Inflation european reach the goal of the ECB, raising pressure to cut back its programme of stimulus – Financial Daily

By Mary Akbulyakova

Yesterday was the second day of good economic news from the European Union: the inflation in the whole area accelerated in January, reaching an annual rate of 1.8% and meeting the target of "just below 2%" of the European Central Bank (ECB).

In turn, the unemployment marked the lowest figures since may 2009, down from 9.7% in November to 9.6% in December.

The economy of the block is expanded at a rate of 0.5% in the last quarter of 2016, above the two previous periods, ending the year with solid growth of 1.7%.

Support of Germany and France

After the inflation data revealed on Monday –which reached a record high of 1.9% in January– Germany shows further signs of rebound in the economy: the unemployment rate fell in January to a historic low of 5.9%, the lowest level since the country’s reunification in 1990. In absolute figures, there were 26,000 people unemployed, compared with 5,000 predicted.

The recovery of the euro zone is also supported by data from the second economy of the bloc. In France, inflation marked its highest in more than four years, coming in at 1.6 per cent rate year-on-year in January. The price rise was fuelled by a 10% increase in the value of oil and 8.7% in the food.

The economy expanded by 0.4% in the last quarter of 2016, bringing the total for the year to 1.1%. The growth was driven by solid consumer spending and an increase of 1.3% in investments, easing fears that the upcoming elections will put the demand in a "standby mode".

Pressure on the ECB

The latest data increase the pressure on the European Central Bank to end its massive program of buying bonds 2.3 trillion (million million) euros per month. "The ECB will look to the data set with a mixture of joy and concern, as they show that the economy is in the right direction, but will probably alert you to the hawks too early," said Bert Colijn, economist at ING.

however, since the institution no longer hinted that the decision will not come soon. Ewald Nowotny, member of the board of directors of the ECB, had indicated Monday that the authority will not review your program of stimuli before July. Yesterday Francois Villeroy de Galhau, the governor of the central bank of France, added that "concerns about the return of inflation are highly exaggerated".

In turn, core inflation –which excludes food and energy– marked 0.9% in January, with no improvement on the previous month. "With underlying inflation still weak, it seems very unlikely that the data cause a change of direction of the ECB," said Colijn. "Without the underlying inflation, the ECB is not going to move," he confirmed, his time, Michael Schubert, economist at Commerzbank.

in Addition, it is expected that the general inflation –driven in large part by energy prices– will slow in the second half.

As a major risk factor for the current year is compounded by the political uncertainty. "We suspect that the euro zone may find it difficult to sustain their momentum after the political uncertainties in appreciable during 2017 and the purchasing power of consumers, which are probably reduced by the higher inflation,"said Howard Archer, economist at IHS Global Insight.

The majority of economists are betting that the change of monetary policy will not become effective before September and some cite as a possible date to June.

Spain takes steps

Meanwhile, Spain –where prices came to grow 3% rate year-on-year in January – starts to worry and take action about it.

So, as said yesterday the minister of Economy of the country, Luis de Guindos, the government will approve this week the Royal Decree of Desindexación –that unlinks the pricing of public services of the CPI– so that the rebound "worrisome" inflation "does not damage the competitiveness of the economy" and not structural, adding that for the second quarter, the price increase will decelerate to 1%.

Level office candidate French

The French police recorded yesterday the parliamentary office of former presidential candidate Francois Fillon by the case of alleged fake job for his wife, Penelope.

prosecutors are investigating whether the spouse of Fillon received 500,000 euros of public funds in payments for work as a parliamentary advisor of her husband, a charge that would never have played, as reported by the daily satirical French Le Canard Enchaine.

The case has damaged strongly to Fillon, the candidate of the center-right party The Republicans, who until a week ago it was a favorite almost indisputable to be the president of the second european economy. “As things are going, I think we need to put together quickly a plan B,” said a source in the party. Fillon has insisted on denying all the allegations, saying that the work of his wife was real. However, the politician promised to get out of the presidential campaign in the event that you open a formal investigation against them.

Euro jumps to maximum of five sessions per advisor Trump – The Financial

The euro soared on Tuesday to a maximum level of five sessions against the dollar and closed the month of January with gains above 2 percent, after the statements of the commercial advisor of the u.s. president Donald Trump, Peter Navarro, who said that Germany was benefiting from a euro that is “extremely undervalued”.

The European Central Bank (ECB) fixed the exchange rate at 1.0755 units, for a gain on the day of 0.56 per cent. In the day, the euro touched an intraday high of 1.0800 dollars.

The euro, moving away from its lowest level in 14 years that he played at the beginning of this month of 1.0339 dollars. In the previous three years had declined by nearly 25 percent.

To the end of that month, the european currency closed with a positive balance of 2.27 percent.

El dollar index, in both, was listed at 0.93 percent, 99.94 units, a level that touches for the first time in five days.

The currency of the block is appreciated further against the pound , although without reaching a maximum session, to 86.10 pence.

Navarro, head of the newly created National Council of Commerce, told the Financial Times that “a great obstacle to see the ATCI (Association Transatlantic Trade and Investment) as a bilateral agreement is Germany, which continues to exploit other countries in the European Union, like the united States, with a ‘German mark implied’ that it was extremely undervalued”.

“The structural imbalance in the German trade with the rest of the EU and the united States underscores the heterogeneity of economic within the European Union, so this is a multilateral agreement with a suit bilateral,” he said.

The statements of Navarro, a prominent critic of China and author of a book entitled “Death by China” (“China: the conflict in sight”), is produced after similar comments were made by the same Trump to The Wall Street Journal two weeks ago, in which he said that the strength of the greenback against the yuan “is killing us”.

The promises to Trump tax cuts, spending plans and tax hikes of interest rates in the united States have boosted the dollar at the global level. But a hard currency threat the american competitiveness and hinders the return of jobs in manufacturing in the country, one of the main election promises Trump.

