sentiment index further away from the long-term average at the 100 level, with a drop to 96 in July from 97 in June. While on sektir services, the index is still stuck at level 93

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

House Price Growth Rate Slows in London estimated that 80%

Monday, August 11, 2014

 

Hamptons estate agents in London estimates that house prices will only grow by 3% next year. Estimates of the growth of house prices is the latest, and indicate the housing market began to slow down after a few years of riding higher than expected. Based on the report the Royal Institute of Chartered Surveyors, the rate of house price growth in London in June hit the lowest level in the last 15 months.

 

Hamptons home prices in London estimates that this year will rise 15.5%, but will slow to 3% in 2015 That Means the rate of growth in London house prices will fall 80.6%. The rate of growth in house prices in the British capital is also expected to surpass other regions in the country, the overall rate of growth in house prices in the UK is estimated at 8% in 2014 and 5.5% in Wales

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

The increase in house prices in London Looks subside Around 3% In Next Year

Monday, August 11, 2014

 

London house price growth will slow down about 3% in the next year on the prospect of higher borrowing costs which would force sellers to lower their estimates, said Hampton International in a report today.

 

Estimates for 2015 by London-based broker that is half of the rate that they predicted in September. Value in the city may be increased by 15.5% this year, they said, more than doubled from their previous predictions.

 

Value of residential property in London rose at their slowest pace in 15 months in June, after leading the surge in house prices in the UK in the past year, says the Royal Institution of Chartered Surveyors in the last month. The rising value of property in the British capital has prompted the Bank of England to limit the risk greater in the mortgage sector and introduce strict affordability tests. Some people say that the next 12 months time is a good time to buy a house in the UK when the price dropped to the lowest level since 2011, on show in a survey by Lloyds Banking Group Plc last month.

 

"Although the economy strengthens, currently there is no evidence of a change in sentiment across the country that has brought a powerful message to the Bank of England to implement more stringent implementation of regulations," said Fionnuala Earleym director of residential research at Hamptons.

 

House prices across England and Wales will rise 8% this year and rise 5.5% in 2015, says Hamptons. Brokers estimate the value of property in London will be more expensive than in the boroughs, Kensington & Chelsea and Westmeinster, to rise 10% this year, up from an estimate in September to increase 3%. Growth next year will amount to 3%, the company said.

 

Data estimates from Hampton based compilation of the Land Registry in London.

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

Pound Gains Vs Euro As Investors Wait BOE Inflation Report

Monday, August 11, 2014

 

The pound strengthened against the euro before the Bank of England to renew their economic forecasts this week.

 

The UK currency rose against most major currencies amid investors are also awaiting the signal continuation rates before the Governor of the Bank of England Inflation Report Mark Carney gave (inflation report) on the 13th of August. At the time of sterling into the currency with the best performance in the Bloomberg Correlation-Weighted Indexes in the last year, hedge funds and other large speculators last week reduced their bullish bets on the currency against the dollar to levels seen at least since February.

 

"Important event this week, it is the Inflation Report," said Michael Sneyd, a currency strategist at BNP Paribas SA in London. "The position of long sterling is one of the largest position among the 10 major currencies, sterling has a long position but declined again in recent weeks. If we continue to get an indication of Carney who shows interest rates rise scheduled for November, so there is room for sterling rebound this week.

 

The pound rose 0.3% to 0.7973 per euro at 16:05 pm, after dropping by 1.1% in the last two weeks. Sterling rose 0.1% to $ 1.6792, after falling in the last five weeks.

[mynameisandhy]

News and Review of European Economic Zone (Germany)

 

German Economic Sentiment Slump in August

Tuesday, August 12, 2014

 

German investor confidence in the economic outlook fell to the lowest level since 2012 due to the turmoil in Ukraine and the slow economic recovery lowered outlook for the euro zone's biggest economy in the region.

 

The ZEW Center for European Economic Research said its index of investor and analyst expectations that predict economic growth in the next six months fell to 8.6 in August from 27.1 in July. Economists had forecast the index at 18.2 in August. For the current economic conditions fell to 44.3 is far below the estimate of 56.0.

