Eva's Feed
Jun 29, 2012

Weak lending data add pressure for ECB rate cut

FRANKFURT, June 29 (Reuters) – Lending to European firms
contracted in May, quashing hopes that the ECB’s mass injections
of cheap cash might have kick-started confidence and adding to
the central bank’s growing list of reasons to cut interest rates
next week.

ECB data showed on Friday loans to the private sector fell
0.1 percent in May, missing economists’ expectations for 0.1
percent growth and adding to concerns about limp credit demand.

Jun 25, 2012

BIS Cecchetti says euro will survive crisis

BASEL, Switzerland (Reuters) – The euro will survive its toughest crisis to date even without a last minute central bank rescue, the economic adviser of the Bank for International Settlements said on Monday, counting on Europe’s commitment to its single currency.

BIS economist Stephen Cecchetti told Reuters in an interview that a further interest rate cut by the European Central Bank – which some analysts expect to come already next month – would have, at best, limited impact.

Jun 15, 2012

Central banks prepare for turmoil after Greek vote

FRANKFURT/LONDON, June 15 (Reuters) – Central banks from
Tokyo to London checked their ammunition on Friday in
preparation for any turmoil from Greece’s election, with the
European Central Bank hinting at an interest rate cut and
Britain set to open its coffers.

Tensions were high about how to manage the euro zone’s debt
crisis – epitomised by Greece’s bankruptcy and need for
international aid – and a rare fight broke out between Germany
and France, normally the glue that keeps the bloc together.

Jun 15, 2012

Bundesbanker says no more leeway for Spanish banks

FRANKFURT (Reuters) – The European Central Bank will not give Spanish banks more leeway to access its funding operations, a Bundesbank board member said, warning that Sunday’s election in Greece may not herald the clarity some in the market are hoping for.

The European debt crisis may reach new heights next week as Greek elections on Sunday could bring to power the SYRIZA party which rejects EU/IMF bailout program terms, while Spain is on the verge of requesting international aid for its teetering banks.

Jun 15, 2012

ECB’s Draghi flags euro risks, spurs rate cut talk

FRANKFURT, June 15 (Reuters) – The euro zone economy faces
serious risks and no inflation threat, European Central Bank
President Mario Draghi said on Friday in comments that
heightened expectations the ECB could cut interest rates or take
other policy action soon.

Draghi also said the ECB stood ready to provide further
liquidity to solvent banks, stressing that its provision of
ultra-cheap 3-year funds, or LTROs, late in 2011 and early this
year had averted a major credit crunch.

Jun 15, 2012

Central banks reach for their guns over Greek vote

FRANKFURT/LONDON, June 15 (Reuters) – Central banks from
Tokyo to London checked their ammunition on Friday in
preparation for any turmoil from Greece’s election, with the
European Central Bank hinting at an interest rate cut and
Britain set to open its coffers.

ECB President Mario Draghi said his bank was ready to step
in and fund any viable euro zone bank that gets in trouble, and
painted a picture of a deteriorating economy with no inflation
danger — conditions for monetary easing.

Jun 12, 2012

ECB says Spain bailout will help stabilize economy

FRANKFURT (Reuters) – A bailout for Spanish banks will help stabilize the country, the European Central Bank said on Tuesday, presenting a report in which it put the onus firmly on euro zone governments to solve the continuing crisis in the currency bloc.

In its twice-yearly financial stability review, the ECB said there had been a renewed rise in euro zone tensions since April, but that measures of stress in the banking system were below where they had been at the end of last year.

Jun 12, 2012

Constancio says ECB ready to react to data

FRANKFURT (Reuters) – The European Central Bank stands ready to act should the situation in the euro zone deteriorate further, the ECB Vice-President Vitor Constancio told Reuters Insider television on Tuesday, pointing to the increased risks the bloc faces.

“We (ECB) are still very much on top of the situation,” Constancio told Reuters Insider in a TV interview after presenting the ECB’s latest Financial Stability Review.

Jun 11, 2012

ECB keeps bond program on ice, pressure on governments

FRANKFURT (Reuters) – The European Central Bank bought no government bonds for the 13th week running last week, ECB data showed on Monday as the bank judges the controversial program of diminishing benefit in the face of the deepening euro zone debt crisis.

The ECB has bought hardly any bonds from euro zone countries since Mario Draghi took over as president in November as policymakers have become increasingly wary of the risks piling up on the balance sheet and the lack of incentives for reforms.

May 30, 2012

Euro zone expansion stalls as crisis rages

FRANKFURT (Reuters) – None of the eight countries on the waiting list to join the euro currently meet the requirements to do so, the European Central Bank said on Wednesday – assuming, that is, that they still want to.

Before the debt crisis took off, European Union members not yet part of the common currency were queuing up to join.