Doubts looming over Eurozone stimulus option July 17, 2014 QUANTITATIVE easing (QE) would have a less dramatic effect in the Eurozone than in the UK, according to research out yesterday, as a senior European official signalled that the policy may not be pursued at all. A report by credit ratings agency Moody’s argued that with sovereign bond yields already very low in the euro [...]
ECB will give Eurozone banks just two weeks to devise plan to get their houses in order July 17, 2014 The European Central Bank (ECB) will give Eurozone lenders just two weeks to come up with plans to deal with any capital shortfalls after it completes a review of the currency union's most important banks this autumn. In an update of its plans as it prepares to conduct stress tests of the Eurozone's 128 largest [...]
Yet another sign that the Eurozone economic recovery is stalling July 17, 2014 This time it's construction. Construction output across the Eurozone dipped 1.5 per cent in May compared with April, according to the EU's statistics agency with the up until now powerhouse of the recovery, Germany, leading the index down. Civil engineering fell by three per cent and building construction by 1.1 per cent in the 18-member [...]
The International Monetary Fund calls for Eurozone to start doing QE right now July 14, 2014 The International Monetary Fund (IMF) assessment of the Eurozone’s economic policies has just been released, and much of it does not make pleasant reading – despite noting the recent expansion, the Fund is calling on the European Central Bank (ECB) to set out on a quantitative easing programme. If inflation remains too low the [...]
Fears of a faltering Eurozone recovery as industrial production shrinks 1.1pc July 14, 2014 Further evidence that the fragile Eurozone recovery could be beginning to splutter emerged today. Industrial production in the 18-member euro area fell sharply by 1.1 per cent in May, the largest monthly drop since September 2012, according to figures released by the EU's statistics agency Eurostat this morning. The data confirmed analyst fears that a [...]
German central bank boss Jens Weidmann says Eurozone policy too loose July 14, 2014 Hawkish Bundesbank boss Jens Weidmann weighed in on the Eurozone’s monetary policy this weekend, arguing that interest rates are too low for Germany. Speaking at an open day at the country’s central bank, Weidmann said that the European Central Bank (ECB) rate policy is “too loose for Germany”, and warned again against keeping rates too [...]
US markets tumble on Eurozone fears: Here’s what has traders scared July 10, 2014 US stockmarkets have opened deep in the red this afternoon, on fears that one of Portugal's biggest banks is in a bad state. The Dow Jones Industrial Average has opened 150 points lower, down close to 0.9 per cent, on fears that Banco Espirito Santo (BES) isn't healthy. Shares in the lender were suspended earlier, [...]
UK vs ECB: Britain squares up to Eurozone in legal battle for City’s rights July 9, 2014 British lawyers accused the European Central Bank (ECB) of breaking the single market rules in a landmark case yesterday. By insisting euro-denominated payment transactions are cleared within the Eurozone, the ECB is breaking the law, the Treasury argued. The UK complained in 2011 but it has taken until now to reach the European Court of Justice [...]
Eurozone retail sees zero growth and the EU’s statisticians are calling that “stable” July 3, 2014 Eurozone retail has hit an unexpected roadblock in May. Retail sales haven't seen the 0.2 per cent growth expected, and have instead been entirely motionless. There's been zero retail sales growth in the euro area this May. The numbers, released by Eurostat, are a disappointment for economy watchers. Retail sales are up by just 0.7 [...]
Eurozone manufacturing sectors show slow growth July 1, 2014 The Eurozone’s industrial growth slowed for a second month in June, according to a series of business surveys which suggested the currency union was still expanding only at a weak pace. Markit’s manufacturing purchasing managers’ index (PMI) released yesterday came in at just 51.8 in June, the lowest of 2014 so far. New business inflows [...]