European Debt Crisis
European Central Bank (ECB) President Mario Draghi said that more involvement from the euro area was the solution to resolving the debt crisis, calling on governments to take steps to improve their own finances, according to his speech in london on Thursday.
In his speech at a gala dinner in London yesterday, the head of European Central Bank Mario Draghi, has urged governments to push on with reforms and banking union plans, while he added that the euro area is more stable than a year ago, yet challenges remain.
"The crisis that we are facing today is much more multi-faceted and that means that the policy response must also be much more multi-faceted and must involve a variety of institutions," Draghi said.
While regarding talks over a potential U.K. referendum on membership of the ...
Business confidence in Europe`s largest economy unexpectedly improved in May, as German executives and manufacturers see brighter prospects for the second quarter of this year after national output grew, but a markedly slow rate.
The IFo Institute published its monthly surveys of Germany business confidence, capping a busy day for Europe`s largest economy. Earlier today, the Gfk Consumer Confidence Survey and German Gross domestic Product final estimate were out. The Ifo surveys were the best!
German business confidence rose in May following three months of declines. The Ifo Business Climate Index was at 105.7, up from 104.4 in April, beating analysts` average forecast of a no change.
The euro jumped against the dollar on the good news, hitting a session high of $1.2986 as of 11:29 GMT+ ...
The EU leaders continue to push through to tackle major issues in the region that suffers still from anemic growth and uncertain outlook as the euro area debt crisis takes a toll on the region’s entire 27 economy. The EU summit on Wednesday focused on tax evasion and means to improve the taxation system.
In the EU according to statistics tax evasion and avoidance cost for the EU 27 is nearly 1 trillion euros a year. A European Parliament resolution on tax evasion Tuesday urged the leaders to halve the trillion annual losses by 2020 by curbing the loopholes and havens.
The EU leaders stressed on the need to tackle tax evasion and at the same time push for global action against bank secrecy; the key is also to prevent firms from taking advantage of loopholes to avoid taxes.
At the ...
European Market Update
UK retail sales data comes in negative and well expectations; markets ahead Bernanke testimony for hints of QE tapering
Notes/Observations
Bank of Japan (BoJ) leaves policy unchanged (as expected). Upgrades economic outlook for 5th straight month
Japan Apr trade deficit worse than expected but smallest deficit in three months
Australia consumer confidence sees biggest drop in 17 months
USD corrects from recent strength as markets might have gotten ahead of itself on the debate over tapering of QE
UK retail sales come in negative and below expectations; cold weather blamed
Economic Data
(HU) Hungary Mar Avg Gross Wages Y/Y: 3.2% v 3.0%e
(DK) Denmark May Consumer Confidence: -2.6 v -2.5e
(EU) ECB: €206M borrowed in overnight loan facility vs. €190M prior; € ...
European Market Update
UK inflation comes in lower than expected and offers BOE more room to stimulate if data does disappoint
Notes/Observations
RBA minutes: rate cut appropriate to boost growth; subdues growth & inflation provided room to cut rates; AUD high by historical standards
The USD/JPY was steady after the Japanese Econ Min Amari backed off from his comments expressing satisfaction with the current value of the JPY
Germany's Chancellor Merkel said to be considering certain treaty changes aimed at giving more powers to Brussels
Draft EU law to protect insured bank depositors under €100k; larger depositors could suffer losses after equity and bond holders hit
UK inflation comes in lower than expected and offers BOE more room to stimulate if data does disappoint
Thursday ...
Euro is gaining ground today against the US dollar, firming ahead of the upcoming EU meeting. Even though there are expectations that Cyprus will need more support, and the situation with the eurozone is still a long way from resolved, the euro is finding support today.
European policymakers are making it a point to contradict ideas of a breakup for the eurozone. With European Union policymakers insisting that the euro will remain intact — and probably at all costs — the euro is finding support on the Forex market.
The news comes ahead of an EU meeting slated for later this week. There seems to be concern for the future of the euro, with warnings coming from various sources. The International Monetary Fund is warning that Cyprus will likely need more support in coming months.
Also ...
European Market Update
Whit Monday holiday has Europe on the sidelines
Notes/Observations
Nikkei225 index trades higher than the US Dow Industrial 30 index for the first time since May 2010
Ceasefire in the currency war ??? Japan Econ MIn Amari suggesting that excessive gains have already been corrected by a large amount and any further weakness could actually become a detriment
Short-range North Korea missile launch into the Sea of Japan this weekend
China property sector retained its allure despite the govt steps to curb housing inflation. April property prices across 70 cities rose 4.9% y/y - the biggest increase since Apr 2011
European market participation light die to Whit Monday holiday (Pentecost)
Economic Data
(JP) Japan Mar Final Leading Index CI: 97.9 v 97.6 prelim; ...
Last week, choppy and volatile market movements was the dominant sentiment, gold markets were rattled under heavy downside pressures over the worsening debt crisis in Europe and fears were heightened by the prevailing jitters over the slowing global recovery.
While Eurozone finance ministers have given the green light to the release of fresh rescue loans to Greece, while Cyprus received its first emergency loan from the European Stability Mechanism (ESM). Yet, ministers made little progress over the establishment of a proposed banking union as the split between euro area states over the legal framework for the single supervisory mechanism
The European continent has completed a hectic week, showing that the economy is still suffering in its recovery journey, where the Gross Domestic ...
Quiet session in Europe; EU27 Car Registrations rise for first time in over 18 months
Notes/Observations
BoJ will discuss the related risks and potential effect on its 2% inflation target at its two-day policy meeting next week
EBA to delay EU bank stress tests until 2014, timing of stress tests to depend on EU approval of the ECB as banking supervisor in the euro zone
France President Hollande: Cannot request ECB lower interest rates further; confident Draghi knows what he is doing
China Vice Commerce Minister Jiang: EU is the main instrument for diversifying China FX reserves
EU27 Car Registrations rise for first time in over 18 months
Economic Data
(RU) Russia Narrow Money Supply w/e May 13th (RUB): 7.71T v 7.74T prior
(EU) EU27 Apr New Car Registrations: +1.7% v -10.2% prior; ...