Nikkei jumps on Bank of Japan quantitative easing shock October 31, 2014 Following the US Fed's decision this week to draw its quantitative easing programme to a close, yesterday the Bank of Japan (BoJ) took the opposite stance, announcing plans to vastly expand its monetary easing programme. The Bank’s approach under Shinzo Abe has been anything but passive, but the announcement it would increase asset purchases so [...]
As QE ends in the US, has it changed the world for the better? October 29, 2014 Sam Bowman, research director at the Adam Smith Institute, says Yes. Many people, including me, expected QE to cause uncontrollable inflation and end in disaster. How wrong we were. The US and the UK, which did QE, are growing healthily. The Eurozone, which didn’t, is in ruins. QE helps to keep nominal spending steady during [...]
Markets keep their cool as Federal Reserve ends quantitative easing October 29, 2014 The Federal Reserve has announced the end of its monthly $15bn bond-buying programme, adding that its intention is to maintain low interest rates for "considerable time". The Fed was more bullish on the state of the US labour market, and all its members with the exception of one voted to draw quantitative easing (QE) to [...]
Is the world ready for the end of quantitative easing? Global markets rise on great Fed expectations October 29, 2014 What a difference a year makes. This time in 2013, markets across the world were thrown into turmoil as rumours abounded that the US Fed would begin tapering its quantitative easing programme. Fast forward 12 months, and the same markets have remained cheerful, even as the US' rate-setting Federal Open Market Committee prepares to make [...]
QE or not QE? Mario Draghi’s policy dilemma – CNBC Comment September 29, 2014 It seems as if the European Central Bank (ECB) has been debating whether to head down the QE path forever. ECB-watchers have been reduced to pondering what the shade of Mario Draghi’s (usually blue) tie might mean for future asset purchases. But no matter how reluctant Draghi might be to label it as such, this [...]
Eurozone service sector’s slowdown puts pressure on ECB to undertake quantitative easing September 3, 2014 The Eurozone’s services firms flagged a further slowdown in the troubled currency bloc’s growth yesterday, with surveys indicating that the region is growing at the slowest pace this year so far, putting pressure on the European Central Bank (ECB). The Eurozone’s composite purchasing managers’ index, collated by Markit, dropped to just 52.5 – the lowest [...]
European bond yields fall further after Draghi’s hints at quantitative easing August 27, 2014 European bond yields fell again on Wednesday, as the knock-on effect from a speech by European Central Bank (ECB) president Mario Draghi continued to quell investors' fears over muted growth. Germany's 10-year yield fell to 0.9 per cent in London (and a record 0.91 per cent in New York), while Spanish 10-year yields fell to [...]
London Report: Draghi QE hint sends banks and FTSE up but Antofagasta falls August 26, 2014 BRITAIN’S top equity index rose yesterday, with financial stocks outperforming, amid expectations of new economic stimulus measures from the European Central Bank. The blue-chip FTSE 100 index closed up by 0.7 per cent, or 47.51 points, at 6,822.76 points – its highest closing level since early July. As the FTSE was closed on Monday due [...]
Is the ECB considering quantitative easing? August 25, 2014 European markets are up this morning after European Central Bank (ECB) president Mario Draghi gave a doveish speech in Jackson Hole (Friday). The ECB, Draghi implied, could be gearing up for more monetary stimulus, in order to address the ongoing stagnation in the Eurozone economy. Inflation in the Eurozone has been perilously low of late, [...]
Mario Draghi says QE “falls squarely” in European Central Bank mandate July 14, 2014 Mario Draghi is doing more scene-setting work for full-blown quantitative easing. Speaking to EU politicians today, the European Central Bank (ECB) president said that QE "falls squarely" in the central bank's mandate. Draghi's comments come as the International Monetary Fund today did all but outright say that the ECB should begin to engage in asset [...]