Correspondent, Brussels
John's Feed
Jul 1, 2014

Emboldened EU Parliament backs Schulz for second term

BRUSSELS, July 1 (Reuters) – The European Parliament on
Tuesday chose Martin Schulz as its president for another two and
half years, backing a combative social democrat who has fought
for more power for the EU legislature.

The extension of the German lawmaker’s term follows the
parliament’s success in getting its candidate, Jean-Claude
Juncker, nominated as European Commission President and shows
lawmakers’ determination to have a greater say in Europe.

Jun 27, 2014

ECB to take two Russian banks under its watch

FRANKFURT, June 27 (Reuters) – The European Central Bank
will supervise the subsidiaries of Russia’s two largest banks in
Austria, giving supervisors in Frankfurt unprecedented insight
into their activities in Europe.

The ECB said on Friday that Russia’s biggest bank,
Sberbank, and No. 2, VTB Bank had been added to the list of
lenders it will police because of the cross-border nature of
their operations. It also said it will pare back the number of
lenders under its watch elsewhere.

Jun 26, 2014

German institute pushes model for countries to go bust

FRANKFURT, June 26 (Reuters) – A leading German economic
institute has proposed a model that would allow struggling euro
zone states to restructure their debts, resurrecting a sensitive
debate that has split opinion in the single currency area.

Discussion on how to deal with highly indebted European
countries such as twice-bailed-out Greece has died down as the
euro zone’s debt crisis has eased and the cost of borrowing for
countries in the bloc has fallen, for many to record lows.

Jun 10, 2014

UK’s ICAP told it might have broken EU antitrust rules over Libor

BRUSSELS/LONDON, June 10 (Reuters) – The European Commission
has told Britain’s ICAP it might have broken antitrust
rules by taking part in cartels that helped rig benchmark
interest rates, the European Union’s antitrust enforcer said on
Tuesday.

The EU probe of ICAP is part of a global investigation into
the manipulation of Libor and Euribor, central cogs in the
financial system used to help price loans and swaps worldwide.
Authorities have already fined 10 banks and brokerages $6.0
billion and charged 16 people.

Jun 5, 2014

ECB hurls cash at sluggish euro zone economy, seeks to force bank lending

FRANKFURT (Reuters) – The European Central Bank launched a raft of measures on Thursday to fight low inflation and boost the euro zone economy, cutting rates, imposing negative interest rates on its overnight depositors and offering banks new long-term funds.

The ECB cut all its main rates to record lows in a drive to fight off the risk of Japan-like deflation and bring down the euro’s exchange rate. For the first time, it will charge banks 0.10 percent for parking funds at the central bank overnight.

Jun 5, 2014

ECB cuts rates below zero to buoy euro zone economy

FRANKFURT (Reuters) – The European Central Bank launched a raft of measures on Thursday to fight low inflation and boost the euro zone economy, cutting rates, imposing negative interest rates on its overnight depositors and offering banks new long-term funds.

The ECB cut all its main rates to record lows in a drive to fight off the risk of Japan-like deflation and bring down the euro’s exchange rate. For the first time, it will charge banks 0.10 percent for parking funds at the central bank overnight.

May 28, 2014

ECB says investors’ gamble for profit could backfire

FRANKFURT (Reuters) – The European Central Bank said on Wednesday that investors’ pursuit of higher profits could be generating new price bubbles, sounding the alarm as financial markets chase quick gains.

In a strongly-worded message that underscored concerns in Frankfurt about the downside to runaway market enthusiasm, the ECB cautioned that the dash for higher returns could suddenly unravel, sending the investor herd charging in the opposite direction.

May 27, 2014

ECB goes on 300 mln euro spending spree for bank watchdog

FRANKFURT, May 27 (Reuters) – The European Central Bank will
spend 300 million euros ($410 million) this year and next in
building an elite group to monitor top banks, with the lion’s
share spent on generous pay for many of its staff.

While the new watchdog is funded by a levy on the banks
rather than by taxpayers, the wage bill could reignite a debate
about salaries for European Union officials after protest
parties triumphed in elections to the European Parliament in
France, Britain and elsewhere.

May 15, 2014

Europe’s anti-EU protest vote leaves business cold

BRUSSELS (Reuters) – Industry lobbyists fear the rise of protest parties and anti-EU rebels in European elections threatens to leave them, and the businesses they represent, out in the cold.

Europeans frustrated by economic hardship are likely to vote to give one in four of the European Parliament’s 751 seats to eurosceptics and protest parties of both left and right.

May 11, 2014

Ukraine casts shadow as investors take pulse of fragile economy

BRUSSELS, May 11 (Reuters) – U.S. and euro zone data will
help investors take the pulse of the global economy this week,
but the crisis in Ukraine threatens to spoil any improvement.

Steady prices and good retail sales are expected to show the
U.S. economy in a more flattering light this week, in
encouraging news for the Federal Reserve as it pares back the
stimulus that has buoyed financial markets for the last few
years.

    • About John

      "I am a Reuters correspondent in Brussels, writing about the European Union. I moved here last year from Germany, where I had reported about the financial crisis, turning up numerous scoops and even winning a prestigious business reporting award. Beforehand, I worked with The Sunday Times in London."
    • More from John

    • Contact John

    • Follow John