Business News » ECB

ECB starts with the purchase of assets

viliyana89 — Wed, 09 Nov 2011 22:05:07 +0000

The European Central Bank has launched a program to buy covered bonds worth 40 billion EUR. The aim is to inject liquidity in the financial markets referred to Bloomberg sources anonymity. The purchase of bonds began yesterday, according to sources. European Central Bank, however, declined to comment on the information. Earlier this month, the European Central Bank said it plans a new program to buy assets like those two years ago. The intention of the institution to acquire covered bonds worth at least 300 billion EUR.
The European Central Bank program is part of the central bank attempts to stabilize the financial system in the Eurozone. She was seriously shaken by the problems of Greece, and now again there are difficulties with liquidity due to an increasingly complex situation in Italy. Last week the ECB decided to lower interest rates in the Eurozone by a quarter percentage point to 1.25 percent. Furthermore, it was promised to the banks of the monetary union to be given unlimited funds at an interest rate of 1.25 namely percent.

It’s surely decision time for the ECB, Germany and Greece?

viliyana89 — Wed, 15 Jun 2011 08:54:13 +0000

Investors are increasingly seeing CFD trading and spread betting as viable alternatives to traditional ways of accessing and profiting from the the financial markets. Uppermost in forex traders minds the week beginning 13 June 2011 was the continuing saga of Greece’s debt bailout.
The latest round of discussions was precipitated by the International Monetary Fund’s refusal to release the latest loan installment of the help package without seeing fresh measures in place that would keep Greece safe from bankruptcy for the next twelve months.
This meant that the European Union, the European Central Bank and the EU’s largest economies, chief among them Germany, had to agree to a new solution to secure Greece’s medium-term financial stability. A solution that would have to contain another sizeable amount of euros, thought to be between €60 and €100 billion.
With German Chancellor Merkel under enormous pressure from an increasingly anti-eurozone electorate, Merkel and her Finance Minister Wolfgang Schäuble both made passionate pleas to the German parliament and public in defence of the euro and need to secure Greece’s future within it.
Schäuble proposed that any deal would require assistance from private Greek bondholders who should ‘voluntarily’ accept a seven year extension to their maturities. The German parliament voted in favour of this new deal, in principle.
However, European Central Bank President Jean-Claude Trichet made it very clear that he was against such an event happening saying that expecting investors to digest such losses would be very similar to defaulting.
What the future is for a eurozone that’s becoming increasingly politically and economically fractured is still not certain. Indeed, how will the various tax-paying electorates of the EU’s most powerful economies react if this issue rumbles on and on and they are asked to keep contributing to other countries that might not share the same economic potential as them?

Trichet forecasts a slight rise in inflation

viliyana89 — Thu, 08 Oct 2009 10:26:33 +0000

The President of the European Central Bank, Trichet told a news conference after the meeting of the institution that current levels of base rate are appropriate and recent economic data confirms this. At the meeting it was decided to maintain the rate of 1 percent, supported unanimously, he added. According to him, it was noted that good signals for economic stabilization and expects inflation to moderate in positive levels, and inflation stability will be maintained to support the private costs. Trichet said the moderate growth of loans maintain low inflation. In August the annual inflation rate was minus 0.2%. Economic recovery, although expected to be “uneven”, said President of the ECB. He warned that the risk to see if further recovery of tightening fiscal policy. Departure from current policies of fiscal stimulus must be made at a time when the recovery remain
Once again, Trichet said that it is extremely important support of the United States in order to strengthen the position of the dollar. Asked about the possible passage of the discussion of commodity prices (like oil) in euro, Trichet said: “There is no strategy or campaign to promote the use of the euro internationally.

Barroso: Europe is coming up in 2010

viliyana89 — Wed, 26 Aug 2009 10:15:59 +0000

On a business forum in Barcelona, European Commission President Jose Manuel Barroso predicted that the world will be the same after pass this economic crisis. Barroso said that Europe will start to come out of the crisis in 2010 He said the continent should be made much effort to overcome the serious situation. Barroso for most of Europe’s main concern is unemployment. This is the main drama of European society. Barroso added that the European Union will show flexibility in terms of limit of 3 percent of GDP, which must not pass the budget deficits of member states of the Union.
Really all of the indexes are showing that Europe is quite close for running away from the crisis.

The Eurozone consumer prices fall

viliyana89 — Thu, 16 Jul 2009 08:28:24 +0000

The Eurozone consumer prices decreased on an annual basis for the first time in June, which coincides with the prediction of the European Central Bank (ECB) says Finance.news, quoted by Eurostat. Core inflation has also declined by 0.1 percent in June after an earlier yearly inflation in 16 states, adopted the euro, was 4 percent. Time of ETSBK said it expected strong fluctuations in raw material prices last year would lead to a decline in inflation on a monthly basis for several months before it becomes positive again at the end of this year. Reiterated several times that the short-term movements in inflation should not be taken into account in monetary policy. The Economists are of the opinion that the fall in prices will lead to a prolonged period of deflation. Prices of fuel and transport decreased by 18.8% yearly base and for heating fuel fell by 39.3 percent.
The Eurostat data show that in June 2009 the highest annual deflation occurred in Ireland (-2.2%), followed Portugal (-1.6%) and Belgium, Spain and Luxembourg are (-1% ). Top Romania is inflation (5.9 percent), followed in descending order by Poland (4.2 percent) and Lithuania (3.9%). In Bulgaria, inflation for June on an annual basis amounts to 2.6%.

