EU28 current account surplus €12.3 billion

European Union (EU) member states have recorded a current account surplus of EUR 12.3 billion for November last year, according to figures from Eurostat.

Despite the excess amount recorded, the surplus for the member state countries was down month on month from the EUR 13.2 billion for October.

Year on year the surplus was smaller, as the current account profits reached  EUR 16.2 billion in November 2014.

The full month on month comparison, disclosed that the surplus of the goods account fell to EUR 7.4 billion form 8 billion.

In contrast the figures for the services account grew in November by EUR 13.8 billion, while in October the growth was slower, with a total of EUR 12.7 billion.

The deficits incurred from the primary income account was greater in November by EUR 1.1 billion, from minus EUR 1.3 billion in October.

For the full 12 month period up to November last year , the accumulated current account surplus reached EUR 179.5 billion.

This was greater than for the same time period leading up to November 2014, where the surplus climbed to EUR 115.7 billion.

Euro Area Figures Show Month on Month Increase

The current account balance for the euro area was EUR 26.4 billion for November last year, in contrast to the EU as a whole, this was a month on month increase of EUR 0.8 billion from October.

A dissection of the figures revealed that the balance of trade in goods for the euro was EUR 27 billion in November, which was slightly down from the EUR 28.1 billion for the previous month.

The month on month gains made in November were found in the balance in trade in services which was EUR 5.9 billion, compared to EUR 5.2 billion for October.

Also, in the balance of primary income, there was a return of EUR 5.9 billion for November, whereas the balance for October was EUR 5.2 billion.

Fitch Say Hollande Jobs Plan is Not Enough

Fitch have opined that President Hollande’s EUR 2 billion jobs plan, signifies intent, but is not a ‘game changer’ to alleviate France from its  unemployment rate of 10.6%, which is higher than the EU average of 9.8%.

 In what he described as a “state of economic emergency”, Hollande announced plans to create 500,000 vocational training schemes, and pledged to pay SMEs EUR 2,000 a year for two years, if they hire employees at up to 1.3 times the minimum wage for at least six months.

Apprenticeships were also supported in the package, and the capping of unfair dismissal payouts to reduce judicial uncertainty, was also announced.

According to the ratings agency, the structurally inflexible labour market in France will result in only a limited fiscal impact for the plan.

 

Euro Up and Down Against US Dollar Following Inflation Figures

The euro has made gains on the US dollar this morning GMT, and is now currently buying $1.090, and peaked at $1.092. 

Throughout yesterday afternoon and the early hours of this morning GMT, the euro reached a 24 hour nadir of buying $1.087, before its recovery. 

This was in response to the weak inflation figures released by the United States yesterday, as the consumer price index slipped by 0.1% for last month, after being unchanged in November.

For the full year up to December, the index has risen by 0.7%.

The strengthening of the euro, was fuelled by the data, as there is less pressure to accelerate the pace of  interest rates rises, following the decision by the Federal Reserve to raise rates to 0.25% at the end of last year.