Econintersect: Here are the latest news stories for the Eurozone.
The Economist scolds Germany for reluctance to lead – Straits Times – news.google.com
The Economist scolds Germany for reluctance to leadStraits TimesBERLIN (AFP) – British news weekly The Economist hit out at Germany on Friday for seeing itself as a neutral and prosperous “big Switzerland” and failing to assume its responsibility towards Europe as a whole. Under the headline The Reluctant Hegemon, …
Stagnation Stress: German Exporters Expect Bleak Future – http://www.spiegel.de/
Companies in Germany that rely on exports are becoming increasingly concerned about the future of the country’s economy, according to a new industry survey. The downturn in optimism is yet another indication that Europe may be in for a period of extended stagnation.
European floods to cost Allianz £300m – http://www.standard.co.uk/business/
Allianz, the German insurer which employs more than 4000 people in the UK, said it expects floods across central Europe to cost it about €350 million (£298 million).
IMF offers opinion in Fed bond purchase debate – http://feeds.washingtonpost.com
The International Monetary Fund entered the debate over when the Federal Reserve should begin to wind down its monetary easing program, calling on the central bank Friday to continue the large-scale bond purchases through this year — at least.
EU Deal Paves Way For U.S. Trade Talks – http://online.wsj.com/
European Union ministers overcame clashes between France and its partners over the potential impact of a trans-Atlantic trade deal on subsidies for filmmakers and other artists.
France backs EU-U.S. trade talks after culture clash – http://news.yahoo.com
By Philip Blenkinsop and Robin Emmott LUXEMBOURG (Reuters) – France cleared the European Union to launch free-trade talks with the United States on Friday after fellow EU members accepted its demand to shield movies and online entertainment from the might of Hollywood and Silicon Valley. After 12 hours of talks, EU officials announced that the 27 EU trade ministers had finally agreed a negotiating mandate towards what could be the world’s most ambitious trade agreement…
Spanish companies: An ill wind – http://www.economist.com/
Baking biscuits round the clock
In a windswept Castilian town 300km (190 miles) north of Madrid, Europe’s largest biscuit plant is churning out digestives, wafers and crackers around the clock. The economic crisis has not really hurt Galletas Gullón, a family-owned firm that dates back to the 19th century: its products are staples in Spanish households and its newer range of “healthy” biscuits created the market sector they dominate…
The Fed and emerging markets: The end of the affair – http://www.economist.com/
There are many reasons why a fund manager might want to sell the rand. South Africa’s economy is barely growing. Unemployment, at 25% of the workforce, is on a par with the grimmest parts of the euro zone. The mining industry is beset by labour unrest just as commodity prices are falling. The country’s large trade deficit is a sign that local producers are struggling in vain against foreign competition…
Malaysia Airlines says UK asked carrier not to fly Snowden to Britain – http://news.yahoo.com
The British government asked Malaysia’s national airline to block former spy Edward Snowden from boarding flights to the United Kingdom, the carrier told AFP Friday, after he leaked details of Washington’s secret surveillance programmes.
Cowboys on the Rhine: US Firms Flout German Labor Practices – http://www.spiegel.de/
Last week workers walked out in protest at Amazon’s two largest distribution centers in Germany. The online retail giant is one of several US companies to butt heads with employees in the country over corporate practices that chafe against German labor laws.
Public sector urged to step up funding help for small firms – http://www.standard.co.uk/business/
Europe’s small and medium businesses have seen their cash flow dry up since the recession, a study said today. Banks are reducing lending and private investors are reluctant to step in, it found.
Airbus sends first A350 XWB into the sky – http://cnn.com/
Aviation enthusiasts around the world had their eyes on France Friday, eager to catch the long-awaited inaugural flight of the Airbus A350 XWB. The verdict from one Airbus exec: “Impressive.”