“it Seems that the policy of the strong dollar is over, is a thing of the past,” said Neil Jones, an economist at Mizuho in London. “The recent concern of the united States by the dollar strong against China is happening now to the euro area with these comments from a euro undervalued”.

The accusations of Trump against Germany collapse the global markets – Telam

This attack is a member of the new u.s. government by the policy of trade and exchange was not directed against China but against the principal european power and allied commercial and political life of the united States, a fact that has caused consternation in the Old Continent.

despite the breadth of the statements of Peter Navarro, head of the National Council of Trade Trump, the Dow Jones industrial index of the New York Stock exchange managed to recover during the day and closed with a moderate fall of 0,54%, while the Nasdaq, technology stocks, almost ignored the fact, and ended with a step of 0,02%.

Navarro said today that the euro was a currency undervalued and that, in reality, is the same as the old German mark, which allows Germany to take advantage of its trading partners not only within the Eurozone but mainly of his exchange with the united States.

The hardness of Navarro was made to feel particularly when he asserted that a euro is “very undervalued” is “exploding” to the united States and to the partners of Germany in the European Union (EU), thus confirming that the new Management of Trump focuses on monetary issues and trade and puts in question the international relations of such as were known up to now.

The German chancellor, Angela Merkel, was not slow in responding to the attack on Navarro, ensuring that Germany could not influence the euro, since that country always “has supported a European Central Bank independent.”

As could not be otherwise, the Bags are resented for the second consecutive day with these news unfavourable that occur from Washington in an uninterrupted manner from that Trump agreed to the White House last January 20.

So, the FTSE 100 index of the London Stock exchange lost 0,27%, while the cac40 index of the Paris Stock exchange also declined, although slightly more than its neighbor of Great Britain, closing with a low of 0.75%.

More striking was the collapse in Frankfurt as it could not be otherwise because of the attack of Navarro, and the DAX index of the German Stock market fell at the close 1.25%.

In Switzerland, meanwhile, shares fell 0,49%, a little less than the AEX index of the Amsterdam Stock exchange who lost 0,59%.

was Also less than the decline of the Madrid Stock exchange whose IBEX35 index fell 0,49%, the same as the index MIB of the Milan Stock exchange suffered a loss of 0,90%.

The note in Europe, gave the Stock exchange of Stockholm whose index OMX 30 closed with a gain of 0.51%.

like yesterday, in the Far East only operated on the Tokyo Stock exchange which fell 1,69%, as the stock Exchanges of China, Shanghai and Hong Kong are not operated by the Chinese New Year.

In the money market, the dollar also felt the negative effects of the pronouncements of Washington, and today gave against the euro, trading the european currency at 1.08 dollars off the 1,07 yesterday.

Finally, today began the monetary policy meeting of the Federal Reserve of the united States, whose determinations are to be expected always with attention by investors.

Tomorrow, Wednesday, we will hear those resolutions, although it is almost the unanimous opinion of the market in the sense that there will be no changes in the level of the interest rate, as the central bank of us probably will not act until they have clear economic course of Trump.

The sales advisor Trump says Germany uses the euro, “extremely undervalued” – Investing.com Spain

By Jamie McGeever

LONDON (Reuters) – The chief trade adviser of the president, Donald Trump accused Germany of using a euro “extremely undervalued” to gain competitive advantages, which resulted in a rejection of chancellor Angela Merkel and took the currency to a maximum of eight weeks against the dollar.

Peter Navarro, director of the new National Council of Trade Trump, told the newspaper Financial Times that the euro is like a “German mark implied”, whose low quote gives Germany a competitive advantage over the united States and its european partners.

The euro rose after the news to a maximum of eight weeks against the dollar at 1.08 usd, away from the lowest level in 14 years that he played at the beginning of this month, to 1,0339 dollars. In the previous three years had declined by nearly 25 percent.

“Germany is a country that has always urged the European Central Bank to carry out an independent policy, as did the Bundesbank before the advent of the euro,” Merkel said at a conference in Stockholm alongside Swedish prime minister, Stefan Lofven.

“Because that’s not influiremos in the performance of the ECB. And as a result, I can not and do not want to change the situation as it is”, he added.

A spokesman for the German Finance ministry said it was unfair to point to the current surplus German because it is just one of 19 countries that form the euro zone, adding: “After all, nobody argues about the current state of the accounts of California”.

The promises to Trump tax cuts, spending plans and tax hikes of interest rates in the united States have boosted the dollar at the global level. But a hard currency threat the american competitiveness and hinders the return of jobs in manufacturing in the country, one of the main cards election of the president.

Navarro, a prominent critic of China and author of a book entitled “Death by China” (“China: conflict to the view”) has indicated that Germany is one of the main stumbling blocks to a trade agreement between the united States and the EU and that the talks on the Transatlantic Partnership of Trade and Investment (ATCI) are dead, said the newspaper.

“A big obstacle to see the ATCI as a bilateral agreement is Germany, which continues to exploit other countries in the EU, like the united States, with a ‘German mark implied’ that it is extremely undervalued,” said Navarro at the FT.

legal Notice: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn’t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

The inflation in the euro zone jumps up and the growth is accelerating – The Trade

(Reuters). Inflation in the euro zone progressed more than expected in January by an increase in energy prices, while economic growth accelerated and the unemployment rate fell to its lowest level in more than seven years, according to data of the Statistical office of the European Union published on Tuesday.

The inflation in the 19 countries sharing the euro accelerated to a 1.8 per cent year-on-year in January, compared to a rise of 1.1 percent in December, reaching the medium-term target of the European Central Bank of close to two percent, but not reaching that threshold.

it Is the highest point since February of 2013.

But underlying inflation, which excludes volatile elements like food and energy, and is the indicator that takes as reference the ECB to adopt its policies, it remained stable at 0.9 percent in January, suggesting that the bank will not change immediately its program of buying bonds.

on the other hand, Eurostat said that Gross Domestic Product in the euro zone rose 0.5 percent quarter-on-quarter in the last three months of 2016, as expected by the markets, accumulating a rise of 1.8 percent year-on-year.

