Investment strategy correspondent, London
Ingrid's Feed
Nov 22, 2013

ECB’s chief economist warns of deflationary pressures in euro zone

FRANKFURT/PARIS (Reuters) – The European Central Bank’s chief economist said on Friday the euro zone faces deflationary pressures, and the bank’s president stressed that interest rates must remain low “because the economy is weak”.

With euro zone inflation running at 0.7 percent, well below its target of just under 2 percent, a raft of ECB speakers this week have said it is open to taking fresh measures to support the economy.

Nov 22, 2013

ECB’s Praet warns of deflationary pressures in euro zone

FRANKFURT/PARIS (Reuters) – The European Central Bank’s chief economist said on Friday the euro zone faces deflationary pressures, and the bank’s president stressed that interest rates must remain low “because the economy is weak”.

With euro zone inflation running at 0.7 percent, well below its target of just under 2 percent, a raft of ECB speakers this week have said it is open to taking fresh measures to support the economy.

Nov 19, 2013

French government takes risky gamble with tax reform plan

PARIS (Reuters) – France’s embattled government has taken a gamble by announcing an overhaul of the country’s complex tax system, a move it hopes will prevent popular anger from growing further but which could well backfire.

Violent protests over a green levy, fierce business criticism over their tax burden and record-low popularity dragged even lower by plans for more contributions in 2014, have pushed the government to announce a revamp of the tax system.

Oct 31, 2013

France can bank on EU budget leniency before polls

PARIS (Reuters) – Economic fragility and fear of a far-right political backlash are preventing a clash between France and the European Commission when the latter makes first use of its augmented budget supervision powers next month.

The outgoing commission is cautious in seeking more austerity its last year in office, wanting to protect what little economic recovery has been achieved and to avoid fuelling a massive anti-European vote in elections next year.

Oct 29, 2013

France must beat U.S. at economic intelligence: trade minister

PARIS (Reuters) – France must get better than the United States at economic intelligence rather than whining about U.S. phone tapping, which is no reason to suspend EU trade talks with Washington, its trade minister told Reuters on Tuesday.

Reports that the U.S. National Security Agency extensively intercepted its European allies’ phone calls and emails including France and Germany have caused a diplomatic uproar.

Oct 2, 2013

ECB says ready to use any option to temper market rates

PARIS, Oct 2 (Reuters) – The European Central Bank is
watching moves in market interest rates closely and is ready to
use any policy option to temper them if needed, its president
said on Wednesday.

The central bank was “particularly attentive” to any moves
in market rates which could threaten economic recovery or push
inflation too low, Mario Draghi told a news conference after the
ECB left official euro zone rates at a record low 0.5 percent.

Oct 2, 2013

ECB says all options open to temper market rates

PARIS (Reuters) – The European Central Bank is watching moves in market interest rates closely and is ready to use any policy option to temper them if needed, its president said on Wednesday.

The central bank was “particularly attentive” to any moves in market rates which could threaten economic recovery or push inflation too low, Mario Draghi told a news conference after the ECB left official euro zone rates at a record low 0.5 percent.

Sep 27, 2013

Paris DIY shops ordered to close Sundays, prompting anger from business

PARIS, Sept 27 (Reuters) – A court has ordered home
improvement shops near Paris to close on Sundays, prompting
anger about the burden of business regulation at a time when
France is barely out of recession and consumers aren’t spending.

The court told Castorama and Leroy Merlin to shut 15 shops
in the Paris region on Sundays, a traditional day of rest,
following on a complaint by competitor Bricorama,
which was itself ordered last year to keep its shutters down on
that day.

Sep 25, 2013

French 2014 budget seeks savings, taxes households

PARIS (Reuters) – France sought on Wednesday to appease public anger over tax hikes and EU concerns over its finances with a 2014 budget bill that focuses largely on finding savings.

But while businesses will face a smaller tax burden to help boost competitiveness, households will be hit by higher taxes to help cut the deficit, a move that could hurt purchasing power.

Sep 25, 2013

French 2014 budget sees savings, more tax on households

PARIS, Sept 25 (Reuters) – France sought on Wednesday to
appease anger over tax hikes and EU concerns over its finances
with a 2014 budget bill that focuses efforts largely on savings.

But while businesses will face a smaller tax burden to help
boost competitiveness, households will be hit by higher taxes to
help cut the deficit, a move that will hurt purchasing power.