Business News » Eurozone

Asian indexes decreased after two positive sessions

viliyana89 — Thu, 22 Jul 2010 16:12:53 +0000

The Eurozone growth is below 2% by the end of 2012 due to the efforts of many countries in the region to resolve problems with their debts. This forecast in a statement today, the International Monetary Fund (IMF), said Wall Street Journal. IMF stresses that there are three main areas that need attention in order to achieve a sustainable economic recovery: dealing with weakness in the banking sector, the implementation of ambitious plans for fiscal consolidation and continuation of fundamental structural reforms of social insurance and the labor market. After the 16 eurozone countries sharply increased their overall fiscal deficit in 2009 to counter the global recession, the IMF predicted that the euro will have a “neutral fiscal policy in 2010 and reduce its deficit over the next two years. A strict fiscal discipline will limit growth, indicated by the IMF, but at the same time it is needed to stabilize debt levels in the region. Fears of bankruptcy arising from the Greek financial crisis since the beginning of the year and motivate other highly indebted countries in the eurozone to reduce costs. “We expect that measures will be sufficient to address the debt crisis,” said a statement by the IMF. “However, in weak investor confidence and fiscal restructuring will limit potential growth.
As a result, the IMF predicted that unemployment in the euro area, which was 7.6% before the global recession in 2009 is expected to remain at 10.2 percent this year and fall only to 10.1% in 2012. Positive side, however, is the decline of the euro, which is expected to support exports. IMF states that the euro ‘is now stable. “Recovery of Europe will be facilitated further if the euro remains at these levels,” says Luke Evarart, Director of European Department of IMF. In deep risk for Europe is the return of the credit crunch. Credit meltdown of this magnitude by 2009 could cut gross domestic product (GDP) the euro area by 2% next year. IMF stressed that future growth in the region depends on the application of a number of structural reforms, but that progress in this direction is too episodic. Among the measures supported by the IMF, is raising the retirement age as a way of encouraging Europeans to work longer. Germany, said the IMF must improve competitiveness in the sector service, France would simplify procedures for the release of employees from work to accelerate the privatization Italy and Spain to reduce unemployment benefits to motivate the unemployed to seek new employment. IMF pointed out as important and need to strengthen the European institutions. “Now is the time to establish effective economic and monetary union by the strict application of healthy fiscal and structural policies, and completion of the overall framework for financial stability,” said the statement of the fund.

Merkel urged Germans to tighten belts

viliyana89 — Wed, 12 May 2010 11:34:36 +0000

The chancellor Angela Merkel urged Germans to tighten belts and adjust to the rate of savings. Germany lives above its means for years and it said Chancellor during the ecumenical Congress in Munich. “This calls for drastic economies,” Merkel was definite. In 2015 should be saved 10 billion a year, said Chancellor. Angela Merkel’s statement made just days after asking a tight fiscal policy within the European Union. For its part, the Union of towns and municipalities in Germany called for adequate measures for the expected record deficit in municipal funds. Over the next three years there is no prospect of raising revenue, so we need to freeze spending, the union warns. Before it became clear that cities and municipalities are in the worst budget crisis since the founding of the Federal Republic. This year the deficit could reach 15 billion – 3 billion more than expected. This was a hard decision got by Angela Merkel, but the country should be protected by the situation, which happened in Greece, Spain and Portugal.
The country of Germany is the basic of European Union and strong financial situation of the country will protect the Eurozone and whole European Union.

Ueroze with high level of unemployment

viliyana89 — Sat, 31 Oct 2009 17:23:07 +0000

Unemployment in the euro area rose to its highest value of establishing a monetary union in January 1999, says statistics from Eurostat. The indicator for September increased by 0.1 percentage points to 9.7%, as were the expectations of analysts. A year ago, unemployment was 7.7%. Across the European Union level indicator has also increased by 0.1% to 9.2%, a record since 2000 when the statistical office has begun to report aggregated data. The number of unemployed is the EU grew by 286 per month to 22.123 thousand million euro only people without permanent employment for 15.324 million, as compared to August the number rose by 184 thousand
Eurostat published and original data on inflation in October, as it annually in at minus 0.1 percent to minus 0.3 in October.