For all of 2016, the euro zone’s GDP rose 1.7 percent.

The strong economic growth helped reduce the unemployment of the euro area to 9.6 percent, the lowest rate since may 2009, when the Greek debt crisis had not yet affected the block.

Inflation peruvian would at 0.27% in January, according to polling – RPP News

inflation in Metropolitan Lima in January would come at 0.27%, due to the soaring prices of some food and fuel, while the annualized rate would slow slightly, according to a survey conducted by the Reuters news agency.

In this way, the price index for the first month of the year to be well below the 0.33 per cent in December, and of 0.37% from January of last year.

"it Would have influenced the prices of some perishable foods, such as vegetables and fruits, which would have been offset by a lower average price of poultry products and tubers", explained the senior analyst of Department of Economic Studies at Scotiabank, Mario Guerrero.

By huaicos. The soaring prices of fruits and vegetables was also driven by heavy rains in agricultural areas of the country, who come generating huaicos and floods and the blocking of some roads.

The chief economist of BBVA Research, Francisco Grippa, noted that fuel prices also have increased slightly in January, although the increase would have been compensated for a correction of the rates of transport across provincial borders.

The inflation rate of the last 12 months to January would have slowed to between 3% and 3.1%, approaching 3% of the target range officer, from the 3.23% registered at the close of 2016.

As you recall, the Central Reserve Bank (BCR) estimated in mid-December that the inflation rate of 2.3% to 2017.

Poll Reuters: Inflation would be 0.27% in January – Daily Management

estimates on the variation of the Index of Consumer Prices (IPC) of ten analysts fluctuate between increases of 0.15% and 0.35%, said the survey of Reuters.

.- the (Reuters) Metropolitan Lima recorded in January inflation at 0.27% due to a rise in the prices of some food and fuel, while the annualized rate would slow slightly, according to a survey of Reuters.

The inflation of January to be well below the 0.33 per cent recorded in December, and of 0.37% from January of last year.

"it Would have influenced the prices of some perishable foods, such as vegetables and fruits, which would have been offset by a lower average price of poultry products and tubers", explained the senior analyst of Department of Economic Studies at Scotiabank, Mario Guerrero.

According to analysts, the increase in seasonal prices of fruits and vegetables was also driven by heavy rains in agricultural areas of the country, who come generating landslides of mud and rock, flooding and the blocking of some stretches of roads.
.
The prices of the food and drinks have the highest weight in the calculation of local inflation.

Also, fuel prices also have increased slightly in January, although the increase would have been compensated for a correction of the rates of transport across provincial borders, said the chief economist of BBVA Research, Francisco Grippa.

The inflation rate of the last 12 months to January would have slowed to between 3% and 3.1%, nearing the ceiling of 3% of the target range officer, from the 3.23% registered at the close of 2016.

The Central Reserve Bank (BCR) estimated in mid-December inflation of 2.3% for this year.

These are the estimates of the analysts on the variation of consumer prices in January, whose official figure will be aired on 1 February:

Organization Inflation January 2017
UBS 0.35%
Phase Consultants 0.35%
Itaú Bank, 0.30%
4CAST 0.30%
BBVA 0.27%
Pantheon 0.26%
JPMogan 0.21%
Barclays 0.20%
Bank of America, 0.19%
Scotiabank 0.15%
Median 0.27%
Average 0.26%

The light closes January 35% more expensive than a year ago – EntornoInteligente

the Expansion / The cost of production of electricity in Spain has followed encareciéndose during January which will emerge in the electricity bill of the households covered by the Price, a Volunteer at the Small Consumer (PVPC) a rise greater than 35% with respect to the start of 2016.

this increase is explained because the average price of daily generation of electricity in Spain has increased 95,8% between 1 January and 31 January to the passing of 36,52 € per megawatt hour in the same month of 2016 to 71,49 euros, according to data from the ‘pool’ electric market operator OMIE collected by, Servimedia.

In its last day of trading, the price fixed for tomorrow, Tuesday, is 73,27 eur , which represents a rise of 3.5% with respect to the 70,81 eur today.

Some of the factors that explain this sharp rise, which is being investigated by the office of the Prosecutor of the Supreme Court and the National Commission of Markets and competition (CNMC), which are the absence of rain and wind, the increase in the price of oil, which a year ago was at historic lows or the shutdown of nuclear power plants in France.

Given that the component of the energy represents around 37.5% of the electricity bill , whose remaining way with the taxes and the tolls, this increase in the price of electricity has an upward impact on the bill of 35.9%.

In monthly terms, if we compare the data of what is going January of last December, the price of production of electricity, its price has risen 18.2% since then stood at 60,49 euro per MWh, which assumes the receipt of a rise of 6.8%.

In this way, the regulated tariffs of the electricity chain at the close of January nine months of promotion , since your last descent occurred last April.

The light closes January 35% more expensive than a year ago

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The light and the gas fire the CPI of Spain in January to 3% – Investing.com Spain

MADRID (Reuters) – The consumer price index (CPI) rose in Spain by 3.0 percent year-on-year in January, accelerating for the second month in a row by the price increase of fuel and energy, according to preliminary data published on Tuesday by the National Statistics Institute.

this Is the highest figure since December 2012 and almost doubles the rate of 1.6 percent in December.

The data is located in addition far above the price stability objective of the European Central Bank, whose goal is to keep inflation below 2 percent, but close to that value, and adds to a debate about how long the monetary stimulus of the bank.

The HICP (CPI harmonised with the eurozone) preliminary stood at 3.0 per cent year-on-year, data that if confirmed would represent a rise of 1.6 points compared to the previous month, according to the INE.

In inter-monthly terms, the CPI fell 0.5 percent this month, while the HICP decreased by -0,9 percent.

Spain is one of the largest european importers of energy and is vulnerable to changes in their costs. The INE said that the January reading reflected a rise in the price and electricity, for the increase of the demand due to low temperatures.

