Fidest – Agenzia giornalistica/press agency

Quotidiano di informazione – Anno 34 n° 316

Posts Tagged ‘European Central Bank’

Lagarde discusses the European Central Bank’s policy revamp with MEPs

Posted by fidest press agency su domenica, 9 febbraio 2020

ECB President Christine Lagarde, on Thursday fielded questions from the Economic and Monetary Affairs Committee on the review of the bank’s monetary policy.In her opening remarks, Ms Lagarde set out the ECB’s outlook for the Euro area characterised by sluggish growth and sought to justify how the ECB’s actions, within that economic environment, were pertinent. She then outlined the main reasons that made a review of the ECB’s monetary strategy necessary. Finally, Ms Lagarde outlined how, under her Presidency, priority would be given to better communicating the necessity of the ECB and its work to the public in order to build trust and thereby make ECB policy more effective.Many MEPs asked for more details on how the ECB could prioritise the fight against climate change more effectively in its revamped monetary policy, while providing suggestions of their own. A few MEPs asked how the strategy review would address the most recurrent criticisms levelled at the ECB over recent years, notably the negative effects on savers and pensioners. Finally, some MEPs called for prudence with regards to possible changes to the basket used to calculate the inflation index, namely the fluctuation of house prices.A number of MEPs asked for more details on the measures the Central Bank would envisage activating, if the risks to financial stability seen on the horizon were to materialise. Some also raised the point that bond purchases could not be a panacea for dealing with the sluggish economy. MEPs raised concerns that the bank supervision and restructuring mechanisms were not functioning well enough and that the regulatory framework, in which the ECB is an actor, would need to be reviewed.The effects of Brexit on financial services, clearing, and monetary stability was also raised by some MEPs.

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Deutsche Bank publishes 2017 SREP requirements

Posted by fidest press agency su mercoledì, 28 dicembre 2016

Deutsche Bank has been informed by the European Central Bank (ECB) of its decision regarding prudential minimDeutsche Bankum capital requirements for 2017, following the results of the 2016 Supervisory Review and Evaluation Process (SREP). The decision requires Deutsche Bank to maintain a phase-in Common Equity Tier 1 (CET 1) ratio of at least 9.51% on a consolidated basis, starting January 2017. This CET 1 capital requirement includes: the minimum Pillar 1 requirement (4.50%); the Pillar 2 requirement (2.75%); the capital conservation buffer (1.25%); the countercyclical buffer (currently 0.01%); and the requirement deriving from Deutsche Bank’s designation as global systemically important bank (1.00%). The new CET 1 capital ratio requirement of 9.51% for 2017 is below Deutsche Bank’s current SREP requirement of 10.76% (for 2016). It sets the level below which Deutsche Bank would be required to calculate the Maximum Distributable Amount (MDA). The MDA is used to determine restrictions on distributions in the form of dividends on CET1 capital, new variable remuneration and coupon payments to holders of Additional Tier 1 instruments. Corresponding 2017 requirements are set for Deutsche Bank’s Tier 1 capital ratio (11.01%) and Total capital ratio (13.01%). All requirements are articulated on a phase-in basis. In comparison, Deutsche Bank’s last reported consolidated capital ratios on a phase-in basis were 12.58% CET 1 capital, 14.47% Tier 1 capital and 16.15% Total capital, all as of 30 September 2016.

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The European Central Bank (ECB) reaction

Posted by fidest press agency su venerdì, 11 marzo 2016

European_Investment_Bank_-_LuxemburgBy Mitul Patel, Head of Interest Rates. The European Central Bank (ECB) have very much taken the ‘kitchen sink’ approach, surprising market expectations in a variety of ways, not least an expansion of the asset purchase programme to include corporate bonds and opening the door to paying banks to borrow via the longer‑term refinancing operations (LTROs). They hope that the measures announced will ease financial conditions and stimulate new credit creation, leading to stronger growth and a return of inflation to target.While the expansion of the asset purchase programme to include corporate bonds will likely steal the headlines, arguably more important is the pivot by the ECB towards quantitative easing and lending operations as primary tools for stimulating the economy over ever more negative rates. While the ECB lowered deposit rates by 10 basis points (bp) to -0.4% and refi rates by 5bp to 0% at today’s meeting, they believe it is unlikely that rates can be taken much lower than current levels without unwanted risk, although they still believe the move to the current negative level of rates has overall had a positive impact. There has been much speculation over recent weeks over just how low interest rates can go, but recent comments from central bankers globally, not least at today’s press conference, would suggest a reluctance to take interest rates into materially negative territory. That said, the ECB remains explicitly on an easing bias and investors will likely remain wary of the efficacy of these actions unless there are convincing signs that the increase in monetary stimulus has an impact on the economy, especially as previous attempts to boost the economy through unconventional monetary policy have regularly disappointed.
Ahead of the meeting we had closed our positions which looked for lower shorter dated European swap rates, and positioned for a rise in 10‑year bund yields. We continue to believe a repricing to higher yields is warranted, as the guidance that rates are unlikely to decrease further, the move to purchasing corporate bonds, and the increase in the issue/issuer limit to 50% is likely to reduce the bund scarcity premium. Henderson Global Investors, wholly-owned by Henderson Group plc, is a global asset manager with a strong reputation dating back to 1934. Henderson manages £92.0 billion (as at 31 December 2015) of assets on behalf of clients in the UK, Europe, Asia-Pacific and North America and employs approximately 900 staff members worldwide. Clients include individuals, private banks, third-party distributors, insurance companies, pension funds, government bodies and corporate entities. As a pure investment manager Henderson offers investments across equities, fixed income and multi-assets as well as alternative products, such as private equity, property and hedge funds.

