Mario Draghi calling: Why the ECB’s QE may struggle to reach €1 trillion March 3, 2015 The European Central Bank’s (ECB) version of quantitative easing (QE), which was announced to much fanfare in January, involves the purchase of bonds from both institutions and individuals. ECB president Mario Draghi hopes that the proceeds of these sales will be used to buy other assets or to lend, thereby oiling the wheels of the [...]
Why demography –not QE – is destiny – CNBC Comment March 2, 2015 The latest figures from Europe have been getting better. Let’s hope it lasts. Nonetheless, the debate continues over whether the European Central Bank (ECB) has done “too little too late” in terms of its trillion-euro QE program to avoid “Japanese-style” deflation. It is a debate that has raged ever since the US Federal Reserve embarked [...]
ECB minutes show “large majority” in favour of quantitative easing February 19, 2015 The first-ever minutes of a meeting of European Central Bank monetary policymakers has shown that a "large majority" of its governing council supported the introduction of a quantitative easing programme. The 9,000 word document shows its governing council was concerned low oil prices would lead to long-term low inflation. This, in turn, raised the possibility [...]
Bank of England holds interest rates at record low of 0.5 per cent and keeps £375bn quantitative easing programme in February February 5, 2015 There are no surprises from the Bank of England, again. The central bank held its benchmark interest rate a record low of 0.5 per cent for the 71st month in a row. It also kept its quantitative easing programme steady at £375bn at the monetary policy committee's (MPC) February meeting. While the UK economy has [...]
Wolfgang Schauble’s fine line on the Eurozone’s QE – CNBC Comment January 26, 2015 I had to laugh. Watching the CNBC panel at the World Economic Forum last Friday in Davos, the German finance minister Wolfgang Schauble stole the show in his dry, wry way. Having been one of the biggest critics of the European Central Bank’s (ECB) QE programme from the start, he walked a delicate line defending [...]
ECB’s €1tn QE plan: Economists surprised, but leaders warn on reforms January 22, 2015 European politicians have been warned not to ease off on economic reforms now that billions of euros worth of quantitative easing (QE) has been launched, while economists have been surprised by its scope. “Regardless of what the ECB [European Central Bank] does,” Angela Merkel said in Davos yesterday, “it should not obscure the fact that [...]
ECB’s €1tn QE plan: Greek parties trade pre-election blows ahead of Sunday crunch time January 22, 2015 Political tensions simmered in Greece yesterday as the two main rival parties fretted over the country’s inclusion in Europe’s newly launched quantitative easing (QE) ahead of Sunday’s election. The European Central Bank (ECB) has said that countries who do not have investment grade bonds must stick to bailout conditions to benefit from its bond buying. [...]
The Eurozone desperately needed Mario Draghi’s QE stimulus – but the euro isn’t safe yet January 22, 2015 European Central Bank (ECB) president Mario Draghi has done what many in the markets had hoped for, and announced a massive package of QE of over €1 trillion – promising more if need be. This is much bigger than had generally been expected, indicating Draghi’s determination to deal decisively with the Eurozone’s deflation problem. If [...]
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 [...]