MILAN/FRANKFURT June 20 (Reuters) – A call for euro zone
bailout funds to buy government debt of countries like Spain
and Italy is a long way from being heeded and even if it was, is
unlikely to win over investors unless the European Central Bank
also steps in decisively.
At a G20 summit in Mexico on Tuesday, Italian Prime Minister
Mario Monti proposed the bloc’s two rescue funds intervene to
help his country service its sovereign debt.
MANNHEIM, Germany (Reuters) – German analyst and investor morale sank in June at its fastest rate since October 1998 on worries about the health of the Spanish banking sector and uncertainty over the Greek election outcome, a survey showed on Tuesday.
The main reading from the ZEW think tank’s monthly poll of economic sentiment fell to -16.9, undershooting even the weakest forecast in a Reuters poll of 42 economists. The data adds to signs that Germany, Europe’s paymaster and growth engine, is beginning to feel the bloc’s pain.
FRANKFURT, June 6 (Reuters) – The European Central Bank is
expected to hold back from policy moves when it meets on
Wednesday, instead urging governments to address the euro
zone’s crisis, but it could indicate a readiness to cut interest
rates as early as next month given a weakening economy and
Spain’s banking troubles.
The ECB is widely seen as the only institution capable of
immediate action on behalf of the currency bloc, raising
pressure on the bank to announce new measures after its meeting
- which will be held a day earlier than usual due to a holiday.
FRANKFURT, May 18 (Reuters) – German police said they
detained 400 anti-capitalist protesters in Frankfurt on Friday
for defying a ban on demonstrations against austerity policies
implemented to tackle the intensifying euro zone debt crisis.
The demonstration in the German financial capital was part
of a four-day-long “Blockupy” protest, due to run until
Saturday, against capitalism and swingeing austerity measures.
FRANKFURT/VIENNA (Reuters) – The European Central Bank is ready to raise interest rates when inflation risks arise, a top ECB policymaker said on Thursday as a survey pointed to stubbornly high prices this year and the Bundesbank signalled it may live with higher German inflation.
Financial markets are looking to the ECB to take further steps to stem the euro zone crisis but ECB policymakers speaking at a conference in Vienna focussed more on being ready to unwind the extraordinary support they have taken than any fresh action.
FRANKFURT/VIENNA, May 10 (Reuters) – The Bundesbank is
preparing to stomach higher German inflation than it likes,
above the European Central Bank’s target level, because of the
euro zone crisis, a source at the central bank said on Thursday.
Structural reforms in peripheral euro zone states would
improve their competitiveness and under this scenario Germany
could have an inflation rate above the bloc’s average, the bank
said in a statement for a parliamentary hearing on Wednesday.
MANNHEIM, Germany, April 17 (Reuters) – German analyst and
investor sentiment rose unexpectedly in April to its highest
level since June 2010, a survey showed on Tuesday, bolstering
hopes that Europe’s biggest economy is recovering from a weak
The Mannheim-based ZEW economic think tank’s monthly poll of
economic sentiment rose to 23.4 from 22.3 in March, beating a
consensus forecast in a Reuters poll of analysts for a fall to
FRANKFURT (Reuters) – Persistently high inflation will prevent the European Central Bank from doing anything new on Wednesday to prop up the euro zone’s shaky economic recovery, even with renewed worries about its fourth-largest economy, Spain.
While ECB President Mario Draghi has said that the worst of the debt crisis is over, resurgent concern about Spain and questions about whether Portugal will need a second bailout remain.
FRANKFURT/LONDON, March 28 (Reuters) – Banks cut lending to
euro zone companies in February while those in Spain and Italy
stocked up on government bonds, suggesting the flood of cash
that the European Central Bank has pumped out has yet to bolster
flagging businesses in the wider economy.
The ECB funnelled over 1 trillion euros into the financial
system with twin ultra-cheap funding operations in December and
February to head off a credit crunch that risked exacerbating
the euro zone crisis and threatening the currency bloc’s future.
FRANKFURT, March 26 (Reuters) – A sharp rise in German
property prices is worrying some European Central Bank
policymakers but the sudden upswing is unlikely to push the ECB
into raising interest rates.
The ECB sets rates for all 17 euro zone members no matter
what state their individual economies are in, and Germany’s
mini-boom is more than balanced by depressed housing markets
elsewhere, notably Spain and Ireland.