The structural reform forced on Greece by the EU, ECB and IMF was an unmitigated disaster. But they insist on trying the same policy in Spain. Jack Crooks says the results will be even worse, ultimately forcing Spain out of the euro-zone entirely.
The markets are focused on whether the Fed, BOE and ECB will adopt more accommodative monetary policies. But Tom Essaye recommends investing in emerging markets like China and Brazil that are already lowering interest rates to spur economic growth.
The market reacted positively to news of the ECB bailout of Spanish banks. But Tom Essaye says we still do not know the true cost of the bailout, and it wonât solve Europeâs problems. He explains how to profit from the marketâs misguided enthusiasm.
The European Commission on Wednesday unveiled a new proposal that will protect taxpayers from banks that go bust. Under the new draft legislation, shareholders and creditors would be forced to accept losses of troubled-banks instead of using public-funded bailouts.
The new plan also allows member states to take control of crisis-hit banks and replace the management. Each institution would also have to create a special fund dedicated specifically for potential future crises.
The proposal is considered to be a step forward towards the so-called 'banking union' championed by ECB's chief Mario Draghi. This would include setting up a single European fund to directly bailout banks. Until now, each country is responsible to rescue its own banks if needed.
The idea, however, hasn't been well received in wealthy countries like Germany, as it could lead them having to bailout other banks.
The new legislation is unlikely to take effect before 2014 and with a bail-out looming over Cyprus and Spain, it might ...
They will meet in only a few hours. The new French president Francois Hollande has already warned German Chancellor Angela Merkel that he wants growth to be the way out of the crisis.
After being sworn in, Hollande delivered a 10 minute speech in which he vowed to "open a new path for Europe", marking the end of the 'Merkozy" era.
Angela Merkel said that she will "welcome the new leader with open arms". However, Hollande's proposals, such as issuing eurobonds to boost European investment or allowing the ECB to lend directly to governments, are totally opposed by the Chancellor.
As uncertainty grows in Europe, markets fell again on Monday amid the Greek political turmoil and anti-austerity protests across the continent.
As for Brussels, some are wondering why Hollande's first official visit is not to Barroso. According to a Commission's spokesperson, Barroso and Hollande are set to have their first meeting on Thursday during the NATO Summit in Camp David.
For more Forex news & info, please visit http://ufx.co/UFXM-youtube...The US Dollar declined versus most majors as the market readies for tomorrow's ECB operation to reduce refuge demand. Stocks closed positive with the NASDAQ gaining by 0.69% and the Dow Jones by 0.18%.
For more Forex news & info, please visit http://ufx.co/UFXM-youtube... The US Dollar fell versus most majors as reports showed an improving economic recovery and the Greek aid package damping demand for safety. There was some optimism following the Greek deal and optimism ahead of next week's second liquidity tender by the ECB.
The ECB and other global central banks have been keeping interest rates low and flooding the markets with easy money, boosting risk assets including the euro. JR Crooks discusses the strategy, and what it means for the currency market going forward.
Central banks around the world are loosening their monetary policies amid concerns about fallout from the European sovereign debt crisis. But the ECB is holding its interest rates steady. Andy Myers discusses Jack Crooksâs theory about their motive.
U.S. and European stocks give back earlier gains, after the ECB announces it will loan a much larger-than-expected â¬489 billion to 523 euro-zone banks. Research In Motion surges on a report that Microsoft and Nokia may make a bid for the company.
U.S. stocks follow European markets higher despite a cut in Franceâs credit outlook by Fitch. ECB President Mario Draghi warns that countries leaving the euro-zone will face economic problems. Asian markets are jittery after the death of Kim Jong-il.
U.S. futures and European stocks rise, but Asian markets fall amid uncertainty following the death of North Korean leader Kim Jong-il. ECB President Mario Draghi says countries leaving the euro-zone will still face inflation and economic hardships.
The ECB refused to be the bond buyer of last resort for struggling euro-zone nations. And Italy just pushed through a Greek-style austerity plan. JR Crooks says it will have similar consequences, and will ultimately lead to the end of the euro.
