ITALY BANKS’ NET BAD LOANS FELL TO E24 BLN IN AUGUST
Bt Silvia Marchetti ROME (MNI) – The volume of Italy banks’ net bad loans fell to E24 billion in August, down from E32 billion a year ago and E40 billion in 2018, Italy’s Banking Association ABI said Tuesday in a report. Since November 2015, when the highest peak in bad loans reached E89, there has […]
ITALY COALITION FACES STALEMATE OVER BUDGET, EU AID PLAN: SOURCES
By Silvia Marchetti ROME (MaceNews) – Italy’s coalition parties are at odds over budget priorities and the use of direct European aid to tackle the COVID-19 pandemic, according to party sources. The government is expected to forward to the European Commission by the end of this week an updated fiscal framework that will form the […]
GERMAN ECONOMIC SENTIMENT SHARPLY LOWER IN OCT AS COVID CASES RISE
By Marco Babic ZURICH (MaceNews) – Economic sentiment in Germany fell in October to its lowest level since July as increasing cases of Covid-19 in Europe and Brexit have raised uncertainly about the economy. The ZEW Indicator of Economic Sentiment Tuesday fell 21.3 points in October to 56.1, and while economists were expecting a decline, […]
ECB’S MERSCH: SUSTAINED EU FISCAL STIMULUS REQUIRES TREATY CHANGE
By Laurie Laird LONDON (MaceNews) – A top European central banker praised the eurozone’s fiscal response to the Covid-induced economic downturn but warned that further stimulus would most likely require a legal change to the roles of European institutions. Far from establishing a precedent for further fiscal integration, the European Commission’s €750 million fiscal package […]
ECB MINUTES HINT AT GOVERNING COUNCIL CONCERN OVER EURO STRENGTH
—President Lagarde Downplayed Forex Moves Following September Rate-setting Meeting By Laurie Laird LONDON (MaceNews) – Members of the European Central Bank’s rate-setting body spoke extensively about euro appreciation at the September governing council gathering, belying the indifference of ECB top guard immediately following the event. Minutes of that meeting released Thursday contain numerous references to […]
ECB’S SCHNABEL RAISES THE ALARM ON EU BANKING SECTOR
—But BOE’s Bailey Hails Health of UK banks at Banking Stability Conference By Laurie Laird LONDON (MaceNews) – A top European Central Bank official lamented the health of the European banking sector, calling for greater integration and risk sharing across the eurozone. The return on equity for eurozone banks fell to 0.01% at the end […]
ECB’S LAGARDE: ASSET PURCHASES MORE EFFECTIVE THAN RATE CUTS FOR NOW
By Laurie Laird LONDON (MaceNews) — The European Central Bank will continue to rely on asset purchases as its main policy tool, but is not averse to further rate cuts down the line, according to ECB President Christine Lagarde. Rate cuts “work better in certain circumstances … not necessarily in a crisis situation as we […]
BOE’S HASKEL PREPARED TO GREENLIGHT FURTHER UK STIMULUS
—Cites ‘Positive Evidence’ of Benefits of Sub-Zero Rates Outside UK By Laurie Laird LONDON (MaceNews) – A top UK rate-setter Monday expressed his willingness to approve a further loosening of monetary policy, noting the economic benefits of sub-zero interest rates in other jurisdictions. “I stand ready to vote for more stimulus measures should they be needed,” […]
BANK OF ENGLAND CHIEF ECONOMIST SEES NO CURRENT NEED FOR NEGATIVE RATES
–Haldane Heralds Rapid UK Rebound, Despite Soft Consumer Confidence By Laurie Laird LONDON (MaceNews) – A top Bank of England official Wednesday vigorously downplayed the need for sub-zero interest rates in the UK, citing an economic recovery that has far outpaced the Bank’s expectations. “At present, none of the conditions [that would necessitate negative rates] […]
ECB PRESIDENT DISCUSSES MERITS OF SYMMETRICAL INFLATION TARGETING
By Laurie Laird LONDON (MaceNews) – Europe’s top central banker Wednesday suggested that symmetrical inflation targeting could have merit in dispelling the low inflation environment suffered in advanced economies since the financial crisis. Addressing the ECB and its Watchers XXI conference in Frankfurt, ECB President Christine Lagarde noted that many central banks have explored a […]