The underlying inflation, which removes the components more volatile as the prices of energy and food, recorded an annual rate more moderate 1 percent in December.

A resurgence of inflation German in January, when it reached a peak of three and a half years, caused the Monday that bond yields in the euro zone with a low score were to rise dramatically, while increasing the nervousness about when to reduce the ECB its stimulus program money.

The inflation French also rose more than expected, while the preliminary data of the CPI for the euro zone are due out this Tuesday.

Ewald Nowotny, the ECB said Monday that the central bank will probably review it for the first time, its monetary policy strategy in June, but did not mention whether it would take any decision on lowering its programme of stimulus.

In Spain, a resurgence of inflation in 2017 is in addition to predictably the winds against the economy this year, after the weakness of prices to foster a recovery in household expenditure in the last three years.

legal Notice: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn’t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

European stock markets, with better prospect that Wall Street – The Economist

The investment bank estimated that the DJStoxx600 will rise 8%, including dividends, and is committed to the financial sector.

there is Still a place for the european equity continue to grow. Photo File: AFP

The economic recovery and the rebound of oil prices will play in favour of the european bourse this year, according to Goldman Sachs, which predicts a better performance of the indexes of the old continent and that of Wall Street.

The investment bank, predicts that the DJStoxx600 will end this year around 380 points, 8% above the close of last year, while it predicts that the S&P 500 end of 2017 at around 2,300 points, which would close the year with an increase of 4 percent.

last Thursday, the Dow Jones industrial average surpassed the height of the 20,000 points for the first time in its history and the S&P 500 is trading too close to areas record.

High expectations

Goldman explains that currently Wall Street is traded at these levels for a few expectations too positive. "What’s that currently, it generates optimism in the united States are the tax cuts and fiscal spending, and these factors will be diluted over the next few months. On the contrary, the european stock exchanges have a few catalysts for stronger to behave well in the medium term," says Mueller-Glissmann, an analyst at the investment bank. And he thinks that the new u.s. government will find it difficult to fulfill all the promises made.

Goldman Sachs estimated that the export of the eu will benefit if Trump continues to promote a strong dollar and a weak euro, which will be reflected in their quotes.

In this context, Goldman Sachs recommended sobreponderar european shares and infraponderar the us-american market for a horizon of 12 months. Among its sectors of favorites includes banks.

the rebel

Businesses and investors begin to give back to the hasty and temperamental policies of Donald Trump, the new president of the united States.

After weeks on the rise and ignoring the uncertainty that could unleash the Administration Trump, Wall Street was caught up in the fears and signed its worst session so far this year.

Meanwhile, some of the managers of the most recognized in the country showed their rejection to the migration policies of Donald Trump.

Microsoft went beyond the rejection and announced that it is already working with the attorney general of the state of Washington, where he located his headquarters, in the demand that it is preparing to paralyze the decree of Trump prohibiting the entry of immigrants from seven arab countries, according to Reuters.

The giant computer he stressed that it is providing to the justice information about the impact of the measure on the workers and that he will be "happy to testify if necessary", said the spokesperson of the company, Pete Wootton, in a statement.

For his part, the director-general of Ford, Mark Fields, and its chairman, Bill Ford, signed a press release in which it revealed its rejection of the policy of Trump and where supported the promotion of values such as "respect and inclusion".

The president of Nike, Mark Parker, stated that the values of diversity "are being threatened by the executive order on EU, prohibiting the entry of refugees, as well as tourists from seven countries, mostly muslim. This is a policy that we do not support".

Start techno-science Technology Fitbit can dismiss up to 10% of their employees because of the quarter… – Pysn Pueblo and Society News

Writing | 30.01.2017 at 09h10

Sergio Oliveira

Loves of about 23% of the market, wristbands fitness, the Fitbit is not good for health. According to the information of this Sunday (29) of the Information, the american company is struggling to close its financial results for the fourth quarter of 2016, and that’s why you may have to lay off 5% to 10% of its employees.

between the scenes of the industry has now circulated the information that the measure was already voted on and approved by the board of directors of the company on the last Wednesday, day 25. With the layoffs, which must affect between 80 and 160 employees, the Fitbit expected to cut US$ 200 million in operating costs.

Still it is not known exactly as the Fitbit came out in the last quarter of 2016, since the financial results are expected to be announced only next month. However, by the movement of the backstage, apparently, the company has not gone well and is already plotting strategies for getting out of the red numbers.

The big problem of this is that the Fitbit will still struggle against the market, that is becoming less and less interested in bracelets of fitness and giving more attention to smartwatches. A measure that the company is looking to diversify its portfolio of products and focus more on the services and the software after you purchase the Pebble and the payment platform digital Coin. On that front, the company is betting high on the launch of its own store of applications for wearables.

If all this goes well, and the Fitbit will continue to remain in the market, only time will tell. Until the end of this year, the company must open the doors of the virtual store of applications and there yes we will have an idea of how the market will receive it.

Source: The Information

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Falls of the oil to increase drilling in the US – Prensa Latina

January 30, 2017 07:48London, 30 jan (PL) The price of oil dropped today slightly before the ascent of the drilling in the united States, which will affect the market, even sobreabastecido despite the attempts of the OPEC to reduce the global stockpile.

Brent traded at 55,26 dollars per barrel, while light crude american made 53,09 dollars per barrel.

According to the signature of the industry Baker Hughes, oil rigs active in the northern kingdom reached the previous week maximum since November of 2015, which showed that the companies of the country take advantage of the prices of crude oil by about $ 50 per barrel.

Since the entry into force of the agreement of the Organization of Petroleum Exporting Countries (OPEC), the price of crude oil remain stable, although they do not exceed 60 dollars per barrel.

The deal between the cartel and other producers not members contemplated the reduction of 1.8 million barrels a day to reduce the global inventories in two years.

