Eurozone economy posts record growth but Covid set to knock recovery October 30, 2020 The Eurozone economy handily beat expectations in the third quarter of the year with record growth, although surging coronavirus cases and new lockdowns now look set to knock the recovery off course. Eurozone GDP grew 12.7 per cent in the third quarter, having slumped 11.8 per cent in the April to June period, the EU’s [...]
ECB leaves interest rates unchanged while Eurozone recovery loses momentum October 29, 2020 The European Central Bank (ECB) left interest rates on hold at their record low level, but hinted at further support in December as the eurozone economy grapples with a second wave of coronavirus cases. The central bank said it would “recalibrate its instruments” in response to the fresh wave of Covid-19 infections after its next [...]
Deja vu: Eurozone businesses back in decline as Covid cases jump October 23, 2020 The Eurozone’s private sector slipped back into decline in October as coronavirus ripped through the region and new restrictions hit countries’ service sectors and wider economies, according to a new survey. The preliminary IHS Markit Eurozone composite purchasing managers’ index (PMI) – which measures the health of businesses – dropped to 49.4 in October from [...]
Mergers can improve banks’ profitability, says ECB vice president October 19, 2020 The vice president of the European Central Bank has called for further consolidation by eurozone banks to improve lenders’ profitability during the Covid-19 crisis. Banks in Spain and other EU countries have come under pressure to consolidate as the sector faces rising bad loans and rock bottom interest rates due to the coronavirus pandemic. “Removing [...]
Boris Johnson turns his back on today’s Brexit trade deal ‘deadline’ October 15, 2020 Prime Minister Boris Johnson will not walk away from Brexit negotiations today, despite setting a 15 October deadline for reaching an “outline” for a trade deal with the EU. Johnson signaled that he will not decide whether an agreement with the bloc is possible before today’s EU summit in Brussels, following advice from Brexit envoy [...]
EU watchdog proposes software capital relief to increase banks’ safety buffers October 14, 2020 The European banking watchdog has proposed allowing lenders to include the value of software investments in capital calculations, a move that could increase banks’ capital buffers by billions of euros. The European Banking Authority (EBA) said lenders will be allowed to “amortise” or taper the value of software for capital purposes over three years. Under [...]
Almost unnoticed, Europe hurtles into decline October 12, 2020 The string is almost played out. Despite a generation of frantically trying to change the subject — be it by focusing on their own arcane (and very boring) institutional struggles, the problems of other countries (usually the US), or fatuously announcing that every obvious setback is merely a chance to move “the project” of European [...]
ECB should issue digital euro, say Christine Lagarde October 2, 2020 The European Central Bank (ECB) should issue a digital euro in addition to banknotes and coins, according to its boss Christine Lagarde
7,500 UK finance jobs shifted to EU since historic vote, as hard Brexit edges closer October 1, 2020 More than 7,500 UK finance jobs have headed for Europe since the 2016 EU referendum, with more relocations expected as City firms edge against a hard Brexit. In September alone, financial services firms moved more than 400 jobs to financial hubs across the EU, according to a new Ernst & Young report, published earlier this [...]
Zombification is spreading through companies in the euro zone October 1, 2020 On 24 September 2020, euro area banks raised an additional €175bn in the fifth round of the so-called Targeted Longer-Term Refinancing Operations (TLTROs). The stock of outstanding loans, most of which now have a maturity of three years, has jumped by €1,130bn since January to €1,700bn. The ceiling is currently set by the ECB at [...]