The return of inflation has taken a lot of people by surprise, although it should not have done. Worryingly, even central banks have acted quite surprised by the abrupt rise in prices, when they should have expected it.Continue reading
While all eyes are on what central banks will do with interest rates, consumers and investors alike should really worry about what commercial banks will do.Continue reading
Will 2022 be the year when the tide goes out in Europe’s financial markets? Many commentators now say it will, and point to the large sums of cash that have gone into stocks, bonds and other financial assets in the past.Continue reading
The euro has lost a lot of ground versus other major currencies as the European Central Bank (ECB) is taking a very dovish stance even compared to the usually dovish Bank of England.
As expected, a German has the difficult task of being a lone hawk amid doves: Isabel Schnabel, member of the ECB’s Governing Board, recently warned that the central bank has consistently been wrong in its inflation forecasts.Continue reading
There are moments in politics and policy that change the course of history; when they can be summarised in three words, they are the best.
Mario Draghi’s statement back in 2012 that the European Central Bank will do “whatever it takes” to save the euro was such a moment: from then on, the speculators’ attack on weaker eurozone members’ sovereign debt stopped.
Another such moment came three years later, when in 2015 German chancellor Angela Merkel allowed one million refugees to enter Germany. “Wir schaffen das” (we can manage this), she said.Continue reading
The fact that Italy was the first European country to be hit hard by the Covid-19 pandemic seems a distant memory. Will Italy now be the first in the European Union to stage a spectacular recovery?
The reports of the death of the European Union have been greatly exaggerated – to quote Mark Twain — a few times already in the bloc’s tumultuous life.
This time, however, the European Central Bank (ECB) cannot be the only one to do “whatever it takes” to save the eurozone – and implicitly the wider EU — from the economic consequences of the Covid-19 crisis.
Speeches and releases from various European Central Bank officials don’t make the best summer reading, that’s for sure. But it might be a good idea to go through a couple of recent ones, which give a hint of what the future might bring.
Remember when Donald Trump hinted that he would threaten to restructure the US debt to get better terms on it? His protectionist measures may “help” him to achieve some sort of restructuring, but not in a good way.
Here’s a summary of last week’s market moving news and a look ahead to the data, events and earnings reports that are likely to move the markets in the week starting July 10, 2017.
- The US economy created more jobs than expected, with 222,000 new positions in June compared with expectations of 178,000. But wage growth was tepid, at just 2.5%.