Greece election 2015: A whole new Eurozone crisis awaits if Syriza wins January 25, 2015 Today is Greece's general election. Until 7pm, polling stations will accept votes on whether the current New Democracy party remains in power or is replaced by another party. According to the polls, it looks likely that the radical left-wing Syriza party will be the ultimate winner. In terms of economic policies and the [...]
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. [...]
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 [...]
Eurozone to finally take the plunge with €1.1 trillion bond buying programme January 21, 2015 European officials are widely expected to announce a substantial bond buying programme today in an attempt to revive the Eurozone’s ailing economy. Reports from Frankfurt suggest the purchases will amount to €50bn (£38bn) a month until the end of 2016. Some reports suggest it could start as soon as March which would put the scheme’s [...]
UK house prices pull away from Eurozone’s with 11.7 per cent on the year January 21, 2015 British house prices pushed ahead of those in other major economies towards the end of last year, official figures showed yesterday. While cheap money combined with growth in pay and rising employment has conspired to spark a housing market recovery in some countries, other parts of the EU are still falling behind. Only nations like [...]
Eurozone money printing policy expected this week January 18, 2015 European officials are expected to announce the start of full on quantitative easing (QE) this Thursday. QE involves buying large amounts of typically sovereign assets with newly created bank reserves – cash that banks keep at the central bank. It is hoped that QE will reignite the stagnant Eurozone economy and bring inflation closer to [...]
Don’t count on cheap oil and money to stave off a new Eurozone crisis forever January 15, 2015 The Eurozone is in a vulnerable state once again. Five years ago, the euro crisis – that bête noire of the region’s economy – unfolded. Since then, much has been done to repair and strengthen the Eurozone’s architecture, ranging from the establishment of a bailout fund and the creation of a banking union, to European [...]
Eurozone industrial production beats forecasts in November January 14, 2015 There's finally some good news from the embattled Eurozone, after its factories posted a surprise increase in output. Eurozone industrial production climbed 0.2 per cent in November, defying economists' forecasts for no growth. Industrial production was just 0.4 per cent lower than a year ago, which beat economist' estimates of a 0.7 per cent decline. [...]
Risk of Greek exit from the Eurozone rises amid possible Syriza election victory, according to Moody’s January 14, 2015 "Grexit" has been resurrected as the buzzword du jour lately, amid political instability and the rise of the far left party Syriza. Now ratings agency Moody's has warned that the heightened risk of a Greek exit from the Eurozone "could have negative credit implications for other members of the European single currency". However, the risk [...]