Mario Draghi: ECB to start buying covered bonds this month October 2, 2014 Mario Draghi, the president of the ECB, has said the Bank will be prepared to take on below investment grade asset-backed securities (to BBB-), opening the door to Greek and Cypriot banks. The central bank will start buying covered bonds and asset-backed securities this autumn, starting with the bond programme in mid-October. The programme will last [...]
ECB leaves interest rates unchanged October 2, 2014 The European Central Bank (ECB) has left its headline interest rate untouched at 0.05 per cent where it has been since early last month. The inaction was widely expected but today Mario Draghi has other big fish to fry. The bank's president is set to clarify the ECB's intentions for the asset-backed security purchasing programme [...]
Weak Eurozone data puts focus on ECB decision on asset purchase programme October 1, 2014 September was a month to forget for the Eurozone as survey data released yesterday shows growth in the manufacturing sector was at a 14-month low over the month. The purchasing managers index (PMI) compiled by Markit scored a 50.3. A score above 50 indicates growth but this very weak growth suggests the Eurozone economy is [...]
Eurozone woes give Draghi leeway on QE September 30, 2014 THE EUROZONE is still flirting with deflation while unemployment remains stubbornly high, opening up the possibility that the European Central Bank (ECB) will deliver further monetary easing when it announces its latest policy decision tomorrow. Figures published yesterday by official database Eurostat showed that unemployment in August came in at 11.5 per cent – the [...]
QE or not QE? Mario Draghi’s policy dilemma – CNBC Comment September 29, 2014 It seems as if the European Central Bank (ECB) has been debating whether to head down the QE path forever. ECB-watchers have been reduced to pondering what the shade of Mario Draghi’s (usually blue) tie might mean for future asset purchases. But no matter how reluctant Draghi might be to label it as such, this [...]
Draghi hits out at Eurozone’s lack of reform September 22, 2014 EUROPE’S sick economies need massive structural reforms if they ever hope to become competitive once more, European Central Bank (ECB) boss Mario Draghi urged yesterday. “Courageous structural reforms and improvements in the competitiveness of the corporate sector are key to improving the business environment,” Draghi told the European Parliament’s economic and monetary affairs committee. “This [...]
Mario Draghi speech: ECB president hints at use of more unconventional instruments in fight against low inflation September 22, 2014 The euro has fallen against the dollar after a doveish Draghi spoke before the Committee on Economic and Monetary Affairs of the European Parliament. Consumer confidence for the single currency bloc was underwhelming at -11.4, falling short of an already bearish consensus of -10.75. In his speech the president of the European Central Bank (ECB) indicated [...]
London Report: Stocks brush off referendum and get a lift from ECB September 18, 2014 LONDON traders yesterday set aside concerns over the Scottish referendum result and reacted positively to European Central Bank moves to strengthen Eurozone lenders. The blue-chip FTSE 100 closed up 38.39 points, or 0.57 per cent, at 6,819.29 points. Low-cost airline EasyJet’s shares rose 0.45 per cent to 1,344p after it announced that it would increase its [...]
Euro vs rouble: Currencies react to ECB stimulus measures September 5, 2014 Not content with falling against the dollar and the pound, the euro yesterday slid against the Russian rouble too. In fact, after the European Central Bank's (ECB) surprise stimulus measures, the euro fell against every currency listed in the ECB data store, except the Czech koruna and the Bulgarian lev. And it only rose against the [...]
Euro tanks after Draghi unveils surprise stimulus September 4, 2014 THE EURO took a nosedive yesterday after central bank chief Mario Draghi surprised markets with a new wave of dovish policies designed to help save the ailing single currency area. Interest rates were cut to fresh record lows, while Draghi’s European Central Bank (ECB) will also try to boost credit conditions further by snapping up [...]