Europe

The introduction of the new 50-euro banknote will be shortly. The European Central Bank (ECB) and the national central banks (NCBs) of the euro area, which together form the Eurosystem, will present the bill in the series "Europa" on 5th July while its entry into service is scheduled for spring of 2017.

"The Eurosystem and its industry partners have launched a timely preparations for the introduction of the new banknote of 50 Euros, to ensure that companies are ready and the public can use the new notes everywhere and without any problems from the day of putting them into circulation, "said Ton Roos, head of the Directorate Banknotes ECB.Among the banknote denominations in the euro from 50 euro is the most widely used. Over 8 billion euro banknotes, or about 45% of the currently outstanding, belong to this denomination.

The killing of the British MEP Jo Cox anti-Brexit froze the election campaign, at least for a day. But the IMF has launched a new alarm about the dangers caused by the possible exit of Britain from the European Union, stating that there would be a recession early as next year, with GDP in 2017 under the adverse scenario is expected at -0.8% and they would return to grow, deficit, debt and unemployment. Note that the baseline scenario foresaw a growth of 2.2% and the base case of intermediate impact + 1.4%

Brexit hot topic, even more after the killing of Jo Cox in Leeds and the director of the IMF Christine Lagarde, during a speech in Vienna, made an appeal to the British people to vote against the Brexit.

In a speech entitled "Unity in Diversity: A European Support", Lagarde said that "EU membership has made the UK’s richest economy." "As in all countries, there are people who are in difficulty in this new environment, but for the majority of citizens has been a great success story," she added.

Nord Stream 2 "project is progressing on schedule and the auction process is ongoing." This was underlined by the number one of Gazprom, Alexei Miller, at the St. Petersburg International Economic Forum.

"Some games for the sea section has already been completed. Everything is going as planned – he added – we will start laying the pipes at the beginning of 2018. There are no doubt: 55 billion cubic meters of gas will arrive in Germany."

Spain’s Gamesa and Germany’s Siemens announced the merger of their respective wind energy business to create the leading builder of wind farms in the world. Gamesa said it has reached an agreement in principle but the final details have to be approved. It is not clear whether the German company will opt for the sale of its division.

Siemens and Gamesa are respectively the fourth and the seventh in the world manufacturer of wind turbines and, together, would account for 12.6% of the global market, becoming the second company in the industry world after Vestas, which is 13.2%, unseating Chinese Goldwind.

Pair’s Outlook
The Cable managed to erase intraday losses and trade flat on Thursday, amid two main opposing referendum groups suspending their campaigns. The main support area, represented by the Bollinger band, the monthly S2 and the weekly S1 was confirmed once more, suggesting that a drop below the 1.41 level is doubtful, at least for now. However, technical indicators insist the GBP/USD pair is to continue weakening today. With no solid fundamental impetus present, the Sterling has the potential to erase this week’s losses completely, but only if the immediate resistance in face of the monthly S1 at 1.4288 gives in.

The European car sector also grew in May continuing the trend for 33 consecutive months. In May, as stated by the Association of European car manufacturers (ACEA), registrations in the EU (EU28) recorded a 16% jump to 1,288,220 units and those which also include the EFTA, the Association the European Free Trade Association (Switzerland, Iceland and Norway) have marked an increase of 15.5%. As part of the single Eurozone (EU15) sales increased by 15.2% to 1,029,000 units.

Among the five main markets, we note the very positive trend of Italy, which has done better than other European countries, with an increase of 27.3%. well even Spain (+20.9%), France (+ 22.3%), Germany (+ 11.9%) and the UK (+ 2.5%), which recorded lower growth rates.

The new estimates of the Swiss central bank sees inflation mark an acceleration faster over the next few quarters. In the note accompanying the announcement of monetary policy, the Swiss National Bank (SNB) has revised upwards its estimates for 2016 and 2017 with consumer price index -0.4% respectively (from -0.8% indicated last March) and + 0.3% (from the previous + 0.1%). however confirmed the estimate for 2018 to + 0.9%. The upside of the estimates primarily reflects the significant increase in oil prices over the past three months.