ECB, Bank of England reach agreement over clearing houses March 29, 2015 The European Central Bank and the Bank of England have hammered out a deal over the City's clearing houses, ending a lengthy dispute over whether euro denominated transactions should be cleared outside the Eurozone. It comes after Britain clinched a rare victory against the ECB in the European Union's second highest court. Because most clearing [...]
Mario Draghi defends ECB policy decisions after QE rollout March 23, 2015 European Central Bank (ECB) chief Mario Draghi yesterday hit back at claims that new monetary policy measures would reduce the need for governments to undertake reforms, ultimately harming growth prospects. “Do you really think a high level of interest rates would form an incentive for a government to improve its education system, or judiciary, or [...]
Beware a taper tantrum after ECB QE – CNBC Comment March 23, 2015 Saying goodbye is one of the hardest things in life, especially when it is to a good friend who has brought you joy, peace of mind and, yes, profits. For investors over recent years, that friend has been easy monetary policy. St Louis Fed president James Bullard told CNBC yesterday that there was the potential [...]
Draghi says Euro area economic recovery “gaining momentum” March 23, 2015 European Central Bank (ECB) president Mario Draghi issued a bright outlook for the Eurozone economy, saying that it would benefit from low oil prices, a hefty stimulus package and favourable exchange rate movements. "The basis for the economic recovery in the euro area has clearly strengthened," he said in a speech to the European Parliament. [...]
Is the ECB speaking too soon in saying that QE is already helping the Eurozone economy? March 19, 2015 Danae Kyriakopoulou, an economist at the Centre for Economics and Business Research, says Yes Central bankers in Frankfurt have been patting each other on the back as the euro has continued to slide. At first glance, why shouldn’t they? Their QE has sent the euro tumbling, making Eurozone exports more competitive and raising prospects for [...]
Riots, water cannon and arrests at ECB protests in Frankfurt March 18, 2015 The opening of the European Central Bank's (ECB) new €1.3bn (£940m) headquarters in Frankfurt was met with riots as demonstrations staged by "Blockupy" activists turned ugly this morning. Police vehicles and rubbish bins were set ablaze as police and protestors clashed, leading to dozens of arrests and some injuries. Some 10,000 demonstrators were estimated to be [...]
Euro falls below $1.10 for first time 12 years after ECB reveals date of bond buying programme March 5, 2015 After hovering close to the $1.10 for past 48 hours the euro fell below it for the first time since September 2003. The euro has lost 15 per cent of its value against the dollar over the past six months. However, it's not just a weaker euro contributing to the shift – the dollar has [...]
ECB will launch €1 trillion bond buying programme on 9 March March 5, 2015 The European Central Bank (ECB) said it will launch its €1 trillion quantitative easing programme on 9 March, in a bid to ward off a deflation death spiral and kick start economic growth throughout the ailing region. "We will on 9 March 2015 start purchasing euro-dominated public sector securities in the secondary market," ECB governor [...]
Thousands of City jobs saved as UK wins battle with ECB over clearing houses March 4, 2015 The government has won an important legal challenge to a European Central Bank (ECB) decision, safeguarding thousands of jobs in clearing houses across the City of London. The EU General Court in Luxembourg ruled today that the ECB could not require clearing houses handling significant euro-denominated assets to be based in the Eurozone. “The ECB lacks [...]
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 [...]