Loan euro in Eastern Europe create risks

viliyana89 — Thu, 09 Jul 2009 04:06:41 +0000

The Gold reserves of the European Central Bank, including claims in gold (physical gold, such as bars, coins, ingots, and storing pieces of monetary gold, as balances on accounts with gold) decreased by EUR8.5 billion to EUR232.128 billion during the week ended July 3, according to today’s report of the financial institution. The change primarily reflects the quarterly revaluation adjustments and reserves and selling gold to EUR5.0 million from a central bank in the euro area, indicating the report of the ECB. Foreign exchange reserves showed a net decrease of EUR10.5 billion to EUR206.2 billion for that period. ECB reported an increase of money in circulation in 16 EU member states of the euro by EUR6.6 billion to EUR768.7 billion.
The European Bank announced that the single currency reserves dela in transactions in global financial markets but warned that the granting of loans in euros in Eastern Europe may create risks for both borrowers and banks. According to the financial crisis, the ECB has not breached the dominant role of the U.S. dollar in global financial markets.

ECB launches quantitative facilities

viliyana89 — Mon, 06 Jul 2009 00:48:45 +0000

Italy’s central bank will buy bonds secured 10 billion euros as part of the European Central Bank for the purchase of bonds for a total of 60 billion euros, reported Reuters. Total program of 60 billion euros has been allocated among the 16 countries of the euro on the basis of their shares in the capital of the ECB. ECB President Jean-Claude Trichet said on Thursday that the bank will begin its emergency program to purchase secured by mortgage and public debt bonds of July 6, with a maturity of between three and 10 years. National central banks will make 92 percent of purchases under the program, which aims to increase the liquidity of banks and to promote credit flows. Each of the central banks of the euro area countries will come on the market as other investors who participate in bids when purchasing bonds on the primary market or secondary market. In the latter case the central bank will make an offer for a significant amount and will have to focus on securities that are sufficiently liquid.
The Bank of Italy will buy bonds in different markets in the euro area, although it will focus mainly on its domestic market. Currently the Italian market offers some tools of this kind, but there are several local banks that plan to major debt issues in the coming months.

Eurozone is prepairing regulations of directives market

viliyana89 — Fri, 03 Jul 2009 12:05:09 +0000

The European Comitee will propose in Friday measures for regullating of the market of derivatives, increasing the fears of bankers in the Eurozone, that the sector may hurt seriously by this. After the latest USA financial tools were announced many of the analyzers claim that this may even make the crisis stronger.
The report of the comitee most probably will pay attention to similar proposes, just like those announced from the administration od Barak Obama, which signed changes in the regulation with the derivatives over the price of enegry resources and corporate crediting. Some bankers are affraid that the comitee may try to win some political points, with offering more restrictable changes. Another analyzers claim that the industry already is in need of more serious actions to decrease the market risks. The reports of European Cometee will not have the power of laws, but they can help in forming future practises for regulation of large dealers of directives.

Trichet hurt the EUR again

viliyana89 — Thu, 02 Jul 2009 20:49:38 +0000

The President of the European Central Bank Jean Claude Trichet said that current levels of interest are adequate and recent economic data confirms this. Trichet said the decision to preserve the basic interest rate was unanimous, but can not believe that 1 percent is the minimum of interest on refunds. According to him, the economic slowdown will reduce the pace in the second half of the year and next year is expected positive economic growth. Trichet said that inflation expectations remain very limited and monetary analysis show that the medium is a time price stability. In his negative rates of inflation will be short, for the next few months. He stressed that short-term movements in inflation are not taken into account when taking political decisions. President of the ECB believes that pressure on prices has weak economic activity, as though inflation is derived from the growth of money, there is a clear monetary expansion. According to him the negative inflation of consumer prices for June is in line with the expectations of the ECB, in the medium term is possible rise of oil and other energy. Trichet reported that a decline in short-term loans, but banks have already “moved” low interest rates to consumers. Therefore, he expected an improvement in conditions in the financial sector, but banks need to strengthen its capital base.
Trichet confirmed the program for purchase of guaranteed bonds amounting to 60 billion euros and confirmed the rules it adopted in June month. He considered refinancing operations of the banks in which loans were granted for 442 billion EUR 12-month maturity will increase bank liquidity, but can not yet speak of a new auction. According to him, the positive effects of the policy of the ECB are visible in the so-called reduced. risk premiums and the decline in interbank rates. Trichet said risks to economic outlook are balanced, but concerns remain for the feedback from the real economy. He stressed that the ECB is ready to stop immediately facilitate additional measures when starting the recovery of the economy.