European Central Bank correspondent, Frankfurt
Marc's Feed
Nov 9, 2015

Dollar sits pretty, bond yields rise as Fed bets firm

LONDON (Reuters) – The dollar took a breather on Monday having surged to a seven-month high, while emerging, commodity and bond markets had a nervy feel after strong U.S. jobs data boosted bets on a December Federal Reserve rate hike.

European .FTEU3 and Asian .MIAPJ0000PUS shares both started the week in a subdued mood as a fresh batch of soft Chinese trade data added to the uncertainty from what is increasingly expected to be the Fed’s first hike in almost a decade.

Nov 6, 2015

Dollar at three-month high as pre-payrolls paralysis sets in

LONDON (Reuters) – The dollar reached a three-month high on Friday and world shares headed for their fifth week of gains out of six, before U.S. jobs data that may nudge the Federal Reserve towards its first interest rate increase in almost a decade.

Bets on a Fed move in December are back on after the U.S. central bank’s last meeting. The dollar’s .DXY strength, combined with the highest 2-year U.S. government bond yields US2YT=RR since 2011, showed hopes were high for the jobs numbers.

Nov 5, 2015

China applies to join EBRD, board likely to recommend approval

LONDON, Nov 5 (Reuters) – China has formally applied for
membership of the European Bank of Reconstruction and
Development (EBRD), the bank said on Thursday, with its board
expected early next week to recommend approval to the bank’s
shareholders.

That group, dominated by G7 countries’ governments, is
likely to make a final decision in December and, if successful,
China would take a small, symbolic stake and the EBRD would not
invest there.

Nov 4, 2015

Kazakh privatisation wave may start next year via stake sales, IPOs – official

LONDON, Nov 4 (Reuters) – Kazakhstan, buffeted by lower oil
revenues, is determined to complete long-delayed privatisations
that will cut state ownership in 60 of the biggest firms and
many more smaller ones, the head of the country’s investment
agency said on Wednesday.

The privatisations, which may start as early as next year,
will be carried out via a mix of stock market listings and sales
of strategic stakes, Borisbiy Zhangurazov, executive chairman of
the Kaznexinvest agency, said in an interview.

Nov 3, 2015

Tech boom eases world stocks to 2-1/2 month high

LONDON (Reuters) – A 15-year high for tech stocks on the Nasdaq helped world shares to a 2-1/2 month peak on Tuesday, though more engine trouble for Volkswagen and a $5.1 billion cash call by Standard Chartered left Europe feeling flat.

Europe’s FTSEurofirst dipped 0.1 percent though MSCI’s 45-country All World index remained just about in positive territory after 1 percent gains in Asia and the Nasdaq had notched its eye-catching milestone.

Nov 3, 2015

Tech boom eases world stocks to two-and-a-half-month high

LONDON (Reuters) – A 15-year high for tech stocks on the Nasdaq helped world shares to a 2-1/2 month peak on Tuesday, though more engine trouble for Volkswagen and a $5.1 billion cash call by Standard Chartered left Europe feeling flat.

Europe’s FTSEurofirst .FTEU3 dipped 0.1 percent though MSCI’s 45-country All World index .WORLD remained just about in positive territory after 1 percent gains in Asia and the Nasdaq had notched its eye-catching milestone. [.N]

Oct 30, 2015

Stocks head for best month since April, Turkey, China in focus

LONDON, Oct 30 (Reuters) – Emerging market equities edged up
0.3 percent on Friday and were on track to post gains of more
than 7 percent for October, their best month since April,
following a turbulent summer.

The Federal Reserve’s suggestion this week that it could
still raise U.S. interest rates this year has put the brakes on
the rally however, with MSCI’s benchmark EM index
heading for a weekly loss of just over 2.3 percent.

Oct 29, 2015

Britain may face two-notch rating cut if it leaves EU: S&P

LONDON (Reuters) – Britain’s credit rating could be cut by as much as two notches if it leaves the European Union, Standard & Poor’s told Reuters on Thursday.

A vote to quit the EU would be likely to result in a one-notch downgrade, which could be increased to two notches if relations between London and Brussels deteriorated significantly, the credit ratings agency’s chief European sovereign rating officer told Reuters in an interview.

Oct 29, 2015

ECB’s Constancio: Capping banks’ government bond holdings could open huge capital hole

LONDON/FRANKFURT (Reuters) – Capping banks’ holdings of sovereign bonds could wipe trillions of euros off their capital, European Central Bank Vice President Vitor Constancio said on Thursday, laying bare a rift within the euro zone’s system of central banks on the issue.

The head of the ECB’s supervisory board, Daniele Nouy, has said a bank’s exposure to a single sovereign should not be greater than 25 percent of its own equity capital, as is the case for all other types of debt.

Oct 29, 2015

Capping govt bond holdings would open 6 trln euro capital hole for EU banks-ECB Constancio

LONDON/FRANKFURT, Oct 29 (Reuters) – Capping banks’ holdings
of sovereign bonds could wipe trillions of euros off their
capital, European Central Bank Vice President Vitor Constancio
said on Thursday, proposing instead the introduction of risk
weightings on those positions.

The head of the ECB’s supervisory board, Daniele Nouy, has
said bank holdings of sovereign bonds were not without risk and
a bank’s exposure to a single sovereign should not be greater
than 25 percent of the lender’s equity capital, as is the case
for all other debtors.