The basket of OPEC traded Friday at 52,88 us dollars, which represented a loss of three cents of a dollar with respect to the end prior, reported the cartel.

lam/tdd

Irresponsible fiscal reform undermined – The Nation Costa Rica

Updated January 30, 2017 at 12:00 am

From the macroeconomic point of view, the new project of setting would be practically zero, unable to consolidate public finances and control the growth of debt

The tax proposal is undermined not solve the structural problems of the public expenditure, and excludes a project to rationalize the bonuses to salary and other perquisites

to Approve the draft tax reform, which considered the Government of the Republic and several legislative fractions –PLN, PAC, FA and deputies of other fractions-legislative– would be an act of total irresponsibility. A number of considerations economic, political, and social you can come up with to discredit him.

The first and perhaps the most thoroughly, is that it is insufficient to solve the fiscal problem. The fiscal deficit projected for this year by the Central Bank is an estimated 5.9% of GDP and will reach 6% of GDP in 2018 according to the programme, macro-economic, while the project of fiscal reform light just would be a 0.6% of GDP, equivalent to only ¢169.000 million. In the original draft submitted by the Ministry of Finance estimated a revenue of 2% per annum (¢560.000 million), which would be supplemented with other spending reductions by 1.25% of GDP, much of which, apparently, has quit the government, mainly related to the salaries of public servants.

From the macroeconomic point of view, the new project of setting would be virtually nil, unable to consolidate public finances and control the growth of the debt. The international rating risk probably identify as an imitation of tax reform, unable to improve the ratings recently downgraded.

The International Monetary Fund also considered that reform is absolutely insufficient to correct the imbalance. In the conclusions of the latest annual report (art. (IV) in march 2016, the IMF mission has defined in detail the settings that should be done Costa Rica and the corresponding figures. It is considered that "the trend of tax is unsustainable in the long term. Without fiscal reform, the fiscal deficit would represent a 9% of GDP in 2021, and the public debt would reach 70% of GDP". To avoid the explosion of the deficit and ensure the sustainability of the debt proposed to make an adjustment equivalent to 3.75% of the GDP, divide it in increased taxes (reforms to the laws on income tax and converting the sales tax into VAT) of 2.5%, and 1.25% of GDP in reduction of expenditure. As can be seen, the project of reform waned would be very far from meeting the requirements of the IMF.

What would be the economic consequences of not addressing properly the fiscal problem? Some we have already identified in the editorial above: it could raise interest rates in the medium term as they go adding to the problem, although short-term Finance will be able to convince the public institutions and pension funds to purchase bonds tax interest rate "agreed" between the parties, without pressing much on the financial market private. You could "park" the deficit temporarily in the surplus from the institutions, but without any substantive solution.

The tax proposal is undermined not solve the structural problems of the public expenditure. Excludes the project to rationalize the bonuses to salary and other perquisites of the regime of public servants, originally submitted by deputy Sandra Piszk, to confront, precisely, one of the main triggers of expenditure. That imposes, in turn, a serious limitation to the social programs in both there is the possibility of being expanded, and, also, the public investment needed to generate jobs and improve productivity. The increased interest expense would absorb ever more resources, to the detriment of other needs.

Another of the defects of the tax reform limited is its inability to contribute to control inflation and stabilize the exchange rate. The inflationary effect of deficit spending increasing is occur by two pathways: first, the volume of spending expansive and desfinanciado would mean an increase in aggregate demand, with direct effects on inflation and the deficit in the balance of payments. This shortfall has been financed by capital inflows but, if the perception of investors changes in a situation finance unsustainable, the impact would be in the type of change and, later, in imported products and, consequently, in the consumer price index (CPI).

The second effect would be the reduced ability of the Central Bank to control the inflation within the set targets of a 3% (plus or minus a percentage point). We have pointed out on other occasions that the gap of the product (real growth below average) has been closing, so that monetary policy should eventually become more conservative, with interest rates more in line with inflation scheduled. But if the fiscal situation deteriorates and tap the interest rates and the fiscal deficit continues to grow, the macroeconomic policy face the old dilemma of higher inflation or lower economic growth. In contrast, a fiscal reform that is well-balanced, which favors investment and control current spending, it would be very favorable to increase economic growth.

Finally, it is regrettable opportunity lost. In Costa Rica it is politically very difficult to pass tax reform and tax relief, the natural antibodies that they produce. Why, then, miss this valuable opportunity to pass a reform bill that even reaches the category of mediocre? It makes no sense.

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The Spanish economy is vulnerable to a slowdown after a strong 2016 – Investing.com Spain

MADRID (Reuters) – The Spanish economy remained in the period October-December a strong pace of growth that allowed him to achieve one of the highest rates of growth of the eurozone, but the recovery could slow down in the next few months against a rising inflation in the domestic market and increased political tensions at the global level.

consumption and tourism as motors, the Gross domestic Product (GDP) grew in the fourth quarter, a 0.7 percent compared to the third quarter and 3.0 percent year-on-year, in line with what expected by the analysts and with the estimates of the minister of Economy, Luis de Guindos, and the Bank of Spain.

The data announced Monday by the National Institute of Statistics (INE) puts the annual growth of the GDP in the whole of 2016 at 3.2 percent, as anticipated by the Executive of Mariano Rajoy.

This increase is equal to the 2015 and represents the third consecutive year of economic recovery after a deep recession.

The strong pace of expansion will be retained in addition to in a year in which the Executive was ten months in office before the political blockage caused by two electoral processes that have left a Congress fragmented.

however, the acceleration of inflation for the cost of it could slow down the growth this year to limit the purchasing power of families, which had driven the consumption taking advantage of the containment of prices.

in Addition, economists anticipate that the creation of employment forward at a rate more low, and the effect of other positive factors as tax cuts in 2015 could be dampened.

does Not help nor does the current international context, with a climate of fear by isolationist policies of Donald Trump and the decision of the Uk leaving the European Union.

