Global markets brace for rate hikes as Iran war and US$100 oil stoke tightening fears
The European Central Bank has become more hawkish, reverting to wording that analysts say often precedes interest-rate increases. Read More Here
Tag: ECB
We Live In A Bearish World
At HSBC’s global investment seminar in New York last week, some of the top strategists from Europe’s largest bank laid out their outlook for global markets and economies. Many strategists are not expecting the current recovery from the financial crisis to be as impressive as what has come before, while some investors aren’t expecting double-digit […]
‘Europe’ Now Has a Soothing Ring to It?
Since Greece’s insolvent-grade financials first came to light, Europe has consistently and reliably emanated ripples of distress across the Atlantic. Recall the mini-panic of 2011, with its big selloffs in global markets. And periodic fears about the endearingly named PIIGS—Portugal, Italy, Ireland, Greece and Spain—sneezing their malaise onto France and beyond. Then there’s the latest bank-run-that-wasn’t out […]
Falling Interest Rates in Europe Aren’t Great News
If very high interest rates are bad for Europe, then very low ones must be good, right? Seems logical. Yet the big drop in yields on government bonds of Italy, Spain, Ireland, and Portugal isn’t entirely positive, especially for the European Central Bank. Read Here – Businessweek
What Europe’s Mistakes Teach Asia: WSJ
A Chinese proverb tells us that it is wise to learn from your own mistakes but wiser to learn from the mistakes of others. Asian leaders should take this advice to heart as they juggle between policies for social welfare and economic dynamism. By keeping a keen eye on Europe’s fiscal crises, they can avoid […]
Forget Cyprus, The Real Savings Robbery Is In Britain
There are many reasons that the fate of Cyprus is being followed so closely in Britain. One is sympathy for those who are about to pay the price for the sins of a banking sector that was at one point seven times the size of the island’s economy. Another is shock at how the island, […]
As Europe’s Currency Crisis Fades, Growth Worsens
Maybe, just maybe, the worst of the euro crisis is over. Business and consumer confidence is rising across the Continent, sovereign bond yields are falling, and capital flight from its weakest economies is easing. Talk of an imminent breakup of the currency union has all but disappeared. Even Greece, whose debt hemorrhage plunged the euro zone into […]
A Second Chance for European Reform
The European Central Bank has managed to calm the markets with its promise of unlimited purchases of eurozone government bonds, because it effectively assured bondholders that the taxpayers and pensioners of the eurozone’s still-sound economies would, if necessary, shoulder the repayment burden. Although the ECB left open how this would be carried out, its commitment […]
European Central Bank Should Open Its Chamber of Secrets
The European Central Bank wields more power now than at any point in its 14-year history. If it wants to use that power responsibly, it needs to be a lot more open with the people whose well-being it aims to ensure. Thanks in large part to its lead role in fighting the euro area’s festering debt crisis, the […]
As Long As Politicians In The World’s Big Three Economies Continue To Dither, Another Global Recession Is Possible
FOR investors around the world, the recovery seems assured. The MSCI global share index has risen almost 10% since July. The credit for this largely goes to central bankers. In July Mario Draghi, president of the European Central Bank (ECB), said he would do whatever it takes to hold the euro together. In early September […]
looking beyond borders 