 

The slump is a result of granting additional sanctions against Russia by the EU in the form of restrictions on the export of machinery to modernize the oil industry to Russia, as well as limiting the sale of machinery, electronic equipment and other civilian products that can be used as military equipment or defense. Russia is the largest trading partner of Germany in Europe.

 

The German economy is expected to contract 0.1% in the second quarter, which will dirlis on Thursday. Bundesbank expects the German economy to grow 1.9% this year and 2% in 2015

[mynameisandhy]

News and Review of European Economic Zone

 

Euro Slumps After ZEW data

Tuesday, August 12, 2014

 

The euro traded lower against the dollar, near its lowest level 8 months after the release of data from the ZEW. To this day the euro has weakened two consecutive days.

 

Data released ZEW German economic sentiment fell sharply in August from the previous month. For the moment the current economic conditions fell to 44.3 is far below the estimate of 56.0, while the expectations of future economic slipped to 8.0 from 27.1 the previous month and below forecasts of 18.2. The slump is a result of granting additional sanctions against Russia by the EU in the form of restrictions on the export of machinery to modernize the oil industry to Russia, as well as limiting the sale of machinery, electronic equipment and other civilian products that can be used as military equipment or defense. Russia is the largest trading partner of Germany in Europe.

 

Also ZEW economic sentiment data released eurozone menurunan to 23.7 from 48.1 in July and well below for Economists estimate of 41.3. EURUSD is currently trading around 1.3341 1.3385 away from daily highs

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

Food Sales Down, Sterling Slump

Tuesday, August 12, 2014

 

The pound traded at its lowest level in the past nine weeks against the dollar after a report showed food sales fell to the lowest level in the last five and a half years. The UK currency weakened in four of the last five days. Trimming the selling price in the supermarket makes sales recorded the biggest decline since the data released by the British Retail Consortium in December 2008 BRC reported a sales decline of 3.5% in the three months ending in July of the same period the previous year.

 

Bank of England Governor, Mark Carney, will provide the latest economic projections in its quarterly inflation report tomorrow, which is likely to give clues as to when the central bank will start raising interest rates. In addition, the data released tomorrow will also average wage growth, changes in the number of workers, and the unemployment rate. Although the unemployment rate is expected to decline to 6.4% from 6.5%, the average salary growth is expected to fall -0.1% from the previous 0.3%. The slow growth of average salary makes BOE previously reluctant to raise interest rates sooner.

 

GBPUSD is currently trading around 1.6772 with daily highs and lows 1.6787 1.6755

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

Salary levels in the UK Down in June

Wednesday, August 13, 2014

 

British economy continues to create new jobs, but without a corresponding increase in inflation, salary levels noted first decline since 2009, Office for National Statistics reported the unemployment rate in the three months ended June fell to 6.4%, the lowest level since the second quarter -Four tahuhn 2008, from the three months ended May was 6.5%. While salary levels recorded a decrease of 0.2% in the three months ended June from a year earlier, becoming the first quarterly decline in more than five years.

 

The data release followed by quarterly inflation report that the Bank of England highlights the low growth in wages so that still gives the uncertainty of economic capacity that has not tergunakan. BOE cut its estimate of salary increases for 2014 was lowered to 1.25% from 2.5%. While the BOE to raise the economic growth forecast for this year to 3.5% from 3.4%, and for 2015 to 3.0% from the previous estimate of 2.9%. As for the 2016, the British central bank lowered its growth forecast to 2.6% from the previous 2.85, and the rate of inflation is expected to be around 2.0% until mid-2017.

[mynameisandhy]

News and Review of European Economic Zone

 

Euro Zone Industrial Production Drops Again

Wednesday, August 13, 2014

 

The results of industrial production (industrial production) in the 18 Euro zone countries fell for two consecutive months in June 2014, indicating that the region's economy stagnated in the second quarter.

 

Center of the European Union statistics office, Eurostat, a few moments ago announced that the production of factories, mines and public interest fell 0.3% compared to May and June 2013, unchanged from the fact it is quite surprising considering the 21 economists surveyed by the Wall Street Journal last week forecast results production rose 0.3%.

