A recovery in Europe? Really?

March 8, 2012

There’s a sense of relief among European policymakers that the worst of the euro zone’s crisis appears to have passed. Olli Rehn, the EU’s top economic officials, talked this week of a “turning of the tide in the coming months”. Mario Draghi, the president of the European Central Bank, speaks of “sizeable progress” and “a reassuring picture”.

When 500 billion euros no longer pops eyes

February 28, 2012

There was a time when 500 billion euros in cash was truly spectacular.

But investors and speculators hoping for an even more eye-popping cash injection at the European Central Bank’s second and most likely last three-year money operation on Wednesday are likely to be disappointed, based on past Reuters polls of expectations.

from Global Investing:

January in the rearview mirror

February 2, 2012

As January 2012 drifts into the rearview mirror as a bumper month for world markets, one way to capture the year so far is in pictures - thanks to Scott Barber and our graphics team.

from Mike Dolan:

Sparring with central banks

January 31, 2012

Just one look at the whoosh higher in global markets in January and you'd be forgiven smug faith in the hoary old market adage of "Don't fight the Fed" -- or to update the phrase less pithily for the modern, globalised marketplace: "Don't fight the world's central banks". (or "Don't Battle the Banks", maybe?)

European rescue: Who benefits?

January 12, 2012

The words “European bailout” normally conjure up images of inefficient public sectors, bloated pensions, corrupt governments. But market analyst John Hussman, in a recent research note cited here by Barry Ritholtz, says the reality is a bit more complicated:

EU might treat itself to treaty change

December 8, 2011

By Robert-Jan Bartunek and Robin Emmott

French statesman Charles De Gaulle once famously said “Treaties are like roses and young girls — they last while they last.” Germany seems to have decided that the European Union’s Lisbon Treaty, which only entered into force after a fair amount of upheaval in December 2009, has lost its perfumes and must be reworked to ensure the euro zone’s debt crisis can never be repeated.

The Fed’s stealth monetary ease

December 7, 2011

Banks took more than $50 billion from the European Central Bank on Wednesday in the first offering since it, the Federal Reserve and other major central banks slashed the cost of borrowing dollars in response to a worsening euro zone crisis. The high volume of emergency borrowing was seen as a sign that some of the region’s banks are having  problems obtaining dollar funding.

Unlimited fun, not funds, on ECB’s iPhone app

November 17, 2011

But we never pre-commit

Who says central banking is boring? The European Central Bank, now grappling with safeguarding the survival of the euro zone, has made it to iTunes, with its monetary policy app “€conomia”. It challenges iPhone and iPad users with — you guessed it — keeping inflation at just under 2 percent. The new app is the on-the-go version of “The Monetary Policy Game” that has been available on its website for some time.

Contemplating Italian debt restructuring

November 10, 2011

This week’s evaporation of confidence in the euro zone’s biggest government debt market — Italy’s 1.6 trillion euros of bonds and bills and the world’s third biggest — has opened a Pandora’s Box that may now force  investors to consider the possibility of a mega sovereign debt default or writedown and, or maybe as a result of,  a euro zone collapse.

from Amplifications:

The ECB’s battle against central banking

By J. Bradford DeLong
October 31, 2011

By J. Bradford DeLong
The opinions expressed are his own.

When the European Central Bank announced its program of government-bond purchases, it let financial markets know that it thoroughly disliked the idea, was not fully committed to it, and would reverse the policy as soon as it could. Indeed, the ECB proclaimed its belief that the stabilization of government-bond prices brought about by such purchases would be only temporary.