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Economic Forum: Final Statement by the Cercle des Économistes

Posted by fidest press agency su domenica, 14 luglio 2013

English: Various Euro bills.

English: Various Euro bills. (Photo credit: Wikipedia)

AIX-EN-PROVENCE, France, /PRNewswire/ –The Clash of Times: the World Economy between Emergencies and the Long Term
The world has never been confronted by such difficulty in managing the gaps between time-related horizons. The clash of times is the gap between the time of politics, that of populations, and that of institutions. It is also the conflict between the short time of the financial world and that of the corporate world.The difficulty in getting out of the financial crisis precipitates this conflict of times. Our challenge is to conceive the transition to balanced and sustainable growth by reconciling the need to go quickly with the need to protect the vulnerable groups.
In Europe, the Euro zone crisis is far from being resolved, but the matter of urgency is also to find new political solutions to revive growth. In France, the matter of urgency concerns structural reforms. The youth are the great sacrifice of the times we are going through. That’s why the Cercle des économistes has organised a competition called “Invent 2020! It’s the students’ turn to speak.”12 proposals to bring back confidence:In Europe, exit from the crisis will happen on two conditions: a realistic agenda for the reduction of public debt and transfer of savings from the North to the South:
1. Implement a single European mechanism to restructure the banks.
2. Risk management that favours long-term investment
3. Establish a counter-cyclical European unemployment insurance
For France, six measures to speed up the competitive impact:
4. Overturn the CICE (tax credit for competitiveness and employment), to lower than the social contributions in 2014.
5. Continue to reform the labour market through better social dialogue, by simplifying the branch system (reduce the current 600 branches to 40).
6. Implement a pension reform that will apply only to new entrants in order to start the transition towards structural balance.
7. Conduct a supply policy in real estate (free the land), transport and distribution.
8. Cause a technological breakthrough in the environment industry by redirecting the R&D tax credit to the clean energy and technology sectors.
9. For an efficient State, eliminate the structural doubles with a simplified architecture of local and regional authorities and agencies that do not rely on assigned taxes.
Youth is a wonderful asset for France. All youth-related policies go through a transfer of resources to the young, which could reach 1 to 2 points of the GDP.
10. Create a “youth contract”: a monetary allowance against contractual commitment to look for a job or go on a training scheme leading to a qualification for the 1.9 million young people who are neither students, nor employees, nor on a training scheme.
11. Increase the second chance schools tenfold
12. Promote the integration of young people on the labour market:
– Give each young person the right to an apprenticeship
– Make trial periods and work-study combinations tax exempt

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Italy Trashing the lifeboat Rome

Posted by fidest press agency su giovedì, 1 settembre 2011

Silvio Berlusconi, Italy’s prime minister and escape­artist extraordinary, sparked the †rst of several market panics over Italy’s public debt by vowing to water down an already soggy package of deficit­reduction measures. He was forced to retreat by the resulting turmoil. But the threathe poses to the euro was again made clear this week when he pitched his country’s public finances into further chaos, leaving a hole of at least ¤4 billion­5 billion ($5.8 billion­7.2 billion) in the latest of two emergency budgets designed to get his country out of the fix in which it has been trapped for the past two months. Two things now stand between Italy and a debt crisis vastly more menacing to the single currency than any so far on the euro­zone periphery: support for Italy’s bonds from the European Central Bank (which has bought some ¤30 billion­ worth since mid­August), and a ¤45.5 billion deficit­reduction plan that the ECB demanded in return for its help. When this was unveiled by Mr Berlusconi on August 12th, investors might have been forgiven for thinking that‹bar the odd amendment‹the same plan would be set before parliament. But in Italy nothing is safe from modi†cation, and on August 29th Mr Berlusconi unpicked his package, throwing out the measure he most disliked, a surtax on top incomes in the private sector. (Embarrassingly, the multimil­ lionaire chairman of Ferrari, Luca di Montezemolo, o…ered to pay more tax, saying you have to begin by asking it of those who have most.) To placate Italy’s irate local mayors and governors, Mr Berlusconi lightened the burden of savings they were supposed to have made. Some new measures were put in. The government promised to save money by abolishing the provincial administrations and halving the number of national law­makers. But it said it would do so with con­ stitutional laws, which are notoriously difficult to get approved. The immediate savings would come from postponing the retirement of many Italians by excluding from their pension calculations time spent at university or doing military service. The measure was understandably seen as penalising those who failed to dodge conscription, and simply robbing those who chose higher education (since graduates in Italy have to make a payment to the treasury for their university courses to be counted as time worked). The public looks likely to force Mr Berlusconi into a U­turn that would enlarge still further the hole in his former austerity package. That alone is enough to cast doubt on
the ECB’s readiness to continue buying Italian debt. But there is another factor. As the price of intervention, the bank’s president, Jean­Claude Trichet, and his successor­designate, Mario Draghi, reportedly required not only the pushing through of the package that Mr Berlusconi has just undone, but also a comprehensive programme of privatisation and liberalisation. And, of that, there has never been more than a trace in the government’s plans. (from The Economist)

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Nomina di Mario Draghi a Presidente della BCE

Posted by fidest press agency su venerdì, 24 giugno 2011

In vista del Consiglio europeo di questa settimana, che può ora finalizzare la sua nomina, ideputati hanno confermato Mario Draghi come prossimo Presidente della Banca centrale europea. Il Presidente del Parlamento europeo, Jerzy Buzek ha dichiarato: “sono molto lieto che il Parlamento europeo abbia approvato Mario Draghi quale prossimo Presidente della Banca centrale europea In questi tempi di crisi economica, è rassicurante sapere che, con Draghi, la zona euro sarà in mani sicure e non vedo l’ora di lavorare con lui “.

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