Mac Attack
I'm neat.
I'm creating this thread in hopes of bringing people more news on the current events of the world. Each day I will be posting a current event in this thread with something relevant in the world. It could be on any topic of any importance however I think it will be quite interesting. Also I will be giving my brief opinion on the current event. Also feel free to comment on the event yourself. Also the spoiler tags are just to keep the entire post a little shorter.
Current Event May 3rd 2011
I'm not thrilled by this. I think the European Union having the same currency this hurts mulitple countries. The act of rasing interest rates also hurts the banking industry. This is devastating news to the European Union. I think it should easily blow off but for the time being I think that this is a problem that needs to be addressed. The spiked energy costs aren't good for the enrgy industry and I think the Eu should definetly look to fix this as soon as possible.
Current Event May 3rd 2011
European producer-price inflation unexpectedly accelerated to the fastest in 2 1/2 years in March, adding to concerns that surging energy costs will feed through to consumers and prompt the European Central Bank to raise interest rates further.
Factory-gate prices in the euro region jumped 6.7 percent from a year earlier, the fastest since September 2008, after a 6.6 percent gain in February, the European Unions statistics office in Luxembourg said today. Economists had projected a March increase of 6.6 percent, according to the median of 13 estimates in a Bloomberg news survey. In the month, prices advanced 0.7 percent.
European companies are trying to pass on higher input costs, including a 31 percent oil-price jump in the past year, just as the economic recovery appears to be faltering. That has helped push consumer-price inflation above the ECBs 2 percent limit. The central bank last month raised interest rates for the first time in almost three years.
Pipeline inflation pressures in the euro zone remain intense, said Martin van Vliet, an economist at ING Groep NV in Amsterdam. The risk of high consumer-price inflation spilling over into wages will keep the ECB in a tightening state of mind.
10-Year Bonds
German 10-year bonds fell after the producer-price data. The 10-year yield rose three basis points to 3.28 percent as of 10:04 a.m. in London. The euro was lower against the dollar, trading at $1.4804, down 0.2 percent.
Consumer-price inflation accelerated to the fastest in more than two years in April and confidence in the economic outlook weakened as higher energy prices threatened to undermine growth. Euro-area expansion will slow to 1.6 percent this year from 1.8 percent in 2010, the European Commission forecast last month.
We have risks of second-round effects here and there, ECB President Jean-Claude Trichet said in a newspaper interview last week, referring to an increase in consumer prices prompting bigger wage increases that feed through to faster inflation.
MAN SE, Europes third-largest truckmaker, is monitoring the risk of accelerating inflation in Europe, as well as in China and Brazil, with price increases something to watch in all its markets, Chief Financial Officer Frank Lutz said today in an interview on Bloomberg Televisions On the Move with Francine Lacqua.
Benchmark Rate
ECB policy makers, who increased the benchmark rate by a quarter point to 1.25 percent last month, next convene on May 5 in Helsinki. Some economists expect them to signal that another move will come as soon as June.
Energy prices at the producer level jumped 13 percent in March from a year earlier and the cost of intermediate goods rose 7.9 percent, the statistics office said in todays report.
Factory-gate prices in the euro region jumped 6.7 percent from a year earlier, the fastest since September 2008, after a 6.6 percent gain in February, the European Unions statistics office in Luxembourg said today. Economists had projected a March increase of 6.6 percent, according to the median of 13 estimates in a Bloomberg news survey. In the month, prices advanced 0.7 percent.
European companies are trying to pass on higher input costs, including a 31 percent oil-price jump in the past year, just as the economic recovery appears to be faltering. That has helped push consumer-price inflation above the ECBs 2 percent limit. The central bank last month raised interest rates for the first time in almost three years.
Pipeline inflation pressures in the euro zone remain intense, said Martin van Vliet, an economist at ING Groep NV in Amsterdam. The risk of high consumer-price inflation spilling over into wages will keep the ECB in a tightening state of mind.
10-Year Bonds
German 10-year bonds fell after the producer-price data. The 10-year yield rose three basis points to 3.28 percent as of 10:04 a.m. in London. The euro was lower against the dollar, trading at $1.4804, down 0.2 percent.
Consumer-price inflation accelerated to the fastest in more than two years in April and confidence in the economic outlook weakened as higher energy prices threatened to undermine growth. Euro-area expansion will slow to 1.6 percent this year from 1.8 percent in 2010, the European Commission forecast last month.
We have risks of second-round effects here and there, ECB President Jean-Claude Trichet said in a newspaper interview last week, referring to an increase in consumer prices prompting bigger wage increases that feed through to faster inflation.
MAN SE, Europes third-largest truckmaker, is monitoring the risk of accelerating inflation in Europe, as well as in China and Brazil, with price increases something to watch in all its markets, Chief Financial Officer Frank Lutz said today in an interview on Bloomberg Televisions On the Move with Francine Lacqua.
Benchmark Rate
ECB policy makers, who increased the benchmark rate by a quarter point to 1.25 percent last month, next convene on May 5 in Helsinki. Some economists expect them to signal that another move will come as soon as June.
Energy prices at the producer level jumped 13 percent in March from a year earlier and the cost of intermediate goods rose 7.9 percent, the statistics office said in todays report.
I'm not thrilled by this. I think the European Union having the same currency this hurts mulitple countries. The act of rasing interest rates also hurts the banking industry. This is devastating news to the European Union. I think it should easily blow off but for the time being I think that this is a problem that needs to be addressed. The spiked energy costs aren't good for the enrgy industry and I think the Eu should definetly look to fix this as soon as possible.