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 [...]
Eurozone: ECB said to have discussed €500bn quantitative easing programme January 9, 2015 European Central Bank (ECB) officials are said to have discussed a €500bn quantitative easing programme, which many hope will rescue the embattled Eurozone from its economic quagmire. If the programme is launched, it will involve the central bank buying up government debt rated BBB- or higher. Purchasing only investment-grade debt minimises the bank's exposure to [...]
FTSE rebounds on expectations of European QE – London Report January 7, 2015 Britain’s top equity index gained nearly one per cent yesterday, rebounding from a three-week low as Eurozone consumer price data raised expectations of new stimulus from the European Central Bank. The blue chip FTSE 100 index, which had fallen in the last three sessions and hit its lowest since mid-December on Tuesday, finished 53.32 points, [...]
Why QE alone won’t stop the Eurozone’s descent into the deflation trap January 7, 2015 We’re caught in a trap” is the opening line of Suspicious Minds, a song most memorably sung by Elvis Presley, born 80 years ago today. However, it could well be the latest conversational ice-breaker for Mario Draghi, president of the European Central Bank (ECB), with colleagues or other policymakers across the continent. Europe risks entering [...]
Will QE really revive the Eurozone? – CNBC Comment January 5, 2015 A new year is upon us, and that means investors will take a fresh look at European stocks. Unfortunately, Europe’s gloomy picture hasn’t changed: not enough growth, inflation is too low, and unemployment is still too high in parts of the Eurozone. Enter stage right: Mario Draghi. Arguably the most powerful European official, investors are [...]
ECB official Peter Praet hints at quantitative easing amid falling oil prices December 31, 2014 The European Central Bank's (ECB) chief economist has hinted quantitative easing could be on the way, as plunging oil prices threaten to derail price expectations in the embattled eurozone. Peter Praet told German Newspaper Boersen-Zeitung the glut in global oil supply meant inflation rates were likely to remain negative throughout "a substantial part of 2015", something [...]
More QE and a possible crisis: What markets will do in 2015 December 16, 2014 UK stocks look likely to be dominated by political risk PREDICTING the year ahead in markets can be a fool’s game. Last December, fund managers’ 2014 look-aheads heralded the start of a year in which Japan’s shock and awe Abenomics tactics would finally end its disinflationary misery, while the Eurozone would begin to turn a [...]
Japan’s perpetual QE machine: Could the exercise end in tears? December 1, 2014 Some analysts think inflation at any cost is the wrong aim THE WORLD’S third largest economy now has the same credit rating as Bermuda, Oman and the Czech Republic, after rating agency Moody’s downgraded Japan’s debt from “Aa3” to “A1” yesterday morning. The yen crashed against the dollar (dollar-yen topped ¥119 just after the announcement, [...]