The forecast of the Executive for 2017 is of an increase of 2.5 per cent in GDP, with a demanding commitment with Brussels to reduce the public deficit of 4.6 per cent forecast for 2016 to 3.1 percent.

legal Notice: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn’t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

GDP of Spain grew 3.2% in 2016 – The Colombian

the preliminary report from The National Institute of Statistics (INE) of Spain, revealed Monday that the gross domestic product (GDP) Spanish grew 3.2% in 2016, the same rate as in 2015. For the fourth quarter of the year, the rise was 0.7% compared to the previous quarter, said the statement from the INE.

These data are consistent with the forecasts of the government and the Bank of Spain and mean a growth higher than the average rate in the euro area (1.7 per cent).

however, the growth slowed down slightly in the last two quarters, at 0.7% against 0.8% in the first half of the year.

The expansion of the economy, favoured by the low oil prices, was fueled by an increase in consumption linked to lower unemployment, exports and the good figures in the tourism sector, which broke the record in 2016.

Spain, the fourth economy of the euro area, recorded its thirteenth consecutive quarter of growth since the end of 2013 when he began to recover from the real estate crisis and financial erupted in 2008.

Despite the good dynamics, the GDP growth should decelerate this year, up to 2.5 % according to the latest official estimates.

The Bank of Spain anticipates a loss of strength of the factors that spurred up to now the economy, as the price of crude oil and interest rates, as well as the depreciation of the euro.

Spain is also engaged with the European Commission to reduce its high deficit, bringing it to 3.1 per cent in 2017.

The unemployment, the crisis soared to unprecedented levels, continued to fall and in 2016, to stand at 18.6 per cent. But still, after the of Greece, the largest of the European Union (EU) and is well above the average of 9.8% (November) of the euro zone.

Bankia earns 23% less after leaving the U.S. and applying the clauses of the soil – Investing.com Spain

Investing.com – Bankia (MC:) won 804 million euros in 2016, 22.7% less than the previous year.

Part of the drop was due to the impact of your departure from the U.S. after the sale of the City National Bank of Florida.

If one excludes the contribution of this entity in 2015, the benefit of Bankia would have been reduced by 8.4% in 2016.

The result is also affected by the setting of interest rates negative and the credit-related clauses soil.

The interest margin was reduced by 21.6%, up to 2.148 billion euros.

at The close of the year, the rate of delinquency on its loans was 9.8%, one point less than at the end of 2015.

After presenting the results, the entity is listed against the current , with a rise of more than 1%, the greater the selective.

legal Notice: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn’t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Galaxy 8 you will not see the light at the Mobile World Congress – Channel 44, The Channel of the News

, united STATES.- The new version of the Samsung flagship phone, the Galaxy 8, you will not see the light next February at the Mobile World Congress 2017, in Barcelona, Spain, but that the signature south Korean will wait to do so later this year in a single event.

The senior director of Information & Mobility at Samsung Mexico, Alejandro Jaritz, clarified that yes come the new releases for 2017, with the next evolution of its premium range, and in the city of Barcelona will give more information.

"Not launch this year as traditionally we do it in Barcelona, but it is going to be a lot more information in the following release," she said.

according To the officer, the incident of the Note 7 had an impact for the firm, because many of their consumers were affected, however, he said, took many initiatives with the media and regulatory institutions to control and mitigate the impairment.

"we Recovered almost one hundred percent, in total we sailed about 30 thousand units to the mexican market, which have already recovered more than 97 percent. Soon we’re going to turn off since these units in order to focus on what comes next, this chapter, the commitment is to close it in 2017", he said.

– See more at: http://impacto.mx/tecnologia/galaxy-8-no-vera-la-luz-en-el-mobile-world-congress#sthash.nx2kH3uX.dpufLa new version of the Samsung flagship phone, the Galaxy 8, you will not see the light next February at the Mobile World Congress 2017, in Barcelona, Spain, but that the signature south Korean will wait to do so later this year in a single event.

The senior director of Information & Mobility at Samsung Mexico, Alejandro Jaritz, clarified that yes come the new releases for 2017, with the next evolution of its premium range, and in the city of Barcelona will give more information.

"Not launch this year as traditionally we do it in Barcelona, but it is going to be a lot more information in the following release," she said.

according To the officer, the incident of the Note 7 had an impact for the firm, because many of their consumers were affected, however, he said, took many initiatives with the media and regulatory institutions to control and mitigate the impairment.

"we Recovered almost one hundred percent, in total we sailed about 30 thousand units to the mexican market, which have already recovered more than 97 percent. Soon we’re going to turn off since these units in order to focus on what comes next, this chapter, the commitment is to close it in 2017", he said.

What can we expect from the new generation of the SEAT Ibiza? – Pysn Pueblo and Society News

over 33 years of life and four generations, the SEAT Ibiza has sold over 5.4 million units worldwide, figures that make the car English best-selling of all time. Therefore, it is with great expectation (and commitment) that the SEAT prepares the launch of the 5th generation of his bestseller.

The world premiere is scheduled for the Geneva motor show, but it will not be necessary to wait until there: the new SEAT Ibiza is going to be presented next Tuesday, 31st.

The best know-how Volkswagen Group

a few years Ago, the honor of being the first of the new technologies and platforms of the VW Group corresponded solely and exclusively to the models of Audi and Volkswagen. Today it is not so. Compared to the results of the Spanish brand, the "German giant" has changed the paradigm.

therefore, it will be up to the new SEAT Ibiza the honour of making his debut in the B-segment, the famous MQB platform. A platform that you must enable the 5th generation of the Spanish model winning interior space, lose weight, and improve in the chapter dynamic. of This platform is to develop the next compact SUV from SEAT, the Arona, as well as the new Volkswagen Polo and Audi A1.

