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 [...]
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 [...]