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Jul 31, 2013

Analysis: ECB lending revamp risks more pain in Spain

FRANKFURT (Reuters) – Spanish banks risk their troubles being compounded by a jump in the cost of lifeblood funding from the European Central Bank.

A one-notch downgrade by a single credit rating agency is all that stands between them and a financial blow that would pressure the ECB to act, but probably not with its OMT bond-buy plan.

Jul 31, 2013

ECB lending revamp risks more pain in Spain

FRANKFURT, July 31 (Reuters) – Spanish banks risk their
troubles being compounded by a jump in the cost of lifeblood
funding from the European Central Bank.

A one-notch downgrade by a single credit rating agency is
all that stands between them and a financial blow that would
pressure the ECB to act, but probably not with its OMT bond-buy
plan.

Jul 25, 2013

A year on, Draghi’s ‘save the euro’ pledge remains untested

FRANKFURT (Reuters) – A year after Mario Draghi vowed to do “whatever it takes” to save the euro, the European Central Bank president can claim to have staved off disaster – but he may have to back up his words with action before long.

Were euro zone turmoil to return, especially with Spain or Italy on the receiving end, Draghi and the ECB will have to prove that his promise – made on July 26 last year – has substance, something he and the ECB have not yet had to do.

Jul 25, 2013

Analysis: A year on, Draghi’s ‘save the euro’ pledge remains untested

FRANKFURT (Reuters) – A year after Mario Draghi vowed to do “whatever it takes” to save the euro, the European Central Bank president can claim to have staved off disaster – but he may have to back up his words with action before long.

Were euro zone turmoil to return, especially with Spain or Italy on the receiving end, Draghi and the ECB will have to prove that his promise – made on July 26 last year – has substance, something he and the ECB have not yet had to do.

Jul 25, 2013

Euro zone credit slump deepens in June as loans to business shrink

FRANKFURT (Reuters) – Loans to the euro zone’s private sector shrank by more than expected in June, starving the economy of the funds needed to sustain recovery and piling pressure on the European Central Bank to take fresh action.

Loans to the private sector shrank by 1.6 percent from the same month a year ago, ECB data released on Thursday showed, a bigger fall than even the lowest forecast in a Reuters poll of economists, which gave a mid-range reading of -1.1 percent.

Jul 18, 2013

ECB takes lending step to help small business

FRANKFURT (Reuters) – The European Central Bank moved on Thursday to get more money to the euro zone’s struggling small businesses, letting banks use more of the assets once blamed for triggering the financial crisis as collateral for cheap loans.

The ECB said it was expanding the list of asset-backed securities (ABS) that are eligible for use at its refinancing operations – the facilities banks use to tap the central bank for liquid funds – and reducing the discounts it applies to these assets.

Jul 18, 2013

ECB tweaks collateral rules to increase ABS eligibility

FRANKFURT, July 18 (Reuters) – The European Central Bank
said on Thursday it was revising its collateral rules, expanding
the list of eligible paper to increase the scope for banks to
offer up asset-backed securities (ABS) to tap ECB funds.

The changes, which will have a neutral impact overall on the
amount of collateral available, will increase the eligibility of
ABS – an asset-class the ECB wants to support to open new
funding sources for small- and mid-sized (SMEs) euro zone firms.

Jul 16, 2013

Troubled euro zone weighs on German investor morale

MANNHEIM, Germany (Reuters) – German analyst and investor sentiment unexpectedly worsened in July, reflecting economic tensions in the euro zone and a global slowdown that is hitting exports, a survey showed on Tuesday.

The Mannheim-based ZEW economic think tank’s monthly poll of economic sentiment fell to 36.3 from 38.5 in June, well below the consensus forecast in a Reuters poll of analysts for a rise to 39.6.

Jul 11, 2013

ECB hasn’t tied its hands with guidance, says Weidmann

MUNICH/FRANKFURT (Reuters) – The European Central Bank has not “tied itself to the mast” with its use of forward guidance on low interest rates, and could raise them if inflationary pressures emerge, ECB policymaker Jens Weidmann said on Thursday.

Abandoning its traditional policy of never pre-committing on future rates, the ECB said a week ago it would keep its interest rates at present or lower levels for an “extended period” – its first use of so-called forward guidance.

Jul 11, 2013

Analysis: Forward guidance more than passing fashion for central banks

FRANKFURT (Reuters) – “Watch what we do, not what we say,” was the central bank mantra for generations. But no more.

In the space of a few hours last week, the European Central Bank and Bank of England embarked on a momentous change, moving to provide an interest rate outlook as the Federal Reserve already does, a crisis response that could become a permanent feature.

    • About Sakari

      "I am part of the Reuters team covering the European Central Bank. Before moving to Frankfurt in early 2009, I was based in Helsinki, where I wrote about the Finnish economy and paper industry."
      Joined Reuters:
      2006
      Languages:
      Finnish, English, German, Swedish
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