ECB QE drifts from if to when, say many analysts

December 4, 2014

RTR3OB5X.jpgSerious deflation risks in the euro zone mean it is no longer a question of if, but when the ECB will purchase sovereign bonds — at least among many of those who are paid to forecast policy.

Strong euro may be a monster Draghi can’t tame

May 13, 2014

Mario Draghi, President of the European Central Bank (ECB), addresses the media during his monthly news conference at the ECB headquarters in FrankfurtECB President Mario Draghi may have created a monster when he declared nearly two years ago that he will do “whatever it takes” to save the euro.

In euro bond markets, world still upside down

December 11, 2013

Corporate bonds normally yield more than sovereign debt since companies are seen as more likely than states to go bust. But during the euro zone debt crisis, when various governments had to be bailed out, that relationship broke down in Spain and Italy.

Does the European crisis need to get worse to get better?

August 3, 2012

Europe will do what it takes to save the euro, after it tries everything else. That seems to be the conventional wisdom about the continent’s muddled handling of a financial crisis now well into its third year.

Goldman thinks market’s disappointment with ECB is premature

August 2, 2012

Financial markets on Thursday were starkly disappointed with the European Central Bank and its president, Mario Draghi. He had promised recently to do everything in his power to save the euro and yet announced no new bond-buying at the central bank’s latest meeting. Riskier assets sold off and safe-haven securities benefitted.

Spanish yield curve flattens, along with Europe’s fortunes

July 20, 2012

Ten-year Spanish government bond yields hit their highest levels since the euro was created – above 7 percent – on growing doubts that the euro zone’s fourth largest economy will be able to avoid a full-blown sovereign bailout.

Who expects euro bonds? Look outside the euro zone

June 21, 2012

It’s already been established that economists’ predictions about the euro zone’s future hinge largely on where their employer is based. Euro zone optimists tend to work for euro zone banks and research houses, and euro zone sceptics for companies based outside the currency union.

Euro zone survival is in the eye of the beholder

June 14, 2012

Despite all their years of experience and complex mathematical models, for economists the question of the euro zone’s survival really has them at the mercy of national bias… at least in terms of where their employer is based.

For insatiable markets, Spanish steps fall short

April 6, 2012

So much for the lasting power of the ECB’s 1 trillion euros in cheap bank loans. Spain is again looking like a basket-case, more because of market dynamics rather than any particular policy misteps.

Vultures swoop on Argentina

February 29, 2012

Holdouts against a settlement of Argentina’s defaulted debt are opening a new front in their campaign for a juicy payout more than a decade after the biggest sovereign default on record.