In the chapter of the design, the Spanish brand has not wanted to reveal great details. Even so, it is safe to say that the new Ibiza should be close to its "big brother" – read-if, the new SEAT León, particularly in the signature light with LED technology.

tried and TESTED: Since we renovated SEAT Leon

inside, beyond the expected increase in space for passengers, the bet recaíra, certainly, in the strengthening of the connectivity and the interface between the Ibiza and the mobile devices – a field in which the current generation of the Ibiza was already strong arguments against the competition.

in Terms of the range of engines, we’re going to be able to count on the usual blocks of three-and four-cylinder of the VW Group, where the focus should be (once more) the efficiency. Here, the main novelty could be the replacement of the current block 1.4 TSI for the most recent 1.5 TSI.

The 5th generation of the SEAT Ibiza will be produced in Spain and in Algeria, and will arrive in european markets already in the next Summer. The version Cupra should come later.

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Samsung wants to fix their mistakes with the Galaxy S8 – LaRepública.pe

The Nation

Samsung seems determined to prove that you can rise from the ashes, and that in spite of the complex end of 2016 will have the spare forces to remind everyone that it is one of the greatest in the world of telephony. After the bump the Galaxy Note 7, the market is holding breath until you know how you will try to the Korean manufacturer to troubleshoot the issue, and it seems that could have given the key with a Galaxy S8 leaked ahead of time.

you CAN SEE: Auction of the pipeline should consider transport of ethane and petrochemical

The terminal has been filtered by Evan Blass on his Twitter account and, given the trajectory of this source, analysts and the media give him the credit. In particular, the succinct message says: "This is the Galaxy S8 will be launched on the 29th of march." A photo and a date. It does not take much more because in that brief tweet hide a multitude of details: the first of them is the confirmation that Samsung effectively bet to deliver to the saga Galaxy the responsibility to fix the disaster of the Note 7, and will not be a Note 8 who will make us forget the bad taste in the mouth.

What are the novelties with which you will play the koreans to surprise the market? the Samsung has opted for two strategies based filtering: a continuation of the and other breakthrough. The first, the S8 inherits the aesthetic that you both liked most of the models unprecedented, and its screen curved full on the sides, the frame disappears (as in the S6 and S7 Edge). The brand also do not want to change something that already works extremely well: the camera, that would be 12 MP, but was about to premiere, so yes, a system of object detection and visual search.

But perhaps the crux of the matter is in your facet more transgressive: the S8 will come with an innovative virtual assistant baptized as Bixby, staffed with a dedicated button and you will be able to execute orders more complex than that of its rivals. the This section is important, since it seems that the brands are clear that the future of mobile passes inevitably by the attendees based on artificial intelligence. Another section in which the giant wants to break the mold is the one on the screen, and, more specifically, its aspect ratio, leaving the usual 16:9, and by opting for a ratio of 18:5:9. The battery would be built with a generous capacity of 3,500 mAh in the larger model.

Loss of Samsung with the Galaxy Note 7

According to the manufacturer Samsung, the cost related to the fire of the batteries of the terminal star of the last year, which forced to stop the production of the mobile phone permanently because of security concerns, was 4.930 million.

Between October and December 2016, the division of Samsung electronics earned an operating profit of the 9.2 trillion won (7.340 million euros), a figure which has not been recorded since the third quarter of 2013. This is 50.1% more than in the same period of the previous year.

Samsung launches its new line of phones Galaxy – Reason (Bolivia)

Samsung Electronics launched to the market the new line of Galaxy smartphones, which consists of the equipment A7, A5 and A3, 14,47, 13,2 and 11,93 cm, respectively.

In the company "we are always trying to ensure that our customers have the most advanced products on the market," said DJ Koh, president of the Business of Mobile Communications of the brand in south korea. "The latest series of Galaxy a is a evidence of this," he added.

The new equipment of the line To have a metallic structure in its front area and glass 3D on backside, are resistant to water and dust, and are available in four colors: black sky, golden sand, blue mist and cloud of peach.

Feature upgraded cameras front and rear with autofocus, full HD screen, long battery life and quick charge, fingerprint reader, expanded memory (up to 2gb), as well as expandable storage with support of micro SD of up to 256 GB.

These and other products of the brand together received around 120 awards in the international Fair of Consumer Electronics (CES) 2017, an event in which participated more than a 3,880 exhibitors and was held from 5 to 8 January in las Vegas (united States).

"We remain committed to the delivery of products carefully designed to work the way that people live in," said Gregory Lee, president of Samsung Electronics North America.

Central america and Mexico reaffirm their commitment to free trade – Forbes Mexico

the governments of The central american countries and Mexico held a meeting in which they reaffirmed their commitment to maintain their Free-Trade agreement.

The authorities reviewed matters related to the operation of the treaty in the matter of Rules and Certificates of Origin, Market Access, Sanitary and Phytosanitary Measures, Trade Facilitation, and government Procurement, among others.

Also, Mexico and Central america have reaffirmed their commitment to free trade, the mobility of capital and productive integration.

This Treaty Mexico-Central america is part of the strategy of commercial integration of Mexico with Latin America, whose aim is to stimulate and diversify the trade of goods and services.

you Can read: Chile, too, says goodbye to the TPP

Among the main agreements reached include the signature of the decision establishing the implementation of regulations that determine the guidelines that will allow to solve the problems of some companies in their commercial transactions.

in Addition, it established the Committee on Services and Investment, which will facilitate the exchange of information between the parties and the technical co-operation.

The free trade agreements between Mexico and Central america are: FTA Mexico-Costa Rica in effect since the first of January 1995; FTA Mexico-Nicaragua, in force since first of July, 1998, and NAFTA between Mexico and The Republics of el Salvador, Guatemala, and Honduras, in force since 15 march 2001.

Impending cancellation of the TLC; come dark times – The Express

The cancellation of the Free Trade agreement of North America (NAFTA) by the united States is imminent and, given this scenario, Mexico has little room to maneuver, as 80 percent of its exports are to the neighboring country to the north, so that there are signs of dark times for the national economy.