 

Eurostat tomorrow will announce the results of its calculations about economic growth in the second quarter. Economists predict economic growth slowed for the second consecutive quarterly increase in the gross domestic product by only 0.1% over a period of 3 months to March 2014.

 

The combination of lack of demand for goods / services and high unemployment has slowed the rate of inflation below the target of the European Central Bank at the level of <2%. European Central Bank responds to the negative economic outlook and low inflation with the release of the stimulus package in early June, including cutting interest rates and ease borrowing costs for businesses.

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

UK Unemployment Dropped to Record Low

Wednesday, August 13, 2014

 

Unemployment in the UK fell to its lowest level in the last 6 years in June 2014, but in the same time, the total payment of wages also fell, creating new pressure for the central bank to raise interest rates.

 

According to the Office for National Statistics reported a few moments ago, the unemployment rate fell as much as 132,000 in the three months to June to only 2:08 million people or 6.4% of the total workforce. The percentage of unemployed in June was the lowest since 2008.

 

Unfortunately the rate of wage increase is not too tight. Average weekly earnings (excluding bonuses and commissions) rose as much as 0.6% only (annual) in the quarter. Acceleration is the slowest since the calculation of earnings figures done in 2001. But if the bonus component is inserted, the average income actually fell 0.2%.

 

Bank of England officials have signaled that they want the average income of residents increased before the rate hike was decided. Since March 2009, interest rates in the UK almost nil up to this time.

 

The ONS data also showed that Britons survive in employment are in record high. Total employment was 30.6 million people or 73.0% of all citizens of productive age, approaching the record which was recorded in the first 3 months until May

[mynameisandhy]

News and Review of European Economic Zone (France)

 

French Economy Stagnant in Second Quarter

Thursday, August 14, 2014

 

French economy unexpectedly failed to grow for two consecutive quarters as sluggish demand from domestic and overseas which underscores the fragility of the economic recovery in Europe.

 

French GDP stagnated in the three months to June, in the report by the national statistics Insee Biros today in a statement. Economists estimate for 0.1% growth, on show in a Bloomberg survey.

 

Stagnation in the economy adding pressure on policy makers from the European Central Bank President Mario Draghi to French President Francois Hollande to boost growth in the region emerging from the longest recession of all time just last year. Draghi, who has directed the ECB to provide the stimulus that has never happened before, said that further reforms in the eurozone governments is a key to recovery.

 

"France is not threatened by an actual recession, but the recovery will remain weak in the coming months," said Francois Cabau, an economist at Barclays Capital. "Germany has been hurt by the international situation. Was a little much impact on France, where the problem is a decreased confidence and investment.

 

Hollande said last week that Germany needed to do more to boost growth in the euro bloc 18 countries.

[mynameisandhy]

News and Review of European Economic Zone (Germany)

 

German Bond Yields Down Sharply After European Data

Thursday, August 14, 2014

 

The results of the data of lower economic growth forecast to make the value of German bonds surged to its highest level on Thursday (04/08). That is, investors are waiting for additional stimulus from the European Central Bank (ECB).

 

Yield or German government bond yields fell to a tenor of 10 years a record low 1.011% (data Tradeweb). The numbers are even below the level recorded in 2012, when the euro zone debt crisis showed the potential for the spread. For the record, when bond prices go up then its downward yield.

 

While the observed strong Euro exchange rate, although it touched 1.3357 level. EUR / USD until at 16.21 pm in positions ranging from 1.3369. While the GBP, Euro 0.80 perched above early.

 

The French government stated that the domestic economy is stagnant for two consecutive quarters in the quarter ended June. What's worse, the data also German gross domestic product is lower than expected. The German economy slowed 0.2% in the second quarter, although at the beginning of the performance is still good at slowing climate of the Euro zone. Economists surveyed by the Wall Street Journal last week predicted the economy Germany only 0.1% contraction in the second quarter.

[mynameisandhy]

News and Review of European Economic Zone

 

Delayed recovery in the Euro zone Q2 GDP report 3 Giant Over Europe

Thursday, August 14, 2014

 

Recovery in euro zone hampered after the three countries with the largest economies in Europe reports its GDP figures for the second quarter, GDP results from the above three countries underline the fragility of the economy in the euro area inflation and deepening crisis in Ukraine.

