European Central Bank correspondent, Frankfurt
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May 26, 2014

Bonds, stocks brush off Eurosceptic election gains

LONDON, May 26 (Reuters) – Italian assets surged and German
shares hit all-time highs on Monday as solid election showings
by pro-European forces in both countries provided an antidote to
Eurosceptic gains in France, the UK and Greece.

Though nationalists scored stunning victories in a number of
weekend votes, Italy’s pro-European Prime Minister Matteo
Renzi’s centre-left Democratic Party was on course for a
resounding win over the anti-establishment 5-Star Movement of
former comic Beppe Grillo.

May 23, 2014

ECB easing bets push euro to three-month low

LONDON (Reuters) – The euro fell to a three-month low against the dollar and stocks and bonds in the region climbed on Friday, after a wobble in German business confidence added to expectations the European Central Bank will cut interest rates next month.

Asian shares had also finished the week strongly, hitting one-year highs, while benchmark U.S. and European bond yields, which move inverse to prices, were heading for rises after a week lacking in clear direction in terms of data and sentiment.

May 21, 2014

Polish c.bank’s Belka criticizes banking union plans, wary on deflation

LONDON, May 21 (Reuters) – Poland’s central bank governor
Marek Belka criticized Europe’s plans for a banking union on
Wednesday, saying non-euro zone countries that joined it would
be at a disadvantage and have little influence over key
decisions.

He also said he could not rule out the possibility of
deflation taking hold in Poland, while his country joining the
euro was not likely to happen any time soon.

May 20, 2014

Euro shares, peripheral bonds feel election pressure

LONDON (Reuters) – European shares and peripheral bonds stuttered for the second day running on Tuesday, as political angst offset optimism over fresh support from the ECB, one of a handful of central banks still keeping loose monetary policy.

U.S. stocks futures pointed to a subdued start, holding just off record highs, with the focus on whether minutes from the last Federal Reserve policy meeting due on Wednesday will give any hints on the likelihood and timing of rates rises.

May 20, 2014

European shares make a steady start

LONDON (Reuters) – European shares and southern European bonds made tentative progress on Tuesday, as expectations the European Central Bank will provide fresh support in coming weeks helped counter uncertainty over European Union elections.

The region’s main bourses inched up 0.15 percent after a mixed day in Asia, where Thailand declared martial law and the Australian dollar dropped.

May 20, 2014

Euro shares, periphery’s bonds make a steady start

LONDON (Reuters) – European shares and southern European bonds made tentative progress on Tuesday, as expectations the European Central Bank will provide fresh support in coming weeks helped counter uncertainty over European Union elections.

The region’s main bourses .FTEU3 inched up 0.15 percent after a mixed day in Asia, where Thailand declared martial law and the Australian dollar dropped.

May 15, 2014

Ukraine crisis could mean less lending for Russia, more to Eastern Europe: EBRD

WARSAW (Reuters) – Lending to Russia by the European Bank for Reconstruction and Development could drop as the economy slows, the bank’s head said on Thursday, while it may step up loans to countries at risk of economic damage from the Russia-Ukraine crisis.

EBRD funding in Russia slumped last year to 1.8 billion euros ($2.5 billion) from 2.6 billion in 2012 due to what the development bank termed “difficult investment conditions”.

May 15, 2014

Ukraine crisis could mean less lending for Russia, more to E.Europe – EBRD

WARSAW, May 15 (Reuters) – Lending to Russia by the European
Bank for Reconstruction and Development could drop as the
economy slows, the bank’s head said on Thursday, while it may
step up loans to countries at risk of economic damage from the
Russia-Ukraine crisis.

EBRD funding in Russia slumped last year to 1.8 billion
euros ($2.5 billion) from 2.6 billion in 2012 due to what the
development bank termed “difficult investment conditions”.

May 14, 2014

EBRD cuts growth forecasts in half, warns of Russian recession

WARSAW, May 14 (Reuters) – The European Bank for
Reconstruction and Development slashed its regional growth
forecasts in half on Wednesday and warned of damage to the world
economy if the crisis in Ukraine sends Russia into recession.

The bank has begun its annual two-day meeting in Warsaw
against the backdrop of the worst East-West standoff since the
Cold War ended 25 years ago, set off by Russia’s annexation of
Crimea and alleged backing for separatists in eastern Ukraine.

May 14, 2014

EBRD slashes forecasts in half, warns of Russia recession

WARSAW (Reuters) – The European Bank for Reconstruction and Development slashed its regional growth forecasts in half on Wednesday and warned of damage to the world economy if the crisis in Ukraine sends Russia into recession.

The bank has begun its annual two-day meeting in Warsaw against the backdrop of the worst East-West standoff since the Cold War ended 25 years ago, after Russia annexed Crimea and allegedly began backing separatist rebels in eastern Ukraine.