GERMANY SEES REBOUND IN ECONOMIC SENTIMENT IN DECEMBER ON COVID-19 – ZEW

By Marco Babic ZURICH (MaceNews) – Economic sentiment in Germany bounced back in December from a decline the previous month, as pending approvals for a COVID-19 vaccine pushed expectations higher, the Mannheim based ZEW institute reported Tuesday. The Index of Economic Sentiment for Germany rose 16.0 points to 55.0 in December, well above the median […]

ITALY’S 5 STARS DISSIDENTS TO VOTE AGAINST ESM REFORM, GOVT AT RISK – SOURCES

By Silvia Marchetti ROME (MaceNews) – Dissidents within Italy’s 5 Stars Movement ruling party will vote Wednesday against authorizing the European Stability Mechanism reform, and their opposition could spur a government collapse, 5 Stars sources said.  Premier Giuseppe Conte is scheduled to address parliament on Wednesday on Italy’s position ahead of a key European Union […]

NOTED BOE DOVE ADOPTS MORE CAUTIOUS TONE ON NEGATIVE RATES

By Laurie Laird LONDON (MaceNews) – One of the more dovish Bank of England rate setters has adopted more cautious view toward sub-zero interest rates in the UK, stressing that the development of a Covid vaccine could herald a more-rapid-than-expected return to normal financing conditions.  Silvana Tenreyro, an external member of the Bank’s Monetary Policy […]

ITALY WORKING ON PLAN TO START ISSUING GREEN BONDS – SOURCES

By Silvia Marchetti ROME (MaceNews) – Italy’s government is honing its first-ever green bonds issuance plan to be launched soon to fund environmental projects, according to ruling coalition sources. Key investment areas have been identified but the framework, containing the standards and list of specific projects, is still to be defined, though sources say it will […]

EURO AREA BUSINESS SENTIMENT POSTS FIRST DROP SINCE APRIL

By Marco Babic ZURICH (MaceNews) – Economic sentiment in the euro area fell in November for the first time since April when the effects of the first COVID-19 wave pushed sentiment sharply lower. The Economic Sentiment Index (ESI) for the countries sharing the euro fell “markedly” in November to 87.6 from 91.1 the previous month, […]

ECB’S SCHNABEL SUGGESTS EXTENDING TIME FRAME TO RETURN INFLATION TO TARGET

— Rate setter says the Bank has lost the “trust” of the public By Laurie Laird LONDON (MaceNews) — A key European Central Bank official Tuesday suggested adjustments to bank’s mandate, particularly the timing of returning inflation to target, while hinting that historically-loose monetary policy could become ever-less effective in stimulating economic growth. “It could […]

GERMAN BUSINESS CONFIDENCE FALLS IN NOVEMBER ON VIRUS CONCERNS

By Marco Babic ZURICH (MaceNews) – Sentiment at German companies deteriorated in November, as a second wave of COVID-19 cases are dampening expectations, the Munich-based Ifo Institute said Tuesday. The Business Climate Index fell for a second month to 90.7 in November from a revised 92.5 (92.7) the previous month. The decline was not as […]

BOE SEES DIMINISHING MARGINAL RETURNS FROM ASSET PURCHASES

— External Rate Setters Lament Low Inflation, Raising Questions Over MPC Rift and Future Policy By Laurie LairdLONDON (MaceNews) – Top Bank of England rate setters agreed that quantitative easing will exert a diminishing influence on the UK economic recovery, raising questions about the tools available to the central bank as two external officials lamented […]