Big unemployment rate for an year

viliyana89 — Sat, 03 Oct 2009 07:06:27 +0000

The unemployment in the eurozone grew 9.6 percent in August and reached its highest level since March 1999, already without permanent employment were 15.165 million people showed seasonally adjusted data Evrostat. According to July increase was 0.1 percentage points in a number of 165 thousand unemployed, which coincided with the assumptions of analysts. Throughout the European Union, unemployment also increased to 0.1 percentage points to 9.1 percent, reaching values from March 2004 in 27 countries have remained without work 236 thousand in August to 21 872. For the August 2008 unemployment in the euro area and the entire EU was 7.6 and 7.0%. For a year they are unemployed in the EU increased with only 5 million were released in the eurozone EUR 3.2 million of them.
After the announcement of the new euro fell against the dollar by 0.4% to a rate of 1.4582 EUR / USD.

Business confidence in Germany with an year top

viliyana89 — Wed, 23 Sep 2009 22:56:02 +0000

The index of business confidence in Germany rose to a 12-month high, according to figures of the Ifo Institute, which refers to Bloomberg. Thus, Europe’s largest economy gives another signal that is gaining momentum after the worst recession since the Second World War. The index of the Munich-based institute, which is obtained from consultation to 7000 companies in the country reached 91.3 percent at 90.5 percent in August. However, the increase is lower than the forecasts of analysts who had expected the index to increase to 92 points. In March, the indicator said 26-year low, falling to 82.2 percent. The index for current conditions also noted an increase to 87 points, measured at 86.2 in August. Ifo Institute’s report comes just days before federal elections in Germany, which this chancellor and her party are expected to be first political force by about 34-36% of the vote. Bloomberg notes that the government program “cache lizzie and improving international trade helped Germany to surged by 0.3 percent in the second quarter of the year.
Although the country’s central bank foresees strong growth in GDP for the third quarter, the recovery may be stopped where do the funds and the period of government simuli and unemployment increase, the agency adds.

Fifth serial rise of business and consumer confidence in the Eurozone

viliyana89 — Wed, 02 Sep 2009 06:15:56 +0000

The business and consumer confidence in 16 states of the Eurozone is better for 5th consecutive month. Notes strong upswing in activity in the services sector. Business and consumer confidence in 16 states of the Eurozone is better for 5th consecutive month. Notes strong upswing in activity in the services sector. Business climate index for the Eurozone rose in August to -2.21 points for the rising expectations of -2.48 to -2.71 points after points in July. The index of consumer confidence in the Eurozone in August rose to -22 points in the rising expectations of -21 points to -23 points after July. he index of economic confidence in euro zone in August rose to 80.6 points in expectations for a rise to 78 points after 76.0 points in July. The index of confidence in the services sector in the Eurozone in August rose to -11 points after -18 points for July. The expectations of the market were to rise slightly to -17 points.
The index of industrial confidence in the Eurozone in August rose to -26 points in the expectation that after -28 points to -30 points in July. Rising confidence bottoms record supports previous economic indicators and evidence with them to mobilize the economy and potential growth for Q3. Capacity utilization in the industrial sector fell to a record 69.5 percent from the floor after 70.9 percent for May and is expected to continue to enhance those suspicions.

Barroso: Europe is coming up in 2010

viliyana89 — Wed, 26 Aug 2009 10:15:59 +0000

On a business forum in Barcelona, European Commission President Jose Manuel Barroso predicted that the world will be the same after pass this economic crisis. Barroso said that Europe will start to come out of the crisis in 2010 He said the continent should be made much effort to overcome the serious situation. Barroso for most of Europe’s main concern is unemployment. This is the main drama of European society. Barroso added that the European Union will show flexibility in terms of limit of 3 percent of GDP, which must not pass the budget deficits of member states of the Union.
Really all of the indexes are showing that Europe is quite close for running away from the crisis.

The Deflation in Eurozone with top levels

viliyana89 — Wed, 05 Aug 2009 06:50:40 +0000

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.
And those of raw materials and capital goods increased by 0.3%.

Great Britain with high decrease of economy

viliyana89 — Fri, 24 Jul 2009 14:48:14 +0000

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
After disclosure of data losses the GBP with 0.5 percent against the dollar course and fell to 1.6466 USD / GBP

Eight largest U.S. banks are on profit

viliyana89 — Tue, 21 Jul 2009 15:16:10 +0000

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.
The Data are better than expected – the forecast was for 0.31 dollars per share and revenues amounted to 21.136 billion dollars. Contribution to profit Citigrup is the sale of Morgan Stanley Smith Barney. From Citigroup announced that the challenges remain seriznite consumer loans such as loans for the second quarter have increased by 81 percent to 12.4 billion dollars.