As the ECB unveils a massive QE boost for the Eurozone, will this set back structural reform? January 22, 2015 Richard Batley, senior economist at Lombard Street Research, says Yes Without structural reform, successive European Central Bank (ECB) monetary palliatives can only temporarily ease the symptoms of deflation and low growth. They can’t address the causes. In almost every euro area country, private sector and government debt-to-income ratios are higher than before the financial crisis. [...]
ECB QE pushes S&P 500 into positive for the year January 22, 2015 Draghi's decision to unleash his biggest "bazooka" has helped push the S&P 500 into positive for this year. The US blue-chip index erased its losses for the year jumping 1.6% to 2,063.98 points in a late-afternoon rally on Thursday. Meanwhile, the Nasdaq also erased its losses for the year, rising 1.8 per cent to 4,750.62 points. The S&P [...]
Three key takeaways from the European Central Bank’s quantitative easing announcement January 22, 2015 After months of speculation, European Central Bank president Mario Draghi finally pulled out the big guns today, announcing a €60bn (£45bn)-a-month government bond-buying scheme which will last until at least 2016. Euro investors weren't impressed, driving the currency to an 11-year low against the dollar, but some analysts were encouraged. BNP Paribas' Ken Wattret, for [...]
Quantitative easing is go – but euro plummets as European Central Bank unveils €60bn-a-month bond buying programme January 22, 2015 The euro has fallen sharply, dropping 1.2 per cent to 1.1475 against the dollar, its lowest in 11 years, and 1.02 per cent to 0.7589 against the pound after European Central Bank (ECB) president Mario Draghi announced a €60bn-a-month government bond-buying programme – much higher than the expected €50bn a month. A little out of [...]
Eurozone quantitative easing: Draghi says majority was “so large that we didn’t need to take a vote” January 22, 2015 Such was the level of agreement on the board at the European Central Bank (ECB) regarding the new €1.1tn (£840bn) quantitative easing programme, that there was no need to take a vote. Mario Draghi, president of the ECB, said in the usual post-meeting press conference that there was a good discussion between members over the [...]
ECB leaves rates unchanged ahead of crucial QE decision January 22, 2015 The European Central Bank (ECB) tantalised markets this afternoon, as it left its main interest rate unchanged at a record low of 0.05 per cent ahead of a crucial quantitative easing decision. The euro rose slightly against the dollar as the news sank in, although all eyes will be on a press conference at 1.30pm GMT, [...]
Larry Summers on QE at Davos: It’s not enough for Europe January 22, 2015 Speaking at the World Economic Forum in Davos, former US treasury secretary Larry Summers has said the effect of quantitative easing (QE) on the Eurozone economy will be "small" and is "not enough". During a panel session in which Summers discussed the end of QE in the US alongside IMF chief Christine Lagarde, questions about [...]
ECB “mulling QE of €50bn a month” January 21, 2015 The European Central Bank (ECB) is said to be planning a quantitative easing (QE) programme of at least €50bn until the end of 2016, according to the Wall Street Journal. This would put the total amount of bond purchases to around €600bn a year, surpassing the market's current expectation for a programme of around €500bn. However, ECB policymakers will discuss [...]
How, what, when, where: Everything you need to know about the ECB’s impending quantitative easing announcement January 20, 2015 When the policy committee of the European Central Bank (ECB) meet tomorrow, they're widely expected to undertake the historic decision to embark upon full-blown quantitative easing (QE) policy. The central bank has already slashed interest rates and is buying billions of euros of private sector debt. QE is the last major weapon in Draghi's arsenal [...]
Eurozone QE will be the most inefficient yet – CNBC Comment January 12, 2015 THE MARKET is expecting confirmation of a QE plan from European Central Bank (ECB) president Mario Draghi very soon. Indeed, CNBC learned yesterday that the ECB will more than likely base its highly-anticipated sovereign bond buying on the size of contributions made by national central banks. But whatever form it takes, it will almost certainly [...]