Speaking in a press conference in Frankfurt, President of the European central Bank, Mario Draghi, on Thursday announced that the ECB will cut interest rates to 1%. Mr. Draghi also added that inflation is likely to stay above 2%.
U.S. stocks open lower despite a drop in weekly jobless claims to 381,000. The ECB lowers its key interest rate to 1%, but Mario Draghi does not announce any plans to shore up liquidity, and warns the EU treaty prohibits âmonetary financing.â
The ECB lowers its key lending rate to 1%, and may expand its bond-buying program if EU leaders agree to a tighter fiscal compact at the summit in Brussels. The Bank of England keeps its monetary policy unchanged. McDonaldâs November sales rise 7.4%.
U.S. stocks open modestly higher after the ECB intervenes to stabilize the European debt markets. Mario Draghi urges euro-zone leaders to implement changes to the bailout fund. Salesforce.com slides after posting a quarterly loss. Heinz disappoints.
U.S. stocks are set to rebound after ECB President Mario Draghi demands the implementation of measures to combat the debt crisis. The ECB buys sovereign debt to bring down borrowing costs. Boeing confirms a huge order from Indonesiaâs Lion Air.
Speaking in a press conference on Wednesday in Lisbon, officials from the so-called Troika (EC-IMF-ECB) said that Portugal is taking the necessary steps to meet the conditions of its 78bn bailout programme. âWe are very satisfied with the governmentâs commitment to the programme,â Jurgen Kröger, an EU representative said.
The new ECB president, Mario Draghi, on Thursday told journalists in a press conference in Frankfurt that growth is likely to remain weak due to the current financial tensions. He also announced a cut in the eurozone interest rates to 1.25%.
Mr. Draghi took over as the new ECB chief on the 1st of November, replacing Jean-Claude Trichet, who held the post for eight years.
U.S. stocks follow European markets higher after the ECB unexpectedly cuts its key interest rate to 1.25%. BBC reports Greeceâs prime minister may resign. U.S. jobless claims fell below 400,000 last week. Retailers report disappointing October sales.
Stocks post modest gains as investors await a policy decision from the ECB, and the start of the G-20 summit in Cannes. Greeceâs prime minister calls an emergency cabinet meeting over the bailout referendum. Retailers report October same-store sales.
Global stocks fall ahead of an expected âNoâ vote by Slovakia to expand the EFSF. The EU, IMF and ECB say Greece will likely get the next tranche of its bailout funds by early November. Wall Street may lose another 10,000 jobs through 2012.
Stocks back off earlier gains, after jobless claims rise to 401,000, and the ECB stays pat on interest rates. The Bank of England announces more quantitative easing. Retailers report September sales. Apple holds steady after the death of Steve Jobs.
Stocks continue to rally on hopes that Europe will take coordinated steps to shore up the banking sector. The ECB holds interest rates steady. The Bank of England increases its asset buying program. Apple shares sink on news of Steve Jobsâ death.
U.S. and European stocks rebound from last weekâs selloff, on rumors that the ECB will lower interest rates. The IMF meeting last weekend did little to dispel fears of a Greek debt default. Gold and silver continues to fall, but the euro stabilizes.
Global stocks surge after the ECB and other central banks ease dollar funding pressure on European banks. Jobless claims and consumer prices rise, while New York-area manufacturing sinks further in September. A rogue trader at UBS loses $2 billion.
Global stocks and the euro fall after a report that Juergen Stark will resign from the ECB. Investors remain cautious ahead of this weekendâs G-7 meeting, and after President Obama proposed a new stimulus package. Bank of America may cut 40,000 jobs.
Stocks open lower after initial jobless claims rose to 414,000 last week. The U.S. trade deficit declined sharply, to $44.8 billion in July. President Obama may propose a new $300 billion stimulus plan. The ECB lowers its euro-zone growth forecasts.
Investors react to data on jobless claims and the trade deficit, and look for clues to future monetary policy from ECB President Jean-Claude Trichet. President Obama is expected to propose a $300 billion stimulus plan to a joint session of Congress.