 

German GDP shrank by 0.2%, it was bigger than economists forecast, while the stagnation in the French economy prompted the government to cancel their 2014 deficit target after the data released today. Combined with Italian unexpectedly slipped into recession, these reports may add pressure on the European Central Bank to increase the stimulus.

 

At the time of the German economy in the second quarter fell largely caused warm winter is causing manufacturers to change their production to the previous months, the outlook for the coming months are now covered by the impact of the international action against Russia for their support for the Ukrainian separatists. Such actions jeopardize the entire euro zone, where inflation is currently running at the slowest pace since 2009 and the measures announced by the ECB may take a while to get the impact.

 

"Given that the economy is still sluggish and inflation is still at a low level, the signs of economic pulihnnya not strengthen the possibility for greater monetary stimulus," said Nick Kounis, an economist at ABN Amro Bank NV in Amsterdam. "The question on the Ukrainian crisis as a whole is how big the effect will occur, and the extent of existing beliefs."

[mynameisandhy]

News and Review of European Economic Zone

 

Stagnant Growth in Euro Zone, Germany to contract

Friday, August 15, 2014

 

Eurozone economic growth stagnated in the second quarter, below market expectations, according to data from Eurostat. Gross domestic product in the euro zone flat across the region according to the EU's statistics office, was below analysts' expectations for growth of 0.1%. The pressure is now centered on the President of the European Central Bank, Mario Draghi, to take further steps to boost liquidity, according to analysts, as Italy has returned to the recession and the German economy bekontraksi. Earlier on Thursday, data showed the German economy is losing momentum, contracted for the first time in more than a year. Contraction of 0.2% in Germany due to the import and export trade deficit, along with the construction sector, which is said by the German statistical agency dropped sharply. The level of trade and foreign investment in Germany too weak.

 

Germany, which is often regarded as the engine of growth in Europe showed a sharp slowdown from the first quarter when the economy grew strongly. German statistics office reported a worse outcome after growing by 0.7% in the first quarter, due to the weather which is quite good for the period. Meanwhile, the French economy failed to grow in the second quarter of this year after stagnating in the first quarter, below analyst expectations, according to data from the French statistics agency, Insee. French economy has fluctuated between contraction and expansion at each quarter in the last 2 years, questioning the President of France Francois Hollande's pledge to lower the unemployment rate. Spain and the Netherlands both reported strong growth rates, with the Spanish economy expanded by 0.6% reach. Dutch economy grew by 0.5% driven by increases in the level of exports and investment.

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

Maintain Momentum UK GDP growth with 0.8% in Q2

Friday, August 15, 2014

 

British economy maintained its momentum in the second quarter as output eventually pass levels seen before the global financial crisis.

 

UK GDP growth unrevised 0.8% between April and June, the same as the previous three-month period, said the Office for National Statistics said today in London. These results leave output by 0.2% above the peak levels achieved in the first quarter of 2008 revisions economy expanded at 3.2% up from a year ago, it was the fastest pace since the final quarter of 2007.

 

In the current economy figures give support to Prime Minister David Cameron nine months before he seeks re-election. Bank of England Governor Mark Carney has warned this week that the economy is facing challenges and sinyalkan to officials not to rush to Rev interest rates. With the recovery of the Euro zone are retained and the crisis in Ukraine and the Middle East looming global growth prospects, the investors are betting that the Bank of England will keep its benchmark rate at a record low until May next year.

 

"It should be noted that consumer spending may be seen with strong growth," said Howard Archer, an economist at IHS Global Insight in London, before the data release. "Hope has been there with a gradually improving global growth which would help boost British exports in the coming months, but the hope is now under threat from the global geopolitical tensions."