Air rivalry intensifies as Airbus A350 makes first flight – http://news.yahoo.com
By Tim Hepher and Jean Décotte TOULOUSE, France (Reuters) – After the Dreamliner, the Hushliner? Europe’s latest passenger jet, the Airbus A350, made its maiden flight on Friday and its chief salesman, opening a new front in a battle with U.S. rival Boeing Co , declared it so quiet that airport residents won’t even notice it…
Airbus’s challenge to the Dreamliner gets off ground – The Independent – news.google.com
The HinduAirbus’s challenge to the Dreamliner gets off groundThe Independent. The Airbus A350, Europe’s answer to Boeing’s Dreamliner, took to the air for the first time yesterday, making its maiden flight out of Toulouse where it is assembled. The plane’s wings were designed at an Airbus facility at Filton near Bristol, and are made at …
UK production growth strengthens to highest for almost three years – http://www.markit.com/
UK industrial production grew at the fastest rate for almost three years in the three months to April, helping to drive an increased rate of economic growth in the UK in the second quarter. Further stimulus from the Bank of England therefore looks increasingly unlikely, with new Governor Mark Carney taking the helm of an economy that is on a rising tide.
Greek Bank Avoids Full State Control After Raising Capital – http://online.wsj.com/
Greece’s biggest lender, the National Bank of Greece, has completed its long-awaited capital increase, raising enough money from private investors to avoid a complete nationalization.
Euro-Zone Risks Return to Fore – http://online.wsj.com/
The turbulence rattling global bond markets is unmasking an unpleasant notion in Europe: The euro zone’s problems aren’t solved.
Insufficient Efforts: Report Faults Cyprus on Money Laundering – http://www.spiegel.de/
A recent inquiry suggests that Cyprus isn’t doing enough to combat money laundering, a precondition for obtaining a bailout package. The banks know little about their customers and are ill-equipped to identify suspicious transactions.
EU sector data point to broad-based improvement in output trends – http://www.markit.com/
Detailed sector PMI data for Europe showed a general improvement in output trends in May. Eight out of the 22 most narrowly defined sectors monitored by PMI data posted growth in output, led by a solid expansion in automobiles & auto parts. The increase in output among autos firms and auto parts suppliers was the first for 14 months, behind which was the sharpest rise in new business intakes in the sector for more than two years…
Week Ahead Economic Overview [17-21 Jun]: Flash PMIs updated for the US, China and the eurozone – http://www.markit.com/
We calculate the flash PMI data for June next week, publishing the results on Thursday for China, the eurozone and the US. May data showed China’s manufacturing PMI slipping below the 50.0 no-change level for the first time in seven months, but the eurozone’s downturn showed signs of easing. The region’s recession, nevertheless, looks likely to have dragged on for a seventh successive quarter…
UK labour market gains add to economic recovery signs – http://www.markit.com/
More signs of the UK economic recovery gaining traction were provided by a further upturn in the labour market. Unemployment has fallen to its lowest in two years, employment rose to a new high, pay growth has picked up modestly and job vacancies have shown the largest increase since late-2010, hitting the highest since December 2008.
Laos Land Grabs: Deutsche Bank Backs Ruthless ‘Rubber Lords’ – http://www.spiegel.de/
Vietnamese companies have been ruthlessly taking advantage of Laotian locals and their environment to create vast rubber plantations. The “rubber lords” are also getting support for the land grabs from Germany’s Deutsche Bank, which is violating its ethics and sustainability policies, critics say.
Singapore punishes RBS and others for rate manipulation – The Independent – news.google.comTelegraph.co.uk
Singapore punishes RBS and others for rate manipulationThe IndependentRoyal Bank of Scotland was yesterday among 20 banks punished by Singapore’s central bank for trying to manipulate benchmark borrowing and currency rates. The Monetary Authority of Singapore (MAS) said 133 traders had tried to rig the Singapore …
RBS in new rate fix scandal – http://www.standard.co.uk/business/
Royal Bank of Scotland was today among 20 banks punished by Singapore’s central bank for trying to manipulate benchmark borrowing and currency rates.
Risky Renovations: Kiel Canal Overhaul Threatens Hamburg Port – http://www.spiegel.de/
The Kiel Canal has long kept the Port of Hamburg alive, providing Germany’s biggest port with a direct link to countries further east. Now, though, a massive overhaul of the waterway could prompt shipowners to switch to rival terminals.