Eva's Feed
Aug 2, 2012

ECB gearing up to buy euro zone bonds, but not yet

FRANKFURT, Aug 2 (Reuters) – With its key German member
dissenting, the European Central Bank took a heavily conditioned
step on Thursday towards a new round of bond buying to drag down
Spanish and Italian borrowing costs, but said euro zone
governments must act first.

ECB President Mario Draghi indicated any intervention would
come at the earliest in September once governments had activated
their rescue funds to buy bonds, and the countries at risk had
requested assistance and accepted tough conditions.

Aug 1, 2012

Record joblessness in euro zone; hope fades for quick ECB cure

ROME/FRANKFURT (Reuters) – Joblessness in the euro zone hit on Tuesday its highest level since the single currency was born, a further sign of economic desperation as hopes erode that the bloc will be saved by its central bank this week.

An additional 123,000 people were out of work in the euro zone in June, figures from Eurostat showed, bringing the unemployment rate to a record high 11.2 percent across the 17 countries that use the single currency.

Jul 31, 2012

Monti sees light in euro tunnel, but ECB hopes dim

ROME/FRANKFURT (Reuters) – Italian Prime Minister Mario Monti said on Tuesday that Europe was starting to see light at the end of the tunnel of the euro zone’s sovereign debt crisis, belying a welter of deteriorating economic data.

As euro-zone unemployment hit a euro-era high and Spanish data showed capital fleeing its banks and retail sales falling again, Monti’s optimism was at odds with sentiment in markets, which are losing hope of swift intervention by the European Central Bank to address the region’s problems.

Jul 30, 2012

ECB on course to act strongly or disappoint mightily

FRANKFURT, July 30 (Reuters) – European Central Bank
President Mario Draghi must back up his pledge to do what it
takes to protect the euro when the bank’s policymakers meet on
Thursday or else face deep disappointment from investors hungry
for – and expecting – immediate action.

In his boldest comments to date, Draghi said last week that,
within its mandate, the ECB was ready to do whatever it takes to
preserve the euro, fuelling expectation the bank could revive
its bond purchase programme as it did a year ago when it started
buying the government debt of Spain and Italy.

Jul 30, 2012

Draghi under pressure to deliver on pledge to save euro

FRANKFURT (Reuters) – European Central Bank President Mario Draghi must back up his pledge to do what it takes to protect the euro when the bank’s policymakers meet on Thursday or else face deep disappointment from investors hungry for – and expecting – immediate action.

In his boldest comments to date, Draghi said last week that, within its mandate, the ECB was ready to do whatever it takes to preserve the euro, fuelling expectation it could revive its bond purchase program as it did a year ago when it started buying the government debt of Spain and Italy.

Jul 27, 2012

Bundesbank narrows ECB crisis-fighting options

FRANKFURT, July 27 (Reuters) – Germany’s powerful Bundesbank
pushed back on Friday against European Central Bank President
Mario Draghi’s pledge to do whatever is necessary to protect the
euro zone from collapse, but markets rallied on a report of
imminent policy action.

French newspaper Le Monde reported that the ECB and euro
zone governments were preparing co-ordinated action to cut
Spanish and Italian borrowing costs. European shares extended
gains to trade some 1 percent higher after the report’s release.

Jul 25, 2012

ECB bank lending survey paints bleak picture

FRANKFURT (Reuters) – Banks expect to toughen their credit rules further in coming months with demand for loans from firms and consumers remaining weak, underscoring a dilemma facing the European Central Bank in its efforts to revitalise the euro zone’s economy.

Fears about the euro zone’s future are making companies and other borrowers increasingly nervous about taking on credit and investing in their businesses, sapping the bloc’s already weak economy.

Jul 25, 2012

Banks’ credit clampdown seen tightening: ECB

FRANKFURT (Reuters) – Banks expect to toughen their lending rules further in coming months and see feeble demand for loans from firms and consumers, underscoring the dilemma European Central Bank policymakers face as they try to revitalize the euro zone’s economy.

In its latest quarterly Bank Lending Survey, the ECB said 11 percent of banks that took part made it harder for companies to borrow in the second quarter, whereas only one percent eased their requirements. The 10 percent net figure was slightly more than the 9 percent in the first quarter.

Jul 24, 2012

ECB mulls Danish-style deposit charge as lending prod

FRANKFURT (Reuters) – The European Central Bank may soon become the first of the world’s major central banks to try out negative interest rates on deposits in an attempt to force tight-fisted banks to lend.

Negative rates effectively mean that the ECB would charge banks to hold their money, something the central bankers hope will push them into lending and away from hoarding their cash.

Jul 17, 2012

German ZEW index drops for third straight month in July

MANNHEIM, Germany, July 17 (Reuters) – German analyst and
investor sentiment dropped for a third consecutive month in
July, a survey showed on Tuesday, providing further evidence
that the euro zone crisis is taking its toll on morale in
Europe’s largest economy.

But the ZEW think tank, which conducts the monthly poll,
said expectations may have now hit bottom and that the outlook
for the rest of the year should prove stable.