 

The pound was little changed against the dollar after the report and traded at $ 1.6690 at 16:15 pm. The UK currency has gained almost 7% from a year ago

[mynameisandhy]

News and Review of European Economic Zone (Germany)

 

Bundesbank: Global Crisis disruptive Germany Outlook

Monday, August 18, 2014

 

Bundesbank of Germany has warned that global tensions as the crisis in Ukraine pressing outlook largest economy in Europe, putting the previous assumptions on the strong rate of growth at risk. Germany's central bank on Monday said that sanctions by the West against Russia, together with the reply of the Russian policy, hurting the company's dependence on exports and the domestic economy as part of the construction sector.

 

Comments were released a few days after the German statistical office reported that the economy contracted by 0.2% in the second quarter of this year compared with the first quarter. The decline unexpectedly has strengthened fears that the global crisis, especially in Ukraine and the conflict in the Middle East, has disrupted the German growth prospects this year as well as other European countries. Eurozone economy stagnated in the second quarter, indicating a slow recovery in the euro zone is losing momentum even after Spain and other small countries continue to recover. While previously many predicted Germany to grow about 2% this year, many of which have been cut into the projection to 1.5%.

"A number of economic data related to the international environment has worsened the outlook for the German economy in the second half of this year," according to the Bundesbank monthly bulletin. "Indicator is now cast doubt on that assumption into elementary projections in last spring, namely that the current seasonal trend will continue to strengthen in the second half of 2014," according to the Bundesbank. "The fact that the reduced level of orders in the second quarter and expectations of the level of exports has dropped indicates that the industrial sector will be affected by a severe blow by external factors," said Bundesbank.

"Our assessment at this time is the growth this year will probably be slightly below our estimate of the projections in the month of June," said Jens Weidmann Bundesbank President. However, the central bank on Monday said that the German economy is still fundamentally healthy gearing towards growth in the future. Earlier expectations too high while domestic demand is growing against the direction of the cycle. Bundesbank said.

[mynameisandhy]

News and Review of European Economic Zone (Germany)

 

Economic Outlook Trimmed German Bundesbank

Monday, August 18, 2014

 

German central bank, the Bundesbank warned that global tensions tensions as the crisis in Ukraine has been weighing on the economic outlook for Germany, so the German economic recovery assumption at the end instead of risk.

 

Sanctions that have been applied to the western countries against Russia, and their replies have been sanctioned by the Russian wounded numerous companies that rely on exports as well as the domestic economy such as the construction sector.

 

This comment was released a day after the German statistics agency reported early estimate of German GDP growth rate of -0.2% contraction for Q2 2014 GDP surprise rate decrease is largely due to the Ukrainian crisis and the Middle East conflict that endanger Germany's economic growth prospects this year as well as the European as a whole.

[mynameisandhy]

News and Review of European Economic Zone

 

Eurozone Trade Surplus Increases in June

Monday, August 18, 2014

 

Eurozone trade surplus grew more than expected in June from a year ago, according to data on Monday, but the increase in surplus is still not fully affected by the impact of sanctions and the replies were imposed by the European Union and Russia-related conflicts in Ukraine. Znoa euro international trade balance grow to 16.8 billion euros (22:49 billion) in June from 15.7 billion euros in June of last year, as the level of exports rose more than imports. The number is up from a surplus of 15.4 billion euros in May blan. The level of exports rose rose as much as 3.0% this year through June after being flat in May, according to Eurostat, the statistical office of the European Union. Import levels rose as much as 2.0%, also following a flat in May. However, after a seasonally adjusted basis, the level of exports fell by 0.5% and imports rose by 0.5% in June from May.

 

The European Union imposed sanctions on Russia in July that took effect in August. A number of European leaders objected to the sanctions, saying that sanctions threaten economic recovery in the region. Export sector has helped spark the recovery last year. But the conflict between the Ukrainian government and the pro-Russian rebels in the eastern region of Ukraine began to have an impact on the economy worth 9.6 trillion euros, which stagnated in the second quarter, even before the sanctions were imposed. The level of exports toward Russia, the fourth largest trading partner the eurozone, fell as much as 14% and 13% respectively "from January to May the UK remains a key business partner euro zone, followed by the United States and China, according to data from the first 5 months this. Among the five largest economy in the euro bloc, namely Germany, France, Italy, Spain, and the Netherlands, only the export sector rose at an annual rate in Germany and Italy for the first 5 months of this year. temporary, import sector rose in Germany and Spain .

