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Lagarde says ECB expects more grants than loans in EU recovery fund

FRANKFURT (Reuters) – The European Central Bank expects a pending European Union stimulus scheme to favour grants over loans in the funding mechanism it uses to help kick-start the bloc’s economies, bank president Christine Lagarde said on Thursday. Leaders of... More »

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ECB lowers bar for bank mergers in hope of spurring consolidation

FRANKFURT (Reuters) – The European Central Bank is lowering the bar for bank mergers in the euro zone, hoping to encourage an elusive wave of consolidation in a sector plagued by low profits and unresolved issues inherited from the last financial crisis. In a ... More »

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Euro zone data confirm tepid recovery, ECB’s Knot says

FRANKFURT (Reuters) – A string of positive economic indicators in the euro zone confirm that a recovery is on its way but the bloc may still need years to reach pre-crisis levels of activity, European Central Bank policymaker Klaas Knot said on Thursday. “I wo... More »

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Changing of guard at top German court signals de-escalation for ECB

BERLIN (Reuters) – Changes to the composition of Germany’s top court are likely to make it less confrontational towards the European Central Bank following a ruling about bond purchases that sent shockwaves around Europe, according to two sources close to the ... More »

ECB contemplating dividend moratorium extension, Enria says

FRANKFURT (Reuters) – The European Central Bank is contemplating whether to extend a request to banks to hold off on dividend payments and share buybacks, and hopes to provide more clarity in July, Andrea Enria, its chief bank supervisor said on Tuesday. The E... More »

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ECB expands pandemic support to over $1.5 trillion

LONDON (Reuters) – The European Central Bank beefed up its bond-buying programme on Thursday in its latest effort to support a euro zone economy pummelled by more than two months of shutdowns due to the coronavirus pandemic. HIGHLIGHTS: ** ECB increases size o... More »

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ECB sees big 2020 recession, partial rebound next year

FRANKFURT (Reuters) – The European Central Bank expects the euro zone to suffer a deep recession this year, with losses only partly made up in 2021 as pandemic-related restrictions weigh on output for an extended period. In what ECB President Christine Lagarde... More »

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Lagarde comments at ECB press conference

(Reuters) – The European Central Bank beefed up its bond-buying programme on Thursday in its latest effort to support a euro zone economy pummelled by more than two months of shutdowns to cope with the coronavirus pandemic. Following are highlights of ECB Pres... More »

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A crisis that has blunted the euro’s global profile

LONDON (Reuters) – The coronavirus crisis may have dealt a lethal blow to the idea that the euro could one day replace the dollar as the world’s preferred currency, by exposing euro zone frailties and cementing the U.S. Fed’s role as global lender of last reso... More »

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A battle far from over: Five questions for the ECB

LONDON (Reuters) – The European Central Bank meets on Thursday, the ink barely dry on its emergency bond-buying scheme, and markets are already asking what more it will do to help the euro zone economy through the coronavirus crisis. Its emergency stimulus, wh... More »

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Euro zone economy set for deepest recession on record: Reuters poll

BENGALURU (Reuters) – The euro zone economy is already in its deepest recession on record, according to a Reuters poll of economists, who have stuck to a bleak outlook and worry the downturn might be even worse as coronavirus lockdowns across the bloc take the... More »

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Euro zone fiscal response to crisis inadequate: ECB’s Panetta

FRANKFURT (Reuters) – The euro zone’s fiscal response to the coronavirus crisis has been inadequate so far and threatens the single market, European Central Bank board member Fabio Panetta said in an editorial published by Politico. Budget action should be pro... More »

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Key EU states agree coronavirus economic rescue -text of draft deal

BRUSSELS (Reuters) – European Union countries on Thursday evening agreed the emergency credit lines from the euro zone’s bailout fund “will be available until COVID-19 crisis is over”, a draft of their deal read. Afterwards, euro countries should remain commit... More »

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Euro zone investor morale hits all-time low on coronavirus – Sentix

BERLIN (Reuters) – Investor morale in the euro zone fell to an all-time low in April and the bloc’s economy is in deep recession due to the coronavirus, which is “holding the world economy in a stranglehold”, a survey showed on Monday. Sentix’s index for the e... More »

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Help in coronavirus crisis should come from European level: ECB

FRANKFURT (Reuters) – Help to euro zone members struggling under the weight of the coronavirus crisis should come from the European level, European Central Bank board member atold Greek newspaper To Vima in an interview. “This is not just a question of Europea... More »

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IMF says ECB, ESM support key to strong EU coronavirus response

WASHINGTON (Reuters) – The International Monetary Fund said on Monday the relaxation of the euro zone’s fiscal rules and support from the European Central Bank and the European Stability Mechanism is critical to a strong regional response to the coronavirus pa... More »