The European Parliament on Monday expressed broad support and full confidence in the way that the European Central Bank is handling what clearly is the worst financial crisis since the second World War.
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Addressing a packed committee-room in Brussels, ECB chief Jean-Claude Trichet said that the ECB, together with national central banks, has spent more than 115 billion euro since the crisis began. This money was spent on  distressed bonds from countries like Greece and Portugal in order to support the market.
"The security market programmes strictly aims at correcting mal functioning of markets. The prohibition of monetary financing underlines precisely the fact that budgetary discipline is of the utmost importanceâ, Trichet said.
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Responding to concerns about a possible lack of liquidity in the Eurozone, Trichet said that this simply was not a possibility because of the immense volumes of money that circulates in Europe.
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Trichet said that buying troubled bonds in the open market does not clash ...
Global equities tumble after S&P downgraded U.S. debt to AA+. Gold soars above $1,700 for the first time, and U.S. Treasuries rise. Crude oil slides below $84 per barrel. The ECB will actively implement its bond buying program to calm the markets.
Global equities tumble after S&P downgraded U.S. debt to AA+. Gold soars above $1,700 for the first time, and U.S. Treasuries rise. Crude oil slides below $84 per barrel. The ECB will actively implement its bond buying program to calm the markets.
Stocks are broadly lower, despite a drop in initial jobless claims last week. ECB President Trichet says downside risks have intensified. Gold hits a new record, while the yen tumbles. Kraft will split into two companies. GMâs 2Q profit doubles.
U.S. stocks may resume their downward momentum after snapping an eight-session losing streak yesterday. The ECB and Bank of England leave interest rates unchanged. The yen tumbles after Tokyoâs intervention. Kraft will split into two companies.
Mario Draghi, President of the Bank of Italy, on Tuesday was recommended to succeed Jean-Claude Trichet as ECB President in an Economic and Monetary Affairs Committee vote on Wednesday. The committee opinion - 33 in favour, 2 against and 4 abstentions - now needs to be confirmed by a vote of Parliament as a whole, scheduled for 23 June.
As workers in Greece prepare for a general strike today (15 June), EU finance ministers yesterday night failed to reconcile a German-led push for bondholders to share part of the cost of a new Greek aid package, amid warnings from the European Central Bank (ECB) that any coercive solutions could unleash a new wave of contagion.
http://www.euractiv.com/en/euro-finance/eurozone-ministers-struggle-agree-new-aid-greece-news-505625
"There has been no result," German Finance Minister Wolfgang Schaeuble told reporters after talks in Brussels which ended late yesterday. Eurozone finance ministers agreed to meet again on 19 June.
Ministers did concede that some progress was made despite the lack of agreement. "We are very close to an agreement with all private partners. But there must be a balance: a real effort on Greece's part - help from the IMF, the euro zone and the European Union; and participation of the private sector," said Belgian Finance Minister Didier Reynders.
Finnish Finance Minister Jyrki ...
Investors react to international trade and jobless claims data, following a six-session losing streak. The Bank of England and ECB leave interest rates unchanged. Texas Instruments cuts its outlook because of weak demand from a single customer.
The ECB is losing the battle against the sovereign debt crisis in the PIIGS nations. Mike Larson explains that this is because they mistook a solvency crisis for a liquidity crisis. And he says the Federal Reserve is making the same mistake.
U.S. stocks open lower after an unexpected jump in weekly jobless claims. The ECB keeps monetary policy unchanged. Retailers report mixed same-store sales figures for April. General Motors, Kraft Foods and CVS Caremark top the earnings calendar.
Initial jobless claims fell by 10,000 last week. The ECB raises interest rates. Retailers report better-than-expected March same-store sales. Bed Bath & Beyond and Rite-Aid rise on earnings news. PNC Bank and Ingersoll-Rand boost their dividends.
The ECB raises its key interest rate, but the Bank of England stands pat. Portugal asks the EU and IMF for a bailout. The euro falls against the dollar. Crude oil and precious metals continue to rise. Retailers report March same store sales figures.