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

UK Inflation Slows In July

Tuesday, August 19, 2014

 

UK inflation fell greater economists expected in July, it gave the Bank of England room to keep its benchmark rate at a record low.

 

The rate of price growth fell to 1.6% from 1.9% in June, said the Office for National Statistics said today in London. Economists had expected the reading to 1.8%, based on the median estimate of 32 economists in a Bloomberg survey.

 

Bank of England holds benchmark rate at the level of 0.5% on the month and BOE Governor Mark Carney said now is not the right time to start tightening policy. In the current economic recovery strengthens, which it supports the possibility of withdrawal of emergency stimulus, officials are trying to balance the earnings results were pessimistic and inflation is still below their target level of 2%.

 

"With inflation still below the target, the BOE can continue to sustain any growth increase gradually and allow the economy to continue growing strongly," said Rob Wood, an economist at Berenberg Bank in London. "Weak wage growth means that the current BOE believes that unemployment could fall much further without having to push up inflation."

 

The impact of the biggest drop in the annual rate of inflation last month came from the clothing industry, because of sluggish buying after the price increase in June, said the ONS. Consumer prices fell by 0.3% in July from June they said.

[mynameisandhy]

News and Review of European Economic Zone

 

Eurozone Current Account Surplus Shrinking In June

Tuesday, August 19, 2014

 

Eurozone current account surplus narrowed in June, according to data published on Tuesday by the European Central Bank.

 

The current account balance, which is the broadest measure of the financial position of the international economy, a surplus of 13.1 billion euros in the time adjusted in June, below the 19.8 billion euros achieved in May.

 

For the 12-month period ending June 2014, a surplus of 2.4% of eurozone GDP, higher than the surplus of 2.1% in the 12-month period in the month of June 2013.

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

Sterling Disappointed With UK inflation

Tuesday, August 19, 2014

 

Sterling continued weakening after UK inflation data undermined the BoE interest rate outlook. English only recorded a rise in inflation (consumer price index) annual 1.6% for the month of July; lower than the predicted 1.8% and 1.9% the previous publication. With inflation further away from the BoE's inflation target of 2% then this would reduce market expectations of interest rates will rise faster than it should. GBP / USD is now trading 1.6644; away from a daily high of 1.6726

 

The Bank of England has uttered willingness to raise interest rates in early 2015, however, the continuing recovery of the UK economy has raised expectations that the BoE may be able to raise interest rates as soon as possible by the end of 2014 BoE Governor, Mark Carney, has uttered not know when the time is sure to begin Rev interest rates as it will depend on the condition of the British economy. However, with inflation under the target then this can encourage the BoE to maintain low interest rates helped the sake of economic recovery in the world's 6 largest

[mynameisandhy]

News and Review of European Economic Zone (Germany)

 

Factory price index in Germany Weakens in July

Wednesday, August 20, 2014

 

The producer price index in Germany fell more than estimated in July as energy prices continue to pressure the index, it indicates further downside risks to the outlook for inflation, the data show the statistics bureau in Germany on Wednesday.

 

The producer price index fell by 0.1% at the monthly level and down 0.8% at an annual rate in July, in the report by Destatis. These results are compared with the estimated expected readings on the flat monthly rate, and down 0.7% at an annual rate, according to a survey of analysts teradap done by the Dow Jones News Wire last week.

 

Energy prices again became the prime mover in the index, said Destatis. Energy prices fell by 0.6% at the monthly level and down 3.2% at an annual rate. Including energy price index rose by 0.1% on a monthly and annual levels.

 

Price of the manufacturer to have an impact, but not translated directly to, the price paid by consumers. Price pressures in the euro zone is still low at an alarming rate, making some experts argued that there will be more intervention from the European Central Bank. Recent inflation data showed consumer prices in the region was at 0.4% at an annual rate, it is well below the ECB's medium-term target level of 2%.

 

Analysts said that the ECB seems inclined to wait for the impact of their actions launched in the month of June, before the resumption of the latest policy changes.