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ECB tells euro zone banks to skip payouts as virus hits economy

LONDON/FRANKFURT (Reuters) – The European Central Bank told euro zone banks on Friday to skip dividend payments and share buybacks until October at the earliest and use their profits to support the economy as it is hit by the coronavirus pandemic. With large p... More »

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For ECB, coronabonds could be shield against legal challenges

FRANKFURT (Reuters) – European Central Bank President Christine Lagarde has a concrete reason for putting pressure on euro zone governments to finance the fight against coronavirus with joint debt — avoiding trouble with the courts. These common “coronabonds” ... More »

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ECB to print 1 trillion euro this year to stem coronavirus rout

FRANKFURT (Reuters) – The European Central Bank launched 750 billion euro emergency bond purchase scheme in a bid to stop a pandemic-induced financial rout from shredding the euro zone’s economy and raising fresh concerns about the currency bloc’s viability. W... More »

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Deutsche Bank expects German economy to contract 4%-5% in 2020

LONDON (Reuters) – Deutsche Bank slashed its forecast for Germany’s economy on the coronavirus fallout, saying it now expected the euro zone’s largest economy to contract between 4-5% in 2020 while industrial production could shrink by 10%. “Within days lockdo... More »

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ECB ready for further action if needed: Holzmann

VIENNA (Reuters) – If the European Central Bank sees the need for further stimulus in the area of government bonds to help countries tackle the coronavirus impact, it is ready to do so, European Central Bank policymaker Robert Holzmann said on Monday. “If ther... More »

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ECB’s Holzmann sees no need for rate cut to combat coronavirus

VIENNA (Reuters) – European Central Bank policymaker Robert Holzmann said he would not support an interest rate cut to insulate the euro zone from the effects of the coronavirus epidemic but he could consider giving firms ultra cheap loans. When asked if targe... More »

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ECB can do more if needed, but we’re not there yet: Villeroy

PARIS (Reuters) – The European Central Bank is prepared to support the economy if needed in the face of the coronavirus outbreak, although more action is not yet needed, ECB policymaker Francois Villeroy de Galhau said on Monday. Villeroy, who is also head of ... More »

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EU open to more spending in countries hit by coronavirus outbreak

BRUSSELS (Reuters) – Italy and other euro zone countries hit by the coronavirus outbreak are expected to benefit from waivers under EU fiscal rules that will allow them to spend more to tackle the emergency, the bloc’s economics commissioner said on Wednesday.... More »

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Euro zone to cautiously pave the way for more fiscal stimulus

BRUSSELS (Reuters) – Euro zone finance ministers are set to discuss on Monday a document that calls for a more growth-friendly fiscal policy, a move that could lead to Germany’s spending more amid fears of a downturn. The 19-country euro zone has for years stu... More »

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Take Five: In sickness and in health

(Reuters) – 1/CHINA ON SICK LEAVE A leap in coronavirus cases in Hubei gave markets pause, for all of 24 hours. Then attention shifted back to the global case-count and the rally resumed. But while investors are focused on containment, the world’s second-bigge... More »

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No phones, no leaks: How Lagarde is making her mark on ECB

FRANKFURT (Reuters) – Gathered in a German mountain castle last November for an evening retreat that ended with a whiskey-tasting, rebel European Central Bank policymakers and Christine Lagarde, their newly confirmed president, made a pact. Lagarde pledged to ... More »

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ECB’s Enria blames legislative ‘mess’ for dos Santos fiasco

FRANKFURT (Reuters) – The euro zone’s top bank supervisor blamed a “mess” of diverging laws across the bloc on Tuesday for the European Central Bank’s failure to stop Angolan billionaire Isabel dos Santos, who is suspected of fraud, from controlling a bank in ... More »

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The Yankees are coming! U.S. firms rush to euro debt markets

LONDON (Reuters) – From Harley Davidson to Colgate-Palmolive, U.S. companies are flocking to borrow in euros and their record issuance is breathing life into a market where yields have been hammered by the European Central Bank’s renewed stimulus push. Offshor... More »

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ECB’s Knot says low rate policy risks becoming counterproductive

AMSTERDAM (Reuters) – Interest rates in the euro zone could remain historically low for years, but the European Central Bank’s (ECB) ultra-loose monetary policy risks becoming counterproductive, ECB governing council member Klaas Knot said in an interview publ... More »

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Take Five: What’s the deal?

