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EUR News
ECB Survey: Small Firms Continue To Face Difficult Financing Conditions
Small and medium-sized enterprises in the euro area are experiencing a greater need for funds, but are finding it difficult to access them, results of a survey by the European Central Bank revealed on Thursday.
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German Employment Grows Steadily In Q3
Germany's employment growth maintained a steady pace in the third quarter, data released by the Federal Statistical Office showed on Tuesday.
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German Investor Confidence Climbs To 4-year High
German investor confidence rose to its highest level in four years in November, driven by hopes of economic recovery gaining momentum in the euro area, the results of a closely-watched survey showed Tuesday. The indicator of economic sentiment for Germany rose for the fourth consecutive month to 54.6 from 52.8 in October, the Mannheim-based ZEW said. Economists had forecast a score of 54.
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ECB's Praet: Eurozone Recovery Frail, No Risk Of Deflation
The economic recovery in Eurozone is fragile, but there is no risk of deflation, European Central Bank Executive Board Member Peter Praet said on Tuesday.
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ECB's Weidmann Warns Against Signaling Next Policy Move
European Central Bank Governing Council member Jens Weidmann said it was not sensible for the European Central Bank to signal its next policy move immediately after the recent interest rate cut.
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ECB's Draghi Plays Down Negative Deposit Rate Talks
European Central Bank President Mario Draghi on Thursday rejected media reports that the central bank is planning to take the deposit rate to negative territory. "As I said at the press conference: this was discussed in the last monetary policy meeting and there are no news since then," he said at the event in Berlin. The euro rose following Draghi's comments.
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German Ifo Business Sentiment At 19-Year High
German business morale rebounded strongly in November to reach its highest level in more than one-and-a-half years, suggesting that the economy might have gathered momentum in the final quarter of the year. The headline business climate index rose to 109.3 in November from 107.4 in October, survey results from the Munich-based Ifo Institute showed Friday. Economists had forecast a rise to 107.7.
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ECB's Nowotny Sees No Deflation Perspective
European Central Bank Governing Council member Ewald Nowotny said on Friday that there is no risk of deflation in the euro area.
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German Unemployment Rises For Fourth Month As Growth Wobbles
The number of unemployed persons in Germany increased for a fourth consecutive month in November to its highest level in two-and-a-half years, amid faltering economic recovery, the latest figures from the Federal Labor Agency showed Thursday. The number of unemployed increased by 10,000 persons in November from a month earlier to 2.985 million.
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Upward Trend In Eurozone Economic Sentiment Continues
The continued upward trend in Eurozone economic confidence in November boosted prospects for future employment and investment, and further alleviated fears of a slow recovery, a closely-watched survey showed Thursday. However, data from the European Central Bank revealed subdued lending to the private sector, underscoring the financing problems in peripheral economies.
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European Stocks Extend Losses, eyes on Fed;DAX Down 1%
Investing.com - European stocks extended losses on Tuesday, as speculation the Federal Reserve could soon begin tapering its monthly asset purchases continued to weigh on equity markets.
During European afternoon trade, the EURO STOXX 50 plummeted 1.20%, France’s CAC 40 declined 1.65%, while Germany’s DAX 30 tumbled 1%.
Speculation over the future of the Fed's stimulus program persisted after the Institute for Supply Management said Monday that manufacturing activity in the U.S. expanded at the fastest rate since April 2011 in November, fuelling optimism over the economic recovery.
The ISM manufacturing purchasing managers’ index rose to 57.3 in November from 56.4 in October. Analysts had expected the index to fall to 55.0.
In the euro zone, official data earlier showed that the number of unemployed people in Spain declined by 2,500 in November, confounding expectations for an increase of 44,300, after a 87,000 climb the previous month.
Financial stocks were broadly lower, as French lenders BNP Paribas and Societe Generale plummeted 1.87% and 1.56%, while Germany's Deutsche Bank declined 0.91%.
Among peripheral lenders, Spanish banks BBVA and Banco Santander retreated 0.71% and 1% respectively, while Italy's Intesa Sanpaolo and Unicredit slid 0.37% and 0.71%.
Elsewhere, ThyssenKrupp plunged 2.68% after raising EUR882.3 million through a share sale.
Adding to losses, Sonova Holding plummeted 1.60% as Morgan Stanley cut its rating on the Swiss hearing-aid maker to "equal weight" from "overweight".
In London, commodity-heavy FTSE 100 slid 0.87%, weighed by sharp losses in mining stocks.
Shares in Glencore Xsrata tumbled 1.90% and Fresnillo plummeted 3.62%, while rivals Randgold Resources and Antofogasta lost 5.35% and 5.48% respectively.
