Eurozone bank lending rate quickens despite growth concerns January 3, 2019 Bank lending to eurozone households and companies accelerated in November despite signs the bloc’s economy is slowing, the European Central Bank said. Corporate loans grew four per cent year-on-year in November, compared with 3.9 per cent the previous month and loans to households grew to 3.3 per cent from 3.2 per cent in October – [...]
Euro at 20: Time for ‘close and candid introspection’ rather than celebration January 1, 2019 The 20th anniversary of the euro should not be cause for celebration but for “close and candid” introspection. European Central Bank president Mario Draghi admitted he was a biased observer when proclaiming the euro had been a success ahead of its 20th birthday yesterday. But he stopped short of celebrating and said the anniversary was [...]
EU agree to create eurozone budget as France compromise on original plans December 15, 2018 The EU has decided to give the eurozone its own budget after calls for a single currency budget led by France this year. It was agreed at a summit on Friday that a ring-fenced eurozone budget would help reduce economic differences between member states and make the currency more competitive on a global scale, although the [...]
Euro falls as eurozone business growth hits four-year low after France protests and Brexit uncertainty December 14, 2018 Eurozone business growth plummeted to a four-year low in December, according to a closely-followed measure of economic activity, hitting the euro as markets reacted today. The “yellow vest” protests in France and ongoing weak car demand exacerbated a widespread economic slowdown, IHS Markit’s purchasing managers’ index (PMI) showed this morning. The index’s eurozone composite PMI showed [...]
Like southern Europe, Britain’s stagnant regions are stuck in a monetary union trap November 28, 2018 The Economic Statistics Centre of Excellence created a bit of a stir at the end of last week with its estimates of growth in the regions of the UK. Since the recovery from the financial crisis began during 2009, London’s economy has grown by 26 per cent. At the other end of the scale, output [...]
EU offers reassurances to the Square Mile that UK clearing can continue post-Brexit November 23, 2018 The EU has begun work to allow UK clearing to continue in the event of a no-deal Brexit, addressing Square Mile fears that the European market could be cut off in March next year. The European Securities and Market’s Authority (ESMA) confirmed today that it will “adopt a temporary and conditional equivalence decision” to minimise [...]
Germany and France make Eurozone budget breakthrough November 17, 2018 Germany and France have made a breakthrough in discussions around a new budget for the Eurozone with French president Emmanuel Macron set to arrive in Berlin on Sunday. Macron has long fought for countries using the euro to have its own budget in order to withstand the kind of financial crises that have hit the [...]
Europe’s top banker warns of eurozone ‘uncertainty’ November 16, 2018 The European Central Bank will push ahead with plans to roll back its stimulus package at the end of the year, the bank’s chief said today. ECB president Mario Draghi said he still expects the eurozone economy to keep expanding, but warned that there is increasing uncertainty. “If firms start to become more uncertain about [...]
An Italian Bank run could crack the euro November 16, 2018 | City Talk The Italian government is defying the European Commission’s request that it revise its draft budget for 2019 to reduce the deficit. Bond yield spreads are widening and Italian banks are under pressure. Should a bank run ensue, could the euro fall apart? After German reunification, interest rates rose to over 9 per cent in the early [...]
Italy rejects EU calls to amend budget ahead of deadline November 13, 2018 Italy defied a European Commission deadline to submit a revised budget tonight, telling the EU it will not change its expansive fiscal plans. Ahead of a midnight deadline, the Italian government said it was sticking to its guns. In a statement released after a cabinet meeting, deputy prime minister Matteo Salvini said its deficit target [...]