LONDON (Reuters) – 1/AFTER PHASE ONE COMES PHASE TWO U.S. President Donald Trump and Chinese officials have agreed to a “phase one” trade deal that includes cutting U.S. tariffs on Chinese goods. Washington has agreed to suspend tariffs on $160 billion in Chin... More »

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ECB keeps policy unchanged with door still open to more stimulus

FRANKFURT (Reuters) – The European Central Bank left policy unchanged at new ECB President Christine Lagarde’s first meeting on Thursday, keeping money taps wide open and further stimulus ready as the euro zone economy continues to suffer from broader global t... More »

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Euro zone inflation rises quicker than expected in November

BRUSSELS/FRANKFURT (Reuters) – Euro zone inflation accelerated faster than expected in November on a rise in food and services prices, likely comforting European Central Bank policymakers even if some factors pushing up prices may be only temporary. The ECB ha... More »

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From euro to ESM, Italy’s Salvini re-trains his eurosceptic fire

ROME (Reuters) – Matteo Salvini has recently dropped threats to take Italy out of the euro zone but the hard-right leader is now alarming European authorities with a new target for his eurosceptic anger: a planned reform of the region’s bailout fund. Euro zone... More »

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Shares grind towards record high as China trims key rate

LONDON (Reuters) – World shares were close to a record high on Monday, after Beijing surprised markets by trimming a key interest rate for the first time since 2015. In the latest show of support for its economy, China’s central bank cut rates on seven-day rev... More »

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Some banks slow in implementing Brexit plans: ECB’s Enria

FRANKFURT (Reuters) – European Union banks have put in place all the plans for Brexit but execution is lagging as lenders await the outcome of negotiations between Britain and the EU, European Central Bank banking supervisor Andrea Enria said on Monday. Some b... More »

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Lagarde will take ECB out of ivory tower: De Guindos in El Pais

FRANKFURT (Reuters) – Christine Lagarde will ensure European Central Bank policymakers climb down from their “ivory tower” and face the political realities of the euro zone, the ECB’s vice president, Luis de Guindos, said in an interview published on Saturday.... More »

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‘Never give up!’ Draghi tells Lagarde as he leaves ECB

FRANKFURT (Reuters) – European Central Bank President Mario Draghi told his successor on Thursday to “never give up” on propping up the euro zone economy in the face of a worsening outlook and little help from governments. At the last press conference of his e... More »

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EU ready to act alone on digital tax if no global deal in 2020

BRUSSELS (Reuters) – European Union commissioners-designate said the bloc should agree on a digital tax if no deal on the matter was reached at a global level by the end of next year, ramping up pressure on multinationals accused of paying too little. In writt... More »

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Governments must ensure ECB is not overburdened, Merkel says

FRANKFURT (Reuters) – Euro zone governments must reform their economies and use appropriate fiscal policies to ensure that the European Central Bank is not overburdened, German Chancellor Angela Merkel said on Thursday. Speaking at an event in Frankfurt, home ... More »

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France, Germany blast Facebook’s Libra, back public cryptocurrency

HELSINKI (Reuters) – France and Germany said on Friday that Facebook Inc’s (FB.O) Libra currency posed risks to the financial sector that could block its authorization in Europe, and backed the development of an alternative public cryptocurrency. The criticism... More »

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Draghi ties Lagarde’s hands with promise of indefinite stimulus

FRANKFURT (Reuters) – European Central Bank chief Mario Draghi pledged indefinite stimulus on Thursday to revive an ailing euro zone economy, tying the hands of his successor for years to come and sparking an immediate conflict with U.S. President Donald Trump... More »

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ECB’s tiered rate is cold comfort for euro zone banks

FRANKFURT (Reuters) – The European Central Bank is giving euro zone banks a small reprieve from a penalty charge on their idle cash but this is likely to prove too little, too late for a sector hurt by years of low interest rates. In its latest bid to shield t... More »

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Highlights: Draghi comments at ECB press conference

FRANKFURT (Reuters) – The European Central Bank approved a fresh stimulus package as expected on Thursday, cutting interest rates and approving a new round of bond purchases to prop up euro zone growth and halt a worrisome drop in inflation expectations. Follo... More »

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ECB cuts key rate, to restart bond purchases

FRANKFURT (Reuters) – The European Central Bank approved a fresh stimulus package as expected on Thursday, cutting interest rates and approving a new round of bond purchases to prop up euro zone growth and halt a worrisome drop in inflation expectations. The E... More »

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ECB gives banks relief from penalty rate with tiered system

FRANKFURT (Reuters) – Euro zone banks will be exempted from paying the European Central Bank a penalty charge on idle cash worth six times their mandatory reserves, the ECB said on Thursday. “This decision aims to support the bank-based transmission of monetar... More »

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ECB Draghi: Euro area economy in period of ‘protracted weakness’