Meanwhile, financial stocks were mixed. Barclays and HSBC Holdings dropped 0.89% and 1.11%, while Lloyds Banking and the Royal Bank of Scotland added 0.08% and 0.49%.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.41% decline, S&P 500 futures signaled a 0.32% slide, while the Nasdaq 100 futures indicated a 0.19% fall.
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European Economics Preview: Eurozone Final GDP, Retail Sales Data Due
Retail sales figures from the Eurozone and detailed data on the region's third quarter gross domestic product are the major European economic news on tap for Wednesday. At 3 am ET, the Hungarian Central Statistical Office is scheduled to release the final third quarter GDP and retail sales data. Preliminary GDP figures from Romania are also due at the same time.
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Eurogroup Says Troika Unlikely To Finalize Greek Review In December
The Eurozone finance ministers said on Monday that Greece's creditors are unlikely to conclude the ongoing review of the country's fiscal adjustment program in December as more progress is required on the already agreed measures. The Troika comprising the International Monetary Fund, the European Union and the European Central Bank will return to Athens on Tuesday.
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EU Ministers Move Closer To Bank Resolution Deal
European finance ministers on Tuesday took one step further in finalizing an agreement on a joint mechanism to deal with failing banks, despite visible divisions among member countries over the key measures of the plan. Though the ministers failed to arrive at a precise agreement on Tuesday's meeting, they appeared keen to finalize the banking resolution plan before the EU leaders meeting.
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ECB's Nowotny: Monetary Policy Faces Limits In Stimulating Credit Demand
European Central Bank Governing Council member Ewald Nowotny said on Wednesday that there are limits to what monetary policy can do to boost credit development.
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German FinMin Schaeuble Backs Lautenschlaeger For ECB Board
German Finance Minister Wolfgang Schaeuble said on Monday that it would be a good idea to consider Bundesbank Vice President Sabine Lautenschlaeger as the replacement for Joerg Asmussen on the European Central Bank's Executive Board.
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Bank Of Greece: Economy To Emerge From 6-year Recession In 2014
Greece's central bank said on Tuesday that the country's economy is set to exit a six-year long recession and start recovering next year.
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EU Ministers Reach Deal On Banking Union
European Union finance ministers on Wednesday struck a deal on a much-awaited scheme to handle bank failures in the region, ahead of EU leaders' summit in Brussels on Thursday. The ministers agreed to set up a EUR 55 billion-single resolution fund over the next 10 years, financed by bank levies raised at national level. The fund will be backed by a new agency.
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1 Attachment(s)
EUR/USD weekly outlook: December 23 - 27
Attachment 4320
Monday, December 23
The U.S. is to produce government data on personal spending and expenditure, while the University of Michigan is to release revised data on consumer sentiment and inflation expectations.
Tuesday, December 24
Markets in Germany will remain closed in observance of Christmas Eve, while France is to release data on consumer spending.
The U.S. is to release data on durable goods orders, a leading indicator of production, as well as a report on new home sales.
Wednesday, December 25
Markets in Europe and the U.S. will remain closed for the Christmas Day holiday.
Thursday, December 26
Markets in Europe will remain closed in observance of Boxing Day.
Meanwhile, the U.S. is to release weekly data on initial jobless claims.
Friday, December 27
The U.S. is to round up the week with a report on crude oil supplies.
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ECB's Praet: Italy's Turning Point Still Very Fragile
The Italian economy may be exiting recession signaled by a strong turnaround in confidence indicators, but downside risks remain, European Central Bank Executive Board member Peter Praet said on Sunday.
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France Nov. Producer Prices Decline Less Than Expected
France's producer prices in November decreased less-than-expected from a year ago, data released by the statistical office INSEE showed on Friday.
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Spain October Current Account Surplus Rises
Spain's current account surplus in October increased from a year ago, helped mainly by improvements in the current transfers, services and goods trade balances, the Bank of Spain said on Friday.
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Eurozone Inflation Eases Unexpectedly In December
Eurozone inflation slowed unexpectedly at the end of the year and producer prices remained in negative territory for the fourth consecutive month, adding pressure on the central bank to act decisively to stem deflationary risks and support growth. The flash estimates from Eurostat on Tuesday showed that inflation slowed to 0.8 percent in December.
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German Unemployment Declines Unexpectedly In December
German unemployment dropped unexpectedly in December, marking the first fall in five months, as firms sought to increase staff levels buoyed by the continued recovery of the Eurozone economy and improving domestic demand conditions. The number of unemployed persons fell by a seasonally adjusted 15,000 in December to 2.965 million, the latest data published by the Federal Labor Agency revealed.
