SAO PAULO | By Marcus Nunes | Investors betting on fresh easing measures from the European Central Bank (ECB) were left empty-handed Thursday, propelling the euro to a one-week high against the dollar.
SAO PAULO | By Marcus Nunes via Historinhas | Even if all economic indicators suggest that the ECB should cut interest rates at today’s meeting, it seems unlikely to do so, and follow Germany -its main shareholder- instead. I tried to imagine what would be of the US if North Dakota yielded the same power over the Fed as Germany does over the ECB.
MADRID | By Luis Arroyo | The appreciation of the euro, in a deflationary context as the current one, may be the last push so as to cross the ECB’s red line and reach a Japanese style deflation. Macroeconomic variables don’t encourage optimism, especially because inflation in the euro zone is getting closer and closer to the ECB’s zero red line.
MADRID | By Carlos Díaz Güell | Trend of credit fall in euro zone core countries as well as in peripheral ones has shifted direction thorought 2013: it moderated in Europe’s periphery while slowing down in central economies.The rate between credit and deposits has moved under 100% for the first time, which illustrates the euro zone strong deleveraging process.
MADRID | The Corner Team | Investors are most likely to hear the ECB repeat (again) how prepared it is to act and use all kind of unconventional devices on next Thursday meeting, after inflation in the euro zone fell to 0.7% in December, its lowest level since the common currency was born. “As fears of deflation increases, the central bank cannot remain unable to act,” analysts say.
MADRID | By Julia Pastor | The ECB confirmed on Wednesday that held-to-maturity sovereign exposures portfolios will not be punished, and consequently marked-to-market, in the financial system stress test to be performed at the end of 2014.
MADRID | By Francisco López | In the midst of the markets’ euphoria thanks to the sharp fall in the risk premiums of peripheral countries, the big commander came and ordered to stop. The president of the ECB, Mario Draghi, appealed to investors to be cautious facing the risks of a “fragile and weak” recovery in the Eurozone and about an inflation whose expectations on the medium-term have worsened.
LONDON | By Barclays analysts | The ECB left monetary policy unchanged as expected and strengthened the downside bias of its forward guidance somewhat. Mario Draghi insisted on the fragility of the economic recovery and repeated that the ECB would be ready to act should downside risks materialize. We still think that monetary policy should be kept unchanged at least for the next two years, but we acknowledge the risk of further easing should inflation and inflation projections fall further. Besides, liquidity measures could be introduced to support the financing of the economy.
FRANKFURT | By Lidia Conde | The oldest German private bank, Bankhaus Metzler, was founded in 1674 and is managed by Friedrich von Metzler. Emmerich Müller is partner and member of the Executive Board, and he believes that private banking and heritage conservation for generations are key questions in a country with a rich heritage and a large number of wealthy people.
MADRID | By JP Marin Arrese | The agreement reached on a common backstop for ailing banks in the Eurozone comes utterly short of expectations.