ECB starts tapering by cutting pace at monthly €30bn
As expected by markets, the ECB announced that it will continue buying bonds in 2018, albeit at a reduced pace of monthly €30bn for another nine months until September 2018.
In Europe
ECB: Testing The Exit
The ECB is expected to announce a reduction, or tapering, of its asset purchasing programme at today’s council meeting. In opinion of David Kohl, chief currency strategist at Julius Baer, “financial markets are well prepared for less support from monetary policy.”
Jamaica coalition in Germany: Digital revolution and homeland
Merkel is negotiating a coalition government with the Greens and the Liberals – who propose opening the country up to the 4.0 world and creating a digitalisation ministry. Meanwhile, the chancellor warns that the idea of the homeland cannot be left to the increasing number of xenophobics in the country.
Time Limits Risk A Brexit Crash
John Bruton | The current political system in the United Kingdom, and the anxieties and obsessions it has generated, determine the British position on Brexit. This expresses itself in an artificially inflexible and brittle interpretation of the 2016 referendum result. Scope and time are needed for creative thinking.
A Snapshot Of How The European Financial Sector Is Structured To Further Efficiency
J.L.M. Campuzano (Spanish Banking Association) | An interesting study from the ECB about the structure of the financial sector in Europe shows the increasing weighting in the non-banking financial sector’s assets and the consolidation carried out by the lenders.
China’s Footprint in Southeast Europe: Constructing the “Balkan Silk Road” (III)
Jens Bastian via Macropolis | China is rather a newcomer to the region of southeast Europe. Compared to other countries and multilateral institutions – such as Russia, the European Commission or the EBRD – China is starting almost 30 years after the Fall of the Berlin Wall to establish a footprint in the region
Theresa May Repeats Alexis Tsipras’ Mistake
Nick Ottens via Atlantic Sentinel | When Greece resisted demands for spending cuts from its creditors last year, Prime Minister Alexis Tsipras appealed to the president of the European Council, Donald Tusk, for talks with the other 27 heads of government. Theresa May clearly hasn’t learned Tsipras’ lesson.
UK Monetary Policy Is Too Tight: Easing Required
James Alexander | Not quite the line you will see across most of the market or amongst so-called monetarist economists. In fact, implied by actual nominal growth and expectations for nominal growth monetary policy is too tight. Nominal GDP growth is running at 3.7% YoY and falling, while the best measure of inflation around, the implied GDP deflator is running just below 2%.
China’s Footprint in Southeast Europe: Constructing the “Balkan Silk Road” (II)
Jean Bastian via Macropolis | China’s emerging footprint in neighboring countries such as Serbia, FYR Macedonia and Bosnia-Herzegovina: all three countries are land-locked states which offer a different set of opportunities and challenges for the extension of China’s Balkan Silk Road.
Rosy Post MiFid2 Outlook?
The European Financial industry is clearly suffering when trying to meet the constraints imposed by the new transparency European regulation a few weeks before the gong (January 2018).