FRANKFURT (Reuters) – The European Central Bank is likely to keep interest rates on hold on Thursday but may offer clues on its policy path for next year with updated forecasts likely to present a grim outlook for the euro zone economy in 2013.
Since announcing a new bond-buying plan in September, the ECB has held off on further action until the program is activated.
FRANKFURT (Reuters) – Eastern European countries must make themselves more attractive to foreign investors by cutting red tape and enforcing rules consistently, the European Bank for Reconstruction and Development’s president said on Friday.
Suma Chakrabarti told Reuters in an interview that with the worst problems in bank liquidity abating, there would be a shift by the bank toward helping the real economy instead of crisis maintenance in the financial sector.
FRANKFURT, Nov 23 (Reuters) – Eastern European countries
must make themselves more attractive to foreign investors by
cutting red tape and enforcing rules consistently, the European
Bank for Reconstruction and Development’s president said on
Suma Chakrabarti told Reuters in an interview that with the
worst problems in bank liquidity abating, there would be a shift
by the bank toward helping the real economy instead of crisis
maintenance in the financial sector.
For the Bank of Greece, the euro zone is a bloc of 16 members, rather than the full complement of 17. Although many analysts have tipped Greece, in the throes of a long recession, to be the first to leave the currency union, it is tiny Estonia that Greece can live without, at least according to the central bank’s website.
Estonia, which joined the euro zone at the beginning of last year, seems to have completely slipped by the Hellenic central bank, even though Estonian governor Ardo Hansson has the same, single vote on the European Central Bank‘s Governing Council as its own George Provopoulos, or even German Jens Weidmann.
MANNHEIM, Germany (Reuters) – Morale among Germany’s analysts and investors sank in November as the crisis in the euro zone pounded its top economy, which looks increasingly at risk of joining the region’s periphery in recession.
Tuesday’s unexpectedly gloomy survey from the ZEW think tank followed a run of domestic data showing the private sector contracting, business sentiment plummeting, jobless rates rising and industrial orders dropping.
MANNHEIM, Germany, Nov 13 (Reuters) – German analyst and
investor sentiment unexpectedly fell in November as the euro
zone crisis pounds Europe’s largest economy and optimism spurred
by the European Central Bank’s announcement of an unlimited
bond-buying programme wanes.
The main reading from the ZEW think tank’s monthly poll
showed economic sentiment fell to -15.7 from -11.5 in October,
coming in well below the consensus forecast in a Reuters poll of
38 analysts for a reading of -9.8.
FRANKFURT (Reuters) – Banks made it harder for firms to borrow in the third quarter and expect to toughen loan requirements further, even though their own funding constraints have eased, the European Central Bank said on Wednesday.
Worried about the weak economy and tougher regulations that are squeezing their margins, banks are retrenching and slashing costs. UBS announced plans on Tuesday to fire 10,000 staff and Deutsche Bank increased its job loss target by nearly 100 to 1,993 staff.
MANNHEIM, Oct 16 (Reuters) – German analyst and investor
sentiment rose for a second month in a row in October, a survey
showed on Tuesday, suggesting fears that the euro zone’s debt
crisis will escalate and damage the bloc’s largest economy are
The Mannheim-based ZEW said sentiment appeared to have
bottomed out, though it remains deep in negative territory and
the assessment of current conditions in Germany worsened.
FRANKFURT (Reuters) – The European Central Bank indicated on Thursday it may again start buying government bonds to reduce crippling Spanish and Italian borrowing costs but the conditions it set and the dissenting voice of its key German member disappointed markets.
In the latest move to contain the euro zone crisis, ECB President Mario Draghi indicated that any intervention would not come before September – and only if governments activated the euro zone’s bail-out funds to join the ECB in buying bonds.
FRANKFURT (Reuters) – The European Central Bank will gear up to buy Italian and Spanish bonds on the open market but would only act after euro zone governments have activated bailout funds to do the same, ECB President Mario Draghi said on Thursday.
Draghi indicated that any ECB intervention would start at the earliest in September and would depend on countries in trouble on bond markets making a request and accepting strict conditions and supervision.