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ECB Holds Fire As Deflationary Risks Persist
The European Central Bank left interest rates unchanged at a record low at the start of the year, as it battles deflationary tendencies, while a gradual recovery has become more evident in the 18-nation economy. The Governing Council kept the main refinancing rate unchanged at 0.25 percent on Thursday, for a second straight month, following their meeting in Frankfurt.
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Deutsche Bank Posts Euro1.2 Billion Fourth Quarter Pretax Loss
Deutsche Bank AG (DBK), Europe’s biggest investment bank by revenue, reported a surprise fourth-quarter loss, hurt by legal costs and accounting charges.
The bank had a pretax loss of 1.15 billion euros ($1.56 billion) on 528 million euros in litigation-related expenses, as well as costs tied to its reorganization and charges to adjust credit, debt and funding valuations, the Frankfurt-based firm said yesterday in a statement. The average estimate of six analysts surveyed by Bloomberg was for a 628.5 million-euro pretax profit. The bank announced results 10 days ahead of schedule.
Deutsche Bank is putting aside funds to settle probes and lawsuits that include allegations it deceived clients about products linked to U.S. mortgages and that its traders attempted to rig benchmark interest rates. The firm is spending money to improve controls, reduce headcount and move staff to cheaper locations as part of a plan to increase profitability.
“It is quite a messy result filled with legal and restructuring costs, which Deutsche would call as one-offs,” said Chad Padowitz, who oversees about $105 million in international equities as chief investment officer of Melbourne-based Wingate Asset Management. “The biggest challenge for Deutsche and its European counterparts is to find avenues for growth.”
Deutsche Bank Co-Chief Executive Officers Anshu Jain and Juergen Fitschen said in the statement they are “confident” the bank can reach targets they set for 2015.
Shares Lag
Last year “was the second successive year in which we have invested in the bank’s future growth and in further strengthening our controls while addressing legacy issues,” Jain, 51, and Fitschen, 65, said. “We expect 2014 to be a year of further challenges and disciplined implementation.”
Deutsche Bank gained 7.4 percent in Frankfurt trading over the past 12 months, lagging behind a 17 percent increase in the 44-company Bloomberg Europe Banks and Financial Services Index.
The bank reported a 3.17 billion-euro pretax loss for the fourth quarter of 2012 after writing down the value of businesses that failed to meet its revenue expectations, according to company filings. The firm’s profit in the third quarter of 2013 was almost wiped out after it added 1.2 billion euros to its reserves for legal expenses, the filings show.
“The management needs to show stability in the loan book, improve trading and investment banking income and produce clean numbers for the stock to gain momentum,” Wingate’s Padowitz said by phone today.
Legal Costs
Moody’s Investors Service lowered its outlook on Deutsche Bank’s credit rating to negative last month, saying the company’s plan to reorient its business and boost profitability has been hampered by rising litigation-related expenses.
Deutsche Bank had 2.3 billion euros set aside for legal costs at the end of December, down from 4.1 billion euros three months earlier. The company reached at least three settlements with regulators and clients last month, its filings show.
The bank agreed to pay U.S. financing companies Fannie Mae (FNMA) and Freddie Mac 1.4 billion euros to settle claims that it didn’t provide adequate disclosure about mortgage-backed securities. The European Commission fined Deutsche Bank 725 million euros on Dec. 4 for its part in rigging interest rates linked to the London interbank offered rate. The company said Dec. 19 that it reached a settlement to forfeit 221 million euros to end a derivatives contract with Italian bank Banca Monte dei Paschi di Siena SpA.
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Belgium Business Confidence Rebounds In January
Belgium's business confidence rose in January, after declining slightly in the previous month, survey data from the National Bank of Belgium showed on Friday.
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Eurozone Inflation Eases On Energy Prices; Unemployment Declines Sharply
Eurozone inflation slowed unexpectedly in January reflecting a fall in energy prices and added pressure on the central bank to take more actions to avoid the possibility of deflation in the 18-nation bloc. Nonetheless, the labor market showed unemployment in December declining at the biggest pace since April 2007.
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European Economics Preview: Eurozone Final PMI Data Due
Final Purchasing Managers' survey results from Eurozone, Germany and France are due on Monday, headlining a light day for the European economic news.
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ECB's Draghi: Inflation Outlook Subdued, Ready For Decisive Action If Needed
European Central Bank President Mario Draghi said on Thursday that the outlook for euro area inflation remains subdued due to a weaker economy and the bank is ready to consider all available instruments to tackle any money market volatility. The Governing Council decided to keep the main refinancing rate at a record low 0.25 percent for a third consecutive month.
