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 [...]
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, [...]
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 [...]
OMT decision: Euro falls to nine-year low as European Court of Justice rules ECB bond buying programme is legal and “necessary” January 14, 2015 The euro fell to $1.17425, a nine-year low against the dollar and below the level it first launched at in 1999 after after a European Court ruled the European Central Bank's (ECB) bond-buying programme was both "necessary" and "in principle". Pedro Cruz Villalon, advocate general at the European Court of Justice, said the Outright [...]
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 [...]
Eurozone enters deflation giving Draghi upper hand January 7, 2015 THE EUROZONE has slipped into deflation as prices fell by 0.2 per cent year-on-year in December. It marks a significant fall from November when prices rose by 0.3 per cent, according to Europe’s official statistical office Eurostat. Economists have raised their expectations that the European Central Bank (ECB) will begin a large programme of asset [...]