Producer prices in the euro area in June rose by 0.3 percent on a monthly basis, but signed decrease of 6.6% over the same period last year This is a record fall of 1996. way. Market expectations were for prices to rise 0.2 percent on a monthly basis and a decline of 6.6 years. The Decline in prices is largely due to less demand for goods in the Eurozone, which is located in the most severe economic recession of the Second World War onwards. By Eurostat said that the main driver of the decline in producer prices is decreased by 15 percent annual price of energy products, especially for more costly oil and gas.
Prices of durable goods rose by 1.5 percent of yearly base.
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With threatening pace with rising unemployment immigrants in Greece, forward agency Focus. Currently the rate is highest in the last five years. In recent years, waves of aliens entering Greece in search of work and poses a serious risk of a new social tensions in the coming months. Data show that during the first three months of the year, unemployment among foreigners was 11 percent. For the first time it is higher than the national average. In practice, however, unemployment among immigrants is even higher, indicating the issue. In April the unemployment rate nationwide was 9.4 percent, marking its highest increase on an annual basis.
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The UK economy has decreased by 5.6 percent in the second quarter of this year compared with the same period of 2008, forward Bloomberg, referring to the statistical office in the country. This is the strongest decline in 1955 when it started keeping official statistics. On a quarterly basis is reduced by 0.8% due to the decline in construction, lending and business services. It is recalled that economists expected the country’s GDP to decrease by 0.3 percent. Expectations of the International Monetary Fund is that the country will register economic slowdown from 4.2 percent at the end of this year. According to Andrew Sentans, Bank of England by the British economy will start to life in the second half of 2009
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The Eight major banks are already with profits in the U.S., which reported earnings in the second quarter of 2009 today to the group, which fell safe as Goldman Sachs and JP Morgan Chase joined Bank of America and Citigroup. The Bank of America reported profits of 3.2 billion dollars during April-June (or $ 0.33 per share) and revenues amounted to 33.1 billion dollars, which is 60 percent more. The results were better than expectations, according to which profits should be between 0.28 and 0.29 dollars per share. Last year in the second quarter was 0.72 dollars per share (or profit amounted to 3.41 billion dollars). The Net income of Bank of America for the period April-June increased by 9 percent to 11.9 billion dollars. Furthermore, the Bank announced that during the second quarter expanded loans to more than 211 billion dollars. Treasury announced that it added reserves (provisions) for credit losses amounted to 13.4 billion dollars. Citigroup results show a net profit of 3.1 billion dollars for the second quarter of 2009, or earnings of 0.49 dollars per share (compared to a loss of 0.55 dollars per share or net losses of 2.5 billion dollars in the second quarter of 2008 ). Bank earnings have amounted to 29.97 billions USD revenues to 17.54 billion dollars for the prior year.
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The Eurozone consumer prices decreased on an annual basis for the first time in June, which coincides with the prediction of the European Central Bank (ECB) says Finance.news, quoted by Eurostat. Core inflation has also declined by 0.1 percent in June after an earlier yearly inflation in 16 states, adopted the euro, was 4 percent. Time of ETSBK said it expected strong fluctuations in raw material prices last year would lead to a decline in inflation on a monthly basis for several months before it becomes positive again at the end of this year. Reiterated several times that the short-term movements in inflation should not be taken into account in monetary policy. The Economists are of the opinion that the fall in prices will lead to a prolonged period of deflation. Prices of fuel and transport decreased by 18.8% yearly base and for heating fuel fell by 39.3 percent.
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A meeting between Russia and Ukraine through the European Union will be held on July 17, said Spokesman of the European Commission Mark Gray, quoted by Reuters. He emphasized that the initiative of the European Commission. The first meeting in this Chamber was in Brussels on June 29. After her release in the popular European Commission said that a meeting is negotiating to provide loan for Ukraine to pay its debt for Russian gas. The document stresses that progress is made. Later in the Russian press appeared information that international lenders consider the ability to provide loans amounting to half the amount necessary for Ukraine to solve problems with accumulation of gas in its gas storage. Ukraine asked the European financial structure can be assured its 4.2 billion dollars.
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The Gold reserves of the European Central Bank, including claims in gold (physical gold, such as bars, coins, ingots, and storing pieces of monetary gold, as balances on accounts with gold) decreased by EUR8.5 billion to EUR232.128 billion during the week ended July 3, according to today’s report of the financial institution. The change primarily reflects the quarterly revaluation adjustments and reserves and selling gold to EUR5.0 million from a central bank in the euro area, indicating the report of the ECB. Foreign exchange reserves showed a net decrease of EUR10.5 billion to EUR206.2 billion for that period. ECB reported an increase of money in circulation in 16 EU member states of the euro by EUR6.6 billion to EUR768.7 billion.
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The Court of Justice imposed a fine of 2 million euros of Greek government that the state can not recover the unlawful aid for airline Olympic Airways. The court imposed an additional fine of 16 thousand euros a day to Greece, if not able to recover the funds within one months. The case dates from 2002 when the European Commission states that the proportion of public funding granted to Olympic Airways, contrary to the rules of the European Union for fair competition and the money must be returned by the company. After the Greek state was unable to receive allocations, the Commission refer the case to the First European Court in Luxembourg, who in 2005 decided that Greece had failed to fulfill its obligations.
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Italy’s central bank will buy bonds secured 10 billion euros as part of the European Central Bank for the purchase of bonds for a total of 60 billion euros, reported Reuters. Total program of 60 billion euros has been allocated among the 16 countries of the euro on the basis of their shares in the capital of the ECB. ECB President Jean-Claude Trichet said on Thursday that the bank will begin its emergency program to purchase secured by mortgage and public debt bonds of July 6, with a maturity of between three and 10 years. National central banks will make 92 percent of purchases under the program, which aims to increase the liquidity of banks and to promote credit flows. Each of the central banks of the euro area countries will come on the market as other investors who participate in bids when purchasing bonds on the primary market or secondary market. In the latter case the central bank will make an offer for a significant amount and will have to focus on securities that are sufficiently liquid.
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Demand for steel in Europe will grow by about 14 percent in 2010 g.sled decrease of 33 percent this year, said the European Confederation of Iron and steel industries (Eurofer), on their official website. The current economic decline and lack of sufficient material in sectors using steel as construction and car production, led to a decline in sales of steel and will continue so in the third quarter of the year, show data Eurofer. Steel consumption fell by 43 percent in the first half. But the confederation said that in the beginning of the fourth quarter, the market will begin to note a slight revival, having negative effects begin to subside. Notwithstanding evidence that European consumption of steel continues to sinks, to the global recession, the latest research and leading indicators suggest that economic downturn can be ottlasne from the bottom in the coming months.
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