The OECD, in its newest report, did not present a colorful picture of the eurozone as it cut growth outlook for the 17-state bloc. The Paris-based organization underlined that the harsh economic conditions in Europe pose a threat to the global economy, thus the European Central Bank should take steps aimed at fostering growth.
The yen managed to rise higher, even as the euro stayed in the same low spot since last week against the dollar, as witnessed in early trade in Asia on the 26th of September. The major reason for this seems to have been the rising concern regarding the hesitancy shown by Spain to ask for a bailout in the face of increasing violent protests.
According to the former policy maker for the European Central Bank, Athanasios Orphanides, the disintegration of the eurozone is imminent if the government is unable to arrive at an agreement regarding a banking union supported by a safety net comprising of universal deposit.
The slide in US dollar value reached its crux as the US dollar hit its lowest level since the early half of May while markets dealing in stocks and bonds curbed a fair share of their revived inclination for risk on Thursday as investors took their time to check whether the Federal Reserve of the US would announce a new round of printing of currency.
Mariano Rajoy claimed on Thursday that he had not entered any kind of discussions with Angela Merkel regarding the fact whether Madrid should make use of the new bond-buying policy introduced by the European Central Bank. The Prime Minister of Spain joined the German Chancellor, Angela Merkel, after the completion of a bilateral conference held in Madrid. Merkel was then hosting a press conference which coincidentally occurred at about the same time that Mario Draghi, the chief of the European Central Bank, made the announcement on the policy of new bond purchases.
Jens Weidmann, the chief of the German Central Bank is presently engaged in a progressively intense and high stakes fight involving the response of the ECB policy towards the ongoing crisis in the euro zone with Mario Draghi, the President of the European Central Bank. The struggle began on Thursday after Draghi implied that the European Central Bank could once more intercede in debt markets so that the crippling debt costs troubling Italy and Spain could be diminished.
The European Central bank subsidy that could reach as high upto 120 Billion Euros has benefited many banks. The European Central Bank subsidy …
The European Union came to deal Thursday night; hopefully one that will prevent a European and a global financial meltdown. This deal offers temporary respite for the currency and the European economy, but how long will this respite last? Once again, we take the time to answer a few of the big questions surrounding the Eurozone Crisis and what this new deal means for industry leaders and the global economy.
France is beginning to feel the pressure as its borrowing costs rose this week. On top of that, France and Germany, the two largest economies in the Euro Zone are clashing on a solution, particularly on how the European Central Bank is going to help. France insists that the ECB needs to play a stronger role in ensuring the stability of the euro and in helping to fix the debts that have started this crisis in the first place. Germany doesn’t want the ECB’s involvement in the Eurozone debt crisis
As the Eurozone debt crisis continues, attention is turning from Greece to Italy as Europe’s third-largest economy is beginning to buckle and worries emerge of more widespread economic collapse than previously thought. Yes, Greece’s debt is bad at $500 billion. But, Italy is at $2.6 trillion (five times larger than Greece’s), and is also at risk of defaulting. Italy is also a much larger economy than Greece, so Greece defaulting is one thing. Italy is completely another.
When the European Union and the International Monetary Fund agreed in July to provide a second bailout for Greece, this debt-ridden Euro nation, as well …