Senior Economics Correspondent, Germany
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Dec 19, 2014

ECB considers making weaker euro zone states bear more QE risk -sources

FRANKFURT, Dec 19 (Reuters) – European Central Bank
officials are considering ways to ensure weak countries that
stand to gain most from a fresh round of money printing bear
more of the risk and cost.

Officials, who spoke on condition of anonymity, have told
Reuters that the ECB could require central banks in countries
such as Greece or Portugal to set aside extra money or
provisions to cover potential losses from any bond-buying,
reflecting the riskiness of their bonds.

Dec 19, 2014

Exclusive: ECB considers making weaker euro zone states bear more QE risk – sources

FRANKFURT (Reuters) – European Central Bank officials are considering ways to ensure weak countries that stand to gain most from a fresh round of money printing bear more of the risk and cost.

Officials, who spoke on condition of anonymity, have told Reuters that the ECB could require central banks in countries such as Greece or Portugal to set aside extra money or provisions to cover potential losses from any bond-buying, reflecting the riskiness of their bonds.

Dec 19, 2014

Exclusive: ECB considers making weaker euro zone states bear more quantitative easing risk – sources

FRANKFURT (Reuters) – European Central Bank officials are considering ways to ensure weak countries that stand to gain most from a fresh round of money printing bear more of the risk and cost.

Officials, who spoke on condition of anonymity, have told Reuters that the ECB could require central banks in countries such as Greece or Portugal to set aside extra money or provisions to cover potential losses from any bond-buying, reflecting the riskiness of their bonds.

Dec 18, 2014

Oil drop sends major central banks in different directions

FRANKFURT/LONDON/WASHINGTON (Reuters) – The world’s major central banks are scrambling to work through the implications of the near halving of the price of oil in the second half of 2014, and they are coming up with very different conclusions.

Perhaps unsurprisingly, policymakers looking at robust economic recoveries such as in the United States and Britain are focused on the likely boost to growth and consumption from markedly lower energy prices and the later upward impact that should have on inflation.

Dec 16, 2014

German ZEW index surges on weak oil, declining euro

MANNHEIM, Germany, Dec 16 (Reuters) – German analyst and
investor sentiment rose sharply in December for a second month
running, as a decline in the euro and the price of oil boosted
hopes for a pickup in Europe’s largest economy after it barely
dodged recession in the third quarter.

Mannheim-based think tank ZEW’s monthly survey of economic
sentiment climbed to 34.9 in December from 11.5 in November to
reach its highest level since April. It was the biggest monthly
gain in nearly two years, easily beating a Reuters consensus
forecast for a reading of 20.0.

Dec 11, 2014

ECB money printing moves closer as banks show only modest interest in cheap loans

FRANKFURT, Dec 11 (Reuters) – The European Central Bank got
a lukewarm response from banks on Thursday in its fight to
revitalize the sluggish euro zone economy, adding pressure on
policymakers to start printing money next year to buy sovereign
bonds.

Banks borrowed almost 130 billion euros ($160 billion) of
four-year loans from the ECB in its latest lending round, which
is what traders had expected but brings the total take-up to
212.4 billion euros, far short of the 400 billion euro upper
limit identified for the end of the year.

Dec 11, 2014

Crunch loan offer may hold key to next ECB policy move

FRANKFURT (Reuters) – Banks are not expected to take up all the long-term European Central Bank loans offered on Thursday, increasing pressure on the ECB to begin buying sovereign bonds to hit a self-imposed stimulus target.

The ECB is offering banks the cheap, four-year loans as part of a package of measures to add around 1 trillion euros to its balance sheet – a goal it has set with a view to pumping money into the economy to save it from deflation.

Dec 8, 2014

Nowotny warns of ‘massive’ economic weakness

FRANKFURT (Reuters) – The euro zone’s economy is weakening ‘massively’, one of the European Central Bank’s policymakers warned on Monday, saying that printing fresh money to buy state bonds could help to stop the slide.

Speaking in Germany, the head of neighbouring Austria’s central bank advocated a more ambitious course for the European Central Bank, distancing himself from Germany, where many politicians and its central bank oppose such money printing.

Dec 8, 2014

ECB’s Nowotny warns of ‘massive’ economic weakness

FRANKFURT, Dec 8 (Reuters) – The euro zone’s economy is
weakening ‘massively’, one of the European Central Bank’s
policymakers warned on Monday, saying that printing fresh money
to buy state bonds could help to stop the slide.

Speaking in Germany, the head of neighbouring Austria’s
central bank advocated a more ambitious course for the European
Central Bank, distancing himself from Germany, where many
politicians and its central bank oppose such money printing.

Dec 5, 2014

Germany warns ECB against copying U.S.-style money printing

FRANKFURT, Dec 5 (Reuters) – The head of Germany’s
Bundesbank warned the European Central Bank on Friday against
copying the money printing used in the United States and Japan,
saying that it would not have the same impact in Europe.

Speaking a day after ECB President Mario Draghi signalled
further action to shore up the euro zone economy as soon as
early next year, Jens Weidmann cautioned that so-called
quantitative easing may not work in Europe.

    • About Paul

      "I lead our economic news file from Berlin, where we report on the performance of the German economy – Europe’s largest – and economic policy: everything from financial regulation to dealing with the euro zone debt crisis. I previously reported on political and economic news from Paris and on earlier assignments worked in Frankfurt, Vienna and London."
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