So he considered in an interview with Express, the journalist, specialist in economics and finance, Darío Celis, who he called uncompromising stance of the government of Donald Trump, because he said that the only interest for the u.s. leader is not a real review of the NAFTA that would benefit the two nations.

“I don’t think that mr. Trump is very mixed up in the scope of the TLC, or to know in detail the clauses of the same. Him, the only thing you want, is that the investment and the jobs that are now in Mexico, in detriment, according to him, the united States, return to their country.”

For this reason, the also a financial consultant, stated that the president of the united States seek advantageous conditions for his country, rising above what has previously been established in the firm 22 years ago.

“I don’t think Mexico will accept amendments to the Treaty of Free Trade to give a currency to the united States; that is to say, a blank cheque at the expense of their own situation”.

due To the cancellation of the meeting between Enrique Peña Nieto and Donald Trump, that were scheduled for Tuesday, January 31, Darío Celis anticipated that there will be no renegotiation of the FTA. And he explained that there are two paths that could take the country ruled by the mogul: Exit completely out of the Treaty or, well, break it only with Mexico but not with Canada.

“I think the treaty is going to cancel. The next step will be the united States is to invoke the clause of the FTA, which stipulates that the American Union may give notice of its cancellation as a country, with 6 months in advance. Either that, or you will break your treaty with Mexico.”

from this, he said that, depending on how it is politically the relationship with the government of Enrique Peña Nieto with the united States, both governments will seek bilateral agreements in certain areas that are of interest to the two nations, “but I see the picture very contaminated,” he said.

he Pointed out that the stance of the u.s. government is “very intransigent”, so that the trading position of Mexico is undermined, “is a rupture between the two countries, I do not see any renegotiation. In six months the united States sale, glimmer.

COMMERCIAL FUTURE OF MEXICO UNCERTAIN

Before a very possible rupture of the commercial relations between the united States and Mexico, the journalist Group Media Image, indicated that our country would be left with a margin of manoeuvre is very small.

“The 80 percent of Mexico’s exports are in the united States. The picture is very complicated, because Mexico has no other way out of those exports that it sends to the American Union.”

he Pointed out that the products that today the country is ruled by Enrique Peña Nieto sent to the united States can not be absorbed by either Japan, Europe, Central or South america.

“We have 12 free trade agreements with 46 nations and we will be 11 treaties with 45 nations, but of those, nor the countries of Europe, nor Asia, nor central or South america will be able to absorb all of the production and export capacity, Mexico is placed in the united States”.

The journalist said the commercial relationship between the two countries are now at enmity, amounting to over $ 380 billion, which –he said- “Mexico is not where to place. That is the value of exports.”

Finally, he regretted that this also affects the workforce of our nation, “let’s talk about the workers; of the sources of employment that produce the goods that are sent to the united States. What are you going to do with them? It is very difficult to the picture that comes to Mexico”, he concluded.

Germany investigates former president of Volkswagen for fraud | Commerce Peru – Trade

(EFE).- The office of the Prosecutor of Braunschweig (center of Germany) announced today that it is investigating now also for an alleged offence of fraud, the former president of the group automotive Volkswagen, Martin Winterkorn, in relation to the scandal of the manipulation of emissions.

The Prosecutor’s office points out in a press release that “the suspect could have known of the software handler and its effect before it officially was not recognized”.

The investigation has taken this turn-over after the Prosecution has picked up in recent weeks, the statements of several witnesses and has reviewed the information contained in the vast documentation forfeited to the company.

This new information it contains “sufficient clues factual” as to broaden the offenses for which investigates Winterkorn, he argues the Prosecutor’s office of Braunschweig.

The decision to expand the investigation around Winterkorn became known after the security forces record in the past they give you 28 properties for private and commercial use.

The exdirectivo was up to now investigated for alleged market manipulation, to the suspicion that withheld information about the fraud of the emissions for this to not affect negatively to the actions of the group.

The Prosecutor’s office reported that the number of persons investigated by the scandal of the emissions of Volkswagen has been raised from the 21 known up to 37.

a week Ago, Winterkorn denied having known of the manipulation of the emission before a committee of inquiry in the Bundestag, the lower House of Germany.

The former president of the largest european manufacturer of vehicles said “it is not understandable” that has not been acquitted of this matter prior to.

The German group sold all over the world around 9.5 million vehicles with a program in the engine that detects when it is on a test bench, and reduces pollutant emissions to the atmosphere to comply with environmental criteria. In normal conditions, however, they contaminate much more.

The denunciation of the case, discovered by the american authorities, led to the resignation of Winterkorn, research in different countries, a flood of lawsuits and fines that add up to several thousands of millions of euros.

German justice investigates former president of Volkswagen – ElEspectador.com

The prosecutor’s office in Brunswick (northern Germany) announced Friday that it is investigating the former ceo of Volkswagen, Martin Winterkorn, for his involvement in the case of the souped-up engines, the so-called ‘dieselgate’.

“The number of people inculpadas has gone from 21 to 37. Among them is Martin Winterkorn,” said the prosecutor’s office in a press release, stating to have “enough elements” about the fact that I would have been aware of the fraud.

Winterkorn, in the crosshairs of justice on suspicion of manipulation of quotes, said last week to testify before a parliamentary commission in germany who knew nothing about the souped-up engines until the scandal broke in September of 2015.

But according to the prosecution, the investigations, the data seized as well as the auditions of the witnesses to give “sufficient elements” to think that Winterkorn could stay abreast of handling before it became known publicly.

Volkswagen admitted in September 2015, that manipulated a program at 11 million of its cars in the world to look like, for the controls, less polluting, a case revealed in the united States.

Shortly after these revelations Winterkorn, with a reputation as a perfectionist and nicknamed “Mr. Quality” in the group, announced his resignation.

Volkswagen agreed in early January to plead guilty to fraud and pay 4.300 millions of additional dollars in the united States to close the criminal cases against them. This amount is in addition to the 17.500 million dollars in concept of compensation already paid to the builder German to avoid lawsuits.