FRANKFURT (Reuters) – European Central Bank President Mario Draghi said on Thursday that the euro zone economy was in a period of “protracted” economic weakness, with inflation staying low and the balance of risks tilted toward the downside. “Incoming informat... More »

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Merkel still sees every chance of orderly Brexit

BERLIN (Reuters) – German Chancellor Angela Merkel said on Wednesday there was still every chance for Britain’s divorce from the European Union to take place with a deal although Berlin is prepared for a disorderly Brexit in case that does not happen. British ... More »

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Market weighs risk of negative U.S. Treasury yields

(Reuters) – Traders and analysts are considering whether U.S. bond yields would fall below zero as a record amount around the world sank into negative territory this week. The question has become a talking point, and less hypothetical, this week as the U.S. 30... More »

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Lagarde to rely on political skill to overcome shortcomings at ECB

FRANKFURT (Reuters) – A shrewd negotiator who has run the IMF but has little monetary policy experience, Christine Lagarde will face the challenge as the European Central Bank’s new chief of having to revive the euro zone economy with a largely depleted policy... More »

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Euro zone lending steady, money supply growth picks up: ECB

FRANKFURT (Reuters) – Euro zone lending growth held steady in May while a broader money supply indicator, which often foreshadows future activity, grew faster than expected, data showed on Monday, easing pressure on the European Central Bank to provide more st... More »

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Bulgaria hopes to join euro zone ‘waiting room’ by year-end

SOFIA (Reuters) – Bulgaria hopes to join the precursor to euro zone membership, the ERM-2 exchange rate mechanism before year-end, Finance Minister Vladislav Goranov said on Wednesday, pushing back Sofia’s initial target of joining this summer. The Balkan coun... More »

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Euro zone bank profitability may weaken on slowdown: ECB

FRANKFURT (Reuters) – Profitability across the euro zone bank sector is low and weakening growth could further dampen the sector’s prospects, European Central Bank Vice President Luis de Guindos said on Tuesday. Negative ECB rates are not the cause of the weak... More »

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Mini-bill plan creates fissures within Italy’s League

MILAN (Reuters) – A controversial plan for Italy to issue so-called mini-bills to settle overdue state payments is opening cracks within the country’s ruling League party, after a prominent party official on Sunday dismissed it as “unrealistic.” Mini-bills, or... More »

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World bonds wave recession flags as future inflation evaporates

LONDON (Reuters) – After almost three years of successfully predicting a global economic revival, world bond markets are furiously flagging the risk of yet another recession, as well as low inflation for a generation. Spooked by the escalating U.S.-China trade... More »

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Dollar stalls near one-month high after Fed minutes

NEW YORK (Reuters) – The U.S. dollar held near a one-month high on Wednesday after minutes from the May Federal Open Market Committee meeting showed officials agreed that their current patient approach to setting monetary policy could remain in place “for some... More »

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Euro zone banking at risk of dangerous fragmentation, ECB warns

FRANKFURT (Reuters) – Euro zone banks are turning away from cross-border activity, putting at risk the bloc’s banking union and raising the risk of dangerous fragmentation, European Central Bank Vice President Luis de Guindos said on Thursday. With national ru... More »

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New round of U.S. tariffs a ‘modest’ hit for euro area: ECB

FRANKFURT (Reuters) – A new round of tariffs between the United States and its main partners would only cause a “modest decrease” in the pace of economic growth in the euro zone, according to research by the European Central Bank. The study simulated a two-way... More »

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ECB model suggests euro zone growth could slow further: sources

WASHINGTON (Reuters) – An internal European Central Bank model indicates the euro zone’s economic growth could slow further in the second quarter, suggesting the projected recovery may be delayed even further, two sources familiar with the discussion said on F... More »

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ECB’s Coeure says financial risks from no-deal Brexit are limited

BUCHAREST (Reuters) – The European Central Bank considers that risks to the euro zone financial stability from a no-deal Brexit are “limited” and have been broadly addressed, ECB board member Benoit Coeure said on Friday. But he repeated the ECB’s call on fina... More »

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With eye on Deutsche-Commerzbank, EU sends too big to fail warning

BRUSSELS (Reuters) – Euro zone banking watchdogs said banks planning mergers should make sure they could be wound down in a crisis, a warning likely to resonate with executives seeking to merge German giants Deutsche Bank and Commerzbank. The two lenders confi... More »

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ECB papers over euro zone cracks with more bank loans

FRANKFURT (Reuters) – The European Central Bank’s fourth round of cheap long-term loans targeted at banks may steer euro zone lenders away from a cliff edge in funding. But it is a symptom of, rather than a cure for, the bloc’s economic malaise that appears to... More »