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European Economics Preview: BoE Inflation Report Due
The Bank of England's Inflation Report and industrial production from euro area are due on Wednesday, headlining a busy day for the European economic news.
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German, French Growth Creeps Above Forecasts In Last Months Of 2013 : Reuters
(Reuters) - Economic growth in Germany and France, the euro zone's two largest economies, marginally exceeded expectations in the fourth quarter and offered hope of a more robust 2014.
The euro zone number is due at 1000 GMT and forecast to show quarterly growth of 0.2 percent. Given the performance of its biggest constituent parts, that could be exceeded.
German growth accelerated to 0.4 percent on the quarter thanks to a rise in exports and capital investment, up from 0.3 percent in the previous three months.
The French economy expanded by 0.3 percent and statistics office INSEE revised up the third quarter figure to flat from -0.1 percent.
That meant France grew 0.3 percent over the course of last year, more than the government's estimate of 0.1 percent.
The German Statistics Office saw "mixed signals" from the domestic economy, which has driven growth throughout most of the year, with public expenditure stable and private consumption slightly below the level of the previous quarter.
"Capital investment developed positively," the Statistics Office said. "However a strong reduction in inventories put the brakes on economic growth."
The German Economy Ministry said on Wednesday it expected gross domestic product (GDP) growth of 1.8 percent in 2014 - more than four times faster than in 2013 as a whole.
"The rise in capital investment is very positive and signals that the German economy is starting the new year well," said Johannes Mayr, an economist at Bayern LB.
The European Central Bank kept policy steady earlier this month with President Mario Draghi declaring more information was needed before deciding on any action.
He cited fresh ECB staff forecasts which will be ready for the March policy meeting and the fourth quarter GDP numbers.
Spain has already reported fourth quarter growth of 0.3 percent, its second successive quarter of expansion. The government now expects growth this year of close to 1 percent, compared with an official forecast of 0.7 percent.
The Dutch economy grew by a solid 0.7 percent on the quarter.
The French government expects growth will accelerate this year to at least 0.9 percent, driven by a rebound in corporate investment.
President Francois Hollande's unpopular government was able to claim the first quarterly net creation of jobs since the start of 2012, recorded by non-farm payroll data from INSEE on Friday.
Finance Minister Pierre Moscovici nonetheless described the economy's strength as "unsatisfactory" and said faster growth was needed to create more jobs with unemployment at nearly 11 percent.
After hiking taxes during his first year in office, President Francois Hollande last month offered to phase out 30 billion euros ($41 billion) in payroll tax in exchange for commitments from businesses to hire and invest in France. ($1 = 0.7317 euros)
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1 Attachment(s)
German, France Q4 GDP Growth Exceeds Expectations
German and French economic growth at the end of 2013 exceeded expectations, underpinned by investment and foreign demand, official figures revealed Friday. The data bodes well for the larger euro currency bloc that is struggling to see a stable expansion. According to preliminary data from the Federal Statistical Office, German economic growth accelerated marginally to 0.4 percent.
Attachment 5490
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German Investor Sentiment Weakens For Second Month: ZEW
Germany's investor confidence deteriorated for the second straight month in February, reversing the improving trend seen in recent months, amid concerns over the faltering recovery in emerging market economies and the subdued outlook for the U.S. recovery.
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European Economics Preview: Eurozone Flash PMI Data Due
Flash Purchasing Managers' survey results from Eurozone, Germany and France are due on Thursday, headlining a light day for the European economic news.
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Fitch Maintains Austria's 'AAA' Rating
Fitch Ratings on Friday maintained Austria's coveted 'AAA' rating with 'stable' outlook despite seeing the one-off adjustments to gross general government debt related to financial sector support.
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Spain Jan Producer Prices Fall Most Since 2009
Spain's producer prices logged the biggest annual fall in more than four years in January, statistical office INE said on Tuesday.
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1 Attachment(s)
French Business Confidence Remains Unchanged In February
French business confidence remained unchanged as expected in February, a closely-watched survey showed Tuesday.
Attachment 5719
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ECB's Mersch: Chinese Yuan May Become Leading Reserve Currency
The internationalization of the Chinese yuan or renminbi, is still in the early stages and the currency may become the lead reserve currency in future, rivaling the U.S. dollar, the European Central Bank Executive Board member Yves Mersch said Wednesday.
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German Retail Sales Growth At 7-year High
German retail sales grew at the fastest pace in seven years in January, staging a strong recovery from the slump in the final month of 2013. Retail sales were up a calendar and seasonally adjusted 2.5 percent, representing the biggest increase since February 2007, data from Destatis showed Friday.
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